PHILADELPHIA, Aug. 3, 2021 /PRNewswire/ --
Second Quarter 2021 Highlights
- Revenue of $1.2 billion, an
increase of 8 percent versus Q2 2020 and up 4 percent
organically1
- Consolidated GAAP net income of $203
million, up 10 percent versus Q2 2020
- Adjusted EBITDA of $347 million,
up 2 percent versus Q2 2020
- Consolidated GAAP earnings of $1.56 per diluted share, up 11 percent versus Q2
2020
- Consolidated adjusted earnings per diluted share of
$1.81, up 5 percent versus Q2
2020
- Share repurchases of $25
million
Full-Year Outlook2
- Maintains revenue forecast in the range of $4.9 to $5.1
billion, reflecting 8 percent growth at the midpoint versus
2020
- Lowers adjusted EBITDA forecast to a range of $1.29 to $1.35
billion, reflecting 6 percent growth at the midpoint versus
2020, driven by accelerating costs
- Updates 2021 adjusted earnings forecast to a range of
$6.54 to $6.94 per diluted share, reflecting 9 percent
growth at the midpoint versus 2020, excluding any impact from
future share repurchases
- Updates free cash flow forecast to a range of $480 to $570
million, reflecting a 4 percent decline at the midpoint
versus 2020
- Expects to repurchase $350 to
$450 million of FMC shares in
2021
FMC Corporation (NYSE: FMC) today reported second quarter 2021
revenue of $1.2 billion, an
increase of 8 percent versus second quarter 2020. Excluding a
tailwind from foreign currencies, revenue increased 4 percent
organically. On a GAAP basis, the company reported earnings of
$1.56 per diluted share in
the second quarter, an increase of 11 percent versus second
quarter 2020. Second quarter adjusted earnings were $1.81 per diluted share, an increase of 5
percent versus second quarter 2020.
Second Quarter
Adjusted EPS versus Q2 2020
|
+9
cents
|
EBITDA
|
+5 cents
|
Depreciation and
amortization
|
-2 cents
|
Interest
expense
|
+5 cents
|
Share count
|
+1 cent
|
"FMC's second quarter financial results were driven by robust
volume growth in all regions outside of EMEA, reflecting the
strength of our underlying business, especially the significant
contribution of new product launches," said Mark Douglas, FMC president and chief executive
officer.
The second quarter revenue growth was driven by a 4 percent
volume increase and a 4 percent FX tailwind. In Latin America, revenue increased 15 percent
(up 12 percent organically), driven by strong insecticide and
fungicide demand buoyed by favorable commodity prices and a slight
benefit from FX. Asia grew revenue
20 percent (up 13 percent organically) driven by the strength of
our insecticide portfolio, particularly for India and Australia, and FX tailwinds. Sales in EMEA
grew 3 percent (down 3 percent organically) driven by demand for
our diamides and herbicides and FX tailwinds, offset largely by
unfavorable weather early in the quarter and discontinued
registrations. In North America,
sales decreased 7 percent (down 8 percent organically), reflecting
the year-over-year impact of a shift in volume demand by geography
from our global diamide partnerships. Excluding revenue from
the global partnerships, the region grew more than 20 percent.
FMC
Revenue
|
Q2
2021
|
Organic
Change
|
4%
|
FX Impact
|
4%
|
Total Revenue
Change
|
8%
|
|
|
FMC second quarter adjusted EBITDA was $347 million, an increase of 2 percent from the
prior-year period. This increase was driven primarily by volume
gains, largely offset by accelerating increases in costs of goods
sold.
2021 Outlook2
The company continues to forecast full-year 2021 revenue to be
in the range of $4.9 billion to
$5.1 billion, driven by growth in
Asia, Latin America and North America, representing an 8 percent
increase at the midpoint versus 2020. The revenue growth will
be driven primarily by volume, as well as price increases and a
modest FX tailwind. Full-year adjusted EBITDA is expected to
be in the range of $1.29 billion to
$1.35 billion, representing a 6
percent year-over-year growth at the midpoint. This is a reduction
of $50 million EBITDA at the midpoint
versus our previous forecast due to the continued increase of raw
materials, packaging, and logistics costs, which more than offset
the increased volume outlook for the year. 2021 adjusted earnings
are now expected to be in the range of $6.54 to $6.94 per
diluted share, representing a year-over-year increase of 9 percent
at the midpoint. This is a decrease of 31 cents at the midpoint versus prior guidance,
reflecting the lower EBITDA guidance.
Full-year earnings growth drivers include strong volume growth
led by Asia, Latin America and North America.
Full-year free cash flow is expected to be $480 to $570
million, and the company expects to repurchase $350 to $450
million of FMC shares in 2021, including the $100 million of shares repurchased in the first
half of the year. Both forecasts are reduced $50 million from prior guidance due to the lower
EBITDA forecast.
Third and Fourth Quarter Outlook2
Third quarter revenue is expected to be in the range of
$1.13 billion to $1.22 billion, representing a 8 percent increase
at the midpoint compared to third quarter 2020, and organic growth
of 7 percent excluding foreign currency tailwinds. Adjusted EBITDA
is forecasted to be in the range of $262
million to $288 million,
representing a 5 percent increase at the midpoint versus Q3 2020.
FMC expects adjusted earnings per diluted share to be in the range
of $1.23 to $1.39 in the third quarter, which is an increase
of 7 percent at the midpoint versus Q3 2020.
Fourth quarter revenue is expected to be in the range of
$1.33 billion to $1.44 billion, representing a 20 percent increase
at the midpoint compared to fourth quarter 2020, with no FX impact
expected. Adjusted EBITDA is forecasted to be in the range of
$374 million to $408 million, representing a 35 percent increase
at the midpoint versus Q4 2020. FMC expects adjusted earnings per
diluted share to be in the range of $1.96 to $2.20 in
the fourth quarter, which represents growth of 46 percent at the
midpoint versus Q4 2020.
"We are experiencing significant headwinds from escalating costs
of raw materials, freight, packaging as well as lingering impacts
from supply chain disruptions, which we expect to continue
throughout the remainder of the year. However, strong volume growth
driven by new products and solid market fundamentals will allow us
to continue growing revenue and earnings well ahead of last year
and the market in 2021," said Douglas.
|
Full Year
Outlook
|
Q3 2021
Outlook
|
Q4 2021
Outlook
|
Revenue
|
$4.9 to $5.1
billion
|
$1.13 to $1.22
billion
|
$1.33 to $1.44
billion
|
Organic
Growth
|
7%
|
7%
|
20%
|
Estimated FX
Impact
|
1%
|
1%
|
0%
|
Growth at midpoint
vs. 2020
|
8%
|
8%
|
20%
|
Adjusted
EBITDA
|
$1.29 to $1.35
billion
|
$262 to $288
million
|
$374 to $408
billion
|
Growth at midpoint
vs. 2020
|
6%
|
5%
|
35%
|
Adjusted
EPS^
|
$6.54 to
$6.94
|
$1.23 to
$1.39
|
$1.96 to
$2.20
|
Growth at midpoint
vs. 2020
|
9%
|
7%
|
46%
|
^ EPS estimates
assume 130 million diluted shares. Outlook for EPS and weighted
average diluted shares outstanding (WADSO) does not include the
impact of any share repurchases that are expected in Q3 and Q4
2021
|
Supplemental Information
The company will post supplemental information on the web at
https://investors.fmc.com, including its webcast slides for
tomorrow's earnings call, definitions of non-GAAP terms and
reconciliations of non-GAAP figures to the nearest available GAAP
term.
About FMC
FMC Corporation is a global agricultural sciences company
dedicated to helping growers produce food, feed, fiber and fuel for
an expanding world population while adapting to a changing
environment. FMC's innovative crop protection solutions – including
biologicals, crop nutrition, digital and precision agriculture –
enable growers, crop advisers and turf and pest management
professionals to address their toughest challenges economically
without compromising safety or the environment. With approximately
6,400 employees at more than 100 sites worldwide, FMC is committed
to discovering new herbicide, insecticide and fungicide active
ingredients, product formulations and pioneering technologies that
are consistently better for the planet. Visit fmc.com to learn
more and follow us on LinkedIn® and
Twitter®.
Statement under the Safe Harbor Provisions of the Private
Securities Litigation Reform Act of 1995: FMC and its
representatives may from time to time make written or oral
statements that are "forward-looking" and provide other than
historical information, including statements contained in this
press release, in FMC's other filings with the SEC, and in reports
or letters to FMC stockholders.
In some cases, FMC has identified forward-looking statements
by such words or phrases as "will likely result," "is confident
that," "expect," "expects," "should," "could," "may," "will
continue to," "believe," "believes," "anticipates," "predicts,"
"forecasts," "estimates," "projects," "potential," "intends" or
similar expressions identifying "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995, including the negative of those words and phrases. Such
forward-looking statements are based on management's current views
and assumptions regarding future events, future business conditions
and the outlook for the company based on currently available
information. These statements involve known and unknown risks,
uncertainties and other factors that may cause actual results to be
materially different from any results, levels of activity,
performance or achievements expressed or implied by any
forward-looking statement. Currently, one of the most significant
factors is the potential adverse effect of the current COVID-19
pandemic on the financial condition, results of operations, cash
flows and performance of FMC, which is substantially influenced by
the potential adverse effect of the pandemic on FMC's customers and
suppliers and the global economy and financial markets. The extent
to which COVID-19 impacts us will depend on future developments,
which are highly uncertain and cannot be predicted with confidence,
including the scope, severity and duration of the pandemic, the
actions taken to contain the pandemic or mitigate its impact, and
the direct and indirect economic effects of the pandemic and
containment measures, among others. Additional factors
include, among other things, the risk factors included within FMC's
2020 Form 10-K filed with the SEC. Moreover, investors are
cautioned to interpret many of these factors as being heightened as
a result of the ongoing and numerous adverse impacts of the
COVID-19 pandemic.
FMC cautions readers not to place undue reliance on any such
forward-looking statements, which speak only as of the date made.
Forward-looking statements are qualified in their entirety by the
above cautionary statement. FMC undertakes no obligation, and
specifically disclaims any duty, to update or revise any
forward-looking statements to reflect events or circumstances
arising after the date on which they were made, except as otherwise
required by law.
This press release contains certain "non-GAAP financial
terms" which are defined on our website https://investors.fmc.com.
In addition, we have also provided on our website reconciliations
of non-GAAP terms to the most directly comparable GAAP
term.
- Organic revenue growth (non-GAAP) excludes the impact of
foreign currency changes.
- Although we provide forecasts for adjusted earnings per share,
adjusted EBITDA and free cash flow (non-GAAP financial measures),
we are not able to forecast the most directly comparable measures
calculated and presented in accordance with GAAP. Certain elements
of the composition of the GAAP amounts are not predictable, making
it impractical for us to forecast. Such elements include, but are
not limited to, restructuring, acquisition charges, and
discontinued operations. As a result, no GAAP outlook is
provided.
FMC
CORPORATION
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(Unaudited, in
millions, except per share amounts)
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Revenue
|
$
|
1,242.0
|
|
|
$
|
1,155.3
|
|
|
$
|
2,437.6
|
|
|
$
|
2,405.3
|
|
Costs of sales and
services
|
710.2
|
|
|
632.6
|
|
|
1,393.4
|
|
|
1,321.1
|
|
Gross
margin
|
$
|
531.8
|
|
|
$
|
522.7
|
|
|
$
|
1,044.2
|
|
|
$
|
1,084.2
|
|
Selling, general and
administrative expenses
|
161.0
|
|
|
171.0
|
|
|
335.5
|
|
|
360.4
|
|
Research and
development expenses
|
65.9
|
|
|
64.3
|
|
|
139.9
|
|
|
131.6
|
|
Restructuring and
other charges (income)
|
16.3
|
|
|
19.5
|
|
|
19.5
|
|
|
32.9
|
|
Total costs and
expenses
|
$
|
953.4
|
|
|
$
|
887.4
|
|
|
$
|
1,888.3
|
|
|
$
|
1,846.0
|
|
Income from
continuing operations before non-operating pension and
postretirement charges (income), interest expense, net and income
taxes
|
$
|
288.6
|
|
|
$
|
267.9
|
|
|
$
|
549.3
|
|
|
$
|
559.3
|
|
Non-operating pension
and postretirement charges (income)
|
4.8
|
|
|
2.2
|
|
|
9.6
|
|
|
4.4
|
|
Interest expense,
net
|
32.6
|
|
|
40.7
|
|
|
65.0
|
|
|
81.5
|
|
Income (loss) from
continuing operations before income taxes
|
$
|
251.2
|
|
|
$
|
225.0
|
|
|
$
|
474.7
|
|
|
$
|
473.4
|
|
Provision (benefit)
for income taxes
|
33.4
|
|
|
29.2
|
|
|
65.6
|
|
|
63.9
|
|
Income (loss) from
continuing operations
|
$
|
217.8
|
|
|
$
|
195.8
|
|
|
$
|
409.1
|
|
|
$
|
409.5
|
|
Discontinued
operations, net of income taxes
|
(14.6)
|
|
|
(10.8)
|
|
|
(22.7)
|
|
|
(18.3)
|
|
Net income
(loss)
|
$
|
203.2
|
|
|
$
|
185.0
|
|
|
$
|
386.4
|
|
|
$
|
391.2
|
|
Less: Net income
(loss) attributable to noncontrolling interests
|
0.3
|
|
|
0.6
|
|
|
0.9
|
|
|
0.6
|
|
Net income (loss)
attributable to FMC stockholders
|
$
|
202.9
|
|
|
$
|
184.4
|
|
|
$
|
385.5
|
|
|
$
|
390.6
|
|
Amounts
attributable to FMC stockholders:
|
|
|
|
|
|
|
|
Income (loss)
from continuing operations
|
$
|
217.5
|
|
|
$
|
195.2
|
|
|
$
|
408.2
|
|
|
$
|
408.9
|
|
Discontinued
operations, net of tax
|
(14.6)
|
|
|
(10.8)
|
|
|
(22.7)
|
|
|
(18.3)
|
|
Net income
(loss)
|
$
|
202.9
|
|
|
$
|
184.4
|
|
|
$
|
385.5
|
|
|
$
|
390.6
|
|
Basic earnings
(loss) per common share attributable to FMC
stockholders:
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
1.68
|
|
|
$
|
1.50
|
|
|
$
|
3.15
|
|
|
$
|
3.15
|
|
Discontinued
operations
|
(0.11)
|
|
|
(0.08)
|
|
|
(0.18)
|
|
|
(0.14)
|
|
Basic
earnings per common share
|
$
|
1.57
|
|
|
$
|
1.42
|
|
|
$
|
2.97
|
|
|
$
|
3.01
|
|
Average number of
shares outstanding used in basic earnings per share
computations
|
129.1
|
|
|
129.7
|
|
|
129.3
|
|
|
129.6
|
|
Diluted earnings
(loss) per common share attributable to FMC
stockholders:
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
1.67
|
|
|
$
|
1.49
|
|
|
$
|
3.14
|
|
|
$
|
3.13
|
|
Discontinued
operations
|
(0.11)
|
|
|
(0.08)
|
|
|
(0.17)
|
|
|
(0.14)
|
|
Diluted
earnings per common share
|
$
|
1.56
|
|
|
$
|
1.41
|
|
|
$
|
2.97
|
|
|
$
|
2.99
|
|
Average number of
shares outstanding used in diluted earnings per share
computations
|
129.9
|
|
|
130.6
|
|
|
130.1
|
|
|
130.5
|
|
|
|
|
|
|
|
|
|
Other
Data:
|
|
|
|
|
|
|
|
Capital additions and
other investing activities
|
$
|
27.0
|
|
|
$
|
19.2
|
|
|
$
|
65.9
|
|
|
$
|
43.8
|
|
Depreciation and
amortization expense
|
42.5
|
|
|
40.1
|
|
|
85.1
|
|
|
79.2
|
|
FMC
CORPORATION
RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES
|
|
RECONCILIATION OF
NET INCOME (LOSS) ATTRIBUTABLE TO FMC STOCKHOLDERS (GAAP) TO
ADJUSTED AFTER-TAX EARNINGS FROM CONTINUING OPERATIONS,
ATTRIBUTABLE TO FMC STOCKHOLDERS (NON-GAAP)
|
|
(Unaudited, in
millions, except per share amounts)
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net income (loss)
attributable to FMC stockholders (GAAP)
|
$
|
202.9
|
|
|
$
|
184.4
|
|
|
$
|
385.5
|
|
|
$
|
390.6
|
|
Corporate special
charges (income):
|
|
|
|
|
|
|
|
Restructuring and
other charges (income) (a)
|
16.3
|
|
|
19.5
|
|
|
19.5
|
|
|
32.9
|
|
Non-operating pension
and postretirement charges (income) (b)
|
4.8
|
|
|
2.2
|
|
|
9.6
|
|
|
4.4
|
|
Transaction-related
charges (c)
|
—
|
|
|
13.0
|
|
|
0.4
|
|
|
26.0
|
|
Income tax expense
(benefit) on Corporate special charges (income)
(d)
|
(4.7)
|
|
|
(5.9)
|
|
|
(6.3)
|
|
|
(10.8)
|
|
Discontinued
operations attributable to FMC stockholders, net of income taxes
(e)
|
14.6
|
|
|
10.8
|
|
|
22.7
|
|
|
18.3
|
|
Tax adjustment
(f)
|
1.3
|
|
|
—
|
|
|
3.8
|
|
|
2.2
|
|
Adjusted after-tax
earnings from continuing operations attributable to FMC
stockholders (Non-GAAP) (1)
|
$
|
235.2
|
|
|
$
|
224.0
|
|
|
$
|
435.2
|
|
|
$
|
463.6
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
common share (GAAP)
|
$
|
1.56
|
|
|
$
|
1.41
|
|
|
$
|
2.97
|
|
|
$
|
2.99
|
|
Corporate special
charges (income) per diluted share, before tax:
|
|
|
|
|
|
|
|
Restructuring and
other charges (income)
|
0.13
|
|
|
0.15
|
|
|
0.15
|
|
|
0.25
|
|
Non-operating pension
and postretirement charges (income)
|
0.04
|
|
|
0.02
|
|
|
0.08
|
|
|
0.03
|
|
Transaction-related
charges
|
—
|
|
|
0.10
|
|
|
—
|
|
|
0.20
|
|
Income tax expense
(benefit) on Corporate special charges (income), per diluted
share
|
(0.04)
|
|
|
(0.04)
|
|
|
(0.05)
|
|
|
(0.08)
|
|
Discontinued
operations attributable to FMC stockholders, net of income taxes
per
diluted share
|
0.11
|
|
|
0.08
|
|
|
0.17
|
|
|
0.14
|
|
Tax adjustments per
diluted share
|
0.01
|
|
|
—
|
|
|
0.03
|
|
|
0.02
|
|
Diluted adjusted
after-tax earnings from continuing operations per share,
attributable to FMC stockholders (Non-GAAP)
|
$
|
1.81
|
|
|
$
|
1.72
|
|
|
$
|
3.35
|
|
|
$
|
3.55
|
|
|
|
|
|
|
|
|
|
Average number of
shares outstanding used in diluted adjusted after-tax earnings
from
continuing operations per share computations
|
129.9
|
|
|
130.6
|
|
|
130.1
|
|
|
130.5
|
|
____________________
|
(1)
|
The Company believes
that the Non-GAAP financial measure "Adjusted after-tax earnings
from continuing operations attributable to FMC stockholders" and
its presentation on a per share basis provides useful information
about the Company's operating results to management, investors, and
securities analysts. Adjusted earnings excludes the effects of
corporate special charges, tax-related adjustments and the results
of our discontinued operations. The Company also believes that
excluding the effects of these items from operating results allows
management and investors to compare more easily the financial
performance of its underlying business from period to
period.
|
|
|
(a)
|
Three Months Ended
June 30, 2021:
|
|
|
|
Restructuring and
other charges (income) is primarily comprised of costs related to
regional realignment activities, primarily the move of our European
headquarters, including severance and employee relocation costs, of
$7.2 million. Restructuring and other charges (income) also
includes charges associated with certain in-flight restructuring
programs from the integration of the DuPont Crop Protection
Business, including severance, accelerated depreciation on certain
fixed assets, and other costs of $1.7 million. These charges are
also comprised of severance and restructuring charges of $1.6
million from other restructuring programs, as well as environmental
sites of $3.7 million and other charges of $2.1 million.
|
|
|
|
Three Months Ended
June 30, 2020:
|
|
|
|
Restructuring and
other charges (income) is comprised of charges associated with the
integration of the DuPont Crop Protection Business. These charges
include severance, accelerated depreciation on certain fixed
assets, and other costs of $16.2 million. The remaining
restructuring and other charges (income) includes charges of
environmental sites of $3.3 million.
|
|
|
|
Six Months Ended
June 30, 2021:
|
|
|
|
Restructuring and
other charges (income) is comprised of costs related to regional
realignment activities, primarily the move of our European
headquarters, including severance and employee relocation costs, of
$7.9 million. Restructuring and other charges (income) also
includes charges associated with certain in-flight restructuring
programs from the integration of the DuPont Crop Protection
Business, including severance, accelerated depreciation on certain
fixed assets, and other costs of $5.0 million. These charges are
also comprised of severance and restructuring charges of $3.9
million from other restructuring programs, as well as environmental
sites and other charges of $2.7 million.
|
|
|
|
Six Months Ended
June 30, 2020:
|
|
|
|
Restructuring and
other charges (income) is primarily comprised of charges associated
with the integration of the DuPont Crop Protection Business. These
charges include severance, accelerated depreciation on certain
fixed assets, and other costs of $23.2 million. The remaining
restructuring and other charges (income) primarily includes charges
of environmental sites of $9.7 million.
|
|
|
(b)
|
Our non-operating
pension and postretirement charges (income) are defined as those
costs (benefits) related to interest, expected return on plan
assets, amortized actuarial gains and losses and the impacts of any
plan curtailments or settlements. These are excluded from our
Adjusted Earnings and are primarily related to changes in pension
plan assets and liabilities which are tied to financial market
performance and we consider these costs to be outside our
operational performance. We continue to include the service cost
and amortization of prior service cost in our Adjusted Earnings
results noted above. These elements reflect the current year
operating costs to our businesses for the employment benefits
provided to active employees.
|
|
|
(c)
|
Charges related to
legal and professional fees associated with acquisition activities.
We completed the integration of the DuPont Crop Protection Business
as of June 30, 2020, except for the completion of certain in-flight
initiatives, primarily associated with the finalization of our
worldwide ERP system. The transition services agreement is now
terminated and the last phase of the ERP system transition went
live in November 2020 with a stabilization period that ended in the
first quarter of 2021.
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
(in
Millions)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
DuPont Crop
Protection Business Acquisition
|
|
|
|
|
|
|
|
Legal and professional
fees (1)
|
$
|
—
|
|
|
$
|
13.0
|
|
|
$
|
0.4
|
|
|
$
|
26.0
|
|
Total
Transaction-related charges
|
$
|
—
|
|
|
$
|
13.0
|
|
|
$
|
0.4
|
|
|
$
|
26.0
|
|
____________________
|
|
(1)
|
Represents
transaction costs, costs for transitional employees, other acquired
employees related costs, and transactional-related costs such as
legal and professional third-party fees. These charges are recorded
as a component of "Selling, general and administrative expense" on
the condensed consolidated statements of income (loss).
|
|
|
|
(d)
|
The income tax
expense (benefit) on Corporate special charges (income) is
determined using the applicable rates in the taxing jurisdictions
in which the corporate special charge or income occurred and
includes both current and deferred income tax expense (benefit)
based on the nature of the non-GAAP performance measure.
|
|
|
(e)
|
Three and Six
Months Ended June 30, 2021 and 2020
|
|
|
|
Discontinued
operations includes provisions, net of recoveries, for
environmental liabilities and legal reserves and expenses related
to previously discontinued operations and retained
liabilities.
|
|
|
(f)
|
We exclude the GAAP
tax provision, including discrete items, from the Non-GAAP measure
of income, and include a Non-GAAP tax provision based upon the
projected annual Non-GAAP effective tax rate. The GAAP tax
provision includes certain discrete tax items including, but are
not limited to: income tax expenses or benefits that are not
related to continuing operating results in the current year; tax
adjustments associated with fluctuations in foreign currency
remeasurement of certain foreign operations; certain changes in
estimates of tax matters related to prior fiscal years; certain
changes in the realizability of deferred tax assets and related
interim accounting impacts; and changes in tax law. Management
believes excluding these discrete tax items assists investors and
securities analysts in understanding the tax provision and the
effective tax rate related to continuing operating results thereby
providing investors with useful supplemental information about
FMC's operational performance.
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
(in
Millions)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Non-GAAP tax
adjustments
|
|
|
|
|
|
|
|
Revisions to valuation
allowances of historical
deferred tax assets
|
$
|
0.4
|
|
|
$
|
—
|
|
|
$
|
0.5
|
|
|
$
|
(0.4)
|
|
Foreign currency
remeasurement and other discrete
items
|
0.9
|
|
|
—
|
|
|
3.3
|
|
|
2.6
|
|
Total Non-GAAP tax
adjustments
|
$
|
1.3
|
|
|
$
|
—
|
|
|
$
|
3.8
|
|
|
$
|
2.2
|
|
RECONCILIATION OF
NET INCOME (LOSS) (GAAP) TO ADJUSTED EARNINGS FROM CONTINUING
OPERATIONS, BEFORE INTEREST, INCOME TAXES, DEPRECIATION AND
AMORTIZATION, AND NONCONTROLLING INTERESTS
(NON-GAAP)
(Unaudited, in
millions)
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net income (loss)
(GAAP)
|
$
|
203.2
|
|
|
$
|
185.0
|
|
|
$
|
386.4
|
|
|
$
|
391.2
|
|
Restructuring and
other charges (income)
|
16.3
|
|
|
19.5
|
|
|
19.5
|
|
|
32.9
|
|
Non-operating pension
and postretirement charges (income)
|
4.8
|
|
|
2.2
|
|
|
9.6
|
|
|
4.4
|
|
Transaction-related
charges
|
—
|
|
|
13.0
|
|
|
0.4
|
|
|
26.0
|
|
Discontinued
operations, net of income taxes
|
14.6
|
|
|
10.8
|
|
|
22.7
|
|
|
18.3
|
|
Interest expense,
net
|
32.6
|
|
|
40.7
|
|
|
65.0
|
|
|
81.5
|
|
Depreciation and
amortization
|
42.5
|
|
|
40.1
|
|
|
85.1
|
|
|
79.2
|
|
Provision (benefit)
for income taxes
|
33.4
|
|
|
29.2
|
|
|
65.6
|
|
|
63.9
|
|
Adjusted earnings
from continuing operations, before interest, income taxes,
depreciation and amortization, and noncontrolling interests
(Non-GAAP) (1)
|
$
|
347.4
|
|
|
$
|
340.5
|
|
|
$
|
654.3
|
|
|
$
|
697.4
|
|
___________________
|
(1)
|
Referred to as
Adjusted EBITDA. Defined as operating profit excluding corporate
special charges (income) and depreciation and amortization
expense.
|
RECONCILIATION OF
CASH PROVIDED (REQUIRED) BY OPERATING ACTIVITIES OF CONTINUING
OPERATIONS (GAAP) TO FREE CASH FLOW (NON-GAAP)
(Unaudited, in
millions)
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Cash provided
(required) by operating activities of continuing
operations (GAAP)(1)
|
$
|
254.7
|
|
|
$
|
260.5
|
|
|
$
|
(39.4)
|
|
|
$
|
(48.4)
|
|
Transaction and
integration costs
|
1.3
|
|
|
17.0
|
|
|
5.8
|
|
|
39.5
|
|
Adjusted cash from
operations (2)
|
$
|
256.0
|
|
|
$
|
277.5
|
|
|
$
|
(33.6)
|
|
|
$
|
(8.9)
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
(21.9)
|
|
|
(7.7)
|
|
|
(46.9)
|
|
|
(23.2)
|
|
Other investing
activities
|
(5.1)
|
|
|
(11.5)
|
|
|
(19.0)
|
|
|
(20.6)
|
|
Capital additions
and other investing activities
|
$
|
(27.0)
|
|
|
$
|
(19.2)
|
|
|
$
|
(65.9)
|
|
|
$
|
(43.8)
|
|
|
|
|
|
|
|
|
|
Cash provided
(required) by operating activities of discontinued
operations
|
(23.5)
|
|
|
(25.9)
|
|
|
(32.4)
|
|
|
(45.3)
|
|
Cash provided
(required) by investing activities of discontinued
operations
|
—
|
|
|
1.1
|
|
|
—
|
|
|
1.1
|
|
Transaction and
integration costs
|
(1.3)
|
|
|
(17.0)
|
|
|
(5.8)
|
|
|
(39.5)
|
|
Investment in
Enterprise Resource Planning system
|
(0.5)
|
|
|
(12.0)
|
|
|
(12.7)
|
|
|
(30.6)
|
|
Legacy and
transformation
|
$
|
(25.3)
|
|
|
$
|
(53.8)
|
|
|
$
|
(50.9)
|
|
|
$
|
(114.3)
|
|
|
|
|
|
|
|
|
|
Free cash flow
(Non-GAAP) (3)
|
$
|
203.7
|
|
|
$
|
204.5
|
|
|
$
|
(150.4)
|
|
|
$
|
(167.0)
|
|
___________________
|
(1)
|
The cash provided
(required) by operating activities for the three months ended June
30, 2021 and 2020 is the calculation of the six months ended June
30, 2021 and 2020 less the previously reported three months ended
March 31, 2021 and 2020, respectively.
|
(2)
|
Adjusted cash from
operations is defined as cash provided (required) by operating
activities of continuing operations excluding the effects of
transaction-related cash flows.
|
(3)
|
Free cash flow is
defined as Adjusted cash from operations reduced by spending for
capital additions and other investing activities as well as legacy
and transformation spending. We believe that this Non-GAAP
financial measure provides a useful basis for investors and
securities analysts about the cash generated by routine business
operations, including capital expenditures, in addition to
assessing our ability to repay debt, fund acquisitions and return
capital to shareholders through share repurchases and dividends.
Our use of free cash flow has limitations as an analytical tool and
should not be considered in isolation or as a substitute for an
analysis of our results under U.S. GAAP.
|
RECONCILIATION OF
REVENUE CHANGE (GAAP) TO
ORGANIC REVENUE
CHANGE (NON-GAAP) (1)
(Unaudited)
|
|
|
Three Months
Ended
June 30, 2021 vs. 2020
|
|
Six Months
Ended
June 30, 2021 vs. 2020
|
Total Revenue
Change (GAAP)
|
8
|
%
|
|
1
|
%
|
Less: Foreign Currency
Impact
|
4
|
%
|
|
2
|
%
|
Organic Revenue
Change (Non-GAAP)
|
4
|
%
|
|
(1)
|
%
|
|
|
Full Year
Outlook
|
|
Q3 2021
Outlook
|
Projected Total
Revenue Change at Midpoint (GAAP)
|
8
|
%
|
|
8
|
%
|
Less: Estimated
Foreign Currency Impact
|
1
|
%
|
|
1
|
%
|
Projected Organic
Revenue Change (Non-GAAP)
|
7
|
%
|
|
7
|
%
|
___________________
|
(1) We believe
organic revenue growth (non-GAAP) provides management and investors
with useful supplemental information regarding our on going revenue
performance and trends by presenting revenue growth excluding the
impact of fluctuations in foreign exchange rates.
|
FMC
CORPORATION
CONDENSED
CONSOLIDATED BALANCE SHEETS
(Unaudited, in
millions)
|
|
|
June 30,
2021
|
|
December 31,
2020
|
Cash and cash
equivalents
|
$
|
728.5
|
|
|
$
|
568.9
|
|
Trade receivables,
net of allowance of $32.6 in 2021 and $27.9 in 2020
|
2,627.3
|
|
|
2,330.3
|
|
Inventories
|
1,398.1
|
|
|
1,095.6
|
|
Prepaid and other
current assets
|
443.4
|
|
|
380.8
|
|
Total current
assets
|
$
|
5,197.3
|
|
|
$
|
4,375.6
|
|
|
|
|
|
Property, plant and
equipment, net
|
776.7
|
|
|
771.7
|
|
Goodwill
|
1,465.6
|
|
|
1,468.9
|
|
Other intangibles,
net
|
2,574.8
|
|
|
2,625.2
|
|
Deferred income
taxes
|
227.9
|
|
|
229.6
|
|
Other long-term
assets
|
699.8
|
|
|
715.4
|
|
Total
assets
|
$
|
10,942.1
|
|
|
$
|
10,186.4
|
|
|
|
|
|
Short-term debt and
current portion of long-term debt
|
$
|
1,185.8
|
|
|
$
|
338.3
|
|
Accounts payable,
trade and other
|
1,158.0
|
|
|
946.7
|
|
Advanced payments
from customers
|
2.8
|
|
|
347.1
|
|
Accrued and other
liabilities
|
623.8
|
|
|
674.7
|
|
Accrued customer
rebates
|
601.5
|
|
|
295.2
|
|
Guarantees of vendor
financing
|
170.0
|
|
|
140.6
|
|
Accrued pensions and
other postretirement benefits, current
|
4.2
|
|
|
4.2
|
|
Income
taxes
|
95.4
|
|
|
82.2
|
|
Total current
liabilities
|
$
|
3,841.5
|
|
|
$
|
2,829.0
|
|
|
|
|
|
Long-term debt, less
current portion
|
$
|
2,630.8
|
|
|
$
|
2,929.5
|
|
Long-term
liabilities
|
1,335.7
|
|
|
1,443.7
|
|
Equity
|
3,134.1
|
|
|
2,984.2
|
|
Total liabilities
and equity
|
$
|
10,942.1
|
|
|
$
|
10,186.4
|
|
FMC
CORPORATION
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in
millions)
|
|
|
Six Months Ended
June 30,
|
|
2021
|
|
2020
|
Cash provided
(required) by operating activities of continuing
operations
|
$
|
(39.4)
|
|
|
$
|
(48.4)
|
|
|
|
|
|
Cash provided
(required) by operating activities of discontinued
operations
|
(32.4)
|
|
|
(45.3)
|
|
|
|
|
|
Cash provided
(required) by investing activities of continuing
operations
|
(81.2)
|
|
|
(74.4)
|
|
|
|
|
|
Cash provided
(required) by investing activities of discontinued
operations
|
—
|
|
|
1.1
|
|
|
|
|
|
Cash provided
(required) by financing activities of continuing
operations
|
315.9
|
|
|
174.9
|
|
|
|
|
|
Effect of exchange
rate changes on cash
|
(3.3)
|
|
|
(4.3)
|
|
Increase (decrease)
in cash and cash equivalents
|
$
|
159.6
|
|
|
$
|
3.6
|
|
|
|
|
|
Cash and cash
equivalents of continuing operations, beginning of
period
|
$
|
568.9
|
|
|
$
|
339.1
|
|
Cash and cash
equivalents of discontinued operations
|
—
|
|
|
—
|
|
|
|
|
|
Cash and cash
equivalents, beginning of period
|
$
|
568.9
|
|
|
$
|
339.1
|
|
Less: cash and cash
equivalent of discontinued operations, end of period
|
—
|
|
|
—
|
|
|
|
|
|
Cash and cash
equivalents, end of period
|
$
|
728.5
|
|
|
$
|
342.7
|
|
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SOURCE FMC Corporation