LEHIGH VALLEY, Pa.,
Nov. 4, 2021 /PRNewswire/ --
Fiscal 2021 (comparisons versus prior year):
- GAAP EPS of $9.12, up seven
percent; GAAP net income of $2,115
million, up 10 percent; and GAAP net income margin of 20.5
percent, down 130 basis points.
- Adjusted EPS* of $9.02, up eight
percent; adjusted EBITDA* of $3,883
million, up seven percent; and adjusted EBITDA margin* of
37.6 percent, down 330 basis points.
Q4 FY21 (comparisons versus prior year):
- GAAP EPS of $2.51, up 15 percent;
GAAP net income of $619 million, up
25 percent; and GAAP net income margin of 21.8 percent, up 50
basis points.
- Adjusted EPS* of $2.51, up 15
percent; adjusted EBITDA* of $1,041
million, up 11 percent; and adjusted EBITDA margin* of 36.6
percent, down 380 basis points.
Fiscal 2021 and Recent Highlights
- Increased quarterly dividend 12 percent to $1.50 per share, the 39th consecutive year of
increases.
- Recognized for sustainability performance by EcoVadis, Barron's
100 Most Sustainable Companies, 100 Best Corporate Citizens, Human
Rights Campaign Foundation's 2021 Corporate Equality Index, and Dow
Jones Sustainability Index North America, among others. As a
signatory to the CEO Action for Diversity & Inclusion™ and in
keeping with Air Products' goal to be the most diverse industrial
gas company in the world, hosted Day of Understanding/Week of
Inclusion, underpinning company's announced diversity, inclusion
and belonging goals.
- Completed asset acquisition and project financing transactions
for the ~$12 billion air separation
unit/gasification/power joint venture with Aramco, ACWA Power and
Air Products Qudra in Jazan Economic City, Saudi Arabia.
- Announced landmark net-zero hydrogen energy complex in
Edmonton, Alberta, Canada, setting
the stage for Air Products to operate the most competitive and
lowest-carbon-intensity hydrogen network in the world. The
facility's combination of advanced hydrogen reforming technology,
carbon capture and storage, and hydrogen-fueled electricity
generation makes net-zero possible.
- Announced $4.5 billion
world-scale clean energy complex in Louisiana, helping to advance the U.S. clean
energy transition. Air Products will build, own and operate the
megaproject, which will produce over 750 million standard cubic
feet per day of blue hydrogen for local and global markets when
operational in 2026. This megaproject will also capture and
permanently sequester over five million metric tons per year of
carbon dioxide, making it the largest carbon capture for
sequestration facility in the world.
Guidance
- Fiscal 2022 full-year adjusted EPS guidance* of
$10.20 to $10.40, up 13 to 15 percent over prior year
adjusted EPS*; fiscal 2022 first quarter adjusted EPS guidance* of
$2.45 to $2.55, up 16 to 20 percent over prior year
first quarter adjusted EPS*.
- Expect fiscal year 2022 capital expenditures* of $4.5 to 5.0 billion.
#Earnings per share is calculated and
presented on a diluted basis from continuing operations
attributable to Air Products.
*Certain results in this release, including in the highlights
above, include references to non-GAAP financial measures on a
consolidated, continuing operations basis and a segment basis.
Additional information regarding these measures and reconciliations
of GAAP to non-GAAP historical results can be found below. In
addition, as discussed below, it is not possible, without
unreasonable efforts, to identify the timing or occurrence of
events and transactions that could significantly impact future GAAP
EPS or cash flow used for investing activities if they were to
occur.
Air Products (NYSE:APD) today reported fiscal year 2021 results,
including GAAP EPS from continuing operations of $9.12, up seven percent over prior year, and GAAP
net income of $2,115 million, up 10
percent over prior year due to favorable pricing, currencies,
equity affiliate income, and a discontinued operations related tax
reserve release, partially offset by higher costs to support
growth. GAAP net income margin of 20.5 percent was down 130 basis
points, including higher energy cost pass-through, which negatively
impacted margin by about 100 basis points.
For the year, on a non-GAAP basis, adjusted EPS from continuing
operations of $9.02 increased eight
percent over the prior year, and adjusted EBITDA of $3,883 million was up seven percent over the
prior year, as favorable pricing, currencies, and equity affiliate
income more than offset higher costs to support growth. Adjusted
EBITDA margin of 37.6 percent decreased 330 basis points, primarily
due to higher energy cost pass-through, which negatively impacted
margin by about 200 basis points.
Full-year sales of $10.3 billion
increased 17 percent over the prior year, on six percent higher
energy pass-through, five percent higher volumes, four percent
favorable currency, and two percent higher pricing. Volume growth
was primarily driven by the EMEA and Global Gases segments, and
pricing improved in all three regions and across most major product
lines.
Fiscal Fourth Quarter Results (Q4FY21)
For its fiscal fourth quarter 2021, Air Products reported GAAP
EPS from continuing operations of $2.51, up 15 percent over prior year, and GAAP
net income of $619 million, up 25
percent over prior year, as favorable volume, pricing, currencies,
equity affiliate income, and a discontinued operations related tax
reserve release more than offset higher costs. GAAP net income
margin of 21.8 percent was up 50 basis points over prior year,
primarily due to higher energy cost pass-through, which negatively
impacted margin by about 150 basis points.
For the quarter, on a non-GAAP basis, adjusted EPS from
continuing operations of $2.51 was up
15 percent over prior year, and adjusted EBITDA of $1,041 million was up 11 percent over prior year
due to favorable volume, pricing, currencies, and equity affiliate
income, partially offset by higher costs. Adjusted EBITDA margin of
36.6 percent was down 380 basis points versus prior year, primarily
due to higher energy cost pass-through, which negatively impacted
margin by about 300 basis points.
Fourth quarter sales of $2,841
million increased 22 percent on nine percent higher volumes,
eight percent higher energy cost pass-through, three percent higher
pricing and two percent favorable currency. Volume growth from
improved hydrogen and merchant demand and new assets more than
offset reduced contributions from the Lu'An facility in
China. Pricing again improved in
all three regions.
Commenting on the results, Air Products' Chairman, President and
Chief Executive Officer Seifi
Ghasemi said, "The committed, dedicated and motivated team
at Air Products proved once again that they can deliver results now
while developing and executing megaprojects for profitable growth
in the future. We delivered excellent results for the year, despite
significant external challenges. We announced significant projects
across our core gasification, carbon capture and hydrogen growth
platforms, including the net-zero hydrogen facility in Alberta, Canada and the massive blue hydrogen
project in Louisiana, while also
closing on the $12 billion Jazan
acquisition. I remain very optimistic about the future of Air
Products."
Fiscal Fourth Quarter Results by Business
Segment
- Industrial Gases - Americas sales of $1,115 million were up 22 percent over the prior
year on 15 percent higher energy cost pass-through, four percent
higher pricing, and three percent higher volumes, driven primarily
by hydrogen and merchant demand. Operating income of $290 million increased 22 percent on higher
volumes, pricing and lower maintenance costs; adjusted EBITDA of
$476 million increased 16 percent on
these same factors as well as higher equity affiliate income.
Operating margin of 26.0 percent decreased 20 basis points, as an
approximately 300 basis point negative impact from higher energy
cost pass-through was largely offset by lower costs and favorable
pricing. Adjusted EBITDA margin of 42.7 percent decreased 230 basis
points, as an approximately 550 basis point negative impact from
higher energy cost pass-through was partially offset by lower costs
and higher equity affiliate income.
- Industrial Gases - EMEA sales of $674 million increased 33 percent over the prior
year on 14 percent higher volumes, driven primarily by hydrogen and
merchant demand and new assets; 12 percent higher energy cost
pass-through; four percent higher pricing; and three percent
favorable currency. Operating income of $136 million increased 11 percent on higher
volumes, pricing and favorable currency, partially offset by energy
cost escalation during the quarter; adjusted EBITDA of $229 million increased 14 percent on these same
factors as well as higher equity affiliate income. Operating margin
of 20.2 percent decreased 420 basis points, with higher energy cost
pass-through accounting for about 200 basis points of the decline.
Adjusted EBITDA margin of 34.0 percent decreased 560 basis points,
with higher energy cost pass-through accounting for approximately
400 basis points of the decline.
- Industrial Gases - Asia sales of $754 million increased six percent over the prior
year on five percent favorable currency and one percent higher
pricing. Volumes were flat, with new plants offsetting reduced
contributions from Lu'An. Operating income of $206 million decreased two percent as favorable
pricing and currency were more than offset by higher costs, and
operating margin of 27.3 percent decreased 220 basis points.
Adjusted EBITDA of $341 million
increased three percent as favorable pricing and currency more than
offset higher costs. Adjusted EBITDA margin of 45.3 percent
decreased 100 basis points.
Outlook
Air Products expects full-year fiscal 2022 adjusted EPS guidance
of $10.20 to $10.40, up 13 to 15 percent over prior year
adjusted EPS. For the fiscal 2022 first quarter, Air Products'
adjusted EPS guidance is $2.45 to
$2.55, up 16 to 20 percent over
fiscal 2021 first quarter adjusted EPS.
Air Products expects capital expenditures of $4.5 to $5.0
billion for full-year fiscal 2022.
Management has provided adjusted EPS guidance on a continuing
operations basis, which excludes the impact of certain items that
we believe are not representative of our underlying business
performance, such as the incurrence of additional costs for cost
reduction actions and impairment charges, or the recognition of
gains or losses on disclosed items. It is not possible, without
unreasonable efforts, to predict the timing or occurrence of these
events or the potential for other transactions that may impact
future GAAP EPS or the effective tax rate. Furthermore, it is not
possible to identify the potential significance of these events in
advance, but any of these events, if they were to occur, could have
a significant effect on our future GAAP EPS. Management therefore
is unable to reconcile, without unreasonable effort, the Company's
forecasted range of adjusted EPS and effective tax rate to a
comparable GAAP range.
Earnings Teleconference
Access the Q4 earnings teleconference scheduled for 11:00 a.m. Eastern Time on November 4, 2021
by calling 323-794-2588 and entering passcode 1560168 or access the
Event Details page on Air Products' Investor Relations website.
About Air Products
Air Products (NYSE:APD) is a world-leading industrial gases
company in operation for 80 years. Focused on serving energy,
environment and emerging markets, the Company provides essential
industrial gases, related equipment and applications expertise to
customers in dozens of industries, including refining,
chemical, metals, electronics, manufacturing, and food and
beverage. Air Products is also the global leader in the supply of
liquefied natural gas process technology and equipment. The Company
develops, engineers, builds, owns and operates some of the world's
largest industrial gas projects, including: gasification projects
that sustainably convert abundant natural resources into syngas for
the production of high-value power, fuels and chemicals; carbon
capture projects; and world-scale carbon-free hydrogen projects
supporting global transportation and the energy transition.
The Company had fiscal 2021 sales of $10.3 billion from operations in over 50
countries and has a current market capitalization of about
$65 billion. More than 20,000
passionate, talented and committed employees from diverse
backgrounds are driven by Air Products' higher purpose to create
innovative solutions that benefit the environment, enhance
sustainability and address the challenges facing customers,
communities, and the world. For more information, visit
www.airproducts.com or follow us on LinkedIn, Twitter, Facebook or
Instagram.
Cautionary Note Regarding Forward-Looking Statements
This release contains "forward-looking statements" within the
safe harbor provisions of the Private Securities Litigation Reform
Act of 1995, including statements about earnings and capital
expenditure guidance, business outlook and investment
opportunities. Forward-looking statements are based on management's
expectations and assumptions as of the date of this release and are
not guarantees of future performance. While forward-looking
statements are made in good faith and based on assumptions,
expectations and projections that management believes are
reasonable based on currently available information, actual
performance and financial results may differ materially from
projections and estimates expressed in the forward-looking
statements because of many factors, including, without limitation:
the duration and impacts of the COVID-19 global pandemic and
efforts to contain its transmission, including the effect of these
factors on our business, our customers, economic conditions and
markets generally; changes in global or regional economic
conditions, inflation and supply and demand dynamics in market
segments we serve, or in the financial markets that may affect the
availability and terms on which we may obtain financing; the
ability to implement price increases to offset cost increases,
risks associated with having extensive international operations,
including political risks, risks associated with unanticipated
government actions and risks of investing in developing markets;
project delays, contract terminations, customer cancellations or
postponement of projects and sales; future financial and operating
performance of major customers and joint venture partners; our
ability to develop, implement, and operate new technologies; our
ability to execute the projects in our backlog; our ability to
develop, operate and manage costs of large scale and technically
complex projects, including gasification projects; tariffs,
economic sanctions and regulatory activities in jurisdictions in
which we and our affiliates and joint ventures operate; the impact
of environmental, tax or other legislation, as well as regulations
affecting our business and related compliance requirements,
including legislation or regulations related to global climate
change; changes in tax rates and other changes in tax law; the
timing, impact and other uncertainties relating to acquisitions and
divestitures, including our ability to integrate acquisitions and
separate divested businesses, respectively; risks relating to
cybersecurity incidents, including risks from the interruption,
failure or compromise of our information systems; catastrophic
events, such as natural disasters and extreme weather events,
public health crises, acts of war, or terrorism; the impact on our
business and customers of price fluctuations in oil and natural gas
and disruptions in markets and the economy due to oil and natural
gas price volatility; costs and outcomes of legal or regulatory
proceedings and investigations; asset impairments due to economic
conditions or specific events; significant fluctuations in interest
rates and foreign currency exchange rates from those currently
anticipated; damage to facilities, pipelines or delivery systems,
including those we own or operate for third parties; availability
and cost of electric power, natural gas and other raw materials;
the success of productivity and operational improvement programs;
and other risks described in our Annual Report on Form 10-K for the
fiscal year ended September 30, 2020
and subsequent filings we have made with the U.S. Securities and
Exchange Commission. You are cautioned not to place undue reliance
on our forward-looking statements. Except as required by law, we
disclaim any obligation or undertaking to update or revise any
forward-looking statements contained herein to reflect any change
in the assumptions, beliefs, or expectations or any change in
events, conditions, or circumstances upon which any such
forward-looking statements are based.
AIR PRODUCTS AND
CHEMICALS, INC. and Subsidiaries
|
CONSOLIDATED
INCOME STATEMENTS
|
(Unaudited)
|
|
|
Three Months Ended
|
Twelve Months
Ended
|
|
30
September
|
30
September
|
(Millions of
dollars, except for share and per share data)
|
2021
|
2020
|
2021
|
2020
|
Sales
|
$2,841.1
|
|
$2,320.1
|
|
$10,323.0
|
|
$8,856.3
|
|
Cost of
sales
|
2,006.3
|
|
1,566.5
|
|
7,186.1
|
|
5,858.1
|
|
Facility
closure
|
—
|
|
—
|
|
23.2
|
|
—
|
|
Selling and
administrative
|
202.1
|
|
195.6
|
|
828.4
|
|
775.9
|
|
Research and
development
|
25.7
|
|
27.1
|
|
93.5
|
|
83.9
|
|
Gain on exchange with
joint venture partner
|
—
|
|
—
|
|
36.8
|
|
—
|
|
Company headquarters
relocation income (expense)
|
—
|
|
—
|
|
—
|
|
33.8
|
|
Other income
(expense), net
|
9.7
|
|
29.3
|
|
52.8
|
|
65.4
|
|
Operating
Income
|
616.7
|
|
560.2
|
|
2,281.4
|
|
2,237.6
|
|
Equity affiliates'
income
|
91.8
|
|
67.2
|
|
294.1
|
|
264.8
|
|
Interest
expense
|
33.4
|
|
39.2
|
|
141.8
|
|
109.3
|
|
Other non-operating
income (expense), net
|
17.2
|
|
6.4
|
|
73.7
|
|
30.7
|
|
Income From
Continuing Operations Before Taxes
|
692.3
|
|
594.6
|
|
2,507.4
|
|
2,423.8
|
|
Income tax
provision
|
125.3
|
|
99.9
|
|
462.8
|
|
478.4
|
|
Income From
Continuing Operations
|
567.0
|
|
494.7
|
|
2,044.6
|
|
1,945.4
|
|
Income (Loss) from
discontinued operations, net of tax
|
51.8
|
|
—
|
|
70.3
|
|
(14.3)
|
|
Net
Income
|
618.8
|
|
494.7
|
|
2,114.9
|
|
1,931.1
|
|
Net income
attributable to noncontrolling interests of continuing
operations
|
8.4
|
|
7.9
|
|
15.8
|
|
44.4
|
|
Net Income
Attributable to Air Products
|
$610.4
|
|
$486.8
|
|
$2,099.1
|
|
$1,886.7
|
|
|
|
|
|
|
Net Income
Attributable to Air Products
|
|
|
|
|
Net income from
continuing operations
|
$558.6
|
|
$486.8
|
|
$2,028.8
|
|
$1,901.0
|
|
Net income (loss)
from discontinued operations
|
51.8
|
|
—
|
|
70.3
|
|
(14.3)
|
|
Net Income
Attributable to Air Products
|
$610.4
|
|
$486.8
|
|
$2,099.1
|
|
$1,886.7
|
|
|
|
|
|
|
Per Share
Data*
|
|
|
|
|
Basic EPS from
continuing operations
|
$2.52
|
|
$2.20
|
|
$9.16
|
|
$8.59
|
|
Basic EPS from
discontinued operations
|
0.23
|
|
—
|
|
0.32
|
|
(0.06)
|
|
Basic EPS
Attributable to Air Products
|
$2.75
|
|
$2.20
|
|
$9.47
|
|
$8.53
|
|
Diluted EPS from
continuing operations
|
$2.51
|
|
$2.19
|
|
$9.12
|
|
$8.55
|
|
Diluted EPS from
discontinued operations
|
0.23
|
|
—
|
|
0.32
|
|
(0.06)
|
|
Diluted EPS
Attributable to Air Products
|
$2.74
|
|
$2.19
|
|
$9.43
|
|
$8.49
|
|
|
|
|
|
|
Weighted Average
Common Shares (in millions)
|
|
|
|
|
Basic
|
221.7
|
|
221.3
|
|
221.6
|
|
221.2
|
|
Diluted
|
222.5
|
|
222.6
|
|
222.5
|
|
222.3
|
|
|
*Earnings per share
("EPS") is calculated independently for each component and may not
sum to total EPS due to rounding.
|
AIR PRODUCTS AND
CHEMICALS, INC. and Subsidiaries
|
CONSOLIDATED
BALANCE SHEETS
|
(Unaudited)
|
|
|
30
September
|
30
September
|
(Millions of
dollars)
|
2021
|
2020
|
Assets
|
|
|
Current
Assets
|
|
|
Cash and cash
items
|
$4,468.9
|
|
$5,253.0
|
|
Short-term
investments
|
1,331.9
|
|
1,104.9
|
|
Trade receivables,
net
|
1,451.3
|
|
1,274.8
|
|
Inventories
|
453.9
|
|
404.8
|
|
Prepaid
expenses
|
119.4
|
|
164.5
|
|
Other receivables and
current assets
|
550.9
|
|
482.9
|
|
Total Current
Assets
|
8,376.3
|
|
8,684.9
|
|
Investment in net
assets of and advances to equity affiliates
|
1,649.3
|
|
1,432.2
|
|
Plant and equipment,
at cost
|
27,488.8
|
|
25,176.2
|
|
Less: accumulated
depreciation
|
14,234.2
|
|
13,211.5
|
|
Plant and equipment,
net
|
13,254.6
|
|
11,964.7
|
|
Goodwill,
net
|
911.5
|
|
891.5
|
|
Intangible assets,
net
|
420.7
|
|
435.8
|
|
Noncurrent lease
receivables
|
740.3
|
|
816.3
|
|
Other noncurrent
assets
|
1,506.5
|
|
943.1
|
|
Total Noncurrent
Assets
|
18,482.9
|
|
16,483.6
|
|
Total
Assets
|
$26,859.2
|
|
$25,168.5
|
|
Liabilities and
Equity
|
|
|
Current
Liabilities
|
|
|
Payables and accrued
liabilities
|
$2,218.3
|
|
$1,833.2
|
|
Accrued income
taxes
|
93.9
|
|
105.8
|
|
Short-term
borrowings
|
2.4
|
|
7.7
|
|
Current portion of
long-term debt
|
484.5
|
|
470.0
|
|
Total Current
Liabilities
|
2,799.1
|
|
2,416.7
|
|
Long-term
debt
|
6,875.7
|
|
7,132.9
|
|
Long-term debt –
related party
|
274.6
|
|
297.2
|
|
Other noncurrent
liabilities
|
1,640.9
|
|
1,916.0
|
|
Deferred income
taxes
|
1,180.9
|
|
962.6
|
|
Total Noncurrent
Liabilities
|
9,972.1
|
|
10,308.7
|
|
Total
Liabilities
|
12,771.2
|
|
12,725.4
|
|
Air Products
Shareholders' Equity
|
13,539.7
|
|
12,079.8
|
|
Noncontrolling
Interests
|
548.3
|
|
363.3
|
|
Total
Equity
|
14,088.0
|
|
12,443.1
|
|
Total Liabilities
and Equity
|
$26,859.2
|
|
$25,168.5
|
|
AIR PRODUCTS
AND CHEMICALS, INC. and Subsidiaries
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
|
|
Twelve Months
Ended
|
|
30
September
|
(Millions of
dollars)
|
2021
|
2020
|
Operating
Activities
|
|
|
Net income
|
$2,114.9
|
|
$1,931.1
|
|
Less: Net income
attributable to noncontrolling interest of continuing
operations
|
15.8
|
|
44.4
|
|
Net income
attributable to Air Products
|
2,099.1
|
|
1,886.7
|
|
(Income) Loss from
discontinued operations
|
(70.3)
|
|
14.3
|
|
Income from
continuing operations attributable to Air Products
|
2,028.8
|
|
1,901.0
|
|
Adjustments to
reconcile income to cash provided by operating
activities:
|
|
|
Depreciation and
amortization
|
1,321.3
|
|
1,185.0
|
|
Deferred income
taxes
|
94.0
|
|
165.0
|
|
Facility
closure
|
23.2
|
|
—
|
|
Undistributed earnings
of equity method investments
|
(138.2)
|
|
(161.9)
|
|
Gain on sale of assets
and investments
|
(37.2)
|
|
(45.8)
|
|
Share-based
compensation
|
44.5
|
|
53.5
|
|
Noncurrent lease
receivables
|
98.8
|
|
91.6
|
|
Other
adjustments
|
(116.7)
|
|
116.4
|
|
Working capital
changes that provided (used) cash, excluding effects of
acquisitions:
|
|
|
Trade
receivables
|
(130.5)
|
|
43.2
|
|
Inventories
|
(47.2)
|
|
(5.2)
|
|
Other
receivables
|
75.5
|
|
84.4
|
|
Payables and accrued
liabilities
|
187.9
|
|
(31.9)
|
|
Other working
capital
|
(69.0)
|
|
(130.6)
|
|
Cash Provided by
Operating Activities
|
3,335.2
|
|
3,264.7
|
|
Investing
Activities
|
|
|
Additions to plant
and equipment, including long-term deposits
|
(2,464.2)
|
|
(2,509.0)
|
|
Acquisitions, less
cash acquired
|
(10.5)
|
|
(183.3)
|
|
Investment in and
advances to unconsolidated affiliates
|
(76.0)
|
|
(24.4)
|
|
Proceeds from sale of
assets and investments
|
37.5
|
|
80.3
|
|
Purchases of
investments
|
(2,100.7)
|
|
(2,865.5)
|
|
Proceeds from
investments
|
1,875.2
|
|
1,938.0
|
|
Other investing
activities
|
5.8
|
|
3.9
|
|
Cash Used for
Investing Activities
|
(2,732.9)
|
|
(3,560.0)
|
|
Financing
Activities
|
|
|
Long-term debt
proceeds
|
178.9
|
|
4,895.8
|
|
Payments on long-term
debt
|
(462.9)
|
|
(406.6)
|
|
Net increase
(decrease) in commercial paper and short-term borrowings
|
1.0
|
|
(54.9)
|
|
Dividends paid to
shareholders
|
(1,256.7)
|
|
(1,103.6)
|
|
Proceeds from stock
option exercises
|
10.6
|
|
34.1
|
|
Investments by
noncontrolling interests
|
136.6
|
|
17.1
|
|
Other financing
activities
|
(28.4)
|
|
(97.2)
|
|
Cash (Used for)
Provided by Financing Activities
|
(1,420.9)
|
|
3,284.7
|
|
Discontinued
Operations
|
|
|
Cash provided by
operating activities
|
6.7
|
|
—
|
|
Cash provided by
investing activities
|
—
|
|
—
|
|
Cash provided by
financing activities
|
—
|
|
—
|
|
Cash Provided by
Discontinued Operations
|
6.7
|
|
—
|
|
Effect of Exchange
Rate Changes on Cash
|
27.8
|
|
14.9
|
|
(Decrease) Increase
in cash and cash items
|
(784.1)
|
|
3,004.3
|
|
Cash and cash items –
Beginning of year
|
5,253.0
|
|
2,248.7
|
|
Cash and Cash
Items – End of Period
|
$4,468.9
|
|
$5,253.0
|
|
Supplemental Cash
Flow Information
|
|
|
Cash paid for taxes,
net of refunds (continuing operations)
|
$390.5
|
|
$379.9
|
|
AIR PRODUCTS AND
CHEMICALS, INC. and Subsidiaries
|
SUMMARY BY
BUSINESS SEGMENTS
|
(Unaudited)
|
|
(Millions of
dollars)
|
Industrial
Gases –
Americas
|
Industrial
Gases –
EMEA
|
Industrial
Gases –
Asia
|
Industrial
Gases –
Global
|
Corporate
and other
|
Total
|
|
Three Months Ended
30 September 2021
|
Sales
|
$1,115.2
|
|
$674.0
|
|
$754.0
|
|
$209.5
|
|
$88.4
|
|
$2,841.1
|
|
|
Operating income
(loss)
|
290.3
|
|
136.2
|
|
205.9
|
|
3.7
|
|
(19.4)
|
|
616.7
|
|
(A)
|
Depreciation and
amortization
|
152.6
|
|
58.1
|
|
113.0
|
|
2.8
|
|
6.1
|
|
332.6
|
|
|
Equity affiliates'
income
|
33.3
|
|
34.9
|
|
22.5
|
|
1.1
|
|
—
|
|
91.8
|
|
(A)
|
Three Months Ended
30 September 2020
|
Sales
|
$912.2
|
|
$505.2
|
|
$713.7
|
|
$115.4
|
|
$73.6
|
|
$2,320.1
|
|
|
Operating income
(loss)
|
238.9
|
|
123.1
|
|
210.8
|
|
(10.4)
|
|
(2.2)
|
|
560.2
|
|
(A)
|
Depreciation and
amortization
|
149.4
|
|
52.6
|
|
100.8
|
|
2.5
|
|
5.2
|
|
310.5
|
|
|
Equity affiliates'
income
|
22.2
|
|
24.6
|
|
18.6
|
|
1.8
|
|
—
|
|
67.2
|
|
(A)
|
|
|
|
|
|
|
|
|
|
|
Industrial
Gases –
Americas
|
Industrial
Gases –
EMEA
|
Industrial
Gases –
Asia
|
Industrial
Gases –
Global
|
Corporate
and other
|
Total
|
|
Twelve Months
Ended 30 September 2021
|
Sales
|
$4,167.6
|
|
$2,444.9
|
|
$2,920.8
|
|
$511.0
|
|
$278.7
|
|
$10,323.0
|
|
|
Operating income
(loss)
|
1,065.5
|
|
557.4
|
|
838.3
|
|
(60.6)
|
|
(132.8)
|
|
2,267.8
|
|
(A)
|
Depreciation and
amortization
|
611.9
|
|
229.8
|
|
444.4
|
|
10.9
|
|
24.3
|
|
1,321.3
|
|
|
Equity affiliates'
income
|
112.5
|
|
93.7
|
|
81.4
|
|
6.5
|
|
—
|
|
294.1
|
|
(A)
|
Twelve Months
Ended 30 September 2020
|
Sales
|
$3,630.7
|
|
$1,926.3
|
|
$2,716.5
|
|
$364.9
|
|
$217.9
|
|
$8,856.3
|
|
|
Operating income
(loss)
|
1,012.4
|
|
473.3
|
|
870.3
|
|
(40.0)
|
|
(112.2)
|
|
2,203.8
|
|
(A)
|
Depreciation and
amortization
|
559.5
|
|
195.9
|
|
399.4
|
|
9.6
|
|
20.6
|
|
1,185.0
|
|
|
Equity affiliates'
income
|
84.3
|
|
74.8
|
|
61.0
|
|
10.9
|
|
—
|
|
231.0
|
|
(A)
|
|
|
|
|
|
|
|
|
Total
Assets
|
|
|
|
|
|
|
|
30 September
2021
|
$7,092.5
|
|
$4,353.2
|
|
$7,627.1
|
|
$648.4
|
|
$7,138.0
|
|
$26,859.2
|
|
|
30 September
2020
|
6,610.1
|
|
3,917.0
|
|
6,842.9
|
|
397.8
|
|
7,400.7
|
|
25,168.5
|
|
|
|
(A)
Refer to the Reconciliations to Consolidated Results section
below.
|
Reconciliations to Consolidated Results
The table below reconciles total operating income disclosed in
the table above to consolidated operating income as reflected on
our consolidated income statements:
|
Three Months
Ended
|
Twelve Months
Ended
|
|
30
September
|
30
September
|
Operating
Income
|
2021
|
2020
|
2021
|
2020
|
Total
|
$616.7
|
|
$560.2
|
|
$2,267.8
|
|
$2,203.8
|
|
Facility
closure
|
—
|
|
—
|
|
(23.2)
|
|
—
|
|
Gain on exchange with
joint venture partner
|
—
|
|
—
|
|
36.8
|
|
—
|
|
Company headquarters
relocation income (expense)
|
—
|
|
—
|
|
—
|
|
33.8
|
|
Consolidated
Operating Income
|
$616.7
|
|
$560.2
|
|
$2,281.4
|
|
$2,237.6
|
|
The table below reconciles total equity affiliates' income
disclosed in the table above to consolidated equity affiliates'
income as reflected on our consolidated income statements:
|
Three Months
Ended
|
Twelve Months
Ended
|
|
30
September
|
30
September
|
Equity Affiliates'
Income
|
2021
|
2020
|
2021
|
2020
|
Total
|
$91.8
|
|
$67.2
|
|
$294.1
|
|
$231.0
|
|
India Finance Act
2020
|
—
|
|
—
|
|
—
|
|
33.8
|
|
Consolidated
Equity Affiliates' Income
|
$91.8
|
|
$67.2
|
|
$294.1
|
|
$264.8
|
|
RECONCILIATIONS OF NON-GAAP FINANCIAL
MEASURES
(Millions of dollars unless otherwise indicated,
except for per share data)
We present certain financial measures, other than in accordance
with U.S. generally accepted accounting principles ("GAAP"), on an
"adjusted" or "non-GAAP" basis. On a consolidated basis, these
measures include adjusted diluted earnings per share ("EPS"),
adjusted EBITDA, adjusted EBITDA margin, adjusted effective tax
rate, and capital expenditures. On a segment basis, these measures
include adjusted EBITDA and adjusted EBITDA margin. In addition to
these measures, we also present certain supplemental non-GAAP
financial measures to help the reader understand the impact that
certain disclosed items, or "non-GAAP adjustments," have on the
calculation of our adjusted diluted EPS. For each non-GAAP
financial measure, we present a reconciliation to the most directly
comparable financial measure calculated in accordance with
GAAP.
Our non-GAAP financial measures are not meant to be considered
in isolation or as a substitute for the most directly comparable
measure calculated in accordance with GAAP. We believe these
non-GAAP financial measures provide investors, potential investors,
securities analysts, and others with useful information to evaluate
the performance of our business because such measures, when viewed
together with financial results computed in accordance with GAAP,
provide a more complete understanding of the factors and trends
affecting our historical financial performance and projected future
results.
In many cases, non-GAAP financial measures are determined by
adjusting the most directly comparable GAAP measure to exclude
non-GAAP adjustments that we believe are not representative of our
underlying business performance. For example, we previously
excluded certain expenses associated with cost reduction actions,
impairment charges, and gains on disclosed transactions. The reader
should be aware that we may recognize similar losses or gains in
the future. Readers should also consider the limitations associated
with these non-GAAP financial measures, including the potential
lack of comparability of these measures from one company to
another.
When applicable, the tax impact of our pre-tax non-GAAP
adjustments reflects the expected current and deferred income tax
impact of our non-GAAP adjustments. These tax impacts are primarily
driven by the statutory tax rate of the various relevant
jurisdictions and the taxability of the adjustments in those
jurisdictions.
NON-GAAP ADJUSTMENTS
There were no non-GAAP adjustments in the fourth quarters of
fiscal years 2021 and 2020. The non-GAAP adjustments for the
fiscal year ended 30 September 2021
are detailed below. For information related to non-GAAP adjustments
for the fiscal year ended 30 September
2020, refer to Exhibit 99.1 to our Current Report on Form
8-K dated 11 November 2020.
Facility Closure
In the second quarter of fiscal
year 2021, we recorded a charge of $23.2 ($17.4
after-tax, or $0.08 per share)
primarily for a noncash write-down of assets associated with a
contract termination in the Industrial Gases – Americas segment.
This charge is reflected as "Facility closure" on our consolidated
income statements for the twelve months ended 30 September 2021 and was not recorded in segment
results.
Gain On Exchange With Joint
Venture Partner
As of 30
September 2020, we held a 50% ownership interest in Tyczka
Industrie-Gases GmbH ("TIG"), a joint venture in Germany with the Tyczka Group that is
primarily a merchant gases business. We accounted for this
arrangement as an equity method investment in our Industrial Gases
– EMEA segment.
Effective 23 February 2021 (the "acquisition date"), we
agreed with our joint venture partner to separate TIG into two
separate businesses. On the acquisition date, we acquired a portion
of the business on a 100% basis, and our partner paid us
$10.8 to acquire the rest of the
business. The exchange resulted in a gain of $36.8 ($27.3
after-tax, or $0.12 per share), which
is reflected as "Gain on exchange with joint venture partner" on
our consolidated income statements for the twelve months ended
30 September 2021. The gain included
$12.7 from the revaluation of our
previously held equity interest in the portion of the business that
we retained and $24.1 from the sale
of our equity interest in the remaining business. The gain was not
recorded in segment results.
We accounted for the acquisition
as a business combination within our Industrial Gases – EMEA
segment. The results of this business did not materially impact our
consolidated income statements for the periods presented.
Tax Election Benefit And Other
In the third quarter of fiscal
year 2021, we recorded an income tax benefit of $12.2 ($0.05 per
share) upon release of tax reserves established in 2017 for a tax
election related to a non-U.S. subsidiary and other previously
disclosed items.
Discontinued Operations
Income from discontinued
operations, net of tax, was $70.3
($0.32 per share) for the twelve
months ended 30 September 2021. This
included net tax benefits of $60.0
recorded for the release of tax reserves for uncertain tax
positions, of which $51.8
($0.23 per share) was recorded in the
fourth quarter for liabilities associated with our former
Performance Materials Division ("PMD") and $8.2 was recorded in the third quarter for
liabilities associated with our former Energy-from-Waste business.
Additionally, we recorded a tax benefit from discontinued
operations of $10.3 in the first
quarter, primarily from the settlement of a state tax appeal
related to the gain on the sale of PMD in fiscal year 2017.
ADJUSTED DILUTED EPS
The table below provides a reconciliation to the most directly
comparable GAAP measure for each of the major components used to
calculate adjusted diluted EPS from continuing operations, which we
view as a key performance metric. In periods that we have non-GAAP
adjustments, we believe it is important for the reader to
understand the per share impact of each such adjustment because
management does not consider these impacts when evaluating
underlying business performance. The per share impact for each
non-GAAP adjustment was calculated independently and may not sum to
total adjusted diluted EPS due to rounding.
|
|
|
|
|
|
|
Three Months Ended 30
September
|
Q4 2021 vs. Q4
2020
|
Operating
Income
|
Equity
Affiliates'
Income
|
Income Tax
Provision
|
Net Income
Attributable
to
Air
Products
|
Diluted
EPS
|
2021 GAAP
|
$616.7
|
|
$91.8
|
|
$125.3
|
|
$558.6
|
|
$2.51
|
|
No non-GAAP
adjustments
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
2021 Non-GAAP
("Adjusted")
|
$616.7
|
|
$91.8
|
|
$125.3
|
|
$558.6
|
|
$2.51
|
|
|
|
|
|
|
|
2020 GAAP
|
$560.2
|
|
$67.2
|
|
$99.9
|
|
$486.8
|
|
$2.19
|
|
No non-GAAP
adjustments
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
2020 Non-GAAP
("Adjusted")
|
$560.2
|
|
$67.2
|
|
$99.9
|
|
$486.8
|
|
$2.19
|
|
Change GAAP and
Non-GAAP ("Adjusted")
|
|
|
|
|
$0.32
|
|
% Change GAAP and
Non-GAAP ("Adjusted")
|
|
|
|
|
15
|
%
|
|
|
|
|
|
|
|
Twelve Months Ended
30 September
|
2021 vs.
2020
|
Operating
Income
|
Equity
Affiliates'
Income
|
Income Tax
Provision
|
Net Income
Attributable
to
Air
Products
|
Diluted
EPS
|
2021 GAAP
|
$2,281.4
|
|
$294.1
|
|
$462.8
|
|
$2,028.8
|
|
$9.12
|
|
2020 GAAP
|
2,237.6
|
|
264.8
|
|
478.4
|
|
1,901.0
|
|
8.55
|
|
Change
GAAP
|
|
|
|
|
$0.57
|
|
% Change
GAAP
|
|
|
|
|
7
|
%
|
|
|
|
|
|
|
2021 GAAP
|
$2,281.4
|
|
$294.1
|
|
$462.8
|
|
$2,028.8
|
|
$9.12
|
|
Facility
closure
|
23.2
|
|
—
|
|
5.8
|
|
17.4
|
|
0.08
|
|
Gain on exchange with
joint venture partner
|
(36.8)
|
|
—
|
|
(9.5)
|
|
(27.3)
|
|
(0.12)
|
|
Tax election benefit
and other
|
—
|
|
—
|
|
12.2
|
|
(12.2)
|
|
(0.05)
|
|
2021 Non-GAAP
("Adjusted")
|
$2,267.8
|
|
$294.1
|
|
$471.3
|
|
$2,006.7
|
|
$9.02
|
|
|
|
|
|
|
|
2020 GAAP
|
$2,237.6
|
|
$264.8
|
|
$478.4
|
|
$1,901.0
|
|
$8.55
|
|
Company headquarters
relocation (income) expense
|
(33.8)
|
|
—
|
|
(8.2)
|
|
(25.6)
|
|
(0.12)
|
|
India Finance Act
2020
|
—
|
|
(33.8)
|
|
(20.3)
|
|
(13.5)
|
|
(0.06)
|
|
2020 Non-GAAP
("Adjusted")
|
$2,203.8
|
|
$231.0
|
|
$449.9
|
|
$1,861.9
|
|
$8.38
|
|
Change Non-GAAP
("Adjusted")
|
|
|
|
|
$0.64
|
|
% Change Non-GAAP
("Adjusted")
|
|
|
|
|
8
|
%
|
ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN
We define adjusted EBITDA as net income less income (loss) from
discontinued operations, net of tax, and excluding non-GAAP
adjustments, which we do not believe to be indicative of underlying
business trends, before interest expense, other non-operating
income (expense), net, income tax provision, and depreciation and
amortization expense. Adjusted EBITDA and adjusted EBITDA margin
provide useful metrics for management to assess operating
performance. Margins are calculated independently for each period
by dividing each line item by consolidated sales for the respective
period and may not sum to total margin due to rounding.
The tables below present consolidated sales and a reconciliation
of net income on a GAAP basis to adjusted EBITDA and net income
margin on a GAAP basis to adjusted EBITDA margin:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
FY2021
|
2021
|
$
|
Margin
|
|
$
|
Margin
|
|
$
|
Margin
|
|
$
|
Margin
|
|
$
|
Margin
|
Sales
|
$2,375.2
|
|
|
|
$2,502.0
|
|
|
|
$2,604.7
|
|
|
|
$2,841.1
|
|
|
|
$10,323.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income and net
income margin
|
$486.7
|
|
20.5
|
%
|
|
$477.1
|
|
19.1
|
%
|
|
$532.3
|
|
20.4
|
%
|
|
$618.8
|
|
21.8
|
%
|
|
$2,114.9
|
|
20.5
|
%
|
Less: Income from
discontinued operations, net of tax
|
10.3
|
|
0.4
|
%
|
|
—
|
|
—
|
%
|
|
8.2
|
|
0.3
|
%
|
|
51.8
|
|
1.8
|
%
|
|
70.3
|
|
0.7
|
%
|
Add: Interest
expense
|
36.7
|
|
1.5
|
%
|
|
36.1
|
|
1.4
|
%
|
|
35.6
|
|
1.4
|
%
|
|
33.4
|
|
1.2
|
%
|
|
141.8
|
|
1.4
|
%
|
Less: Other
non-operating income (expense), net
|
18.6
|
|
0.8
|
%
|
|
16.8
|
|
0.7
|
%
|
|
21.1
|
|
0.8
|
%
|
|
17.2
|
|
0.6
|
%
|
|
73.7
|
|
0.7
|
%
|
Add: Income tax
provision
|
113.9
|
|
4.8
|
%
|
|
121.9
|
|
4.9
|
%
|
|
101.7
|
|
3.9
|
%
|
|
125.3
|
|
4.4
|
%
|
|
462.8
|
|
4.5
|
%
|
Add: Depreciation and
amortization
|
323.7
|
|
13.6
|
%
|
|
329.3
|
|
13.2
|
%
|
|
335.7
|
|
12.9
|
%
|
|
332.6
|
|
11.7
|
%
|
|
1,321.3
|
|
12.8
|
%
|
Add: Facility
closure
|
—
|
|
—
|
%
|
|
23.2
|
|
0.9
|
%
|
|
—
|
|
—
|
%
|
|
—
|
|
—
|
%
|
|
23.2
|
|
0.2
|
%
|
Less: Gain on
exchange with joint venture partner
|
—
|
|
—
|
%
|
|
36.8
|
|
1.5
|
%
|
|
—
|
|
—
|
%
|
|
—
|
|
—
|
%
|
|
36.8
|
|
0.4
|
%
|
Adjusted EBITDA
and adjusted EBITDA margin
|
$932.1
|
|
39.2
|
%
|
|
$934.0
|
|
37.3
|
%
|
|
$976.0
|
|
37.5
|
%
|
|
$1,041.1
|
|
36.6
|
%
|
|
$3,883.2
|
|
37.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
FY2020
|
2020
|
$
|
Margin
|
|
$
|
Margin
|
|
$
|
Margin
|
|
$
|
Margin
|
|
$
|
Margin
|
Sales
|
$2,254.7
|
|
|
|
$2,216.3
|
|
|
|
$2,065.2
|
|
|
|
$2,320.1
|
|
|
|
$8,856.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income and net
income margin
|
$488.9
|
|
21.7
|
%
|
|
$490.4
|
|
22.1
|
%
|
|
$457.1
|
|
22.1
|
%
|
|
$494.7
|
|
21.3
|
%
|
|
$1,931.1
|
|
21.8
|
%
|
Less: Loss from
discontinued operations, net of tax
|
—
|
|
—
|
%
|
|
(14.3)
|
|
(0.6)
|
%
|
|
—
|
|
—
|
%
|
|
—
|
|
—
|
%
|
|
(14.3)
|
|
(0.2)
|
%
|
Add: Interest
expense
|
18.7
|
|
0.8
|
%
|
|
19.3
|
|
0.9
|
%
|
|
32.1
|
|
1.6
|
%
|
|
39.2
|
|
1.7
|
%
|
|
109.3
|
|
1.2
|
%
|
Less: Other
non-operating income (expense), net
|
9.1
|
|
0.4
|
%
|
|
7.1
|
|
0.3
|
%
|
|
8.1
|
|
0.4
|
%
|
|
6.4
|
|
0.3
|
%
|
|
30.7
|
|
0.3
|
%
|
Add: Income tax
provision
|
120.7
|
|
5.4
|
%
|
|
148.5
|
|
6.7
|
%
|
|
109.3
|
|
5.3
|
%
|
|
99.9
|
|
4.3
|
%
|
|
478.4
|
|
5.4
|
%
|
Add: Depreciation and
amortization
|
289.2
|
|
12.8
|
%
|
|
294.7
|
|
13.3
|
%
|
|
290.6
|
|
14.1
|
%
|
|
310.5
|
|
13.4
|
%
|
|
1,185.0
|
|
13.4
|
%
|
Less: Company
headquarters relocation income (expense)
|
—
|
|
—
|
%
|
|
33.8
|
|
1.5
|
%
|
|
—
|
|
—
|
%
|
|
—
|
|
—
|
%
|
|
33.8
|
|
0.4
|
%
|
Less: India Finance
Act 2020 - equity affiliate income impact
|
—
|
|
—
|
%
|
|
33.8
|
|
1.5
|
%
|
|
—
|
|
—
|
%
|
|
—
|
|
—
|
%
|
|
33.8
|
|
0.4
|
%
|
Adjusted EBITDA
and adjusted EBITDA margin
|
$908.4
|
|
40.3
|
%
|
|
$892.5
|
|
40.3
|
%
|
|
$881.0
|
|
42.7
|
%
|
|
$937.9
|
|
40.4
|
%
|
|
$3,619.8
|
|
40.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021 vs.
2020
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Total
|
Change
GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income $
change
|
($2.2)
|
|
($13.3)
|
|
$75.2
|
|
$124.1
|
|
$183.8
|
Net income %
change
|
—%
|
|
(3%)
|
|
16%
|
|
25%
|
|
10%
|
Net income margin
change
|
(120) bp
|
|
(300) bp
|
|
(170) bp
|
|
50 bp
|
|
(130) bp
|
Change
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA $
change
|
$23.7
|
|
$41.5
|
|
$95.0
|
|
$103.2
|
|
$263.4
|
Adjusted EBITDA %
change
|
3%
|
|
5%
|
|
11%
|
|
11%
|
|
7%
|
Adjusted EBITDA margin
change
|
(110) bp
|
|
(300) bp
|
|
(520) bp
|
|
(380) bp
|
|
(330) bp
|
The tables below present sales and a reconciliation of operating
income and operating margin to adjusted EBITDA and adjusted EBITDA
margin for each of our regional industrial gases segments for the
three months ended 30 September 2021
and 2020:
Sales
|
Industrial
Gases-
Americas
|
Industrial
Gases-
EMEA
|
Industrial
Gases-
Asia
|
Q4 2021
|
$1,115.2
|
|
$674.0
|
|
$754.0
|
|
Q4 2020
|
912.2
|
|
505.2
|
|
713.7
|
|
|
|
|
|
|
Industrial
Gases-
Americas
|
Industrial
Gases-
EMEA
|
Industrial
Gases-
Asia
|
Q4 2021
GAAP
|
|
|
|
Operating
income
|
$290.3
|
|
$136.2
|
|
$205.9
|
|
Operating
margin
|
26.0
|
%
|
20.2
|
%
|
27.3
|
%
|
Q4 2020
GAAP
|
|
|
|
Operating
income
|
$238.9
|
|
$123.1
|
|
$210.8
|
|
Operating
margin
|
26.2
|
%
|
24.4
|
%
|
29.5
|
%
|
Q4 2021 vs. Q4
2020 Change GAAP
|
|
|
|
Operating income $
change
|
$51.4
|
|
$13.1
|
|
($4.9)
|
|
Operating income %
change
|
22
|
%
|
11
|
%
|
(2)
|
%
|
Operating margin
change
|
(20)
|
bp
|
(420)
|
bp
|
(220)
|
bp
|
|
|
|
|
Q4 2021
Non-GAAP
|
|
|
|
Operating
income
|
$290.3
|
|
$136.2
|
|
$205.9
|
|
Add: Depreciation and
amortization
|
152.6
|
|
58.1
|
|
113.0
|
|
Add: Equity
affiliates' income
|
33.3
|
|
34.9
|
|
22.5
|
|
Adjusted
EBITDA
|
$476.2
|
|
$229.2
|
|
$341.4
|
|
Adjusted EBITDA
margin
|
42.7
|
%
|
34.0
|
%
|
45.3
|
%
|
Q4 2020
Non-GAAP
|
|
|
|
Operating
income
|
$238.9
|
|
$123.1
|
|
$210.8
|
|
Add: Depreciation and
amortization
|
149.4
|
|
52.6
|
|
100.8
|
|
Add: Equity
affiliates' income
|
22.2
|
|
24.6
|
|
18.6
|
|
Adjusted
EBITDA
|
$410.5
|
|
$200.3
|
|
$330.2
|
|
Adjusted EBITDA
margin
|
45.0
|
%
|
39.6
|
%
|
46.3
|
%
|
Q4 2021 vs. Q4
2020 Change Non-GAAP
|
|
|
|
Adjusted EBITDA $
change
|
$65.7
|
|
$28.9
|
|
$11.2
|
|
Adjusted EBITDA %
change
|
16
|
%
|
14
|
%
|
3
|
%
|
Adjusted EBITDA
margin change
|
(230)
|
bp
|
(560)
|
bp
|
(100)
|
bp
|
ADJUSTED EFFECTIVE TAX RATE
The effective tax rate equals the income tax provision divided
by income from continuing operations before taxes.
When applicable, the tax impact of our pre-tax non-GAAP
adjustments reflects the expected current and deferred income tax
impact of our non-GAAP adjustments. These tax impacts are primarily
driven by the statutory tax rate of the various relevant
jurisdictions and the taxability of the adjustments in those
jurisdictions.
|
Three Months
Ended
30
September
|
|
Twelve Months
Ended
30
September
|
|
2021
|
2020
|
|
2021
|
2020
|
Income tax
provision
|
$125.3
|
|
$99.9
|
|
|
$462.8
|
|
$478.4
|
|
Income from
continuing operations before taxes
|
$692.3
|
|
$594.6
|
|
|
$2,507.4
|
|
$2,423.8
|
|
Effective tax
rate
|
18.1
|
%
|
16.8
|
%
|
|
18.5
|
%
|
19.7
|
%
|
|
|
|
|
|
|
Income tax
provision
|
$125.3
|
|
$99.9
|
|
|
$462.8
|
|
$478.4
|
|
Facility
closure
|
—
|
|
—
|
|
|
5.8
|
|
—
|
|
Gain on exchange with
joint venture partner
|
—
|
|
—
|
|
|
(9.5)
|
|
—
|
|
Company headquarters
relocation
|
—
|
|
—
|
|
|
—
|
|
(8.2)
|
|
India Finance Act
2020
|
—
|
|
—
|
|
|
—
|
|
(20.3)
|
|
Tax election benefit
and other
|
—
|
|
—
|
|
|
12.2
|
|
—
|
|
Adjusted income tax
provision
|
$125.3
|
|
$99.9
|
|
|
$471.3
|
|
$449.9
|
|
|
|
|
|
|
|
Income from
continuing operations before taxes
|
$692.3
|
|
$594.6
|
|
|
$2,507.4
|
|
$2,423.8
|
|
Facility
closure
|
—
|
|
—
|
|
|
23.2
|
|
—
|
|
Gain on exchange with
joint venture partner
|
—
|
|
—
|
|
|
(36.8)
|
|
—
|
|
Company headquarters
relocation (income) expense
|
—
|
|
—
|
|
|
—
|
|
(33.8)
|
|
India Finance Act 2020
- equity affiliate income impact
|
—
|
|
—
|
|
|
—
|
|
(33.8)
|
|
Adjusted income from
continuing operations before taxes
|
$692.3
|
|
$594.6
|
|
|
$2,493.8
|
|
$2,356.2
|
|
|
|
|
|
|
|
Adjusted effective
tax rate
|
18.1
|
%
|
16.8
|
%
|
|
18.9
|
%
|
19.1
|
%
|
CAPITAL EXPENDITURES
We define capital expenditures as cash flows for additions to
plant and equipment, acquisitions (less cash acquired), and
investment in and advances to unconsolidated affiliates. A
reconciliation of cash used for investing activities to our
reported capital expenditures is provided below:
|
Twelve Months
Ended
|
|
30
September
|
|
2021
|
2020
|
Cash used for
investing activities
|
$2,732.9
|
|
$3,560.0
|
|
Proceeds from sale of
assets and investments
|
37.5
|
|
80.3
|
|
Purchases of
investments
|
(2,100.7)
|
|
(2,865.5)
|
|
Proceeds from
investments
|
1,875.2
|
|
1,938.0
|
|
Other investing
activities
|
5.8
|
|
3.9
|
|
Capital
expenditures
|
$2,550.7
|
|
$2,716.7
|
|
The components of our capital expenditures are detailed in the
table below:
|
Twelve Months
Ended
|
|
30
September
|
|
2021
|
2020
|
Additions to plant
and equipment
|
$2,464.2
|
|
$2,509.0
|
|
Acquisitions, less
cash acquired
|
10.5
|
|
183.3
|
|
Investment in and
advances to unconsolidated affiliates
|
76.0
|
|
24.4
|
|
Capital
expenditures
|
$2,550.7
|
|
$2,716.7
|
|
We expect capital expenditures for fiscal year 2022 to be
approximately $4.5 to $5 billion.
It is not possible, without unreasonable efforts, to reconcile
our forecasted capital expenditures to future cash used for
investing activities because we are unable to identify the timing
or occurrence of our future investment activity, which is driven by
our assessment of competing opportunities at the time we enter into
transactions. These decisions, either individually or in the
aggregate, could have a significant effect on our cash used for
investing activities.
OUTLOOK
The guidance provided below is on an adjusted continuing
operations basis and is compared to adjusted historical diluted
EPS. These adjusted measures exclude the impact of certain items
that we believe are not representative of our underlying business
performance, such as the incurrence of additional costs for cost
reduction actions and impairment charges, or the recognition of
gains or losses on disclosed items. It is not possible, without
unreasonable efforts, to identify the timing or occurrence of these
events or the potential for other transactions that may impact
future GAAP EPS. Furthermore, it is not possible to identify the
potential significance of these events in advance, but any of these
events, if they were to occur, could have a significant effect on
our future GAAP EPS. Accordingly, management is unable to
reconcile, without unreasonable efforts, the Company's forecasted
range of adjusted EPS on a continuing operations basis to a
comparable GAAP range. The per share impact for each non-GAAP
adjustment was calculated independently and may not sum to total
adjusted diluted EPS due to rounding.
|
|
|
|
|
|
|
Diluted
EPS
|
|
|
Q1
|
|
Full Year
|
2021 Diluted
EPS
|
|
$2.12
|
|
|
$9.12
|
|
Facility
closure
|
|
—
|
|
|
0.08
|
|
Gain on exchange with
joint venture partner
|
|
—
|
|
|
(0.12)
|
|
Tax election benefit
and other
|
|
—
|
|
|
(0.05)
|
|
2021 Adjusted Diluted
EPS
|
|
$2.12
|
|
|
$9.02
|
|
2022 Adjusted Diluted
EPS Outlook
|
|
2.45–2.55
|
|
10.20
–10.40
|
$ Change
|
|
0.33–0.43
|
|
1.18–1.38
|
% Change
|
|
16%–20%
|
|
13%–15%
|
View original
content:https://www.prnewswire.com/news-releases/air-products-reports-fiscal-2021-fourth-quarter-gaap-eps-and-adjusted-eps-of-2-51--301416288.html
SOURCE Air Products