ALPHARETTA, Ga., Feb. 18, 2020 /PRNewswire/ -- Neenah, Inc.
(NYSE: NP) today reported 2019 fourth quarter and full-year
results.
Fourth Quarter Highlights
- Revenues of $213.6 million
decreased 11 percent versus the fourth quarter of 2018 with a
decline of approximately three percent due to the Company's sale of
its Brattleboro mill in December
2018.
- Earnings per diluted share of $0.92 increased 21% compared with $0.76 in the fourth quarter of 2018.
- Adjusted earnings per share of $0.87 increased 64% compared with $0.53 in the prior year. Adjustments in 2019 were
primarily to eliminate a pension plan curtailment gain, and in 2018
to remove favorable impacts related to the impairment loss and
acquisition-related items. Details on all adjusting items are
included later in this release.
- Operating margins increased 296 basis points (over 400 basis
points on an adjusted basis) from the prior year.
- Quarterly cash dividends of $0.45
per share increased 10 percent compared with the prior year.
Full Year Highlights
- Revenues of $938.5 million
decreased 9 percent versus 2018.
- Earnings per diluted share from continuing operations of
$3.26 increased compared with
earnings of $2.17 per share in
2018.
- Adjusted earnings per share from continuing operations of
$3.47 in 2019 compared with
$3.50 per share in 2018. Adjustments
of $0.21 per share in 2019 consisted
primarily of accelerated depreciation and other costs related to
the idling of a fine paper machine, and in 2018 adjustments of
$1.33 per share were primarily for
the impairment loss on the Brattleboro mill.
- Free cash flow (cash from operations less capital spending) was
a record $76.2 million.
- Debt was reduced by $38.3 million
and cash returns to shareholders were $36.7
million.
"Adjusted earnings" is a non-GAAP measure and is used to
improve comparability of year-on-year results. Adjusted figures are
reconciled to GAAP later in this release.
"I'm pleased with what our teams accomplished in 2019, as they
pursued the most important, long-term, strategic decisions that
were within our control - redoubling safety efforts, rationalizing
an under-performing distributor and shuttering higher cost
manufacturing assets, all while continually paying close attention
to cost and price management. While many global markets remain
challenged for growth, the success of our focused efforts was
evidenced by our record cash flows and improved margins, allowing
Neenah to exit the year in a significantly better position than we
began", said John O'Donnell, Chief
Executive Officer. "Our strong financial condition and investments
in product innovation, coupled with existing organic growth
catalysts already in place, position us well to recommence our
strong track record of capital-efficient growth by investing in
strategies that will increase our portfolio of
growing, profitable businesses."
Fourth Quarter Consolidated Results
Income Statement
Consolidated net sales of $213.6
million in the fourth quarter of 2019 decreased 11 percent
compared with $240.9 million in the
prior year. Revenues declined 5 percent in Technical Products and
15 percent in Fine Paper & Packaging. The decrease resulted
from lower volumes, including the divestiture of the Brattleboro
mill, and unfavorable currency effects. These were partially offset
by increased selling prices and a higher-value Technical Products
sales mix.
Selling, general and administrative (SG&A) expense of
$23.3 million in the fourth quarter
of 2019 increased $3.0 million
compared with 2018 primarily as a result of timing of certain
items.
Operating income of $22.1 million
in 2019 increased 24 percent compared with $17.8 million in the fourth quarter of 2018. In
2019, operating income included net favorable adjusting items
totaling $1.2 million and in 2018
operating income included favorable items totaling $4.1 million. Excluding these items, adjusted
operating income of $20.9 million in
2019 increased 53 percent compared with $13.7 million in 2018. The increase in operating
income in 2019 resulted primarily from lower manufacturing and
input costs and higher net pricing, which were only partly offset
by lower volumes and higher SG&A expense.
Net interest expense of $2.8
million in the fourth quarter of 2019 decreased from
$3.2 million in the prior period due
to lower debt and interest rates. In 2019, the Company made net
debt repayments of $35.8 million
under its Global Revolving Credit Facilities and increased its mix
of lower rate Euro-denominated borrowings.
The effective tax rate in the fourth quarter of 2019 was 19
percent compared to a rate of 12 percent in the fourth quarter of
2018. In 2018, the rate included a reduction in tax expense due to
remeasurement of deferred tax liabilities following a reduction in
tax rates for the Netherlands.
Cash Flow and Balance Sheet
Cash provided from operations in the fourth quarter of 2019 was
$23.2 million compared with
$29.0 million in the fourth quarter
of 2018. The decreased cash generation in 2019 resulted from an
increased investment in working capital partly offset by higher
cash earnings. Capital spending of $7.5
million in the fourth quarter of 2019 declined from
$10.0 million in the prior year. Net
cash generated was used to reduce debt and return cash to
shareholders through dividend payments.
Debt as of December 31, 2019 was $200.8 million and decreased from $204.6 million at September 30, 2019 and $239.1 million on December
31, 2018. Cash and cash equivalents as of December 31,
2019 were $9.0 million, up from
$7.4 million at September 30, 2019 and compared to $9.9 million as of December 31, 2018.
Fourth Quarter Segment Results
Technical Products net sales of $123.5 million in the fourth quarter of 2019
decreased 7 percent compared with prior year sales of $133.5 million. Revenues decreased due to volume
declines, primarily due to lower backings sales in Asia, and negative foreign currency impacts.
These items were partially offset by increased selling prices and a
higher value mix.
Operating income of $11.3 million
in the fourth quarter of 2019 increased from prior year income of
$6.7 million. Operating income in
2019 included a net benefit of $1.6
million related primarily to the curtailment gain for a
Dutch pension plan, and a net benefit of $0.6 million in 2018, mostly for
acquisition-related adjustments. Excluding these items, adjusted
operating income of $9.7 million in
2019 increased $3.6 million from
prior year income of $6.1 million as
a result of lower input and manufacturing costs and a more
profitable mix that more than offset lower sales volumes.
Fine Paper & Packaging net sales of
$90.1 million in the fourth quarter
of 2019 was 15 percent lower compared with prior year sales of
$105.9 million. Approximately
one-third of the decline was due to the divestiture of Brattleboro.
The remainder of the decrease was due to lower commercial print
volume, including impacts from a change in relationship with a
major distributor. These items were partly offset by higher selling
prices and growth in premium packaging.
Operating income of $15.2 million
in the fourth quarter of 2019 increased from $14.1 million in 2018. Income in 2019 included
adjusting items of $0.4 million for
idled paper machine costs, and compared to a $3.1 million benefit from adjusting items in 2018
primarily related to the Brattleboro impairment loss. Excluding
these items, adjusted operating income of $15.6 million in the fourth quarter of 2019
increased $4.6 million from
$11.0 million in 2018 due to lower
input costs and higher selling prices that more than offset lower
sales volumes.
Unallocated corporate costs in the fourth quarter
of 2019 were $4.4 million compared
with $3.4 million in 2018.
Unallocated corporate costs included an unfavorable adjustment of
$0.3 million in 2018. There were no
adjustments in 2019. Excluding this 2018 item, unallocated
corporate costs increased by $1.3
million, primarily due to timing of certain expenses.
Following the sale of the Brattleboro mill in December 2018, the Other segment was
discontinued. In 2018, operating results in this segment reflected
income of $0.4 million, and included
a favorable adjustment of $0.7
million related to the Brattleboro impairment loss.
Full Year 2019 Consolidated Results
Consolidated net sales of $938.5
million in 2019 were 9 percent lower than the prior year.
The decrease resulted from lower volumes, including the divestiture
of the Brattleboro mill, and unfavorable currency effects. These
were partially offset by increased selling prices and a
higher-value Technical Products sales mix. Technical Products
revenues declined 7 percent while Fine Paper & Packaging
revenues fell 11 percent, approximately half of which was due to
the sale of the Brattleboro mill.
Consolidated operating income of $78.3
million in 2019 increased from $54.1
million in the prior year. The increase was mainly due to
the absence of a $31.1 million
impairment loss in 2018 related to the divestiture of the
Brattleboro mill. Excluding $4.8
million of net unfavorable adjustments in 2019 primarily due
to idling of a fine paper machine, and $30.7
million of net unfavorable adjustments in 2018, adjusted
operating income decreased $1.7
million (2%), primarily due to lower sales and production
volumes, and associated manufacturing fixed cost inefficiencies,
that were only partially offset by higher net selling prices and
slightly lower input costs.
Income from continuing operations of $55.4 million in 2019 increased $18.2 million compared with $37.2 million in 2018. After excluding items
noted on the non-GAAP reconciliation table, adjusted income from
continuing operations decreased $0.9
million in 2019 due to lower adjusted operating income and a
higher effective tax rate. The effective income tax rate in 2019
was 17 percent and 9 percent in 2018. Income tax expense in 2018
was significantly reduced by the effects of the $31.1 million impairment loss of the Brattleboro
mill and associated research and office facilities.
Earnings per diluted share of $3.26 in 2019 compared with $2.17 in 2018. After excluding items noted in the
GAAP reconciliation table, 2019 adjusted earnings per share of
$3.47 decreased 1 percent compared to
$3.50 in 2018.
Cash provided by operating activities of $97.6 million for 2019 was $4.9 million higher than $92.7 million in the prior year. The
increase in cash flows resulted primarily from lower pension plan
contributions, partly offset by lower cash earnings.
Capital spending of $21.4 million
in 2019 compared with $38.1 million
in 2018. Spending was lower in 2019 as a result of a large
environmental project completed in 2018 at the Company's filtration
plant in Germany, and lower
required spending in 2019 for most businesses.
2020 Outlook
The following items are expected to impact 2020 results:
- A modest rise in input costs throughout the year.
- A slightly weaker euro versus the US dollar, compared with the
2019 average exchange rate of 1.12. A weaker euro unfavorably
impacts results, with each five cent
change reducing quarterly sales by approximately $2.5 million and earnings per share by
approximately $0.025.
- Refinancing the Company's $175
million Senior Note with a potentially higher principal
amount and interest rate.
- An effective income tax rate of approximately 22 percent.
- Capital spending in the middle of a range of 2 to 4 percent of
net sales.
- Quarterly dividend payments of $0.47 per share, up 4 percent.
Reconciliation to GAAP Measures
The Company will report adjustments to GAAP figures when they
are believed to improve the comparability and understanding of
results. In these instances, a reconciliation of adjusted income
measures to comparable GAAP measures will be provided, as shown
below and in the financial attachments:
|
Three months ended
December 31,
|
|
Year ended
December 31,
|
Continuing
Operations ($ Millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
GAAP Operating
Income
|
$
22.1
|
|
$
17.8
|
|
$
78.3
|
|
$
54.1
|
Idled paper machine
costs
|
0.3
|
|
-
|
|
4.7
|
|
-
|
2012-15 indirect tax
audit costs
|
-
|
|
-
|
|
0.7
|
|
-
|
Restructuring,
integration and other costs
|
-
|
|
(0.4)
|
|
0.8
|
|
2.1
|
Pension and
SERP-related adjustments
|
(1.5)
|
|
-
|
|
(1.4)
|
|
1.8
|
Impairment
loss
|
-
|
|
(2.9)
|
|
-
|
|
31.1
|
Acquisition-related
adjustments
|
-
|
|
(0.8)
|
|
-
|
|
(3.9)
|
Insurance
settlement
|
-
|
|
-
|
|
-
|
|
(0.4)
|
Total
adjustments
|
(1.2)
|
|
(4.1)
|
|
4.8
|
|
30.7
|
Adjusted operating
income
|
$
20.9
|
|
$
13.7
|
|
$
83.1
|
|
$
84.8
|
|
|
|
|
|
|
|
|
GAAP
Income
|
$
15.6
|
|
$
12.9
|
|
$
55.4
|
|
$
37.2
|
Idled paper machine
costs
|
0.2
|
|
-
|
|
3.5
|
|
-
|
2012-15 indirect tax
audit costs
|
-
|
|
-
|
|
0.5
|
|
-
|
Restructuring,
integration and other costs
|
-
|
|
(0.3)
|
|
0.6
|
|
1.6
|
Pension and
SERP-related adjustments
|
(1.1)
|
|
-
|
|
(1.0)
|
|
1.4
|
Impairment
loss
|
-
|
|
(2.1)
|
|
-
|
|
23.3
|
Acquisition-related
adjustments
|
-
|
|
(0.8)
|
|
-
|
|
(3.5)
|
Insurance
settlement
|
-
|
|
-
|
|
-
|
|
(0.3)
|
Tax
adjustments
|
-
|
|
(0.7)
|
|
-
|
|
0.2
|
Total
adjustments
|
(0.9)
|
|
(3.9)
|
|
3.6
|
|
22.7
|
Adjusted
Income
|
$
14.7
|
|
$
9.0
|
|
$
59.0
|
|
$
59.9
|
|
|
|
|
|
|
|
|
GAAP Earnings per
Diluted Common Share
|
$
0.92
|
|
$
0.76
|
|
$
3.26
|
|
$
2.17
|
Idled paper machine
costs
|
0.01
|
|
-
|
|
0.21
|
|
-
|
2012-15 indirect tax
audit costs
|
-
|
|
-
|
|
0.03
|
|
-
|
Restructuring,
integration and other costs
|
-
|
|
(0.01)
|
|
0.03
|
|
0.10
|
Pension and
SERP-related adjustments
|
(0.06)
|
|
-
|
|
(0.06)
|
|
0.08
|
Impairment
loss
|
-
|
|
(0.12)
|
|
-
|
|
1.37
|
Acquisition-related
adjustments
|
-
|
|
(0.06)
|
|
-
|
|
(0.21)
|
Insurance
settlement
|
-
|
|
-
|
|
-
|
|
(0.02)
|
Tax
adjustments
|
-
|
|
(0.04)
|
|
-
|
|
0.01
|
Total
adjustments
|
(0.05)
|
|
(0.23)
|
|
0.21
|
|
1.33
|
Adjusted diluted
EPS
|
$
0.87
|
|
$
0.53
|
|
$
3.47
|
|
$
3.50
|
|
|
|
|
|
|
|
|
Diluted
Shares
|
16,901
|
|
16,944
|
|
16,906
|
|
16,968
|
Conference Call
A conference call and webcast to discuss fourth quarter and full
year earnings and other matters of interest will be held as noted
below.
Date: Wednesday, February 19,
2020
Time: 11:00 a.m. Eastern Time
Dial-In #: (877) 444-2208 Toll Free or (412) 317-5236
International
To be joined into: Neenah Call
Live Webcast Link: www.neenah.com
Interested parties are invited to listen to the call live via
webcast using the link above and by clicking on the Investors tab
and going to the Presentations & Events page. To participate
actively in the call, parties should use the telephone dial-in
numbers. Supplemental data can be found in the Investor
Relations - Presentations & Events section of the Company's web
site, www.neenah.com.
An archive of the webcast will be available on the Company's web
site until March 18, 2020. A replay
of the call will be available until February
26, 2020 with dial-in number in the U.S. is (877) 344-7529
and international (412) 317-0088, using conference ID 10138995.
About Neenah, Inc.
Neenah is a leading global specialty materials company focused
on premium niche markets that value performance and image. Key
products and markets include advanced filtration media, specialized
performance substrates used for digital transfer, tape and abrasive
backings, labels and other products, and premium printing and
packaging papers. The Company is headquartered in Alpharetta, Georgia and its products are sold
in over 80 countries worldwide from manufacturing operations in
the United States, Europe and the United Kingdom. Additional information can be
found at the Company's web site, www.neenah.com.
Cautionary Note Regarding Forward-Looking Statements
Certain statements in this press release may constitute
"forward-looking" statements as defined in Section 27A of the
Securities Act of 1933 (the "Securities Act"), Section 21E of
the Securities Exchange Act of 1934 (the "Exchange Act"), the
Private Securities Litigation Reform Act of 1995 (the "PSLRA"), or
in releases made by the U.S. Securities and Exchange Commission
("SEC"), all as may be amended from time to time. Statements
contained in this press release that are not historical facts may
be forward-looking statements within the meaning of the PSLRA and
we caution investors that any forward-looking statements we make
are not guarantees or indicative of future performance. These
forward-looking statements rely on a number of assumptions
concerning future events and are subject to risks, uncertainties
and other factors, many of which are outside of our control and
could cause actual results to materially differ from such
statements. Such risks, uncertainties and other factors include,
but are not necessarily limited to, those set forth under the
captions "Cautionary Note Regarding Forward-Looking Statements"
and/or "Risk Factors" of our latest Form 10-K filed with the
SEC as periodically updated by subsequently filed Form 10-Qs
(these securities filings can be located on our website at
www.neenah.com). Unless specifically required by law, we assume no
obligation to update or revise these forward-looking statements to
reflect new events or circumstances. These cautionary
statements are being made pursuant to the Securities Act, the
Exchange Act and the PSLRA with the intention of obtaining the
benefits of the "safe harbor" provisions of such laws.
NEENAH, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except share and per share data)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
Year Ended December 31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Net Sales
|
$
213.6
|
|
$
240.9
|
|
$
938.5
|
|
$
1,034.9
|
Cost of products
sold
|
169.3
|
|
206.3
|
|
755.1
|
|
851.5
|
Gross
Profit
|
44.3
|
|
34.6
|
|
183.4
|
|
183.4
|
Selling, general and
administrative expenses
|
23.3
|
|
20.3
|
|
98.6
|
|
95.9
|
Restructuring,
integration, and other costs
|
0.3
|
|
(0.4)
|
|
6.2
|
|
2.1
|
Pension & SERP
related adjustments
|
(1.5)
|
|
-
|
|
(1.4)
|
|
1.8
|
Impairment
loss
|
-
|
|
(2.9)
|
|
-
|
|
31.1
|
Acquisition-related
adjustments
|
-
|
|
(0.8)
|
|
-
|
|
(3.9)
|
Insurance
settlement
|
-
|
|
-
|
|
-
|
|
(0.4)
|
Other expense,
net
|
0.1
|
|
0.6
|
|
1.7
|
|
2.7
|
Operating
Income
|
22.1
|
|
17.8
|
|
78.3
|
|
54.1
|
Interest expense,
net
|
2.8
|
|
3.2
|
|
11.8
|
|
13.0
|
Income From
Continuing Operations Before Income Taxes
|
19.3
|
|
14.6
|
|
66.5
|
|
41.1
|
Provision for income
taxes
|
3.7
|
|
1.7
|
|
11.1
|
|
3.9
|
Income From
Continuing Operations
|
15.6
|
|
12.9
|
|
55.4
|
|
37.2
|
Loss from
discontinued operations, net of income taxes
|
-
|
|
-
|
|
-
|
|
(0.8)
|
Net Income
|
$
15.6
|
|
$
12.9
|
|
$
55.4
|
|
$
36.4
|
|
|
|
|
|
|
|
|
Earnings (Loss) Per
Common Share:
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
|
Continuing
Operations
|
$
0.92
|
|
$
0.77
|
|
$
3.27
|
|
$
2.20
|
Discontinued
Operations
|
-
|
|
-
|
|
-
|
|
(0.05)
|
|
$
0.92
|
|
$
0.77
|
|
$
3.27
|
|
$
2.15
|
Diluted
|
|
|
|
|
|
|
|
Continuing
Operations
|
$
0.92
|
|
$
0.76
|
|
$
3.26
|
|
$
2.17
|
Discontinued
Operations
|
-
|
|
-
|
|
-
|
|
(0.05)
|
|
$
0.92
|
|
$
0.76
|
|
$
3.26
|
|
$
2.12
|
Weighted Average
Common Shares Outstanding (000s)
|
|
|
|
|
|
|
|
Basic
|
16,829
|
|
16,863
|
|
16,848
|
|
16,850
|
Diluted
|
16,901
|
|
16,944
|
|
16,906
|
|
16,968
|
NEENAH, INC.
AND SUBSIDIARIES
BUSINESS SEGMENT DATA (In millions)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
Year Ended December 31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Net Sales:
|
|
|
|
|
|
|
|
Technical
Products
|
$
123.5
|
|
$
133.5
|
|
$
541.6
|
|
$
583.2
|
Fine Paper and
Packaging
|
90.1
|
|
105.9
|
|
396.9
|
|
445.8
|
Other
|
-
|
|
1.5
|
|
-
|
|
5.9
|
Consolidated
|
$
213.6
|
|
$
240.9
|
|
$
938.5
|
|
$
1,034.9
|
|
|
|
|
|
|
|
|
Operating Income
(Loss):
|
|
|
|
|
|
|
|
Technical
Products
|
$
11.3
|
|
$
6.7
|
|
$
44.6
|
|
$
50.9
|
Fine Paper and
Packaging
|
15.2
|
|
14.1
|
|
53.2
|
|
29.4
|
Other
|
-
|
|
0.4
|
|
-
|
|
(6.4)
|
Unallocated corporate
costs
|
(4.4)
|
|
(3.4)
|
|
(19.5)
|
|
(19.8)
|
Consolidated
|
$
22.1
|
|
$
17.8
|
|
$
78.3
|
|
$
54.1
|
RECONCILIATION OF
SEGMENT OPERATING INCOME (In millions)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
Year Ended December 31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Technical
Products
|
|
|
|
|
|
|
|
GAAP Operating
Income
|
$
11.3
|
|
$
6.7
|
|
$
44.6
|
|
$
50.9
|
Restructuring,
integration, and other costs
|
(0.1)
|
|
0.2
|
|
0.3
|
|
1.0
|
Pension and
SERP-related adjustments
|
(1.5)
|
|
-
|
|
(1.5)
|
|
0.4
|
Impairment
loss
|
-
|
|
-
|
|
-
|
|
1.1
|
Acquisition-related
adjustments
|
-
|
|
(0.8)
|
|
-
|
|
(3.9)
|
Adjusted operating
income
|
$
9.7
|
|
$
6.1
|
|
$
43.4
|
|
$
49.5
|
|
|
|
|
|
|
|
|
Fine Paper and
Packaging
|
|
|
|
|
|
|
|
GAAP Operating
Income
|
$
15.2
|
|
$
14.1
|
|
$
53.2
|
|
$
29.4
|
Idled paper machine
costs
|
0.3
|
|
-
|
|
4.7
|
|
-
|
2012-15 indirect tax
audit costs
|
-
|
|
-
|
|
0.7
|
|
-
|
Restructuring and
other non-routine costs
|
0.1
|
|
(0.8)
|
|
0.3
|
|
(0.2)
|
Pension and
SERP-related adjustments
|
-
|
|
-
|
|
-
|
|
0.4
|
Impairment
loss
|
-
|
|
(2.3)
|
|
-
|
|
24.4
|
Insurance
settlement
|
-
|
|
-
|
|
-
|
|
(0.3)
|
Adjusted operating
income
|
$
15.6
|
|
$
11.0
|
|
$
58.9
|
|
$
53.7
|
|
|
|
|
|
|
|
|
Other/Unallocated
Corporate
|
|
|
|
|
|
|
|
GAAP Operating
Income
|
$
(4.4)
|
|
$
(3.0)
|
|
$
(19.5)
|
|
$
(26.2)
|
Restructuring and
other non-routine costs
|
-
|
|
0.2
|
|
0.2
|
|
1.3
|
Pension and
SERP-related adjustments
|
-
|
|
-
|
|
0.1
|
|
1.0
|
Impairment
loss
|
-
|
|
(0.6)
|
|
-
|
|
5.6
|
Insurance
settlement
|
-
|
|
-
|
|
-
|
|
(0.1)
|
Adjusted operating
income
|
$
(4.4)
|
|
$
(3.4)
|
|
$
(19.2)
|
|
$
(18.4)
|
|
|
|
|
|
|
|
|
Consolidated
|
|
|
|
|
|
|
|
GAAP Operating
Income
|
$
22.1
|
|
$
17.8
|
|
$
78.3
|
|
$
54.1
|
Idled paper machine
costs
|
0.3
|
|
-
|
|
4.7
|
|
-
|
2012-15 indirect tax
audit costs
|
-
|
|
-
|
|
0.7
|
|
-
|
Restructuring,
integration, and other costs
|
-
|
|
(0.4)
|
|
0.8
|
|
2.1
|
Pension and
SERP-related adjustments
|
(1.5)
|
|
-
|
|
(1.4)
|
|
1.8
|
Impairment
loss
|
-
|
|
(2.9)
|
|
-
|
|
31.1
|
Acquisition-related
adjustments
|
-
|
|
(0.8)
|
|
-
|
|
(3.9)
|
Insurance
settlement
|
-
|
|
-
|
|
-
|
|
(0.4)
|
Adjusted operating
income
|
$
20.9
|
|
$
13.7
|
|
$
83.1
|
|
$
84.8
|
NEENAH, INC.
AND SUBSIDIARIES
SELECTED BALANCE SHEET DATA (In millions)
(Unaudited)
|
|
|
|
|
|
December
31,
|
|
2019
|
|
2018
|
ASSETS
|
|
|
|
Cash and cash
equivalents
|
$
9.0
|
|
$
9.9
|
Accounts receivable,
net
|
102.6
|
|
114.8
|
Inventories
|
122.8
|
|
131.6
|
Prepaid and other
current assets
|
18.3
|
|
21.6
|
Total current
assets
|
252.7
|
|
277.9
|
Property, Plant and
Equipment, net
|
380.6
|
|
396.2
|
Lease Right-of-Use
Assets
|
13.9
|
|
-
|
Deferred Income
Taxes
|
13.4
|
|
16.4
|
Goodwill and other
intangibles, net
|
149.8
|
|
154.7
|
Other non-current
assets
|
17.4
|
|
16.0
|
Total
assets
|
$
827.8
|
|
$
861.2
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Debt payable within
one year
|
$
2.6
|
|
$
2.3
|
Lease liabilities
payable within one year
|
1.9
|
|
-
|
Accounts
payable
|
48.9
|
|
63.3
|
Accrued
expenses
|
47.0
|
|
55.2
|
Total current
liabilities
|
100.4
|
|
120.8
|
Long-Term
Debt
|
198.2
|
|
236.8
|
Noncurrent Lease
Liabilities
|
13.0
|
|
-
|
Noncurrent Employee
Benefits
|
93.1
|
|
92.9
|
Deferred Income
Taxes
|
12.9
|
|
14.4
|
Other Noncurrent
Obligations
|
3.9
|
|
6.1
|
Total
liabilities
|
421.5
|
|
471.0
|
Stockholders'
equity
|
406.3
|
|
390.2
|
Total liabilities and
stockholders' equity
|
$
827.8
|
|
$
861.2
|
NEENAH, INC.
AND SUBSIDIARIES
SELECTED CASH FLOW DATA (In millions)
(Unaudited)
|
|
|
|
|
|
Year Ended December 31,
|
|
2019
|
|
2018
|
Operating
Activities
|
|
|
|
Net income
|
$
55.4
|
|
$
36.4
|
Depreciation and
amortization
|
38.9
|
|
36.1
|
Impairment
loss
|
-
|
|
31.1
|
Stock-based
compensation
|
5.6
|
|
4.0
|
Deferred income tax
provision
|
3.4
|
|
(1.9)
|
Pension curtailment
(gain)/settlement charge, net of plan payments
|
(1.4)
|
|
1.8
|
Non-cash loss on
discontinued operations
|
-
|
|
-
|
Loss on asset
dispositions
|
0.1
|
|
0.3
|
Non-cash effects of
changes in liabilities for uncertain income tax
positions
|
(0.7)
|
|
0.1
|
Net cash used in
changes in operating working capital, net of effect of
acquisitions
|
(0.6)
|
|
(1.0)
|
Pension and other
post-employment benefits
|
(3.7)
|
|
(12.3)
|
Other
|
0.6
|
|
(1.9)
|
Cash provided by
operating activities
|
97.6
|
|
92.7
|
|
|
|
|
Investing
Activities
|
|
|
|
Capital
expenditures
|
(21.4)
|
|
(38.1)
|
Proceeds from sale of
property, plant and equipment
|
-
|
|
5.0
|
Other
|
(1.9)
|
|
(1.2)
|
Cash used in
investing activities
|
(23.3)
|
|
(34.3)
|
|
|
|
|
Financing
Activities
|
|
|
|
Proceeds from
issuance of long-term debt
|
163.5
|
|
272.8
|
Debt issuance
costs
|
(0.4)
|
|
(1.8)
|
Repayments of
long-term debt
|
(201.6)
|
|
(285.6)
|
Cash dividends
paid
|
(30.5)
|
|
(27.8)
|
Shares
purchased
|
(6.2)
|
|
(10.8)
|
Proceeds from
exercise of stock options
|
-
|
|
0.6
|
Cash used in
financing activities
|
(75.2)
|
|
(52.6)
|
Effect of exchange
rates on cash and cash equivalents
|
-
|
|
(0.4)
|
Increase (decrease)
in cash and cash equivalents
|
(0.9)
|
|
5.4
|
Cash and cash
equivalents, beginning of year
|
9.9
|
|
4.5
|
Cash and cash
equivalents, end of year
|
$
9.0
|
|
$
9.9
|
Contact: Neenah, Inc.
Bill McCarthy
Vice President – Investor Relations
678-518-3278
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SOURCE Neenah, Inc.