Schweitzer-Mauduit International, Inc. ("SWM" or the "Company")
(NYSE: SWM) reported earnings results for the three months and year
ended December 31, 2020.
Adjusted measures are reconciled to GAAP at the
end of this release. Financial and operating comparisons are
versus the prior year period and are from continuing
operations. Figures may not sum to total due to
rounding. Definitions: Advanced Materials & Structures
(AMS), Engineered Papers (EP), "organic" - excluding acquisition
benefit, "Tekra" - Tekra and Trient acquisition that closed in
March 2020
Full Year 2020 Financial Results
Summary
- Excellent performance in EP segment, resilience in AMS with key
markets demonstrating strong growth in fourth quarter, finished
2020 with healthy balance sheet and very strong cash flow
- Total sales were $1,074.4 million, up 5.0%
- GAAP operating profit was $128.8 million, or 12.0% of sales,
down 4%; Adjusted operating profit was $171.6 million, or 16.0% of
sales, up 8%
- GAAP EPS was $2.66, down 4%, reflected restructuring and site
closure expenses of $0.40 per share (mostly EP segment); Adjusted
EPS was $3.68, up 4%
- Year-to-date operating cash flow was $161.6 million and free
cash flow was $128.3 million
Fourth Quarter 2020 Financial Results
Summary
- Fourth quarter results reflected a strong rebound in AMS
organic sales, up 21%, and continued solid execution in EP
- Total sales were $279.4 million, up 17%
- GAAP operating profit was $23.3 million, or 8.3% of sales, down
6%; Adjusted operating profit was $35.9 million, or 12.8% of sales,
up 14%
- GAAP EPS was $0.48, down 25%, and reflected EP segment
restructuring and site closure expenses of $0.13 per share;
Adjusted EPS was $0.77, down 4%
Management Commentary
Dr. Jeff Kramer, Chief Executive Officer,
commented, "We are very proud of the performance of our business in
a year marked by volatility and uncertainty. We delivered
another year of Adjusted EPS growth to $3.68, over $128 million of
free cash flow, and exited the year with strong organic sales
momentum in AMS. These accomplishments were a testament
to our global teams, who successfully navigated the many twists and
turns of 2020, keeping each other safe, maintaining our operations,
and still consistently delivering for our customers. Despite the
effects of the pandemic, SWM delivered an outstanding year on all
fronts."
“Fourth quarter results were a positive finish to the
year. AMS saw organic sales growth of 21% in the quarter,
driven by a strong rebound in transportation films which had been
hampered by COVID-19 related headwinds. We also saw strong
demand across filtration, anchored by our high-end air products,
and continued growth in medical with facemask materials
demonstrating strong end-market pull. For the year, AMS
organic sales declined just 2%, a resilient performance given some
of the pronounced challenges we faced mid-year, and we look to
build on our fourth quarter momentum in 2021. Meanwhile,
Engineered Papers capped off a banner 2020 in which our team
overcame supply chain hurdles to meet increased customer demand for
our higher value products. Overall, in addition to the
positive financial results, we managed through COVID-19 related
challenges, advanced several strategic projects on both the
innovation and sales fronts, fully integrated Tekra and Trient, and
improved our cost structure. We also feel we further solidified our
relationships with our global customer base across both segments,
proving SWM to be a highly dependable strategic supplier even in
uncertain times."
Dr. Kramer concluded, "As we enter 2021, we are encouraged
by the underlying fundamentals of our business and in our
end-markets. While we would typically provide Adjusted EPS
guidance at this juncture, our offer to acquire Scapa Group Plc, a
UK public company, is subject to the jurisdiction of the UK
Takeover Code, under which we are restricted in our ability to
disclose any material new information relating to SWM or Scapa, or
the offer for Scapa that has not previously been announced to the
market. We plan to issue specific financial guidance for 2021 upon
closing of the Scapa transaction. However, excluding the pending
acquisition, we fully expect to grow adjusted EPS this year.
Directionally, we would expect some normalization in EP profits,
after a particularly strong 2020, more towards our recent multiyear
trend line, good top and bottom line organic growth in AMS, and
another year of robust free cash flow. In summary, SWM is
well-positioned for another strong year. Further, as stated in our
Scapa offer announcement, we believe the acquisition would
significantly expand our capabilities, complement our existing
end-markets, and propel SWM toward $1.5 billion of annualized sales
with an enhanced growth profile. We look forward to executing
on our strategic priorities in 2021, investing for growth, and
creating value for our employees, customers, and shareholders."
Fourth Quarter 2020 Financial Results
Advanced Materials &
Structures segment sales were $148.9 million, up 43%,
including the benefit from the Tekra acquisition, while organic
sales increased 21%. The organic sales growth was driven by rapid
growth in transportation sales as that end-market rebounded sharply
from COVID-19 related pressures earlier in 2020.
Infrastructure and construction sales increased, also rebounding
from COVID-19 related pressures. Sales into filtration end-markets
were up double digits, driven by strong growth in air filtration,
while all other filtration sub-segments increased as well.
Medical end-markets increased, driven by continued robust volumes
of facemask materials. Industrial products declined during the
quarter. Of note, excluding the sharp rebound in
transportation sales, AMS organic sales still increased 7%.
GAAP operating profit was $19.5 million, or
13.1% of sales, approximately double the prior year quarter.
Adjusted operating profit was $26.1 million, up 65%, with margin up
230 basis points to 17.5%. Both GAAP and adjusted operating profit
growth were driven by strong organic sales growth and the
incremental benefit of the acquired Tekra business, as well as
SG&A cost controls.
Engineered Papers segment sales
were $130.5 million, down 3%, driven by a 3% volume increase and a
3% currency benefit (related to the Euro), offset by unfavorable
price/mix of 9% versus the year-ago period when price/mix from
certain high-value sales had a pronounced benefit. As disclosed
below, full year 2020 price/mix was still favorable by 1%.
Volumes benefited from only a modest decline in cigarette
papers, which was more than offset by growth in Recon products,
particularly in Heat-not-Burn.
GAAP operating profit was $23.5 million, or 18.0% of sales, down
23% due primarily to higher restructuring and plant closure
expenses mostly related to the previously disclosed fourth quarter
2020 shutdown of the Company's Spotswood, New Jersey facility
(disclosed in 3Q:20, and detailed below in full year 2020 results).
Adjusted operating profit was $29.5 million, down 6%, with adjusted
operating margin contracting 70 basis points to 22.6%. Margins
decreased primarily due to the negative price/mix impacts
referenced above. Currency movements resulted in a $4.3 million
benefit to operating profit, mainly from the Euro and Brazilian
Real.
Unallocated GAAP and adjusted
expenses were each $19.7 million, versus $15.6 million for each in
4Q:19. Adjusted unallocated expenses increased $4.1 million, and
were 7.1% of total sales, up 60 basis points. The increase in
spending was nearly all attributable to expenses incurred related
to consulting and acquisition diligence projects.
Consolidated sales were $279.4
million, up 17%, or up 15% absent favorable currency movements.
Excluding the Tekra acquisition benefit, organic sales were up 7%.
GAAP operating profit was $23.3 million, down 6%, and GAAP
operating profit margin was 8.3%. Adjusted operating profit was
$35.9 million, up 14%, and adjusted operating profit margin was
12.8%, down 40 basis points. Adjusted EBITDA was $46.9 million, up
15%, and adjusted EBITDA margin was 16.8%, down 30 basis
points.
GAAP income was $15.3 million, down 24%; GAAP
EPS was $0.48. GAAP EPS was impacted by $0.09 per share of higher
(versus 4Q:19) overall restructuring and plant closure costs in the
EP segment.
Adjusted income was $24.7 million, down 2%;
Adjusted EPS was $0.77, and reflected a higher quarterly tax
rate.
Interest expense was $7.7 million, up from $6.5
million; interest expense on debt increased $1.2 million due to
higher average debt balances as a result of the Tekra acquisition.
Other expense was $0.3 million, versus other income of $0.6 million
in the prior year quarter.
The Company reported a tax rate of 19.0%, versus
12.7% in the prior year period. Excluding the impact of non-GAAP
adjustments, the fourth quarter 2020 tax rate was 21.7% (the
implied rate reflected in the Company's Adjusted EPS), versus 15.8%
in the prior year quarter. The Company recorded a relatively
low tax rate in the prior year quarter to reflect the Company's
full year tax rate.
The Company's Chinese JVs contributed $0.09 to
both GAAP and Adjusted EPS, versus $0.12 in the prior year
quarter.
Net currency movements had a $4.4 million
favorable impact on operating profits and the translation impact of
net currency movements was positive $0.02 to both GAAP EPS and
Adjusted EPS.
Non-GAAP Adjustments reflect
items included in GAAP operating profit, income, and EPS, but
excluded from adjusted operating profit, income, and EPS (see
non-GAAP reconciliation tables). The most significant adjustments
to fourth quarter 2020 results were related to the planned
Spotswood site shutdown and other cost reduction activities within
the EP segment. During 4Q:20 the Company recorded restructuring
costs of $4.2 million, primarily related to severance payments,
which are reflected in the restructuring and impairment expenses on
the consolidated income statement. The Company also recorded
related site closure costs of $1.7 million primarily related to
accelerated depreciation and spare parts inventory write-downs that
are reflected in costs of goods sold on the income statement.
Under GAAP these are not considered restructuring expenses. In
aggregate, the $5.9 million of site shutdown costs are excluded
from all adjusted financial metrics and equate to $0.13 per
share.
In addition to the Spotswood shutdown costs and
other restructuring activities, non-GAAP adjustments included
purchase accounting expenses of $0.16 per share (purchase
accounting expenses reflect the ongoing non-cash intangible asset
amortization, as well as non-cash one-time inventory step-up
charges, associated with AMS acquisitions). The most significant
prior year quarter non-GAAP adjustments included purchase
accounting expenses of $0.13 per share and $0.04 per share of
restructuring expenses.
2020 Year-to-Date Financial
Results
Advanced Materials &
Structures segment sales were $543.5 million, up 14%,
including the acquisition benefit from the Tekra acquisition, while
organic sales decreased 2%. Medical sales were the strongest in the
portfolio, growing double-digits, led by significant demand for
facemask materials and specialty hospital products.
Filtration sales increased slightly with strong air filtration
growth offsetting mild softness in other areas. Industrial products
also increased, largely due to higher demand for packaging films
and materials for wind turbine manufacturing. COVID-19
related pressures drove declines in transportation and
infrastructure and construction sales, however both end-markets
rebounded in the fourth quarter, moderating the full year declines.
Excluding transportation, AMS organic sales increased 1% versus
2019.
GAAP operating profit was $64.8 million, up 1%,
which reflected higher purchase accounting expenses related to the
Tekra acquisition. Adjusted operating profit was $91.2 million, up
6%, including the incremental profits from the Tekra acquisition,
while margin contracted 120 basis points to 16.8%. The modest
organic sales decline and the addition of the lower margin Tekra
business contributed to the margin contraction, offsetting
effective SG&A expense controls and lower raw material
costs.
Engineered Papers segment sales
were $530.9 million down 3%, with immaterial currency impacts. A
volume decline of 3% was partially offset by positive price/mix
performance of 1%. Price/mix benefited from a higher mix of
high-value cigarette, Heat-not-Burn, and battery separator papers
and a smaller proportion of lower-margin non-tobacco volumes
compared to the prior year period. The 2020 volume decline was
driven primarily by the continued strategic de-emphasis of lower
margin non-tobacco volumes while tobacco-related papers declined
modestly, in line with industry attrition.
GAAP operating profit was $116.8 million, down
2%, and included the $16.2 million of restructuring and site
closure expenses, the majority of which related to the Spotswood,
NJ facility as discussed above. Adjusted operating profit was
$133.1 million, up 8%, with adjusted operating margin increasing
250 basis point to 25.1%. Adjusted profits and margins increased
mainly due to positive price/mix impacts, cost structure
improvements, lower raw material costs, and currency, which more
than offset the impacts of lower volumes and the temporary site
closures related to COVID-19 during the second quarter of 2020.
Currency movements resulted in a $6.8 million benefit to operating
profit, due mostly to lower local currency operating costs in
Brazil.
Spotswood, NJ facility closure. During the
third quarter, the Company reached an agreement with a large
customer to shift production of papers purchased from the Company's
Spotswood, New Jersey site (which exclusively served this customer)
to other SWM facilities. As part of the transition, the Company
worked collaboratively with the customer to co-develop a new
production technology to better meet the customer's needs and SWM
and the customer signed a new multi-year supply agreement. The
Company shut down the Spotswood facility during the fourth quarter,
and for full year 2020 incurred $11.7 million of restructuring and
related site-closure costs which are excluded from adjusted
financial metrics (see non-GAAP reconciliation tables). Of these
expenses, $4.9 million were non-cash.
Unallocated GAAP and adjusted
expenses were each $52.8 million and $52.7 million, respectively,
versus $49.5 million for each in the prior year period. Adjusted
unallocated expenses were up $3.2 million, and were 4.9% of total
sales, up 10 basis points. The increase in spending was more
than accounted for by expenses incurred related to consulting and
acquisition diligence projects.
Consolidated sales were
$1,074.4 million, up 5%, and currency impacts were immaterial.
Excluding the Tekra acquisition benefit, organic sales declined 3%.
GAAP operating profit was $128.8 million, down 4%, and GAAP
operating profit margin was 12.0%. Adjusted operating profit was
$171.6 million, up 8%, and adjusted operating profit margin was
16.0% up 40 basis points. Adjusted EBITDA was $212.9 million, up
8%, and adjusted EBITDA margin was 19.8%, up 50 basis points.
GAAP income was $83.8 million, down 2%; GAAP EPS
was $2.66. GAAP EPS was impacted by $0.30 per share of higher
(versus 2019) overall restructuring and plant closure costs, mostly
in the EP segment.
Adjusted income was $115.6 million, up 5%;
Adjusted EPS was $3.68.
Interest expense was $30.5 million, down from
$36.1 million, with the decrease due mainly to $7.1 million of
non-recurring interest expense in the prior year period related to
Brazil tax assessments. Interest expense on debt was $30.5 million,
up $1.5 million due to incremental debt related to the Tekra
acquisition. Other expense was $1.0 million, unchanged versus the
prior year period.
The Company reported a tax rate of 18.9%, versus
15.7% in the prior year period. Excluding the impact of non-GAAP
adjustments, the year-to-date tax rate was 21.0% (the implied rate
reflected in the Company's Adjusted EPS), versus 19.3% in the prior
year period. The tax rate was affected by a change in the Company's
geographic earnings mix and the varying tax rates across those
jurisdictions and certain tax law changes.
The Company's Chinese JVs contributed $0.15 to
both GAAP and Adjusted EPS, versus $0.13 per share in the prior
year period.
Net currency movements were a $6.8 million
benefit to operating profits and the translation impact of net
currency movements was positive $0.06 to both GAAP EPS and Adjusted
EPS.
Non-GAAP Adjustments reflect
items included in GAAP operating profit, income, and EPS, but
excluded from adjusted operating profit, income, and EPS (see
non-GAAP reconciliation tables). The most significant adjustments
to year-to-date 2020 results were purchase accounting expenses of
$0.63 per share (purchase accounting expenses reflect the ongoing
non-cash intangible asset amortization, as well as non-cash
one-time inventory step-up charges, associated with AMS
acquisitions). The Company also recorded restructuring and
impairment expenses and related site closure expenses which totaled
$0.40 per share; these expenses were primarily in the EP segment
and related mostly to the Spotswood, NJ site closure (discussed
above). The most significant prior year period non-GAAP adjustments
included purchase accounting expenses of $0.54 per share, $0.21 per
share of expenses related to the Brazil tax assessments, and $0.10
per share of restructuring expenses.
Cash Flow, Debt, & Dividend
Year-to-date 2020 cash provided by operating
activities was $161.6 million, up $1.3 million. The Company's
working capital-related cash outflows were $5.7 million, compared
to $1.8 million in the prior year period, with the increase in
outflows stemming from higher receivables associated with the
strong organic sales growth during 4Q:20 in AMS.
Capital spending and capitalized software
totaled $33.3 million, down $0.8 million, and below the $40 million
to $45 million capital expenditure guidance the Company provided in
February 2020. In response to COVID-19 related impacts to certain
end-markets, management continues to monitor cash flow trends and
has deferred some discretionary capital spending originally planned
for 2020. Year-to-date free cash flow was $128.3 million up $2.1
million.
On March 13, 2020, the Company closed on the
Tekra acquisition. The total net cash consideration of $169.3
million was comprised of the originally announced $155.0 million
purchase price as well as customary post-closing adjustments, which
relate primarily to tax benefits expected to be realized by the
Company. The Company funded the transaction using its previously
undrawn credit revolver.
Total debt was $593.3 million as of
December 31, 2020, up $50.6 million from year end 2019, and
total cash was $54.7 million; net debt was $538.6 million on
December 31, 2020, up $98.9 million. These debt figures
reflect the Tekra acquisition financing. The Company's total debt
is comprised primarily of $50 million of borrowings under the
revolving credit facility, which is due in 2023 and represents the
Company's nearest material debt maturity, $195.5 million of an
outstanding term loan due in 2025, and $350 million of senior notes
due in 2026 (these amounts do not sum to total debt due mainly to
unamortized discount and issuance costs). The Company's liquidity
position is $500 million, consisting of approximately $55 million
of cash and $445 million of revolver availability. Management
believes current cash balances, anticipated cash generation, and
borrowing capacity will be sufficient to fund the Company's
operating needs and financial obligations, including dividend
payments.
Pursuant to the terms of the Company's credit
agreement, net debt to adjusted EBITDA was 2.3x as of
December 31, 2020, up from 2.1x from year end 2019, due
primarily to financing the Tekra acquisition.
The Company announced a quarterly cash dividend
of $0.44 per share. The dividend will be payable on March 26,
2021 to stockholders of record as of March 12, 2021. During
2020, the Company has paid dividends to stockholders totaling $55.0
million.
Conference Call
SWM will hold a conference call to review fourth
quarter 2020 and full year results with investors and analysts at
8:30 a.m. Eastern time on Thursday, February 19, 2021. The earnings
conference call will be simultaneously broadcast over the Internet
at www.swmintl.com. To listen to the call, please go to the
Company’s website at least 15 minutes prior to the call to register
and to download and install any necessary audio software. For those
unable to listen to the live broadcast, a replay will be available
on the Company’s website shortly after the call.
SWM will use a presentation in conjunction with
its conference call. The presentation can be found on the
Company's website under the Investor Relations section in advance
of the earnings conference call. The presentation can also be
accessed via the earnings conference call webcast.
About SWM
SWM is a leading global performance materials company. Our
highly engineered papers, films, nets and nonwovens are designed
and manufactured using natural fibers and polymers for a variety of
industries and applications. We provide our customers with critical
components that enhance the performance of their products. End
markets served include filtration, transportation, infrastructure
and construction, medical, industrial, tobacco, energy, food
services and home décor. SWM and its subsidiaries manufacture on
four continents, conduct business in over 90 countries and employ
approximately 3,600 people worldwide. For further information,
please visit SWM’s website at www.swmintl.com.
Forward-Looking Statements
This press release contains forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995 and other federal securities laws that are
subject to the safe harbor created by such laws and other legal
protections. Forward-looking statements include,
without limitation, those regarding future performance, capital
expenditures, future market and EPS trends, sales and volume
trends, growth prospects, currency rates and trends and impact on
EPS, future cash flows, effective tax rates, planned
investments, impacts of the COVID-19 pandemic on our operations,
profitability, and cash flow, the expected benefits of the pending
offer to acquire Scapa Group Plc and other statements generally
identified by words such as "believe," "expect," "intend,"
"guidance," "plan," "forecast," "potential," "anticipate,"
"confident," "project," "appear," "future," "should," "likely,"
"could," "may," "typically," "will," and similar words.
These forward-looking statements are prospective
in nature and not based on historical facts, but rather on current
expectations and on numerous assumptions regarding the business
strategies and the environment in which our business shall operate
in the future and are subject to risks and uncertainties that could
cause actual results to differ materially from those expressed or
implied by those statements. No assurance can be given that such
expectations will prove to have been correct and persons reading
this presentation are therefore cautioned not to place undue
reliance on these forward-looking statements which speak only as at
the date of this press release. These statements are not guarantees
of future performance and are subject to certain risks,
uncertainties (some of which are beyond the Company’s control) and
assumptions that may cause actual results to differ materially from
our expectations as of the date of this release. These risks
include, among other things, the following factors:
- Risks associated with pandemics and other public health
emergencies, including the continued spread and impact of, and the
governmental and third party response to, the COVID-19
pandemic;
- The impact of mandatory business closures, limits on
non-essential travel, “social or physical distancing” guidelines,
“shelter-in-place” mandates and similar governmental and private
measures taken to combat the spread of COVID-19;
- Changes in sales or production volumes, pricing and/or
manufacturing costs of Recon products, cigarette paper (including
for LIP cigarettes), including any change by our customers in their
tobacco and tobacco-related blends for their cigarettes, their
target inventory levels and/or the overall demand for their
products, new technologies such as e-cigarettes, inventory
adjustments and rebalancings in our EP segment. Additionally,
competition and changes in AMS end-market products due to changing
customer demands;
- Changes in the Chinese economy, including relating to the
demand for reconstituted tobacco, premium cigarettes and netting
and due to impact of tariffs;
- Risks associated with the implementation of our strategic
growth initiatives, including diversification, and the Company's
understanding of, and entry into, new industries and
technologies;
- Changes in the source and intensity of competition in our
commercial segments. We operate in highly competitive markets
in which alternative supplies and technologies may attract our
customers away from our products. In addition, our customers
may, in some cases, produce for themselves the components that the
Company sells to them for incorporation into their products, thus
reducing or eliminating their purchases from us;
- Our ability to attract and retain key personnel, due to our
prior restructuring actions, the tobacco industry in which we
operate or otherwise;
- Weather conditions, including potential impacts, if any, from
climate change, known and unknown, seasonality factors that affect
the demand for virgin tobacco leaf and natural disasters or unusual
weather events;
- Seasonal or cyclical market and industry fluctuations which may
result in reduced net sales and operating profits during certain
periods;
- Increases in commodity prices and lack of availability of such
commodities, including energy, wood pulp and resins, which could
impact the sales and profitability of our products;
- Adverse changes in the oil, gas, automotive, construction and
infrastructure, and mining sectors impacting key AMS segment
customers;
- Increases in operating costs due to inflation or otherwise,
such as labor expense, compensation and benefits costs;
- Employee retention and labor shortages;
- Changes in employment, wage and hour laws and regulations in
the U.S., France and elsewhere, including the loi de Securisation
de l'emploi in France, unionization rule and regulations by the
National Labor Relations Board in the U.S., equal pay initiatives,
additional anti-discrimination rules or tests and different
interpretations of exemptions from overtime laws;
- Labor strikes, stoppages, disruptions or other disruptions at
our facilities;
- The impact of tariffs, and the imposition of any future
additional tariffs and other trade barriers, and the effects of
retaliatory trade measures;
- Existing and future governmental regulation and the enforcement
thereof, for example relating to the tobacco industry, taxation and
the environment (including the impact thereof on our Chinese joint
ventures);
- New reports as to the effect of smoking on human health or the
environment;
- Changes in general economic, financial and credit conditions in
the U.S., Europe, China and elsewhere, including the impact thereof
on currency exchange rates (including any weakening of the Euro and
Real) and on interest rates and the effects of the ongoing
discussions between the U.K. and European Union to determine the
terms of the U.K.'s withdrawal from the European Union;
- Changes in the method pursuant to which LIBOR rates are
determined and the phasing out of LIBOR after 2021;
- Changes in the manner in which we finance our debt and future
capital needs, including potential acquisitions;
- The success of, and costs associated with, our current or
future restructuring initiatives, including the granting of any
needed governmental approvals and the occurrence of work stoppages
or other labor disruptions;
- Changes in the discount rates, revenue growth, cash flow growth
rates or other assumptions used by the Company in its assessment
for impairment of assets and adverse economic conditions or other
factors that would result in significant impairment charges;
- The failure of one or more material suppliers, including
energy, resin and pulp suppliers, to supply materials as needed to
maintain our product plans and cost structure;
- International conflicts and disputes, which restrict our
ability to supply products into affected regions, due to the
corresponding effects on demand, the application of international
sanctions, or practical consequences on transportation, banking
transactions, and other commercial activities in troubled
regions;
- Compliance with the FCPA and other anti-corruption laws or
trade control laws, as well as other laws governing our
operations;
- The pace and extent of further international adoption of LIP
cigarette standards and the nature of standards so adopted;
- Risks associated with our 50%-owned, non-U.S. joint ventures
relating to control and decision-making, compliance, accounting
standards, transparency and customer relations, among others;
- A failure in our risk management and/or currency or interest
rate swaps and hedging programs, including the failures of any
insurance company or counterparty;
- The number, type, outcomes (by judgment or settlement) and
costs of legal, tax, regulatory or administrative proceedings,
litigation and/or amnesty programs, including those in Brazil,
France and Germany;
- The outcome and cost of LIP-related intellectual property
infringement and validity litigation in Europe and the Glatz's
German Patent Court invalidation proceedings;
- Risks associated with our technological advantages in our
intellectual property and the likelihood that our current
technological advantages are unable to continue indefinitely;
- Risks associated with acquisitions or other strategic
transactions, including acquired liabilities and restrictions,
retaining customers from businesses acquired, achieving any
expected results or synergies from acquired businesses, complying
with new regulatory frameworks, difficulties in integrating
acquired businesses or implementing strategic transactions
generally and risks associated with international acquisition
transactions, including in countries where we do not currently have
a material presence;
- Risks associated with dispositions, including post-closing
claims being made against us, disruption to our other businesses
during a sale process or thereafter, credit risks associated with
any buyer of such disposed assets and our ability to collect funds
due from any such buyer;
- Risks associated with our global asset realignment initiatives,
including: changes in tax law, treaties, interpretations, or
regulatory determinations; audits made by applicable regulatory
authorities and/or our auditor; and our ability to operate our
business in a manner consistent with the regulatory requirements
for such realignment;
- Increased taxation on tobacco-related products;
- Costs and timing of implementation of any upgrades or changes
to our information technology systems;
- Failure by us to comply with any privacy or data security laws
or to protect against theft of customer, employee and corporate
sensitive information;
- Changes in tax rates, the adoption of new U.S. or international
tax legislation or exposure to additional tax liabilities;
- Changes in construction and infrastructure spending and its
impact on demand for certain products;
- Potential loss of consumer awareness and demand for acquired
companies’ products if it is decided to rebrand those products
under the Company’s legacy brand names; and
- Other factors described elsewhere in this document and from
time to time in documents that we file with the SEC.
All forward-looking statements made in this
document are qualified by these cautionary statements.
Forward-looking statements herein are made only as of the date of
this document, and we do not undertake any obligation, other than
as may be required by law, to update or revise any forward-looking
or cautionary statements to reflect changes in assumptions, the
occurrence of events, unanticipated or otherwise, or changes in
future operating results over time or otherwise.
Comparisons of results for current and any prior
periods are not intended to express any future trends or
indications of future performance unless expressed as such and
should only be viewed as historical data. The financial
results reported in this release are unaudited.
For additional factors and further discussion of
these factors, please see SWM's Annual Report on Form 10-K for the
year ended December 31, 2019, Quarterly Reports on Form 10-Q for
the quarters ended March 31, 2020, June 30, 2020, September 30,
2020, and other reports we file with the SEC from time to
time, which can be found at the SEC’s website www.sec.gov. The
discussion of these risks is specifically incorporated by reference
into this release. The financial results reported in this release
are unaudited.
Non-GAAP Financial Measures
Certain financial measures and comments
contained in this press release exclude restructuring and
impairment expenses, plant closure expenses, certain purchase
accounting adjustments related to AMS segment acquisitions,
interest expense, the effect of income tax provisions and other tax
impacts, capital spending, capitalized software costs, and
depreciation and amortization. This press release also
provides certain information regarding the Company's financial
results excluding currency impacts. This information
estimates the impact of changes in foreign currency rates on the
translation of the Company's current financial results as compared
to the applicable comparable period and is derived by translating
the current local currency results into U.S. Dollars based upon the
foreign currency exchange rates for the applicable comparable
period. Financial measures which exclude or include these
items have not been determined in accordance with accounting
principles generally accepted in the United States (GAAP) and are
therefore "non-GAAP" financial measures. Reconciliations of these
non-GAAP financial measures to the most closely analogous measure
determined in accordance with GAAP are included in the financial
schedules attached to this release.
The Company believes that the presentation of
non-GAAP financial measures in addition to the related GAAP
measures provides investors with greater transparency on the
information used by the Company’s management in its financial and
operational decision-making. Management also believes that
the non-GAAP financial measures provide additional insight for
analysts and investors in evaluating the Company’s financial and
operational performance in the same way that management evaluates
the Company's financial performance. Management believes that
providing this information enables investors to better understand
the Company’s operating performance and financial condition.
These non-GAAP financial measures are not calculated or presented
in accordance with, and are not intended to be considered in
isolation or as alternatives or substitutes for, or superior to,
financial measures prepared and presented in accordance with GAAP,
and should be read only in conjunction with the Company's financial
measures prepared and presented in accordance with GAAP. The
non-GAAP financial measures used in this release may be different
from the measures used by other companies.
SOURCE SWM:
CONTACT
Andrew WamserChief Financial
Officer+1-770-569-4271
Or
Mark ChekanowDirector of Investor
Relations+1-770-569-4229
Website: http://www.swmintl.com
SCHWEITZER-MAUDUIT INTERNATIONAL, INC. AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF
INCOME(Dollars in millions, except per share
amounts)(Unaudited)
|
Three Months Ended December 31, |
|
|
|
2020 |
|
2019 |
|
% Change |
Net sales |
$ |
279.4 |
|
|
$ |
238.5 |
|
|
17.1 |
% |
Cost of products sold |
199.9 |
|
|
167.6 |
|
|
19.3 |
|
Gross profit |
79.5 |
|
|
70.9 |
|
|
12.1 |
|
|
|
|
|
|
|
Selling expense |
9.6 |
|
|
7.9 |
|
|
21.5 |
|
Research and development expense |
3.4 |
|
|
3.4 |
|
|
— |
|
General expense |
39.0 |
|
|
33.1 |
|
|
17.8 |
|
Total nonmanufacturing expenses |
52.0 |
|
|
44.4 |
|
|
17.1 |
|
|
|
|
|
|
|
Restructuring and
impairment expense |
4.2 |
|
|
1.7 |
|
|
N.M. |
Operating
profit |
23.3 |
|
|
24.8 |
|
|
(6.0) |
|
Interest expense |
7.7 |
|
|
6.5 |
|
|
18.5 |
|
Other (expense) income, net |
(0.3) |
|
|
0.6 |
|
|
N.M. |
Income from
continuing operations before income taxes and income from equity
affiliates |
15.3 |
|
|
18.9 |
|
|
(19.0) |
|
|
|
|
|
|
|
Provision for income taxes |
2.9 |
|
|
2.4 |
|
|
20.8 |
|
Income from equity affiliates, net of income taxes |
2.9 |
|
|
3.7 |
|
|
(21.6) |
|
Income from
continuing operations |
15.3 |
|
|
20.2 |
|
|
(24.3) |
|
Net income |
$ |
15.3 |
|
|
$ |
20.2 |
|
|
(24.3) |
% |
|
|
|
|
|
|
Net income per
share - basic: |
|
|
|
|
|
Income per share from continuing operations |
$ |
0.49 |
|
|
$ |
0.65 |
|
|
(24.6) |
% |
Net income per share – basic |
$ |
0.49 |
|
|
$ |
0.65 |
|
|
(24.6) |
% |
|
|
|
|
|
|
Net income per
share – diluted: |
|
|
|
|
|
Income per share from continuing operations |
$ |
0.48 |
|
|
$ |
0.64 |
|
|
(25.0) |
% |
Net income per share – diluted |
$ |
0.48 |
|
|
$ |
0.64 |
|
|
(25.0) |
% |
|
|
|
|
|
|
Cash dividends
declared per share |
$ |
0.44 |
|
|
$ |
0.44 |
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
30,914,300 |
|
|
30,663,500 |
|
|
|
|
|
|
|
|
|
Diluted |
31,355,900 |
|
|
30,939,000 |
|
|
|
N.M. - Not Meaningful
SCHWEITZER-MAUDUIT INTERNATIONAL, INC. AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF
INCOME(Dollars in millions, except per share
amounts)(Unaudited)
|
Year Ended December 31, |
|
|
|
2020 |
|
2019 |
|
% Change |
Net sales |
$ |
1,074.4 |
|
|
$ |
1,022.8 |
|
|
5.0 |
% |
Cost of products sold |
766.1 |
|
|
732.8 |
|
|
4.5 |
|
Gross profit |
308.3 |
|
|
290.0 |
|
|
6.3 |
|
|
|
|
|
|
|
Selling expense |
36.9 |
|
|
33.7 |
|
|
9.5 |
|
Research and development expense |
13.8 |
|
|
13.5 |
|
|
2.2 |
|
General expense |
116.9 |
|
|
105.1 |
|
|
11.2 |
|
Total nonmanufacturing expenses |
167.6 |
|
|
152.3 |
|
|
10.0 |
|
|
|
|
|
|
|
Restructuring and
impairment expense |
11.9 |
|
|
3.7 |
|
|
N.M. |
Operating
profit |
128.8 |
|
|
134.0 |
|
|
(3.9) |
|
Interest expense |
30.5 |
|
|
36.1 |
|
|
(15.5) |
|
Other expense, net |
(1.0) |
|
|
(1.0) |
|
|
— |
|
Income from continuing operations before income taxes and income
from equity affiliates |
97.3 |
|
|
96.9 |
|
|
0.4 |
|
|
|
|
|
|
|
Provision for income taxes |
18.4 |
|
|
15.2 |
|
|
21.1 |
|
Income from equity affiliates, net of income taxes |
4.9 |
|
|
4.1 |
|
|
19.5 |
|
Income from
continuing operations |
83.8 |
|
|
85.8 |
|
|
(2.3) |
|
Net income |
$ |
83.8 |
|
|
$ |
85.8 |
|
|
(2.3) |
% |
|
|
|
|
|
|
Net income per
share - basic: |
|
|
|
|
|
Income per share from continuing operations |
$ |
2.68 |
|
|
$ |
2.78 |
|
|
(3.6) |
% |
Net income per share – basic |
$ |
2.68 |
|
|
$ |
2.78 |
|
|
(3.6) |
% |
|
|
|
|
|
|
Net income per
share – diluted: |
|
|
|
|
|
Income per share from continuing operations |
$ |
2.66 |
|
|
$ |
2.76 |
|
|
(3.6) |
% |
Net income per share – diluted |
$ |
2.66 |
|
|
$ |
2.76 |
|
|
(3.6) |
% |
|
|
|
|
|
|
Cash dividends
declared per share |
$ |
1.76 |
|
|
$ |
1.76 |
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
30,832,700 |
|
|
30,652,200 |
|
|
|
|
|
|
|
|
|
Diluted |
31,104,200 |
|
|
30,838,300 |
|
|
|
N.M. - Not Meaningful
SCHWEITZER-MAUDUIT INTERNATIONAL, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE
SHEETS(Dollars in
millions)(Unaudited)
|
December 31, 2020 |
|
December 31, 2019 |
ASSETS |
|
|
|
Cash and cash
equivalents |
$ |
54.7 |
|
|
$ |
103.0 |
|
Accounts
receivable, net |
148.5 |
|
|
143.2 |
|
Inventories |
179.7 |
|
|
161.4 |
|
Other current
assets |
13.5 |
|
|
19.9 |
|
Property, plant
and equipment, net |
339.0 |
|
|
330.3 |
|
Goodwill |
403.7 |
|
|
337.4 |
|
Other noncurrent
assets |
445.8 |
|
|
376.5 |
|
Total Assets |
$ |
1,584.9 |
|
|
$ |
1,471.7 |
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
Current debt |
$ |
2.8 |
|
|
$ |
1.9 |
|
Other current
liabilities |
164.1 |
|
|
155.7 |
|
Long-term
debt |
590.5 |
|
|
540.8 |
|
Pension and other
postretirement benefits |
36.5 |
|
|
31.6 |
|
Deferred income
tax liabilities |
45.1 |
|
|
48.2 |
|
Long-term income
tax payable |
17.7 |
|
|
21.4 |
|
Other noncurrent
liabilities |
78.6 |
|
|
74.4 |
|
Stockholders’
equity |
649.6 |
|
|
597.7 |
|
Total Liabilities and Stockholders’ Equity |
$ |
1,584.9 |
|
|
$ |
1,471.7 |
|
SCHWEITZER-MAUDUIT INTERNATIONAL, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOW(Dollars in
millions)(Unaudited)
|
Year Ended December 31, |
|
2020 |
|
2019 |
Operating |
|
|
|
Net income |
$ |
83.8 |
|
|
$ |
85.8 |
|
Non-cash items included in net income: |
|
|
|
Depreciation and amortization |
72.2 |
|
|
57.7 |
|
Impairments |
— |
|
|
1.1 |
|
Deferred income tax |
(5.2) |
|
|
(3.4) |
|
Pension and other postretirement benefits |
3.7 |
|
|
2.6 |
|
Stock-based compensation |
8.8 |
|
|
7.7 |
|
Income from equity affiliates |
(4.9) |
|
|
(4.1) |
|
Brazil tax assessment accruals, net |
— |
|
|
10.9 |
|
Long-term income tax payable |
(0.5) |
|
|
(0.6) |
|
Cash dividends received from equity affiliates |
2.7 |
|
|
2.6 |
|
Other items |
6.7 |
|
|
1.8 |
|
Changes in operating working capital |
(5.7) |
|
|
(1.8) |
|
Cash provided by operations |
161.6 |
|
|
160.3 |
|
|
|
|
|
Investing |
|
|
|
Capital spending |
(30.1) |
|
|
(28.6) |
|
Capitalized software costs |
(3.2) |
|
|
(5.5) |
|
Acquisitions, net of cash acquired |
(169.3) |
|
|
— |
|
Proceeds from sale of assets |
0.5 |
|
|
14.7 |
|
Other investing |
(1.0) |
|
|
4.6 |
|
Cash used in investing |
(203.1) |
|
|
(14.8) |
|
|
|
|
|
Financing |
|
|
|
Cash dividends paid to SWM stockholders |
(55.0) |
|
|
(54.4) |
|
Changes in short-term debt |
— |
|
|
(0.1) |
|
Proceeds from issuances of long-term debt |
212.7 |
|
|
19.1 |
|
Payments on long-term debt |
(165.3) |
|
|
(99.5) |
|
Purchases of common stock |
(1.0) |
|
|
(0.9) |
|
Cash used in financing |
(8.6) |
|
|
(135.8) |
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents |
1.8 |
|
|
(0.5) |
|
|
|
|
|
(Decrease)
increase in cash and cash equivalents |
$ |
(48.3) |
|
|
$ |
9.2 |
|
SCHWEITZER-MAUDUIT INTERNATIONAL, INC. AND
SUBSIDIARIESBUSINESS SEGMENT
REPORTING(Dollars in
millions)(Unaudited)
Net Sales |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
2020 |
|
2019 |
|
% Change |
|
2020 |
|
2019 |
|
% Change |
AMS |
$ |
148.9 |
|
|
$ |
103.9 |
|
|
43.3 |
% |
|
$ |
543.5 |
|
|
$ |
477.2 |
|
|
13.9 |
% |
EP |
130.5 |
|
|
134.6 |
|
|
(3.0) |
% |
|
530.9 |
|
|
545.6 |
|
|
(2.7) |
% |
Total Consolidated |
$ |
279.4 |
|
|
$ |
238.5 |
|
|
17.1 |
% |
|
$ |
1,074.4 |
|
|
$ |
1,022.8 |
|
|
5.0 |
% |
Operating Profit |
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
|
|
|
Return on Net Sales |
|
|
|
|
|
Return on Net Sales |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
AMS |
$ |
19.5 |
|
|
$ |
9.7 |
|
|
13.1 |
% |
|
9.3 |
% |
|
$ |
64.8 |
|
|
$ |
64.3 |
|
|
11.9 |
% |
|
13.5 |
% |
EP |
23.5 |
|
|
30.7 |
|
|
18.0 |
% |
|
22.8 |
% |
|
116.8 |
|
|
119.2 |
|
|
22.0 |
% |
|
21.8 |
% |
Unallocated |
(19.7) |
|
|
(15.6) |
|
|
|
|
|
|
(52.8) |
|
|
(49.5) |
|
|
|
|
|
Total Consolidated |
$ |
23.3 |
|
|
$ |
24.8 |
|
|
8.3 |
% |
|
10.4 |
% |
|
$ |
128.8 |
|
|
$ |
134.0 |
|
|
12.0 |
% |
|
13.1 |
% |
Non-GAAP Adjustments to Operating Profit |
|
|
|
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
AMS - Restructuring & Impairment Expenses |
$ |
0.1 |
|
|
$ |
1.1 |
|
|
$ |
0.6 |
|
|
$ |
1.1 |
|
AMS - Purchase Accounting Adjustments |
6.5 |
|
|
5.0 |
|
|
25.8 |
|
|
20.3 |
|
EP - Restructuring & Impairment Expenses, plant closure
expenses, and Tax Assessment |
6.0 |
|
|
0.6 |
|
|
16.3 |
|
|
4.1 |
|
Unallocated |
— |
|
|
— |
|
|
0.1 |
|
|
— |
|
Total Consolidated |
$ |
12.6 |
|
|
$ |
6.7 |
|
|
$ |
42.8 |
|
|
$ |
25.5 |
|
Adjusted Operating Profit * |
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
|
|
|
Return on Net Sales |
|
|
|
|
|
Return on Net Sales |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
AMS |
$ |
26.1 |
|
|
$ |
15.8 |
|
|
17.5 |
% |
|
15.2 |
% |
|
$ |
91.2 |
|
|
$ |
85.7 |
|
|
16.8 |
% |
|
18.0 |
% |
EP |
29.5 |
|
|
31.3 |
|
|
22.6 |
% |
|
23.3 |
% |
|
133.1 |
|
|
123.3 |
|
|
25.1 |
% |
|
22.6 |
% |
Unallocated |
(19.7) |
|
|
(15.6) |
|
|
|
|
|
|
(52.7) |
|
|
(49.5) |
|
|
|
|
|
Total Consolidated |
$ |
35.9 |
|
|
$ |
31.5 |
|
|
12.8 |
% |
|
13.2 |
% |
|
$ |
171.6 |
|
|
$ |
159.5 |
|
|
16.0 |
% |
|
15.6 |
% |
* Adjusted Operating Profit, a non-GAAP
financial measure, is calculated by adding Restructuring &
Impairment Expenses and Purchase Accounting Adjustments to
Operating Profit.
SCHWEITZER-MAUDUIT INTERNATIONAL, INC. AND
SUBSIDIARIESRECONCILIATION OF NON-GAAP FINANCIAL
MEASURES AND SUPPLEMENTAL DATA(Dollars in
millions, except per share amounts)
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Operating profit |
$ |
23.3 |
|
|
$ |
24.8 |
|
|
$ |
128.8 |
|
|
$ |
134.0 |
|
Plus: Restructuring and impairment, and plant closure expenses |
6.0 |
|
|
1.7 |
|
|
16.9 |
|
|
3.7 |
|
Plus: Purchase accounting adjustments |
6.5 |
|
|
5.0 |
|
|
25.8 |
|
|
20.3 |
|
Plus: Brazil tax assessments |
— |
|
|
— |
|
|
— |
|
|
1.5 |
|
Adjusted Operating Profit |
$ |
35.8 |
|
|
$ |
31.5 |
|
|
$ |
171.5 |
|
|
$ |
159.5 |
|
|
|
|
|
|
|
|
|
Income |
$ |
15.3 |
|
|
$ |
20.2 |
|
|
$ |
83.8 |
|
|
$ |
85.8 |
|
Plus: Restructuring and impairment expense |
4.2 |
|
|
1.7 |
|
|
11.9 |
|
|
3.7 |
|
Less: Tax impact of restructuring and impairment expense |
(1.1) |
|
|
(0.4) |
|
|
(3.1) |
|
|
(0.7) |
|
Plus: Plant closure |
1.7 |
|
|
— |
|
|
4.9 |
|
|
— |
|
Less: Tax impact of plant closure |
(0.4) |
|
|
— |
|
|
(1.1) |
|
|
— |
|
Plus: Purchase accounting adjustments |
6.5 |
|
|
5.0 |
|
|
25.8 |
|
|
20.3 |
|
Less: Tax impact of purchase accounting adjustments |
(1.6) |
|
|
(0.9) |
|
|
(6.3) |
|
|
(3.7) |
|
Plus: Brazil tax assessments |
0.1 |
|
|
— |
|
|
0.1 |
|
|
10.8 |
|
Less: Tax impact of Brazil tax assessments |
— |
|
|
(0.1) |
|
|
— |
|
|
(4.2) |
|
Less: Transitional Tax Adjustment |
— |
|
|
— |
|
|
— |
|
|
(0.6) |
|
Less: Tax legislative changes, net of other discrete items |
— |
|
|
— |
|
|
(0.4) |
|
|
(0.8) |
|
Less: RTL-Philippine sale gain |
— |
|
|
(0.3) |
|
|
— |
|
|
(0.3) |
|
Adjusted Income |
$ |
24.7 |
|
|
$ |
25.2 |
|
|
$ |
115.6 |
|
|
$ |
110.3 |
|
|
|
|
|
|
|
|
|
Earnings per share - diluted |
$ |
0.48 |
|
|
$ |
0.64 |
|
|
$ |
2.66 |
|
|
$ |
2.76 |
|
Earnings per share from continuing operations |
0.48 |
|
|
0.64 |
|
|
2.66 |
|
|
2.76 |
|
Plus: Restructuring and impairment expense |
0.13 |
|
|
0.05 |
|
|
0.38 |
|
|
0.12 |
|
Less: Tax impact of restructuring and impairment expense |
(0.04) |
|
|
(0.01) |
|
|
(0.10) |
|
|
(0.02) |
|
Plus: Plant closure |
0.06 |
|
|
— |
|
|
0.16 |
|
|
— |
|
Less: Tax impact of plant closure |
(0.02) |
|
|
— |
|
|
(0.04) |
|
|
— |
|
Plus: Purchase accounting adjustments |
0.21 |
|
|
0.16 |
|
|
0.83 |
|
|
0.66 |
|
Less: Tax impact of purchase accounting adjustment |
(0.05) |
|
|
(0.03) |
|
|
(0.20) |
|
|
(0.12) |
|
Plus: Brazil tax assessments |
— |
|
|
— |
|
|
— |
|
|
0.35 |
|
Less: Tax impact of Brazil tax assessments |
— |
|
|
— |
|
|
— |
|
|
(0.14) |
|
Less: Transitional Tax Adjustment |
— |
|
|
— |
|
|
— |
|
|
(0.02) |
|
Less: Tax legislative changes, net of other discrete items |
— |
|
|
— |
|
|
(0.01) |
|
|
(0.03) |
|
Less: RTL-Philippine sale gain |
— |
|
|
(0.01) |
|
|
— |
|
|
(0.01) |
|
Adjusted Earnings Per Share - Diluted |
$ |
0.77 |
|
|
$ |
0.80 |
|
|
$ |
3.68 |
|
|
$ |
3.55 |
|
SCHWEITZER-MAUDUIT INTERNATIONAL, INC. AND
SUBSIDIARIESRECONCILIATION OF NON-GAAP FINANCIAL
MEASURES AND SUPPLEMENTAL DATA(Dollars in
millions, except per share amounts)
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Net income |
$ |
15.3 |
|
|
$ |
20.2 |
|
|
$ |
83.8 |
|
|
$ |
85.8 |
|
Income from continuing operations |
15.3 |
|
|
20.2 |
|
|
83.8 |
|
|
85.8 |
|
Plus: Interest expense on debt |
7.7 |
|
|
6.5 |
|
|
30.5 |
|
|
29.0 |
|
Plus: Interest expense on Brazil tax assessments |
0.1 |
|
|
— |
|
|
0.1 |
|
|
7.1 |
|
Plus: Provision for income taxes |
2.9 |
|
|
2.4 |
|
|
18.4 |
|
|
15.2 |
|
Plus: Depreciation and amortization |
19.3 |
|
|
14.4 |
|
|
70.1 |
|
|
58.0 |
|
Plus: Restructuring and impairment expense |
4.2 |
|
|
1.7 |
|
|
11.9 |
|
|
3.7 |
|
Plus: Inventory write-down expense related to plant closure |
— |
|
|
— |
|
|
2.0 |
|
|
— |
|
Plus: Income from equity affiliates |
(2.9) |
|
|
(3.7) |
|
|
(4.9) |
|
|
(4.1) |
|
Plus: Other expense (income), net |
0.3 |
|
|
(0.6) |
|
|
1.0 |
|
|
1.0 |
|
Plus: Brazil tax assessments |
— |
|
|
— |
|
|
— |
|
|
1.5 |
|
Adjusted EBITDA from continuing operations |
$ |
46.9 |
|
|
$ |
40.9 |
|
|
$ |
212.9 |
|
|
$ |
197.2 |
|
|
|
|
|
|
|
|
|
AMS adjusted EBITDA |
$ |
30.1 |
|
|
$ |
19.3 |
|
|
$ |
106.7 |
|
|
$ |
99.2 |
|
EP adjusted EBITDA |
36.3 |
|
|
37.0 |
|
|
158.0 |
|
|
146.6 |
|
Unallocated adjusted EBITDA |
(19.5) |
|
|
(15.4) |
|
|
(51.8) |
|
|
(48.6) |
|
Adjusted EBITDA from continuing operations |
$ |
46.9 |
|
|
$ |
40.9 |
|
|
$ |
212.9 |
|
|
$ |
197.2 |
|
|
|
|
|
|
|
|
|
Cash provided by operating activities |
$ |
54.1 |
|
|
$ |
41.4 |
|
|
$ |
161.6 |
|
|
$ |
160.3 |
|
Less: Capital spending |
(9.4) |
|
|
(8.6) |
|
|
(30.1) |
|
|
(28.6) |
|
Less: Capitalized software costs |
(0.4) |
|
|
(1.6) |
|
|
(3.2) |
|
|
(5.5) |
|
Free Cash Flow |
$ |
44.3 |
|
|
$ |
31.2 |
|
|
$ |
128.3 |
|
|
$ |
126.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2020 |
|
December 31, 2019 |
|
|
|
|
|
|
|
|
Total Debt |
|
|
|
|
$ |
593.3 |
|
|
$ |
542.7 |
|
Less: Cash |
|
|
|
|
54.7 |
|
|
103.0 |
|
Net Debt |
|
|
|
|
$ |
538.6 |
|
|
$ |
439.7 |
|
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