Fourth Quarter:

  • Sales were $719 million, a 5% increase over prior year
  • Operating profit was $185 million
  • EBITDA was a quarterly record of $227 million, 32% of sales
  • Earnings per diluted share were $2.22
  • Adjusted earnings per diluted share were $2.46

Full Year:

  • Record sales of $2.6 billion, reflecting 2% growth over last year’s record sales
  • EBITDA was a record $819 million, 31% of sales
  • Earnings per diluted share were $8.46
  • Adjusted earnings per diluted share were $9.03

2024 Guidance:

  • Fiscal 2024 forecasted sales growth of 4% to 9% and adjusted earnings in the range of 1% to 8% growth over fiscal 2023

Nordson Corporation (Nasdaq: NDSN) today reported results for the fiscal fourth quarter ended October 31, 2023. Sales were $719 million, a 5% increase compared to the prior year’s fourth quarter sales of $684 million. The increase in fourth quarter 2023 sales included the favorable 7% impact of acquisitions and favorable currency translation of 1%, offset by an organic decrease of 3%. The organic sales decrease was driven by electronics dispense and biopharma product lines, offset by strong growth in medical interventional solutions, industrial coatings and polymer processing product lines.

Operating profit in the quarter was $185 million, or 26% of sales. Adjusted operating profit, excluding $11 million in non-recurring acquisition costs, totaled $196 million, or 27% of sales. This was a 10% increase compared to prior year adjusted operating profit of $178 million. EBITDA in the quarter totaled a record $227 million, or 32% of sales, and represents an increase of 12% from the prior year EBITDA of $202 million.

Net income was $128 million, or earnings per diluted share of $2.22. Adjusted net income was $142 million, excluding $7 million of non-recurring financing costs related to the ARAG acquisition. Fourth quarter 2023 adjusted earnings per diluted share were $2.46 compared to prior year adjusted earnings per diluted share of $2.44. The increase was driven by higher sales, offset by higher interest expense.

Commenting on the Company’s fiscal 2023 fourth quarter results, Nordson President and Chief Executive Officer Sundaram Nagarajan said, “The diversification of Nordson’s precision technology portfolio and the progress of the Ascend strategy shined through again this quarter. Our medical interventional solutions and several industrial precision product lines delivered double-digit growth in the quarter, while demand weakness in electronics and biopharma end markets persisted as expected. Throughout this dynamic year, our winning teams have remained focused on meeting the needs of our customers. They demonstrated an owner mindset and responded rapidly over the course of the year to changing market conditions. This led to total company performance exceeding our incremental profit targets. I am also very pleased with the integration progress of our recent ARAG acquisition, which contributed favorably to the fourth quarter results.”

Fourth Quarter Segment Results

Industrial Precision Solutions sales of $405 million increased 14% compared to the prior year fourth quarter, driven by a 4% organic sales increase, a favorable acquisition impact of 7%, and a favorable currency impact of 2%. The organic sales increase was driven by record sales in our packaging, industrial coating and polymer processing product lines, largely driven by strong system sales in the Americas and Asia Pacific. Adjusted operating profit, which excludes non-recurring charges related to the ARAG acquisition, totaled $136 million in the quarter, or 34% of sales, an increase of 23% compared to the prior year operating profit. The increase in operating profit was driven by higher sales and improved sales mix.

Medical and Fluid Solutions sales of $169 million decreased 7% compared to the prior year fourth quarter, driven by an organic sales decrease of 8% that was partially offset by a favorable currency impact of 1%. The organic sales decrease was driven by continued softness in medical fluid components and fluid solutions product lines, partially offset by double-digit growth in our medical interventional solutions product lines. Operating profit totaled $48 million in the quarter, or 28% of sales, a decrease of 7% compared to the prior year operating profit due to lower sales volumes.

Advanced Technology Solutions sales of $145 million decreased 1% compared to the prior year fourth quarter, driven by an organic sales decrease of 16% that was principally offset by a favorable acquisition impact of 15% and a favorable currency impact of 1%. The organic sales decline was primarily driven by continued softness in our electronic dispense product lines, which serves the cyclical semiconductor end markets. Operating profit totaled $32 million in the quarter, or 22% of sales, a decrease of 16% compared to the prior year operating profit due to lower organic sales volume.

Fiscal 2023 Full Year Results

Sales for the fiscal year ended October 31, 2023, were a record $2.6 billion, an increase of 2% compared to the prior year. This sales growth was driven by a favorable acquisition impact of 4%, partially offset by a 1% decrease in organic volume and an unfavorable currency impact of 1%. Full year operating profit was $673 million. Net income was $487 million and diluted earnings per share were $8.46.

Adjusted operating profit, excluding $34 million in non-recurring costs, was $707 million, or 27% of sales, comparable to prior year adjusted operating profit of $707 million. EBITDA totaled a record $819 million, or 31% of sales. Adjusted diluted earnings per share were $9.03, a 4% decrease from the prior year earnings per diluted share of $9.43, primarily due to higher interest expense.

Reflecting on fiscal 2023, Mr. Nagarajan continued, “In 2021, we launched our Ascend strategy with the milestone of achieving $3 billion in annual sales and greater than 30% EBITDA margins by 2025. As we complete the third year of our strategy, we are on track toward achieving this objective. This is our third consecutive year of record sales, demonstrating the execution of the NBS Next growth framework, exciting acquisitions reflecting our strategic capital deployment, entrepreneurial owner mindset and the continued development of winning teams at every level of our organization. In fiscal 2024, we are well positioned for the recovery of select end markets and the related incremental earnings power that will come with that growth. The Ascend strategy is creating a scalable, high quality earnings growth engine. I want to thank Nordson’s employees and customers for all of their continued support.”

Outlook

Following three consecutive years of record setting performance and a strong finish to fiscal 2023, we enter fiscal 2024 with approximately $800 million in backlog. The book-to-bill in the fourth quarter and the majority of 2023 was unfavorable as over $200 million in backlog was consumed.

Based on the combination of order entry, backlog and current exchange rates, we anticipate delivering sales growth in the range of 4% to 9% in fiscal 2024 when compared to fiscal 2023. Full year fiscal 2024 adjusted earnings are forecasted in the range of 1% to 8% growth per diluted share.

First quarter fiscal 2024 sales are forecasted in the range of $615 to $640 million with adjusted earnings in the range of $2.00 to $2.10 per diluted share. Starting in fiscal 2024, the Company’s definition of adjusted earnings will exclude acquisition related amortization for both current and historical periods (see the appendix for historical amounts).

Nordson management will provide additional commentary on these results and outlook during its previously announced webcast on Thursday, December 14, 2023 at 8:30 a.m. eastern time, which can be accessed at https://investors.nordson.com. For persons unable to listen to the live broadcast, a replay will be available for 14 days after the event. Information about Nordson’s investor relations and shareholder services is available from Lara Mahoney, vice president, investor relations and corporate communications at (440) 204-9985 or lara.mahoney@nordson.com.

Certain statements contained in this release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by terminology such as “may,” “will,” “should,” “could,” “expects,” “anticipates,” “believes,” “projects,” “forecasts,” “outlook,” “guidance,” “continue,” “target,” or the negative of these terms or comparable terminology. These statements reflect management’s current expectations and involve a number of risks and uncertainties. These risks and uncertainties include, but are not limited to, U.S. and international economic conditions; financial and market conditions; currency exchange rates and devaluations; possible acquisitions, including the Company’s ability to successfully integrate acquisitions; the Company’s ability to successfully divest or dispose of businesses that are deemed not to fit with its strategic plan; the effects of changes in U.S. trade policy and trade agreements; the effects of changes in tax law; and the possible effects of events beyond our control, such as political unrest, including conflicts in Europe and the Middle East, acts of terror, natural disasters and pandemics, including the recent coronavirus (COVID-19) pandemic and the other factors discussed in Item 1A (Risk Factors) in the Company’s most recently filed Annual Report on Form 10-K and in its Forms 10-Q filed with the Securities and Exchange Commission, which should be reviewed carefully. The Company undertakes no obligation to update or revise any forward-looking statement in this press release.

Nordson Corporation is an innovative precision technology company that leverages a scalable growth framework through an entrepreneurial, division-led organization to deliver top tier growth with leading margins and returns. The Company’s direct sales model and applications expertise serves global customers through a wide variety of critical applications. Its diverse end market exposure includes consumer non-durable, medical, electronics and industrial end markets. Founded in 1954 and headquartered in Westlake, Ohio, the Company has operations and support offices in over 35 countries. Visit Nordson on the web at www.nordson.com, www.twitter.com/Nordson_Corp or www.facebook.com/nordson.

NORDSON CORPORATION

 

CONSOLIDATED STATEMENT OF INCOME (Unaudited)

(Dollars in thousands except for per-share amounts)

 

 

Three Months Ended

 

Twelve Months Ended

 

October 31, 2023

 

October 31, 2022

 

October 31, 2023

 

October 31, 2022

 

 

 

 

 

 

 

 

Sales

$

719,313

 

 

$

683,581

 

 

$

2,628,632

 

 

$

2,590,278

 

Cost of sales

 

335,220

 

 

 

320,398

 

 

 

1,203,227

 

 

 

1,163,742

 

Gross profit

 

384,093

 

 

 

363,183

 

 

 

1,425,405

 

 

 

1,426,536

 

Gross margin %

 

53.4

%

 

 

53.1

%

 

 

54.2

%

 

 

55.1

%

 

 

 

 

 

 

 

 

Selling & administrative expenses

 

199,054

 

 

 

185,574

 

 

 

752,644

 

 

 

724,176

 

Operating profit

 

185,039

 

 

 

177,609

 

 

 

672,761

 

 

 

702,360

 

 

 

 

 

 

 

 

 

Interest expense - net

 

(25,921

)

 

 

(5,095

)

 

 

(56,825

)

 

 

(20,387

)

Other income (expense) - net

 

1,462

 

 

 

5,026

 

 

 

(597

)

 

 

(32,694

)

Income before income taxes

 

160,580

 

 

 

177,540

 

 

 

615,339

 

 

 

649,279

 

 

 

 

 

 

 

 

 

Income taxes

 

32,802

 

 

 

36,291

 

 

 

127,846

 

 

 

136,176

 

 

 

 

 

 

 

 

 

Net Income

$

127,778

 

 

$

141,249

 

 

$

487,493

 

 

$

513,103

 

 

 

 

 

 

 

 

 

Weighted-average common shares outstanding:

 

 

 

 

 

 

 

Basic

 

57,020

 

 

 

57,170

 

 

 

57,090

 

 

 

57,629

 

Diluted

 

57,552

 

 

 

57,823

 

 

 

57,631

 

 

 

58,249

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

Basic earnings

$

2.24

 

 

$

2.47

 

 

$

8.54

 

 

$

8.90

 

Diluted earnings

$

2.22

 

 

$

2.44

 

 

$

8.46

 

 

$

8.81

 

NORDSON CORPORATION

 

CONSOLIDATED BALANCE SHEET (Unaudited)

(Dollars in thousands)

 

 

October 31, 2023

 

October 31, 2022

 

 

 

 

Cash and cash equivalents

$

115,679

 

$

163,457

Receivables - net

 

590,886

 

 

537,313

Inventories - net

 

454,775

 

 

383,398

Other current assets

 

67,970

 

 

48,803

Total current assets

 

1,229,310

 

 

1,132,971

 

 

 

 

Property, plant & equipment - net

 

392,846

 

 

353,442

Goodwill

 

2,784,201

 

 

1,804,693

Other assets

 

845,413

 

 

529,269

 

$

5,251,770

 

$

3,820,375

 

 

 

 

Notes payable and debt due within one year

$

115,662

 

$

392,537

Accounts payable and accrued liabilities

 

466,427

 

 

441,666

Total current liabilities

 

582,089

 

 

834,203

 

 

 

 

Long-term debt

 

1,621,394

 

 

345,320

Other liabilities

 

450,227

 

 

346,477

Total shareholders' equity

 

2,598,060

 

 

2,294,375

 

$

5,251,770

 

$

3,820,375

 

 

 

 

NORDSON CORPORATION

 

CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)

(Dollars in thousands)

 

 

Twelve Months Ended

 

October 31, 2023

 

October 31, 2022

 

 

 

 

Cash flows from operating activities:

 

 

 

Net Income

$

487,493

 

 

$

513,103

 

Depreciation and amortization

 

111,898

 

 

 

99,923

 

Other non-cash items

 

16,105

 

 

 

63,174

 

Changes in working capital

 

(3,571

)

 

 

(107,314

)

Other

 

29,357

 

 

 

(55,755

)

Net cash provided by operating activities

 

641,282

 

 

 

513,131

 

 

 

 

 

Cash flows from investing activities:

 

 

 

Additions to property, plant and equipment

 

(34,583

)

 

 

(51,428

)

Acquisitions

 

(1,422,780

)

 

 

(171,613

)

Other - net

 

20,484

 

 

 

280

 

Net cash used in investing activities

 

(1,436,879

)

 

 

(222,761

)

 

 

 

 

Cash flows from financing activities:

 

 

 

Borrowing (repayment) of long-term debt

 

976,043

 

 

 

(33,908

)

Repayment of finance lease obligations

 

(6,840

)

 

 

(5,439

)

Dividends paid

 

(150,356

)

 

 

(125,914

)

Issuance of common shares

 

21,373

 

 

 

12,124

 

Purchase of treasury shares

 

(89,708

)

 

 

(262,869

)

Net cash used in financing activities

 

750,512

 

 

 

(416,006

)

 

 

 

 

Effect of exchange rate change on cash

 

(2,693

)

 

 

(10,879

)

Net change in cash and cash equivalents

 

(47,778

)

 

 

(136,515

)

 

 

 

 

Cash and cash equivalents:

 

 

 

Beginning of period

 

163,457

 

 

 

299,972

 

End of period

$

115,679

 

 

$

163,457

 

 

 

 

 

NORDSON CORPORATION

 

SALES BY GEOGRAPHIC SEGMENT (Unaudited)

(Dollars in thousands)

 

 

Three Months Ended

 

Sales Variance

 

October 31, 2023

 

October 31, 2022

 

Organic

 

Acquisitions

 

Currency

 

Total

SALES BY SEGMENT

 

 

 

 

 

 

 

 

 

 

 

Industrial precision solutions

$

405,436

 

$

355,659

 

4.4

%

 

7.2

%

 

2.4

%

 

14.0

%

Medical and fluid solutions

 

168,632

 

 

181,342

 

(7.6

) %

 

%

 

0.6

%

 

(7.0

) %

Advanced technology solutions

 

145,245

 

 

146,580

 

(16.4

) %

 

15.0

%

 

0.5

%

 

(0.9

) %

Total sales

$

719,313

 

$

683,581

 

(3.1

) %

 

6.9

%

 

1.4

%

 

5.2

%

 

 

 

 

 

 

 

 

 

 

 

 

SALES BY GEOGRAPHIC REGION

 

 

 

 

 

 

 

 

 

 

 

Americas

 

315,635

 

 

303,738

 

(0.9

) %

 

4.0

%

 

0.8

%

 

3.9

%

Europe

 

184,297

 

 

165,702

 

(6.3

) %

 

12.0

%

 

5.5

%

 

11.2

%

Asia Pacific

 

219,381

 

 

214,141

 

(3.8

) %

 

7.2

%

 

(1.0

) %

 

2.4

%

Total sales

$

719,313

 

$

683,581

 

(3.1

) %

 

6.9

%

 

1.4

%

 

5.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Twelve Months Ended

 

Sales Variance

 

October 31, 2023

 

October 31, 2022

 

Organic

 

Acquisitions

 

Currency

 

Total

SALES BY SEGMENT

 

 

 

 

 

 

 

 

 

 

 

Industrial precision solutions

$

1,391,046

 

$

1,337,242

 

3.1

%

 

1.9

%

 

(1.0

) %

 

4.0

%

Medical and fluid solutions

 

660,316

 

 

690,177

 

(3.7

) %

 

%

 

(0.6

) %

 

(4.3

) %

Advanced technology solutions

 

577,270

 

 

562,859

 

(9.2

) %

 

12.9

%

 

(1.1

) %

 

2.6

%

Total sales

$

2,628,632

 

$

2,590,278

 

(1.4

) %

 

3.8

%

 

(0.9

) %

 

1.5

%

 

 

 

 

 

 

 

 

 

 

 

 

SALES BY GEOGRAPHIC REGION

 

 

 

 

 

 

 

 

 

 

 

Americas

 

1,149,760

 

 

1,096,596

 

2.0

%

 

2.4

%

 

0.4

%

 

4.8

%

Europe

 

682,676

 

 

645,603

 

1.4

%

 

4.2

%

 

0.1

%

 

5.7

%

Asia Pacific

 

796,196

 

 

848,079

 

(8.2

) %

 

5.2

%

 

(3.1

) %

 

(6.1

) %

Total sales

$

2,628,632

 

$

2,590,278

 

(1.4

) %

 

3.8

%

 

(0.9

) %

 

1.5

%

 

 

 

 

 

 

 

 

 

 

 

 

NORDSON CORPORATION

 

RECONCILIATION OF NON-GAAP MEASURES - ADJUSTED OPERATING PROFIT AND EBITDA (Unaudited)

(Dollars in thousands)

   

 

Three Months Ended

 

Twelve Months Ended

 

October 31, 2023

 

October 31, 2022

 

October 31, 2023

 

October 31, 2022

SALES BY SEGMENT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Industrial precision solutions

$

405,436

 

 

 

 

$

355,659

 

 

 

 

$

1,391,046

 

 

 

 

$

1,337,242

 

 

 

Medical and fluid solutions

 

168,632

 

 

 

 

 

181,342

 

 

 

 

 

660,316

 

 

 

 

 

690,177

 

 

 

Advanced technology solutions

 

145,245

 

 

 

 

 

146,580

 

 

 

 

 

577,270

 

 

 

 

 

562,859

 

 

 

Total sales

$

719,313

 

 

 

 

$

683,581

 

 

 

 

$

2,628,632

 

 

 

 

$

2,590,278

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING PROFIT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Industrial precision solutions

$

131,450

 

 

 

 

$

110,387

 

 

 

 

$

460,889

 

 

 

 

$

434,476

 

 

 

Medical and fluid solutions

 

48,041

 

 

 

 

 

51,689

 

 

 

 

 

189,367

 

 

 

 

 

217,199

 

 

 

Advanced technology solutions

 

31,526

 

 

 

 

 

37,720

 

 

 

 

 

101,662

 

 

 

 

 

133,253

 

 

 

Corporate

 

(25,978

)

 

 

 

 

(22,187

)

 

 

 

 

(79,157

)

 

 

 

 

(82,568

)

 

 

Total operating profit

$

185,039

 

 

 

 

$

177,609

 

 

 

 

$

672,761

 

 

 

 

$

702,360

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING PROFIT ADJUSTMENTS (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Industrial precision solutions

$

4,658

 

 

 

 

$

 

 

 

 

$

4,658

 

 

 

 

$

1,563

 

 

 

Medical and fluid solutions

 

 

 

 

 

 

 

 

 

 

 

1,479

 

 

 

 

 

2,498

 

 

 

Advanced technology solutions

 

 

 

 

 

 

 

 

 

 

 

14,304

 

 

 

 

 

 

 

 

Corporate

 

6,142

 

 

 

 

 

 

 

 

 

 

13,874

 

 

 

 

 

897

 

 

 

Total adjustments

$

10,800

 

 

 

 

$

 

 

 

 

$

34,315

 

 

 

 

$

4,958

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ADJUSTED OPERATING PROFIT (NON-GAAP)

 

 

% of Sales

 

 

 

% of Sales

 

 

 

% of Sales

 

 

 

% of Sales

Industrial precision solutions

$

136,108

 

 

34

%

 

$

110,387

 

 

31

%

 

$

465,547

 

 

33

%

 

$

436,039

 

 

33

%

Medical and fluid solutions

 

48,041

 

 

28

%

 

 

51,689

 

 

29

%

 

 

190,846

 

 

29

%

 

 

219,697

 

 

32

%

Advanced technology solutions

 

31,526

 

 

22

%

 

 

37,720

 

 

26

%

 

 

115,966

 

 

20

%

 

 

133,253

 

 

24

%

Corporate

 

(19,836

)

 

 

 

 

(22,187

)

 

 

 

 

(65,283

)

 

 

 

 

(81,671

)

 

 

Total operating profit - adjusted

$

195,839

 

 

27

%

 

$

177,609

 

 

26

%

 

$

707,076

 

 

27

%

 

$

707,318

 

 

27

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DEPRECIATION & AMORTIZATION

 

 

 

 

 

 

 

 

 

 

 

 

Industrial precision solutions

$

12,062

 

 

 

 

$

7,186

 

 

 

 

$

33,228

 

 

 

 

$

27,891

 

 

 

Medical and fluid solutions

 

13,547

 

 

 

 

 

12,528

 

 

 

 

 

54,988

 

 

 

 

 

54,674

 

 

 

Advanced technology solutions

 

3,529

 

 

 

 

 

2,075

 

 

 

 

 

15,185

 

 

 

 

 

8,780

 

 

 

Corporate

 

2,123

 

 

 

 

 

2,892

 

 

 

 

 

8,497

 

 

 

 

 

8,578

 

 

 

Total depreciation & amortization

$

31,261

 

 

 

 

$

24,681

 

 

 

 

$

111,898

 

 

 

 

$

99,923

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA (NON-GAAP) (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Industrial precision solutions

$

148,170

 

 

37

%

 

$

117,573

 

 

33

%

 

$

498,775

 

 

36

%

 

$

463,930

 

 

35

%

Medical and fluid solutions

 

61,588

 

 

37

%

 

 

64,217

 

 

35

%

 

 

245,834

 

 

37

%

 

 

274,371

 

 

40

%

Advanced technology solutions

 

35,055

 

 

24

%

 

 

39,795

 

 

27

%

 

 

131,151

 

 

23

%

 

 

142,033

 

 

25

%

Corporate

 

(17,713

)

 

 

 

 

(19,295

)

 

 

 

 

(56,786

)

 

 

 

 

(73,093

)

 

 

Total EBITDA

$

227,100

 

 

32

%

 

$

202,290

 

 

30

%

 

$

818,974

 

 

31

%

 

$

807,241

 

 

31

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Represents severance, as well as fees and non-cash inventory charges associated with acquisitions.

(2)

Adjusted operating profit and EBITDA are non-GAAP measures used by management to evaluate the Company's ongoing operations. Adjusted operating profit is defined as operating profit plus certain adjustments, such as severance, fees and non-cash inventory charges associated with acquisitions. EBITDA is defined as adjusted operating profit plus depreciation and amortization.

NORDSON CORPORATION

 

RECONCILIATION OF NON-GAAP MEASURES - PROFITABILITY (Unaudited)

(Dollars in thousands)

 

 

Three Months Ended

 

Twelve Months Ended

 

October 31, 2023

 

October 31, 2022

 

October 31, 2023

 

October 31, 2022

GAAP AS REPORTED

 

 

 

 

 

 

 

Operating profit

$

185,039

 

 

$

177,609

 

 

$

672,761

 

 

$

702,360

 

Other / interest expense - net

 

(24,459

)

 

 

(69

)

 

 

(57,422

)

 

 

(53,081

)

Net income

 

127,778

 

 

 

141,249

 

 

 

487,493

 

 

 

513,103

 

Diluted earnings per share

$

2.22

 

 

$

2.44

 

 

$

8.46

 

 

$

8.81

 

 

 

 

 

 

 

 

 

Shares outstanding - diluted

 

57,552

 

 

 

57,823

 

 

 

57,631

 

 

 

58,249

 

 

 

 

 

 

 

 

 

OPERATING PROFIT ADJUSTMENTS

 

 

 

 

 

 

 

Inventory step-up amortization

$

4,556

 

 

$

 

 

$

8,862

 

 

$

1,563

 

Severance and other

 

 

 

 

 

 

 

5,487

 

 

 

3,395

 

Acquisition costs

 

6,244

 

 

 

 

 

 

19,966

 

 

 

 

 

 

 

 

 

 

 

 

NON-OPERATING EXPENSE ADJUSTMENTS

 

 

 

 

 

 

Pension settlement loss

$

 

 

$

 

 

$

 

 

$

41,221

 

Interest

 

6,817

 

 

 

 

 

 

6,817

 

 

 

 

 

 

 

 

 

 

 

 

Total adjustments

$

17,617

 

 

$

 

 

$

41,132

 

 

$

46,179

 

 

 

 

 

 

 

 

 

Adjustments net of tax

$

14,019

 

 

$

 

 

$

32,641

 

 

$

36,355

 

EPS effect of adjustments and other discrete tax items

$

0.24

 

 

$

 

 

$

0.57

 

 

$

0.62

 

 

 

 

 

 

 

 

 

NON-GAAP MEASURES-ADJUSTED PROFITABILITY

 

 

 

 

 

 

Operating profit (1)

$

195,839

 

 

$

177,609

 

 

$

707,076

 

 

$

707,318

 

Operating profit % of sales

 

27.2

%

 

 

26.0

%

 

 

26.9

%

 

 

27.3

%

Net income (2)

$

141,797

 

 

$

141,249

 

 

$

520,134

 

 

$

549,458

 

Diluted earnings per share (3)

$

2.46

 

 

$

2.44

 

 

$

9.03

 

 

$

9.43

 

(1)

Adjusted operating profit is defined as operating profit plus certain adjustments, such as severance, fees and non-cash inventory charges related to acquisitions. Adjusted operating profit as a percentage of sales is defined as adjusted operating profit divided by sales.

(2)

Adjusted net income is defined as net income plus tax effected adjustments and other discrete tax items.

(3)

Adjusted earnings per share is defined as GAAP EPS adjusted for tax effected adjustments and other discrete tax items.

Management uses these non-GAAP measures internally to make strategic decisions, forecast future results, and evaluate the Company's current performance. Given management's use of these non-GAAP measures, the Company believes these measures are important to investors in understanding the Company's current and future operating results as seen through the eyes of management. In addition, management believes these non-GAAP measures are useful to investors in enabling them to better assess changes in the Company's core business across different time periods. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures to other companies' non-GAAP financial measures, even if they have similar names. Amounts may not add due to rounding.

NORDSON CORPORATION

 

APPENDIX - RECONCILIATION OF NON-GAAP MEASURES - PROFITABILITY (Unaudited)

(Dollars in thousands)

 

 

Three Months Ended

Twelve Months Ended

 

October 31, 2023

July 31, 2023

April 30, 2023

January 31, 2023

October 31, 2023

GAAP net income as reported

$

127,778

$

127,891

$

127,563

$

104,261

$

487,493

Diluted earnings per share

$

2.22

$

2.22

$

2.21

$

1.81

$

8.46

 

 

 

 

 

 

Operating and non-operating adjustments

$

17,617

$

9,781

$

3,439

$

10,295

$

41,132

Adjustments net of tax

$

14,019

$

7,719

$

2,714

$

8,189

$

32,641

EPS effect of non-recurring adjustments

$

0.24

$

0.13

$

0.05

$

0.14

$

0.57

 

 

 

 

 

 

Adjusted EPS (as previously reported)

$

2.46

$

2.35

$

2.26

$

1.95

$

9.03

 

 

 

 

 

 

Acquisition amortization of intangibles

$

17,881

$

13,922

$

14,044

$

13,872

$

59,719

Acquisition amortization net of tax

$

14,228

$

10,987

$

11,084

$

11,034

$

47,333

EPS effect of acquisition amortization

$

0.25

$

0.19

$

0.19

$

0.19

$

0.82

 

 

 

 

 

 

Revised adjusted EPS

$

2.71

$

2.54

$

2.45

$

2.14

$

9.85

 

Three Months Ended

Twelve Months Ended

 

October 31, 2022

July 31, 2022

April 30, 2022

January 31, 2022

October 31, 2022

GAAP net income as reported

$

141,249

$

141,811

$

109,634

$

120,409

$

513,103

Diluted earnings per share

$

2.44

$

2.45

$

1.88

$

2.05

$

8.81

 

 

 

 

 

 

Operating and non-operating adjustments

$

$

3,395

$

41,221

$

1,563

$

46,179

Adjustments net of tax

$

$

2,667

$

32,450

$

1,238

$

36,355

EPS effect of non-recurring adjustments

$

$

0.04

$

0.56

$

0.02

$

0.62

 

 

 

 

 

 

Adjusted EPS (as previously reported)

$

2.44

$

2.49

$

2.43

$

2.07

$

9.43

 

 

 

 

 

 

Acquisition amortization of intangibles

$

12,459

$

12,766

$

12,753

$

12,847

$

50,825

Acquisition amortization net of tax

$

9,911

$

10,029

$

10,039

$

10,179

$

40,158

EPS effect of acquisition amortization

$

0.17

$

0.17

$

0.17

$

0.17

$

0.68

 

 

 

 

 

 

Revised adjusted EPS

$

2.61

$

2.67

$

2.61

$

2.24

$

10.13

 

Lara Mahoney Vice President, Investor Relations & Corporate Communications 440.204.9985 Lara.Mahoney@nordson.com

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