Armstrong Flooring, Inc. (NYSE:AFI) ("Armstrong Flooring" or the
"Company") a leader in the design and manufacture of innovative
flooring solutions, today reported financial results for the second
quarter ended June 30, 2021.
Michel Vermette, President and Chief Executive Officer,
commented, "We continued to improve the business in the second
quarter. We delivered 15.5% top-line growth compared to the second
quarter 2020, and 12.9% top-line growth versus the first quarter
2021 led by strong Residential and Commercial recoveries, while
facing a dynamic supply chain and inflationary environment. These
headwinds are unlike any periods experienced in recent decades, and
they significantly limited our ability to progress further against
our long-term sales and EBITDA goals. Our team continues to work
diligently and take action in addressing these dynamics, most
recently by announcing our third price increase of 2021 and
increasing our mix of products manufactured in the United States.
Overall, we remain focused and agile in managing through the
current volatile environment, and resolute in our long-term goal of
transforming Armstrong Flooring into a more resilient business for
our customers, our employees, and our shareholders."
Multi-Year Transformation
Update
Mr. Vermette continued, "In the second quarter,
we remained steadfast in executing our multi-year transformation
plan, while appropriately adjusting to the current environment. We
saw positive accomplishments against the three pillars of our plan:
expanding customer reach, simplifying product offerings and
operations, and strengthening our core capabilities.
As it relates to expanding customer reach, we began selling
Armstrong® Flooring Pro™ products to customers in the builder and
multifamily channel and we continue to see positive customer
reactions from our Armstrong® Flooring Signature™ products. We also
made our initial sales into the hospitality channel in the second
quarter, and our sales force is actively pursuing future growth
opportunities in this new vertical.
With regard to simplifying product offerings and operations, we
continued to experience strong momentum from our Quick Ship
program, which just under one-year into its existence, experienced
its strongest quarter, and the fourth sequential quarter of growth.
In addition, we completed the closure of our South Gate, California
facility in the second quarter, transitioning production to our
existing U.S. manufacturing facilities. Collectively, these efforts
have simplified our manufacturing footprint and streamlined our
product delivery capabilities.
Furthermore, we continued to strengthen our portfolio and
organization while remaining attentive to the dynamic supply chain
environment, adapting our supply chain to increase safety stock to
mitigate longer lead times, and also exploring additional suppliers
and alternative shipping options to combat global shipping
container shortages. Additionally, we opened our new corporate
office headquarters. This move, along with the first quarter
opening of a first of its kind technical center, gives our teams
the ability to work cohesively in a modern and energized space and
promotes further collaboration and innovation at Armstrong
Flooring. Along with providing a fresh and modern space for us to
continue our journey, our headquarters move also results in future
cost savings of approximately 60% in corporate lease expenses
compared to our prior facility."
Second Quarter 2021 Results
|
|
Three Months Ended June 30, |
(Dollars in millions except per share data) |
|
2021 |
|
2020 |
|
Change |
Net sales |
|
$ |
168.1 |
|
|
$ |
145.6 |
|
|
15.5 |
% |
Operating income (loss) |
|
(18.3 |
) |
|
(5.6 |
) |
|
226.8 |
% |
Net income (loss) |
|
(19.5 |
) |
|
(6.3 |
) |
|
209.5 |
% |
Diluted earnings (loss) per
share |
|
$ |
(0.89 |
) |
|
$ |
(0.29 |
) |
|
N/M |
|
Adjusted EBITDA |
|
(3.5 |
) |
|
6.9 |
|
|
N/M |
|
Adjusted EBITDA margin |
|
(2.1 |
)% |
|
4.7 |
% |
|
N/M |
|
Adjusted net (loss) |
|
(17.3 |
) |
|
(5.1 |
) |
|
N/M |
|
Adjusted diluted (loss) per
share |
|
(0.79 |
) |
|
(0.23 |
) |
|
N/M |
|
|
|
|
|
|
|
|
|
|
|
In the second quarter of 2021, net sales increased 15.5% to
$168.1 million from $145.6 million in the second quarter of 2020,
reflective of growth in each region in which the Company operates.
In North America, favorable product mix and impacts from previously
announced pricing initiatives drove sales increases in both
Commercial and Residential channels. This positive sales momentum
however continued to be hampered throughout the quarter as a result
of supply chain disruptions and product availability, despite
strong demand in Commercial and Residential.
Operating loss in the quarter was $18.3 million versus a loss of
$5.6 million in the second quarter of 2020. The increased loss is
reflective of higher costs of goods sold due to supply chain
disruptions and inflation, which outpaced recent pricing
initiatives and resulted in costs of goods sold of 87.4% of net
sales in the second quarter 2021 compared to 83.0% in the same
quarter of the prior year. Additionally, the second quarter of 2021
includes $4.5 million of charges from accelerated depreciation and
inventory write-downs related to asset and product rationalization
efforts. Finally, selling, general & administrative expenses in
the quarter were $39.5 million, compared to $30.3 million in the
same quarter prior year. The increase year-over-year is primarily
reflective of a larger sales force and increased advertising and
promotional spend associated with product launches in 2021, and the
normalization of staffing and employee-related costs, which were
lower in 2020 due to COVID-19 related impacts.
Net loss in the second quarter of 2021 was $19.5
million, or diluted loss per share of $(0.89), as compared to a net
loss of $6.3 million, or diluted loss per share of $(0.29), in the
second quarter of 2020. Adjusted net loss was $17.3 million, or
adjusted diluted loss per share of $(0.79), as compared to an
adjusted net loss of $5.1 million, or adjusted diluted loss per
share of $(0.23), in the prior year quarter.
Second quarter 2021 adjusted EBITDA was a loss
of $3.5 million, as compared to adjusted EBITDA of $6.9 million in
the prior year quarter. The decrease in adjusted EBITDA was
primarily due to higher input costs, driven by the inflationary
impacts of both raw materials and shipping costs, along with higher
selling, general & administrative expenses in 2021, as well as
lower operating expenses in the second quarter 2020, due to the
COVID-19 related environment.
Liquidity and Capital Resources
Update
At June 30, 2021, the Company had total liquidity of
approximately $91.6 million including $14.6 million of cash plus
availability under its credit facilities. The Company’s Net Debt on
June 30, 2021, was $44.7 million. The Company believes it has ample
financial resources to effectively execute its near- and long-term
objectives.
Webcast and Conference Call
The Company will hold a live webcast and
conference call to review financial results and conduct a
question-and-answer session on Wednesday, July 21 at 10:00 a.m. ET.
The live webcast will be available in the Investors section of the
Company’s website at www.armstrongflooring.com. For those unable to
access the webcast, the conference call will be accessible by
dialing 877-407-0789 (domestic) or 201-689-8562 (international). A
replay of the conference call will be available for 90 days, by
dialing 844-512-2921 (domestic) or 412-317-6671 (international) and
entering the passcode 13721135.
About Armstrong Flooring
Armstrong Flooring, Inc. (NYSE: AFI) is a global leader in the
design and manufacture of innovative flooring solutions that
inspire beauty wherever your life happens. Headquartered in
Lancaster, Pennsylvania, Armstrong Flooring continually builds on
its resilient, 150-year legacy by delivering on its mission to
create a stronger future for customers through adaptive and
inventive solutions. The company safely and responsibly operates
seven manufacturing facilities globally, working to provide the
highest levels of service, quality, and innovation to ensure it
remains as strong and vital as its 150-year heritage. Learn more
www.armstrongflooring.com.
Forward Looking Statements
Disclosures in this release and in our other
public documents and comments contain forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995. Those statements provide our future expectations or
forecasts and can be identified by our use of words such as
“anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,”
“believe,” “outlook,” “target,” “predict,” “may,” “will,” “would,”
“could,” “should,” “seek,” and other words or phrases of similar
meaning in connection with any discussion of future operating or
financial performance. Forward-looking statements, by their nature,
address matters that are uncertain and involve risks because they
relate to events and depend on circumstances that may or may not
occur in the future. As a result, our actual results may differ
materially from our expected results and from those expressed in
our forward-looking statements. A more detailed discussion of the
risks and uncertainties that could cause our actual results to
differ materially from those projected, anticipated, or implied is
included in our reports filed with the U.S. Securities and Exchange
Commission. Forward-looking statements speak only as of the date
they are made. We undertake no obligation to update any
forward-looking statements beyond what is required under applicable
securities law.
Contact Information
Investors: Amy TrojanowskiSVP, Chief Financial
Officerir@armstrongflooring.com
Media: Alison van HarskampDirector, Corporate
CommunicationsMedia@armstrongflooring.com
Armstrong Flooring, Inc. and
SubsidiariesCondensed Consolidated Statements of
Operations (unaudited)
|
|
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
(In millions, except per share data) |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Net sales |
|
$ |
168.1 |
|
|
$ |
145.6 |
|
|
$ |
317.0 |
|
|
$ |
284.3 |
|
Cost of goods sold |
|
146.9 |
|
|
120.9 |
|
|
275.9 |
|
|
236.3 |
|
Gross
profit |
|
21.2 |
|
|
24.7 |
|
|
41.1 |
|
|
48.0 |
|
Selling, general and
administrative expenses |
|
39.5 |
|
|
30.3 |
|
|
77.6 |
|
|
66.9 |
|
Gain on sale of property |
|
— |
|
|
— |
|
|
(46.0 |
) |
|
— |
|
Operating income
(loss) |
|
(18.3 |
) |
|
(5.6 |
) |
|
9.5 |
|
|
(18.9 |
) |
Interest expense |
|
2.8 |
|
|
1.2 |
|
|
6.3 |
|
|
1.8 |
|
Other expense (income),
net |
|
(2.3 |
) |
|
(0.5 |
) |
|
(4.4 |
) |
|
(0.9 |
) |
Income (loss) before
income taxes |
|
(18.8 |
) |
|
(6.3 |
) |
|
7.6 |
|
|
(19.8 |
) |
Income tax expense
(benefit) |
|
0.7 |
|
|
— |
|
|
(0.1 |
) |
|
(0.3 |
) |
Net income
(loss) |
|
$ |
(19.5 |
) |
|
$ |
(6.3 |
) |
|
$ |
7.7 |
|
|
$ |
(19.5 |
) |
|
|
|
|
|
|
|
|
|
Basic earnings (loss)
per share of common stock: |
|
|
|
|
|
|
|
|
Basic earnings (loss) per
share of common stock |
|
$ |
(0.89 |
) |
|
$ |
(0.29 |
) |
|
$ |
0.35 |
|
|
$ |
(0.89 |
) |
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) earnings per share of common stock: |
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss) per
share of common stock |
|
$ |
(0.89 |
) |
|
$ |
(0.29 |
) |
|
$ |
0.35 |
|
|
$ |
(0.89 |
) |
|
|
|
|
|
|
|
|
|
Armstrong Flooring, Inc. and
SubsidiariesCondensed Consolidated Balance Sheets
(unaudited)
(In millions) |
|
June 30,2021 |
|
December 31,2020 |
Assets |
|
|
|
|
Current
assets: |
|
|
|
|
Cash and cash equivalents |
|
$ |
14.6 |
|
|
$ |
13.7 |
|
Accounts and notes receivable, net |
|
58.9 |
|
|
43.0 |
|
Inventories, net |
|
123.9 |
|
|
122.9 |
|
Prepaid expenses and other current assets |
|
15.0 |
|
|
12.9 |
|
Assets held-for-sale |
|
— |
|
|
17.8 |
|
Total current assets |
|
212.4 |
|
|
210.3 |
|
Property, plant and equipment,
net |
|
237.5 |
|
|
246.9 |
|
Operating lease assets |
|
19.9 |
|
|
8.5 |
|
Intangible assets, net |
|
15.7 |
|
|
19.0 |
|
Deferred income taxes |
|
4.5 |
|
|
4.4 |
|
Other noncurrent assets |
|
9.4 |
|
|
4.4 |
|
Total assets |
|
$ |
499.4 |
|
|
$ |
493.5 |
|
Liabilities and Stockholders' Equity |
|
|
|
|
Current
liabilities: |
|
|
|
|
Short-term debt |
|
$ |
5.8 |
|
|
$ |
5.5 |
|
Current installments of long-term debt |
|
3.9 |
|
|
2.9 |
|
Trade account payables |
|
83.2 |
|
|
78.5 |
|
Accrued payroll and employee costs |
|
16.5 |
|
|
14.8 |
|
Current operating lease liabilities |
|
2.3 |
|
|
2.7 |
|
Other accrued expenses |
|
19.2 |
|
|
17.7 |
|
Total current liabilities |
|
130.9 |
|
|
122.1 |
|
Long-term debt, net of
unamortized debt issuance costs |
|
49.6 |
|
|
71.4 |
|
Noncurrent operating lease
liabilities |
|
17.7 |
|
|
5.8 |
|
Postretirement benefit
liabilities |
|
54.6 |
|
|
55.6 |
|
Pension benefit
liabilities |
|
4.6 |
|
|
4.6 |
|
Deferred income taxes |
|
1.5 |
|
|
2.4 |
|
Other long-term
liabilities |
|
7.9 |
|
|
9.0 |
|
Total liabilities |
|
266.8 |
|
|
270.9 |
|
Commitments and
contingencies |
|
|
|
|
Stockholders'
equity: |
|
|
|
|
Common stock |
|
— |
|
|
— |
|
Preferred stock |
|
— |
|
|
— |
|
Treasury stock |
|
(86.2 |
) |
|
(87.1 |
) |
Additional paid-in capital |
|
677.8 |
|
|
677.4 |
|
Accumulated deficit |
|
(300.7 |
) |
|
(308.4 |
) |
Accumulated other comprehensive (loss) |
|
(58.3 |
) |
|
(59.3 |
) |
Total stockholders' equity |
|
232.6 |
|
|
222.6 |
|
Total liabilities and stockholders' equity |
|
$ |
499.4 |
|
|
$ |
493.5 |
|
|
|
|
|
|
|
|
|
|
Armstrong Flooring, Inc. and
SubsidiariesCondensed Consolidated Statements of
Cash Flows (unaudited)
|
|
Three Month EndedJune 30, |
|
Six Months Ended June 30, |
(In millions) |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
(19.5 |
) |
|
$ |
(6.3 |
) |
|
$ |
7.7 |
|
|
$ |
(19.5 |
) |
Adjustments to
reconcile net income (loss) to net cash provided by (used for)
operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
13.1 |
|
|
10.3 |
|
|
23.0 |
|
|
20.9 |
|
Inventory write down |
|
1.2 |
|
|
— |
|
|
1.2 |
|
|
— |
|
Deferred income taxes |
|
(0.2 |
) |
|
(0.1 |
) |
|
(0.7 |
) |
|
(0.6 |
) |
Stock-based compensation expense |
|
0.8 |
|
|
0.6 |
|
|
1.4 |
|
|
1.3 |
|
Gain on sale of property |
|
— |
|
|
— |
|
|
(46.0 |
) |
|
— |
|
Gain from long-term disability plan change |
|
— |
|
|
— |
|
|
— |
|
|
(1.1 |
) |
U.S. pension expense (income) |
|
(1.7 |
) |
|
1.0 |
|
|
(3.5 |
) |
|
1.9 |
|
Other non-cash adjustments, net |
|
0.2 |
|
|
(0.9 |
) |
|
0.3 |
|
|
0.5 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Receivables |
|
(1.2 |
) |
|
(4.4 |
) |
|
(17.4 |
) |
|
(9.2 |
) |
Inventories |
|
0.2 |
|
|
(2.9 |
) |
|
(2.2 |
) |
|
(11.0 |
) |
Accounts payable and accrued expenses |
|
6.9 |
|
|
14.2 |
|
|
9.5 |
|
|
15.4 |
|
Other assets and liabilities |
|
(3.7 |
) |
|
(1.3 |
) |
|
(5.0 |
) |
|
(5.5 |
) |
Net cash provided by
(used for) operating activities |
|
(3.9 |
) |
|
10.2 |
|
|
(31.7 |
) |
|
(6.9 |
) |
Cash flows from
investing activities: |
|
|
|
|
|
|
|
|
Purchases of property, plant and equipment |
|
(4.1 |
) |
|
(3.4 |
) |
|
(11.1 |
) |
|
(10.9 |
) |
Proceeds from sale of assets |
|
0.1 |
|
|
— |
|
|
65.4 |
|
|
— |
|
Net cash provided by
(used for) investing activities |
|
(4.0 |
) |
|
(3.4 |
) |
|
54.3 |
|
|
(10.9 |
) |
Cash flows from
financing activities: |
|
|
|
|
|
|
|
|
Proceeds from revolving credit facility |
|
22.7 |
|
|
11.2 |
|
|
49.3 |
|
|
41.2 |
|
Payments on revolving credit facility |
|
(16.3 |
) |
|
(79.2 |
) |
|
(50.1 |
) |
|
(79.2 |
) |
Issuance of long-term debt |
|
0.2 |
|
|
70.0 |
|
|
0.2 |
|
|
70.0 |
|
Financing costs |
|
— |
|
|
(6.9 |
) |
|
— |
|
|
(6.9 |
) |
Payments on long-term debt |
|
(1.0 |
) |
|
— |
|
|
(21.1 |
) |
|
(0.1 |
) |
Value of shares withheld related to employee tax withholding |
|
— |
|
|
— |
|
|
(0.1 |
) |
|
— |
|
Net cash provided by
(used for) financing activities |
|
5.6 |
|
|
(4.9 |
) |
|
(21.8 |
) |
|
25.0 |
|
Effect of exchange rate
changes on cash and cash equivalents |
|
0.2 |
|
|
0.3 |
|
|
0.1 |
|
|
(0.2 |
) |
Net increase
(decrease) in cash and cash equivalents |
|
(2.1 |
) |
|
2.2 |
|
|
0.9 |
|
|
7.0 |
|
Cash and cash equivalents at
beginning of year |
|
16.7 |
|
|
31.9 |
|
|
13.7 |
|
|
27.1 |
|
Cash and cash equivalents at
end of period |
|
$ |
14.6 |
|
|
$ |
34.1 |
|
|
$ |
14.6 |
|
|
$ |
34.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Armstrong Flooring, Inc. and
SubsidiariesReconciliation of Free Cash Flow to
Net Cash Provided by (Used for) Operating Activities
(unaudited)
|
|
Three Month EndedJune 30, |
|
Six Months Ended June 30, |
(In millions) |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Net cash provided by (used for) operating
activities |
|
$ |
(3.9 |
) |
|
$ |
10.2 |
|
|
$ |
(31.7 |
) |
|
$ |
(6.9 |
) |
Less: Capital
expenditures |
|
(4.1 |
) |
|
(3.4 |
) |
|
(11.1 |
) |
|
(10.9 |
) |
Add: Proceeds from asset
sales |
|
0.1 |
|
|
— |
|
|
65.4 |
|
|
— |
|
Free cash
flow |
|
$ |
(7.9 |
) |
|
$ |
6.8 |
|
|
$ |
22.6 |
|
|
$ |
(17.8 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow is a non-GAAP financial measure
and consists of Net cash provided by (used for) operating
activities less capital expenditures net of proceeds from asset
sales. The Company’s management believes Free cash flow is
meaningful to investors because management reviews Free cash flow
in assessing and evaluating performance. However, this measure
should be considered in addition to, rather than a substitute for
Cash flows provided by (used for) operating activities provided in
accordance with GAAP. The Company’s method of calculating Free cash
flow may differ from methods used by other companies and, as a
result, Free cash flow may not be comparable to other similarly
titled measures disclosed by other companies.
Armstrong Flooring, Inc. and
SubsidiariesReconciliation of Net Debt to Total
Debt Outstanding (unaudited)
(In millions) |
|
June 30,2021 |
|
December 31,2020 |
Total debt outstanding: |
|
|
|
|
Short-term debt |
|
$ |
5.8 |
|
|
$ |
5.5 |
|
Current installments of long-term debt |
|
3.9 |
|
|
2.9 |
|
Long-term debt, net of unamortized debt issuance costs |
|
49.6 |
|
|
71.4 |
|
Total debt
outstanding |
|
59.3 |
|
|
79.8 |
|
Less: Cash and cash
equivalents |
|
14.6 |
|
|
13.7 |
|
Net debt |
|
$ |
44.7 |
|
|
$ |
66.1 |
|
|
|
|
|
|
|
|
|
|
Net debt is a non-GAAP financial measure and
consists of total debt outstanding reduced by cash and cash
equivalents. The Company‘s management believes Net debt is
meaningful to investors because management reviews Net debt in
assessing and evaluating performance. However, this measure should
be considered in addition to, rather than as a substitute for total
debt outstanding in accordance with GAAP. The Company's method of
calculating Net debt may differ from methods used by other
companies and, as a result, Net debt may not be comparable to other
similarly titled measures disclosed by other companies.
Armstrong Flooring, Inc. and
SubsidiariesReconciliation of Adjusted Net Income
(Loss) to Net Income (Loss) (unaudited)
|
|
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
(In millions, except per share data) |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Net income (loss) |
|
$ |
(19.5 |
) |
|
$ |
(6.3 |
) |
|
$ |
7.7 |
|
|
$ |
(19.5 |
) |
Add-back (deduct)
business transformation items: |
|
|
|
|
|
|
|
|
Site exit costs |
|
0.3 |
|
|
— |
|
|
0.8 |
|
|
— |
|
Additional costs related to business transformation
initiatives |
|
4.5 |
|
|
1.5 |
|
|
4.5 |
|
|
1.9 |
|
Gain on sale of South Gate property |
|
— |
|
|
— |
|
|
(46.0 |
) |
|
— |
|
Canadian Pension Settlement Charge |
|
0.2 |
|
|
— |
|
|
0.2 |
|
|
— |
|
U.S. Pension expense |
|
0.2 |
|
|
0.6 |
|
|
0.5 |
|
|
1.3 |
|
Other (income)
expense,net |
|
(2.3 |
) |
|
(0.5 |
) |
|
(4.4 |
) |
|
(0.9 |
) |
Tax impact of adjustments (at
statutory rate) |
|
(0.7 |
) |
|
(0.4 |
) |
|
11.1 |
|
|
(0.6 |
) |
Adjusted net income
(loss) |
|
$ |
(17.3 |
) |
|
$ |
(5.1 |
) |
|
$ |
(25.6 |
) |
|
$ |
(17.8 |
) |
Adjusted diluted
earnings (loss) per share |
|
$ |
(0.79 |
) |
|
$ |
(0.23 |
) |
|
$ |
(1.17 |
) |
|
$ |
(0.81 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Does not total due to rounding.
Adjusted net income (loss) is a non-GAAP
financial measures and consists of Net income (loss) adjusted to
remove the impact of business transformation items, U.S. pension
expense, other (income) expense, net; and adjust such items for the
related tax impacts. Adjusted diluted earnings (loss) per share is
a non-GAAP financial measure and consists of Adjusted net income
(loss) divided by weighted average diluted shares outstanding for
the corresponding period. The Company’s management believes
Adjusted net income (loss) and Adjusted diluted earnings (loss) per
share are meaningful to investors because management reviews
Adjusted net income (loss) and Adjusted diluted earnings (loss) per
share in assessing and evaluating performance. However, these
measures should be considered in addition to, rather than a
substitute for Net income (loss) and Diluted earnings (loss) per
share provided in accordance with GAAP. The Company’s method of
calculating Adjusted net income (loss) and Adjusted diluted
earnings (loss) per share may differ from methods used by other
companies and, as a result, Adjusted net income (loss) and Adjusted
diluted earnings (loss) per share may not be comparable to other
similarly titled measures disclosed by other companies.
Armstrong Flooring, Inc. and
SubsidiariesReconciliation of Adjusted EBITDA to
Net Income (Loss) (unaudited)
|
|
Three Months EndedJune 30, |
|
Six Months Ended June 30, |
(In millions) |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Net income (loss) |
|
$ |
(19.5 |
) |
|
$ |
(6.3 |
) |
|
$ |
7.7 |
|
|
$ |
(19.5 |
) |
Add-back
(deduct): |
|
|
|
|
|
|
|
|
Income tax expense (benefit) |
|
0.7 |
|
|
— |
|
|
(0.1 |
) |
|
(0.3 |
) |
Other (income) expense, net |
|
(2.3 |
) |
|
(0.5 |
) |
|
(4.4 |
) |
|
(0.9 |
) |
Interest expense |
|
2.8 |
|
|
1.2 |
|
|
6.3 |
|
|
1.8 |
|
Operating
(loss) |
|
(18.3 |
) |
|
(5.6 |
) |
|
9.5 |
|
|
(18.9 |
) |
Add-back: Depreciation and
amortization expense |
|
13.1 |
|
|
10.3 |
|
|
23.0 |
|
|
20.9 |
|
Add-back: U.S. Pension
expense |
|
0.2 |
|
|
0.6 |
|
|
0.5 |
|
|
1.3 |
|
Add-back (deduct)
Business transformation items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Site exit costs |
|
0.3 |
|
|
— |
|
|
0.8 |
|
|
— |
|
Additional costs related to business transformation
initiatives |
|
1.2 |
|
|
1.5 |
|
|
1.2 |
|
|
1.9 |
|
Gain on sale of South Gate property |
|
— |
|
|
— |
|
|
(46.0 |
) |
|
— |
|
Adjusted
EBITDA |
|
$ |
(3.5 |
) |
|
$ |
6.9 |
|
(a) |
$ |
(11.0 |
) |
|
$ |
5.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Does not total due to rounding
Adjusted EBITDA is a non-GAAP financial measure
and consists of Net income (loss) adjusted to remove the impact of
income tax expense (benefit), other (income) expense, interest
expense, depreciation and amortization expense, U.S. pension
expense and business transformation items. The Company‘s management
believes Adjusted EBITDA is meaningful to investors because
management reviews Adjusted EBITDA in assessing and evaluating
performance. However, this measure should be considered in addition
to, rather than as a substitute for Net income (loss) provided in
accordance with GAAP. The Company's method of calculating Adjusted
EBITDA may differ from methods used by other companies and, as a
result, Adjusted EBITDA may not be comparable to other similarly
titled measures disclosed by other companies.
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