Atotech (NYSE: ATC), a leading specialty chemicals technology
company and a market leader in advanced electroplating solutions,
today reported its financial results for the first quarter of 2021
and raised its revenue and adjusted EBITDA guidance for full year
2021. Chemistry organic revenue growth, a key performance indicator
for the Company, increased 13% over the first quarter of 2020.
Chemistry organic revenue growth reflects chemistry revenue growth
excluding the impact of foreign exchange translation (“FX”) and
palladium pass-through (“palladium”).
Management Commentary
Geoff Wild, Atotech’s Chief Executive Officer said, “We are very
pleased with our first quarter performance. As we lap the first
quarter of the Covid-19 pandemic, we delivered strong revenue and
EBITDA growth, driven by an acceleration in the secular trends that
are fueling demand for our products. Whether it is the robust
smartphone cycle, the increasing adoption of 5G, work-from-home and
higher PC demand, or the electrification of automobiles, our
comprehensive solutions address customer requirements and we
continue to lead the market with our customer service
approach.”
“Despite several external disruptions putting pressure on global
supply chains this quarter, we feel confident about delivering
strong revenue and earnings growth this year and are actively
engaged in multiple initiatives to mitigate the impact of current
supply chain shortages and disruptions.”
“I was also very pleased to have successfully completed our
refinancing during the first quarter. We moved quickly to leverage
our stronger balance sheet as a result of the IPO, as well as our
positive business outlook, to significantly lower our cost of
borrowing. The combination of healthy markets and an improved
capital structure have Atotech well-positioned to generate
meaningful free cash flow in 2021.”
First Quarter 2021 Results
Total revenue was $353 million for the first quarter, an
increase of 25% over the prior year period. Total organic revenue,
which reflects total revenue excluding the impact of FX and
palladium, increased 17%. FX was a 7% tailwind and palladium
increased total revenue by 1% for the quarter. These strong
quarterly results were driven by organic growth in chemistry
revenue of 13%, reflecting double-digit increases in both the
Electronics (“EL”) and General Metal Finishing (“GMF”)
segments.
Adjusted EBITDA was $110 million for the first quarter, a
32% increase over the prior year period, reflecting strong
chemistry organic volume growth, stable pricing, and FX tailwinds,
partially offset by increased costs associated with supply chain
inefficiencies.
Diluted earnings per share was $(0.55) for the quarter ended
March 31, 2021, primarily reflecting one-time costs associated with
the Company’s recent refinancing.
Adjusted EBITDA margin was 31.2% for the first quarter of 2021,
a gain of 150 basis points. The improvement reflects operating
leverage on chemistry organic revenue, offset in part by the impact
of palladium pass-through, the product mix of chemistry versus
equipment, and supply chain inefficiencies.
First Quarter 2021 Segment Highlights
Electronics: Revenue for the first quarter in
our Electronics segment of $226 million increased 31% over the
prior year period. Total organic revenue grew 21%, consisting of
15% chemistry organic growth and a 77% increase in equipment
organic revenue. Palladium pass-through increased revenue by 2% and
FX was an 8% tailwind for the quarter.
The Electronics organic revenue increase was driven by strong
demand for the Company’s leading IC substrate and advanced
semiconductor packaging solutions, as we experienced an
acceleration in the secular trends of 5G infrastructure and
smartphone growth, as well as auto electrification and advanced
consumer electronics. These trends are also driving strong demand
for our equipment, as our customers actively upgrade technology and
expand production capacity.
Adjusted EBITDA for our Electronics segment was $76 million for
the quarter, an increase of 38% over the prior year period,
primarily driven by strong chemistry volume growth, as well as
ongoing pricing and cost measures. Adjusted EBITDA margin
increased 180 basis points to 33.6%, largely reflecting operating
leverage on chemistry organic growth, offset by the palladium
pass-through and the cost of supply chain disruptions.
General Metal Finishing: Revenue for the first
quarter in our GMF segment of $128 million increased 15% over the
prior year period. Total organic GMF revenue increased 9%,
consisting of 11% chemistry revenue growth, partially offset by a
decline in equipment revenue. Palladium and FX added 1% and 5% to
revenue for the quarter, respectively.
Chemistry organic revenue growth was primarily driven by the
continued global automotive market recovery and solid demand in
other industrial end-markets.
Adjusted EBITDA for our GMF segment was $35 million, an increase
of 19% over last year, reflecting operating leverage on chemistry
volume growth, partially offset by supply chain inefficiencies.
Adjusted EBITDA margin increased 90 basis points to 27.2%.
Initial Public Offering
The Company closed its initial public offering of 29,268,000
common shares at $17.00 per share on February 8, 2021. The gross
proceeds to Atotech from the offering were approximately $498
million, before deducting the underwriting discount and offering
expenses, and were used to repay indebtedness and to pay
underwriting discounts and offering expenses. On March 9, 2021,
investment funds affiliated with The Carlyle Group sold an
additional 4,390,200 common shares pursuant to the over-allotment
option granted to the underwriters in the initial public offering.
The shares, representing the full over-allotment option, were sold
at $17.00 per share less underwriting discounts, and we did not
receive any proceeds from the sale of these shares by The Carlyle
Group.
Refinancing
On March 18, 2021, the Company successfully refinanced its
existing senior secured credit facilities and entered into a new
credit agreement which provided for a U.S. dollar-denominated
senior secured term loan facility in an initial aggregate principal
amount of $1.35 billion (the “USD Term Loan”), a Euro-denominated
senior secured term loan facility in an initial aggregate principal
amount of €200.0 million (the “EUR Term Loan”), and a senior
secured multi-currency revolving credit facility that provides for
revolving loans and letters of credit in an aggregate principal
amount of up to $250.0 million. The net proceeds of the USD Term
Loan and EUR Term Loan were used to fund the refinancing in full of
the Company’s then-outstanding term loan credit facilities, which
were set to mature in January 2024, and to repay and replace its
then-existing revolving credit agreement, which was set to mature
in January 2022.
Full Year 2021 Guidance
Regarding the Company’s 2021 outlook, Peter Frauenknecht,
Atotech’s Chief Financial Officer said, “As a result of our very
strong first quarter and our improved outlook for the entire year,
we are raising our revenue and adjusted EBITDA guidance. We now
expect full year 2021 total organic revenue growth to be in the
range of 11% to 13%, including full year organic growth in
chemistry revenue of approximately 9%, which excludes the impact of
FX and palladium pass-through. Additionally, we now expect full
year 2021 adjusted EBITDA to be in the range of $415 million to
$435 million, which represents a $10 million improvement over our
prior guidance, at the mid-point.”
Conference Call
The Company will host a conference call today at 8:00 a.m.
Eastern time to discuss these results. To participate on the
conference call, please dial +1 833 714-3263 (United States) or +1
270 823-1866 (international), using conference ID 5176076. A link
to the live audio webcast, and associated materials, will also be
available on the Company website at investors.atotech.com.
Cautionary Statement Regarding Forward-Looking
Statements
This communication contains “forward-looking statements” within
the meaning of the federal securities laws, including Section 27A
of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. In this context,
forward-looking statements often address expected future business
and financial performance and financial condition, and often
contain words such as “expect,” “anticipate,” “intend,” “plan,”
“believe,” “seek,” “see,” “will,” “would,” “target,” and similar
expressions and variations or negatives of these words.
These forward-looking statements, which are subject to risks,
uncertainties, and assumptions about us, may include projections of
our future financial performance, our anticipated growth
strategies, and anticipated trends in our business. These
statements are only predictions based on our current expectations
and projections about future events. There are important factors
that could cause our actual results, level of activity, performance
or achievements to differ materially from the results, level of
activity, performance or achievements expressed or implied by the
forward-looking statements, and such differences could be material.
We undertake no obligation to publicly update or revise any
forward-looking statements to reflect subsequent events or
circumstances.
More information on potential factors that could affect
Atotech’s financial results is available in “Forward-Looking
Statements”, the “Risk Factors” and “Management's Discussion and
Analysis of Financial Condition and Results of Operations” within
Atotech’s most recent Annual Report on Form 20-F, and in other
documents that we have filed with, or furnished to, the U.S.
Securities and Exchange Commission, and such factors include, but
are not limited to: the uncertainty of the magnitude, duration,
geographic reach, impact on the global economy of the COVID 19
pandemic, as well as the current and potential travel restrictions,
stay at home orders, and other economic restrictions implemented to
address it; uncertainty, downturns, and changes in our target
markets; foreign currency exchange rate fluctuations; reduced
market acceptance and inability to keep pace with evolving
technology and trends; loss of customers; increases in costs or
reductions in the supplies of raw materials that may materially
adversely affect our business, financial condition, and results of
operations; our ability to provide products and services in light
of changing environmental, health and safety, product liability,
financial, and other legislation and regulation; our failure to
compete successfully in product development; our ability to
successfully execute our growth initiatives, business strategies,
and operating plans; whether the secular trends we expect to drive
growth in our business materialize to the degree we expect them to,
or at all; material costs relating to environmental and health and
safety requirements or liabilities; underfunded defined benefit
pension plans; risk that the insurance we maintain may not fully
cover all potential exposures; failure to comply with the
anti-corruption laws of the United States and various international
jurisdictions; tariffs, border adjustment taxes, or other adverse
trade restrictions and impacts on our customers’ value chains;
political, economic, and legal uncertainties in China, the Chinese
government’s control of currency conversion and expatriation of
funds, and the Chinese government’s policy on foreign investment in
China; regulations around the production and use of chemical
substances that affect our products; the United Kingdom’s
withdrawal from the European Union; weak intellectual property
rights in jurisdictions outside the United States; intellectual
property infringement and product liability claims; our substantial
indebtedness; our ability to obtain additional capital on
commercially reasonable terms may be limited; risks related to our
derivative instruments; our ability to attract, motivate, and
retain senior management and qualified employees; increased risks
to our global operations including, but not limited to, political
instability, acts of terrorism, taxation, and unexpected regulatory
and economic sanctions changes, among other things; natural
disasters that may materially adversely affect our business,
financial condition, and results of operations; the inherently
hazardous nature of chemical manufacturing that could result in
accidents that disrupt our operations and expose us to losses or
liabilities; damage to our brand reputation; Carlyle’s ability to
control our common shares; any statements of belief and any
statements of assumptions underlying any of the foregoing; and
other factors beyond our control.
Non-IFRS Financial Measures
This communication contains certain non-IFRS financial measures
designed to complement the financial information presented in
accordance with IFRS because management believes such measures are
useful to investors. However, our use of these non-IFRS financial
measures may vary from that of others in our industry. Our non-IFRS
metrics have limitations as analytical tools, and you should not
consider them in isolation or as alternatives to consolidated net
income (loss) or other performance measures derived in accordance
with IFRS as measures of operating performance, operating cash
flows or liquidity. The Company believes that these measures are
important and supplement discussions and analysis of its results of
operations and enhances an understanding of its operating
performance. See the Appendix for a reconciliation of the non-IFRS
financial measures.
About Atotech
Atotech is a leading specialty chemicals technology company and
a market leader in advanced electroplating solutions. Atotech
delivers chemistry, equipment, software, and services for
innovative technology applications through an integrated
systems-and-solutions approach. Atotech solutions are used in a
wide variety of end-markets, including smartphones and other
consumer electronics, communications infrastructure, and computing,
as well as in numerous industrial and consumer applications such as
automotive, heavy machinery, and household appliances.
Atotech, headquartered in Berlin, Germany, is a team of 4,000
experts in over 40 countries generating annual revenues of
$1.2 billion (2020). Atotech has manufacturing operations
across Europe, the Americas, and Asia. With its well-established
innovative strength and industry-leading global TechCenter network,
Atotech delivers pioneering solutions combined with unparalleled
on-site support for over 9,000 customers worldwide. For more
information about Atotech, please visit us at atotech.com.
Financial Statement Tables
ATOTECH LIMITEDIncome
Statement
|
Three months
ended(unaudited) |
($ in millions), except earnings per share |
|
March 31, 2021 |
|
|
|
March 31, 2020 |
|
Revenue |
$ |
353.1 |
|
|
$ |
282.7 |
|
Cost of sales, excluding depreciation and amortization |
|
(167.0 |
) |
|
|
(119.7 |
) |
Depreciation and amortization |
|
(44.6 |
) |
|
|
(41.4 |
) |
Selling, general and administrative expenses |
|
(68.3 |
) |
|
|
(67.6 |
) |
Research and development expenses |
|
(12.3 |
) |
|
|
(12.4 |
) |
Restructuring benefit (expenses) |
|
(0.1 |
) |
|
|
0.0 |
|
Operating profit (loss) |
|
60.9 |
|
|
|
41.6 |
|
Interest expense |
|
(85.9 |
) |
|
|
(35.6 |
) |
Other income (expense), net |
|
(36.8 |
) |
|
|
(32.2 |
) |
Income (loss) before income taxes |
|
(61.7 |
) |
|
|
(26.2 |
) |
Income tax expense |
|
(9.9 |
) |
|
|
(13.7 |
) |
Consolidated net income (loss) |
$ |
(71.6 |
) |
|
$ |
(39.9 |
) |
Earnings per share |
|
|
Basic earnings (loss) per share |
|
(0.55 |
) |
|
|
(0.80 |
) |
Diluted earnings (loss) per share |
|
(0.55 |
) |
|
|
(0.80 |
) |
|
Three months
ended(unaudited) |
($ in millions) |
|
March 31, 2021 |
|
|
|
March 31, 2020 |
|
Consolidated net income (loss) |
$ |
(71.6 |
) |
|
$ |
(39.9 |
) |
Other comprehensive income (loss) |
|
|
Actuarial gains and losses |
|
11.4 |
|
|
|
(1.9 |
) |
Tax effect |
|
(3.4 |
) |
|
|
0.6 |
|
Items not potentially reclassifiable to statement of
income |
|
8.0 |
|
|
|
(1.4 |
) |
Currency translation adjustment |
|
(63.1 |
) |
|
|
(79.2 |
) |
Hedge reserve |
|
0.1 |
|
|
|
4.7 |
|
Thereof: Income (cost) of Hedging (OCI II) |
|
1.3 |
|
|
|
(0.5 |
) |
Items potentially reclassifiable to statement of income
(loss), net of tax |
|
(63.0 |
) |
|
|
(74.5 |
) |
Total other comprehensive income (loss), net
amount |
$ |
(54.9 |
) |
|
$ |
(75.9 |
) |
Comprehensive loss |
$ |
(126.5 |
) |
|
$ |
(115.8 |
) |
ATOTECH LIMITEDCondensed
Consolidated Balance Sheets
|
As of(audited) |
($ in millions) |
|
March 31, 2020 |
|
|
|
Dec. 31, 2020 |
|
|
|
|
|
|
|
Assets |
|
|
Non-current assets |
|
|
Property, plant and equipment |
$ |
344.9 |
|
|
$ |
359.4 |
Intangible assets |
|
1,414.5 |
|
|
|
1,471.0 |
Goodwill |
|
787.8 |
|
|
|
804.1 |
Right-of-use assets |
|
97.5 |
|
|
|
104.1 |
Other financial assets |
|
6.1 |
|
|
|
70.3 |
Other non-financial assets |
|
3.8 |
|
|
|
2.7 |
Total non-current assets |
|
2,654.6 |
|
|
|
2,811.6 |
|
|
|
|
|
|
|
Current assets |
|
|
Inventories |
|
162.9 |
|
|
|
145.4 |
Trade receivables* |
|
247.1 |
|
|
|
262.0 |
Other financial assets* |
|
23.1 |
|
|
|
24.9 |
Other non-financial assets* |
|
31.7 |
|
|
|
24.1 |
Tax assets |
|
47.9 |
|
|
|
46.4 |
Cash and cash equivalents |
|
216.8 |
|
|
|
320.1 |
Total current assets |
|
729.5 |
|
|
|
822.9 |
Total assets |
$ |
3,384.0 |
|
|
$ |
3,634.5 |
|
|
|
|
|
|
|
Liabilities & shareholders’ equity |
|
|
Shareholders’ equity |
|
|
Common shares and preferred shares |
|
19.5 |
|
|
|
102.1 |
Paid-in surplus and retained earnings |
|
739.9 |
|
|
|
261.6 |
Currency translation adjustment and other reserves |
|
65.1 |
|
|
|
120.0 |
Total shareholders’ equity |
|
824.5 |
|
|
|
483.7 |
|
|
|
|
|
|
|
Non-current liabilities |
|
|
Borrowings |
$ |
1,557.0 |
|
|
$ |
2,065.7 |
Deferred tax liabilities |
|
324.7 |
|
|
|
340.8 |
Employee benefits |
|
157.5 |
|
|
|
176.2 |
Provisions |
|
12.6 |
|
|
|
13.2 |
Lease liabilities |
|
62.8 |
|
|
|
67.7 |
Other financial liabilities |
|
0.0 |
|
|
|
1.5 |
Total non-current liabilities |
|
2,114.8 |
|
|
|
2,665.1 |
|
|
|
|
|
|
|
Current liabilities |
|
|
Borrowings |
|
7.2 |
|
|
|
0.5 |
Trade payables |
|
197.2 |
|
|
|
221.0 |
Tax liabilities |
|
82.1 |
|
|
|
99.2 |
Lease liabilities |
|
13.4 |
|
|
|
13.8 |
Other financial liabilities |
|
30.7 |
|
|
|
38.5 |
Other non-financial liabilities |
|
95.3 |
|
|
|
89.7 |
Provisions |
|
18.9 |
|
|
|
23.0 |
Total current liabilities |
|
444.8 |
|
|
|
485.8 |
Total liabilities & shareholders’ equity |
$ |
3,384.0 |
|
|
$ |
3,634.5 |
ATOTECH LIMITEDConsolidated
Statement of Cash Flows
|
Three months
ended(unaudited) |
($ in millions) |
|
March 31, 2021 |
|
|
|
March 31, 2020 |
|
|
|
|
|
|
|
|
|
Operating
activities |
|
|
Consolidated net income
(loss) |
$ |
(71.6 |
) |
|
$ |
(39.9 |
) |
Adjustments to reconcile net
income (loss) to cash provided by operating activities: |
|
|
Depreciation and amortization |
|
44.6 |
|
|
|
41.3 |
|
Income taxes and changes in non-current provisions |
|
10.1 |
|
|
|
9.2 |
|
(Gains)/losses on disposals of assets |
|
0.1 |
|
|
|
0.2 |
|
Net (gain)/loss on financial instruments at fair value |
|
45.3 |
|
|
|
32.2 |
|
Accrued financial interest costs |
|
31.2 |
|
|
|
31.9 |
|
Amortization of deferred financing cost, including original
issuance discounts |
|
54.7 |
|
|
|
3.7 |
|
Interest paid |
|
(27.7 |
) |
|
|
(33.2 |
) |
Taxes paid |
|
(38.7 |
) |
|
|
(16.0 |
) |
Other |
|
(10.8 |
) |
|
|
(0.8 |
) |
(Increase)/decrease in inventories |
|
(21.8 |
) |
|
|
(35.8 |
) |
(Increase)/decrease in trade receivables |
|
10.0 |
|
|
|
22.2 |
|
Increase/(decrease) in trade payables |
|
(16.3 |
) |
|
|
(6.4 |
) |
Changes in other assets and liabilities |
|
(8.5 |
) |
|
|
(9.9 |
) |
Cash flow provided by operating activities |
|
0.4 |
|
|
|
(1.4 |
) |
|
|
|
|
|
|
|
|
Investing
activities |
|
|
Intangible assets and property, plant and equipment additions |
|
(11.5 |
) |
|
|
(11.0 |
) |
Proceeds from disposals of intangible assets and property, plant
and equipment |
|
0.1 |
|
|
|
— |
|
Repayments of non-current loans |
|
0.0 |
|
|
|
0.1 |
|
Cash flow used in investing activities |
|
(11.4 |
) |
|
|
(10.9 |
) |
|
|
|
|
|
|
|
|
Financing
activities |
|
|
Issuance of shares |
|
472.7 |
|
|
|
— |
|
Issuance of non-current debt |
|
100.0 |
|
|
|
75.0 |
|
Repayment of non-current debt |
|
(648.9 |
) |
|
|
(4.0 |
) |
Increase (decrease) in current financial assets and
liabilities |
|
(4.0 |
) |
|
|
0.4 |
|
Payment of lease liabilities |
|
(3.9 |
) |
|
|
(3.6 |
) |
Payment of deferred finance costs |
|
— |
|
|
|
(9.2 |
) |
Cash flow used in financing activities |
|
(84.2 |
) |
|
|
58.5 |
|
Net decrease in cash and cash equivalents |
|
(95.2 |
) |
|
|
46.3 |
|
Effect of exchange rates |
|
(8.1 |
) |
|
|
(9.1 |
) |
Cash and cash equivalents at
the beginning of the period |
|
320.1 |
|
|
|
302.7 |
|
Cash and cash
equivalents at the end of the period |
$ |
216.8 |
|
|
$ |
340.0 |
|
ATOTECH LIMITEDRevenue Data
|
Three months
ended(unaudited) |
($ in millions) |
|
March 31, 2021 |
|
|
|
March 31, 2020 |
|
|
|
|
|
|
|
Type of goods or service |
|
|
Chemistry revenue |
$ |
317.0 |
|
|
$ |
261.4 |
Equipment revenue |
|
36.1 |
|
|
|
21.3 |
Total revenue from contracts with customers |
|
353.1 |
|
|
|
282.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Geographical market |
|
|
Asia |
|
237.7 |
|
|
|
186.9 |
Europe |
|
84.5 |
|
|
|
64.5 |
Americas |
|
30.9 |
|
|
|
31.3 |
Total revenue from contracts with customers |
$ |
353.1 |
|
|
$ |
282.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ATOTECH LIMITEDSegment Data
|
Three months
ended(unaudited) |
|
March 31, 2021 |
|
March 31, 2020 |
($ in millions) |
EL |
GMF |
Total |
|
|
EL |
GMF |
Total |
Revenue |
$ |
225.6 |
$ |
127.5 |
$ |
|
353.1 |
|
$ |
172.1 |
$ |
110.5 |
$ |
282.7 |
thereof Chemistry revenue |
|
192.2 |
|
124.9 |
|
|
317.0 |
|
|
154.7 |
|
106.7 |
|
261.4 |
thereof Equipment revenue |
|
33.4 |
|
2.7 |
|
|
36.1 |
|
|
17.4 |
|
3.9 |
|
21.3 |
Segment Adjusted EBITDA |
|
75.7 |
|
34.6 |
|
|
110.3 |
|
|
54.7 |
|
29.1 |
|
83.8 |
ATOTECH LIMITEDReconciliation of
Adjusted EBITDA to Consolidated Net Income (Loss)
|
Three months
ended(unaudited) |
($ in millions) |
|
March 31, 2021 |
|
|
|
March 31, 2020 |
|
Consolidated net income (loss) |
$ |
(71.6 |
) |
|
$ |
(39.9 |
) |
Interest expense, net |
|
80.4 |
|
|
|
35.3 |
|
Income taxes |
|
9.9 |
|
|
|
13.7 |
|
Depreciation and amortization (excluding impairment charges) |
|
45.1 |
|
|
|
41.2 |
|
EBITDA |
|
63.8 |
|
|
|
50.3 |
|
Non-cash adjustments(a) |
|
57.7 |
|
|
|
32.9 |
|
Foreign exchange loss(b) |
|
(16.3 |
) |
|
|
(0.8 |
) |
Restructuring(c) |
|
0.1 |
|
|
|
(0.0 |
) |
Transaction related costs(d) |
|
4.4 |
|
|
|
0.5 |
|
Management fee(e) |
|
0.5 |
|
|
|
0.6 |
|
COVID-19 adjustment(f) |
|
0.2 |
|
|
|
0.2 |
|
Adjusted EBITDA |
$ |
110.3 |
|
|
$ |
83.8 |
|
thereof EL Segment Adjusted EBITDA |
$ |
75.7 |
|
|
$ |
54.7 |
|
thereof GMF Segment Adjusted EBITDA |
$ |
34.6 |
|
|
$ |
29.1 |
|
(a) Eliminates the non-cash impact of (1) share based
compensation, (2) losses on the sale of fixed assets, (3)
impairment charges and (4) mark to market adjustments related to
our foreign currency derivatives entered into in connection with
certain redenomination transactions not linked to underlying
individual transactions and bifurcated embedded derivatives related
to certain redemption features of the 6.250% Senior Notes due 2025
(the “Opco Notes”) and 8.75%/9.50% Senior PIK Toggle Notes (the
“Holdco Notes”), and (5) valuation adjustments from the revaluation
of the earn-out liability initially recognized in 2019. The dollar
value of these non-cash adjustments for each period presented above
is set forth below:
|
Three months
ended(unaudited) |
($ in millions) |
|
March 31, 2021 |
|
|
|
March 31, 2020 |
Share based compensation |
$ |
0.2 |
|
|
$ |
0.1 |
Losses on the sale of fixed assets |
|
0.2 |
|
|
|
0.2 |
Impairment charges |
|
(0.5 |
) |
|
|
0.2 |
Mark-to-market adjustments |
|
59.3 |
|
|
|
32.5 |
Valuation adjustments |
|
(1.5 |
) |
|
|
- |
Non-cash adjustments |
$ |
57.7 |
|
|
$ |
32.9 |
(b) Eliminates net foreign currency transactional gains and
losses on balance sheet items.
(c) Eliminates charges resulting from restructuring activities
principally from the Company’s cost reduction efforts.
(d) Reflects an adjustment to eliminate (1) IPO related costs,
linked to the existing equity and (2) professional fees paid to
third party advisors in connection with the implementation of
strategic initiatives.
(e) Reflects an adjustment to eliminate fees paid to Carlyle.
The consulting agreement pursuant to which management fees are paid
to Carlyle will terminate on the earlier of (i) the second
anniversary of the IPO and (ii) the date upon which Carlyle ceases
to own more than ten percent of the outstanding voting securities
of the Company. Management does not view these fees as indicative
of the Company’s operational performance and the removal of these
fees from Adjusted EBITDA is consistent with the calculation of
similar measures under our old senior secured credit facilities and
our new credit agreement as well as the indentures that previously
governed the Holdco Notes and Opco Notes. For a description of the
consulting agreement with Carlyle, see Item 7.B. “Major
Shareholders and Related Party Transactions—Related Party
Transactions” in our Annual Report on Form 20-F.
(f) Eliminates charges in connection with masks, sanitizers, and
other COVID-19 related expenses at certain plant and office
locations.
ATOTECH LIMITEDOrganic Revenue
Growth Reconciliation
|
Three months ended March 31,
2021(unaudited) |
|
ReportedRevenueGrowth |
|
|
Impact ofCurrency |
|
|
PalladiumPass-Through |
|
|
OrganicGrowth |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Electronics |
31 |
% |
|
(8 |
%) |
|
(2 |
%) |
|
21 |
% |
General Metal Finishing |
15 |
% |
|
(5 |
%) |
|
(1 |
%) |
|
9 |
% |
Total |
25 |
% |
|
(7 |
%) |
|
(1 |
%) |
|
17 |
% |
________________________________________________________________________1
Adjusted EBITDA is a non-IFRS financial measure. Adjusted EBITDA
should be considered in addition to, but not as a substitute for,
the information provided in accordance with IFRS. A reconciliation
for adjusted EBITDA to the most directly comparable IFRS financial
measure is provided in the Reconciliation of Adjusted EBITDA to
Consolidated Net Income (Loss) table. We are not able to forecast
Consolidated net income (loss) on a forward-looking basis without
unreasonable efforts due to the high variability and difficulty in
predicting certain items that affect Consolidated net income
(loss), including, but not limited to, Income taxes, Interest
expense, and Foreign exchange income (loss).
Contacts:
Sarah Spray
+1 803 504 4731
sarah.spray@atotech.com
Susanne Richter
+49 30 349 85 418
press@atotech.com
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