First half performance driven by strong pricing actions and
robust market demand
Second Quarter 2022 Highlights
- Revenue of $1.45 billion, an
increase of 17 percent versus Q2 2021 and up 21 percent
organically1
- Consolidated GAAP net income of $131
million, down 35 percent versus Q2 2021
- Adjusted EBITDA of $360 million,
up 3 percent versus Q2 2021
- Consolidated GAAP earnings of $1.06 per diluted share, down 32 percent versus
Q2 2021
- Adjusted earnings per diluted share of $1.93, up 7 percent versus Q2 2021
Full-Year Outlook2
- Raises revenue outlook to a range of $5.5 to $5.7
billion, reflecting 11 percent growth at the midpoint versus
2021
- Narrows adjusted EBITDA outlook to a range of $1.36 to $1.44
billion, reflecting 6 percent growth at the midpoint versus
2021
- Narrows adjusted earnings per diluted share outlook to a range
of $7.00 to $7.70, reflecting 6 percent growth at the
midpoint versus 2021, excluding any impact from potential 2022
share repurchases
- Narrows free cash flow outlook to a range of $565 to $685
million
PHILADELPHIA, Aug. 2, 2022
/PRNewswire/ --
FMC Corporation (NYSE: FMC) today reported second quarter 2022
revenue of $1.45 billion, an increase
of 17 percent versus second quarter 2021, driven by strong market
demand and pricing. Excluding the impact of foreign currencies,
organic revenue grew 21 percent year-over-year. On a GAAP basis,
the company reported earnings of $1.06 per diluted share in the second quarter.
This compares to GAAP earnings of $1.56 per diluted share in the second quarter of
2021. The impact of FMC's exit from Russia was $0.60
per diluted share in the quarter. Second quarter adjusted earnings
were $1.93 per diluted share, an
increase of 7 percent versus second quarter 2021.
Second Quarter Adjusted EPS versus Q2
2021
|
+12 cents
|
Adjusted
EBITDA
|
+8 cents
|
Share count
|
+5 cents
|
Minority
interest
|
+3 cents
|
Interest
expense
|
-2 cents
|
Taxes
|
-1 cent
|
Rounding
|
-1 cent
|
"FMC's first half performance reflects our ability to price for
the value we offer as well as robust demand for our innovative
products worldwide. The company's performance was further supported
by our operational agility and focus on execution in a dynamic
global environment," said Mark
Douglas, FMC president and chief executive officer.
FMC revenue growth in the second quarter was driven by a 14
percent contribution from volume and a 7 percent contribution from
price, offset partially by a 4 percent currency headwind.
Sales in North America grew 26
percent versus the second quarter of 2021. Demand for both
herbicides and insecticides grew double-digits. In Canada, high insect pressure supported the
successful launch of Coragen® MaX, an insecticide
powered by Rynaxypyr® active. Latin America sales grew 42 percent
organically, and 44 percent including FX, year-over-year in the
quarter, driven by volume gains and significant price increases
across soy, corn, cotton and sugarcane. Brazil led growth in the region with strong
sales of diamides and biologicals. In Asia, revenue was up 4 percent organically
versus the prior year period. Including FX, Asia was down 1 percent. Demand for
Benevia® insecticide grew in India for application on fruits and
vegetables. In Australia,
Overwatch® herbicide continued to outperform competing
products in cereals. Sales in EMEA grew 15 percent organically and
3 percent including FX. Aside from strong pricing, results
were driven by increased demand for Exirel® insecticide
and Verimark® insecticide, as well as selective
herbicides. Plant Health continued its growth momentum with revenue
growing 20 percent in the quarter compared to previous year, led by
biologicals which grew nearly 40 percent year-over-year.
FMC Revenue
|
Q2 2022
|
Total Revenue Change (GAAP)
|
17 %
|
Less FX
Impact
|
(4 %)
|
Organic1 Revenue Change
(Non-GAAP)
|
21 %
|
Second quarter adjusted EBITDA was $360
million, an increase of 3 percent from the prior-year
period. Volume benefits and pricing gains across all regions more
than offset significant cost and currency headwinds in the
quarter.
Full Year 2022 Outlook2
FMC's solid performance in the first half supports continued
confidence in strong revenue and adjusted EBITDA growth for the
full year which is reflected in a narrower updated guidance range.
Full-year 2022 revenue is now forecasted to be in the range of
$5.5 billion to $5.7 billion, representing an increase of 11
percent at the midpoint versus 2021 driven by volume and price
growth in all regions partially offset by foreign currency impact
in EMEA and Asia. Full-year adjusted EBITDA range has been
narrowed and is now expected to be $1.36
billion to $1.44 billion,
representing 6 percent year-over-year growth at the midpoint. The
company expects the highest cost increases of the year in the third
quarter with continued, but lower, cost inflation in the fourth
quarter. The company's decision to cease operations and business in
Russia will also be a headwind.
The range for 2022 adjusted earnings per share is narrowed and it
is now expected to be $7.00 to
$7.70 per diluted share, representing
an increase of 6 percent year-over-year at the midpoint. Interest
expense is now expected to be $135
million to $155 million.
Adjusted earnings per share excludes any impact from potential 2022
share repurchases and assumes weighted average diluted shares
outstanding (WADSO) of approximately 127 million. Full-year free
cash flow is expected to be $565
million to $685 million.
Second Half Outlook2
Sales in the second half of 2022 are expected to be in the range
of $2.70 billion to $2.90 billion, representing 7 percent growth at
the midpoint compared to the same period last year. Adjusted EBITDA
is forecasted to be $646 million to
$726 million, representing 2 percent
growth at the midpoint versus a very strong second half 2021.
Third quarter revenue is expected to be in the range of
$1.31 billion to $1.39 billion, representing a 13 percent increase
at the midpoint compared to third quarter 2021. Adjusted EBITDA
will be impacted by the highest cost increases this year as cost of
materials purchased earlier in the year flow through the P&L.
Adjusted EBITDA is forecasted to be in the range of $235 million to $255
million, representing a 16 percent decrease at the midpoint
versus third quarter 2021. FMC expects adjusted earnings per
diluted share to be in the range of $1.00 to $1.20 in
the third quarter, a decrease of 23 percent at the midpoint versus
third quarter 2021.
Fourth quarter revenue is expected to be in the range of
$1.39 billion to $1.51 billion, a 2 percent increase at the
midpoint compared to a very strong fourth quarter 2021. Adjusted
EBITDA in the fourth quarter is expected to benefit as price and
volume growth continues while cost increases begin to ease.
Adjusted EBITDA is forecasted to be in the range of $411 million to $471
million, representing a 17 percent increase at the midpoint
versus fourth quarter 2021. FMC expects adjusted earnings per
diluted share to be in the range of $2.18 to $2.70 in
the fourth quarter, which represents growth of 13 percent at the
midpoint versus fourth quarter 2021.
"We continue to benefit from a robust market backdrop and
customer demand for our innovative products and solutions. Strong
pricing and demand through the second half of the year are expected
to more than offset cost inflation and currency headwinds," said
Douglas.
|
Full Year 2022
Outlook2
|
Second Half
Outlook2
|
Q3 2022
Outlook2
|
Q4 2022
Outlook2
|
Revenue
|
$5.5 to $5.7
billion
|
$2.70 to $2.90 billion
|
$1.31 to $1.39 billion
|
$1.39 to $1.51 billion
|
Growth at midpoint vs. 2021*
|
11 %
|
7 %
|
13 %
|
2 %
|
Adjusted EBITDA
|
$1.36 to $1.44 billion
|
$646 to $726
million
|
$235 to $255
million
|
$411 to $471
million
|
Growth at midpoint vs. 2021
|
6 %
|
2 %
|
-16 %
|
17 %
|
Adjusted EPS^
|
$7.00 to $7.70
|
$3.18 to $3.90
|
$1.00 to $1.20
|
$2.18 to $2.70
|
Growth at midpoint vs. 2021
|
6 %
|
-1 %
|
-23 %
|
13 %
|
|
^Adjusted EPS
estimates assume 127 million diluted shares for full year and 127
million diluted shares for Q3. Outlook for Adjusted EPS and WADSO
does not include the impact of any share repurchases that may take
place in 2022.
|
|
*Percentages are
calculated using whole numbers. Minor differences may exist due to
rounding.
|
Supplemental Information
The company will post supplemental information on the web at
https://investors.fmc.com, including its webcast slides for
tomorrow's earnings call, definitions of non-GAAP terms and
reconciliations of non-GAAP figures to the nearest available GAAP
term.
About FMC
FMC Corporation is a global agricultural sciences company
dedicated to helping growers produce food,
feed, fiber and fuel for an expanding world population
while adapting to a changing environment. FMC's innovative
crop protection solutions – including biologicals, crop nutrition,
digital and precision agriculture – enable growers, crop advisers
and turf and pest management professionals to address their
toughest challenges economically while protecting the environment.
With approximately 6,400 employees at more than 100 sites
worldwide, FMC is committed to discovering new herbicide,
insecticide and fungicide active ingredients, product formulations
and pioneering technologies that are consistently better for the
planet. Visit fmc.com to learn more and follow us
on LinkedIn® and Twitter®.
Always read and follow all label directions, restrictions and
precautions for use. Products listed here may not be registered for
sale or use in all states, countries or jurisdictions. FMC, the FMC
logo, Rynaxypyr, Benevia, Overwatch, Coragen MaX, Exirel and
Verimark are trademarks of FMC Corporation or an affiliate.
Statement under the Safe Harbor Provisions of the Private
Securities Litigation Reform Act of 1995: FMC and its
representatives may from time to time make written or oral
statements that are "forward-looking" and provide other than
historical information, including statements contained in this
press release, in FMC's other filings with the SEC, and in reports
or letters to FMC stockholders.
In some cases, FMC has identified forward-looking statements
by such words or phrases as "will likely result," "is confident
that," "expect," "expects," "should," "could," "may," "will
continue to," "believe," "believes," "anticipates," "predicts,"
"forecasts," "estimates," "projects," "potential," "intends" or
similar expressions identifying "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995, including the negative of those words and phrases. Such
forward-looking statements are based on management's current views
and assumptions regarding future events, future business conditions
and the outlook for the company based on currently available
information. These statements involve known and unknown risks,
uncertainties and other factors that may cause actual results to be
materially different from any results, levels of activity,
performance or achievements expressed or implied by any
forward-looking statement. Currently, one of the most significant
factors is the potential adverse effect of the current COVID-19
pandemic on the financial condition, results of operations, cash
flows and performance of FMC, which is substantially influenced by
the potential adverse effect of the pandemic on FMC's customers and
suppliers and the global economy and financial markets. The extent
to which COVID-19 impacts us will depend on future developments,
which are highly uncertain and cannot be predicted with confidence,
including the scope, severity and duration of the pandemic, the
actions taken to contain the pandemic or mitigate its impact, and
the direct and indirect economic effects of the pandemic and
containment measures, among others. Additional factors
include, among other things, the risk factors included within FMC's
2021 Form 10-K and similar risk factors and cautionary statements
in other reports and forms filed with the SEC. Moreover, investors
are cautioned to interpret many of these factors as being
heightened as a result of the ongoing and numerous adverse impacts
of the COVID-19 pandemic.
FMC cautions readers not to place undue reliance on any such
forward-looking statements, which speak only as of the date made.
Forward-looking statements are qualified in their entirety by the
above cautionary statement. FMC undertakes no obligation, and
specifically disclaims any duty, to update or revise any
forward-looking statements to reflect events or circumstances
arising after the date on which they were made, except as otherwise
required by law.
This press release contains certain "non-GAAP financial
terms" which are defined on our website www.fmc.com/investors. Such
terms include adjusted EBITDA, adjusted earnings, free cash flow
and organic revenue growth. In addition, we have also provided on
our website reconciliations of non-GAAP terms to the most directly
comparable GAAP term.
- Organic revenue growth (non-GAAP) excludes the impact of
foreign currency changes.
- Although we provide forecasts for adjusted earnings per share,
adjusted EBITDA and free cash flow (non-GAAP financial measures),
we are not able to forecast the most directly comparable measures
calculated and presented in accordance with GAAP. Certain elements
of the composition of the GAAP amounts are not predictable, making
it impractical for us to forecast. Such elements include, but are
not limited to, restructuring, acquisition charges, and
discontinued operations. As a result, no GAAP outlook is
provided.
FMC
CORPORATION
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(Unaudited, in
millions, except per share amounts)
|
|
|
Three Months
Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Revenue
|
$
1,452.3
|
|
$
1,242.0
|
|
$
2,803.1
|
|
$
2,437.6
|
Costs of sales and
services
|
861.3
|
|
710.2
|
|
1,639.4
|
|
1,393.4
|
Gross
margin
|
$
591.0
|
|
$
531.8
|
|
$
1,163.7
|
|
$
1,044.2
|
Selling, general and
administrative expenses
|
194.8
|
|
161.0
|
|
383.3
|
|
335.5
|
Research and
development expenses
|
79.5
|
|
65.9
|
|
151.3
|
|
139.9
|
Restructuring and other
charges (income)
|
80.8
|
|
16.3
|
|
89.9
|
|
19.5
|
Total costs and
expenses
|
$
1,216.4
|
|
$
953.4
|
|
$
2,263.9
|
|
$
1,888.3
|
Income from
continuing operations before non-operating pension and
postretirement charges (income), interest expense, net and income
taxes
|
$
235.9
|
|
$
288.6
|
|
$
539.2
|
|
$
549.3
|
Non-operating pension
and postretirement charges (income)
|
3.9
|
|
4.8
|
|
8.2
|
|
9.6
|
Interest expense,
net
|
35.3
|
|
32.6
|
|
65.2
|
|
65.0
|
Income (loss) from
continuing operations before income taxes
|
$
196.7
|
|
$
251.2
|
|
$
465.8
|
|
$
474.7
|
Provision (benefit) for
income taxes
|
54.7
|
|
33.4
|
|
97.0
|
|
65.6
|
Income (loss) from
continuing operations
|
$
142.0
|
|
$
217.8
|
|
$
368.8
|
|
$
409.1
|
Discontinued
operations, net of income taxes
|
(10.8)
|
|
(14.6)
|
|
(26.0)
|
|
(22.7)
|
Net income
(loss)
|
$
131.2
|
|
$
203.2
|
|
$
342.8
|
|
$
386.4
|
Less: Net income
(loss) attributable to noncontrolling interests
|
(3.0)
|
|
0.3
|
|
1.2
|
|
0.9
|
Net income (loss)
attributable to FMC stockholders
|
$
134.2
|
|
$
202.9
|
|
$
341.6
|
|
$
385.5
|
Amounts attributable
to FMC stockholders:
|
|
|
|
|
|
|
|
Income (loss)
from continuing operations
|
$
145.0
|
|
$
217.5
|
|
$
367.6
|
|
$
408.2
|
Discontinued
operations, net of tax
|
(10.8)
|
|
(14.6)
|
|
(26.0)
|
|
(22.7)
|
Net income
(loss)
|
$
134.2
|
|
$
202.9
|
|
$
341.6
|
|
$
385.5
|
Basic earnings
(loss) per common share attributable to FMC
stockholders:
|
|
|
|
|
|
|
|
Continuing
operations
|
$ 1.15
|
|
$ 1.68
|
|
$ 2.91
|
|
$ 3.15
|
Discontinued
operations
|
(0.09)
|
|
(0.11)
|
|
(0.21)
|
|
(0.18)
|
Basic
earnings per common share
|
$ 1.06
|
|
$ 1.57
|
|
$ 2.70
|
|
$ 2.97
|
Average number of
shares outstanding used in basic earnings per share
computations
|
126.2
|
|
129.1
|
|
126.1
|
|
129.3
|
Diluted earnings
(loss) per common share attributable to FMC
stockholders:
|
|
|
|
|
|
|
|
Continuing
operations
|
$ 1.15
|
|
$ 1.67
|
|
$ 2.90
|
|
$ 3.14
|
Discontinued
operations
|
(0.09)
|
|
(0.11)
|
|
(0.21)
|
|
(0.17)
|
Diluted
earnings per common share
|
$ 1.06
|
|
$ 1.56
|
|
$ 2.69
|
|
$ 2.97
|
Average number of
shares outstanding used in diluted earnings per share
computations
|
126.9
|
|
129.9
|
|
126.9
|
|
130.1
|
|
|
|
|
|
|
|
|
Other
Data:
|
|
|
|
|
|
|
|
Capital additions and
other investing activities
|
$ 9.9
|
|
$ 27.0
|
|
$ 64.8
|
|
$ 65.9
|
Depreciation and
amortization expense
|
42.8
|
|
42.5
|
|
85.2
|
|
85.1
|
FMC
CORPORATION
RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES
|
|
RECONCILIATION OF
NET INCOME (LOSS) ATTRIBUTABLE TO FMC STOCKHOLDERS (GAAP) TO
ADJUSTED AFTER-TAX EARNINGS FROM CONTINUING
OPERATIONS, ATTRIBUTABLE TO FMC STOCKHOLDERS
(NON-GAAP)
|
|
(Unaudited, in
millions, except per share amounts)
|
|
Three Months
Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Net income (loss)
attributable to FMC stockholders (GAAP)
|
$
134.2
|
|
$
202.9
|
|
$
341.6
|
|
$
385.5
|
Corporate special
charges (income):
|
|
|
|
|
|
|
|
Restructuring and
other charges (income) (a)
|
80.8
|
|
16.3
|
|
89.9
|
|
19.5
|
Non-operating pension
and postretirement charges (income) (b)
|
3.9
|
|
4.8
|
|
8.2
|
|
9.6
|
Transaction-related
charges (c)
|
—
|
|
—
|
|
—
|
|
0.4
|
Income tax expense
(benefit) on Corporate special charges (income)
(d)
|
(0.9)
|
|
(4.7)
|
|
(1.8)
|
|
(6.3)
|
Discontinued operations
attributable to FMC stockholders, net of income taxes
|
10.8
|
|
14.6
|
|
26.0
|
|
22.7
|
Tax adjustment
(f)
|
16.3
|
|
1.3
|
|
19.9
|
|
3.8
|
Adjusted after-tax
earnings from continuing operations attributable to FMC
stockholders (Non-GAAP) (1)
|
$
245.1
|
|
$
235.2
|
|
$
483.8
|
|
$
435.2
|
|
|
|
|
|
|
|
|
Diluted earnings per
common share (GAAP)
|
$ 1.06
|
|
$ 1.56
|
|
$ 2.69
|
|
$ 2.97
|
Corporate special
charges (income) per diluted share, before tax:
|
|
|
|
|
|
|
|
Restructuring and
other charges (income)
|
0.64
|
|
0.13
|
|
0.71
|
|
0.15
|
Non-operating pension
and postretirement charges (income)
|
0.03
|
|
0.04
|
|
0.06
|
|
0.08
|
Income tax expense
(benefit) on Corporate special charges (income), per diluted
share
|
(0.02)
|
|
(0.04)
|
|
(0.02)
|
|
(0.05)
|
Discontinued operations
attributable to FMC stockholders, net of income taxes per diluted
share (e)
|
0.09
|
|
0.11
|
|
0.21
|
|
0.17
|
Tax adjustments per
diluted share
|
0.13
|
|
0.01
|
|
0.16
|
|
0.03
|
Diluted adjusted
after-tax earnings from continuing operations per share,
attributable to FMC stockholders (Non-GAAP)
|
$ 1.93
|
|
$ 1.81
|
|
$ 3.81
|
|
$ 3.35
|
|
|
|
|
|
|
|
|
Average number of
shares outstanding used in diluted adjusted after-tax earnings from
continuing operations per share computations
|
126.9
|
|
129.9
|
|
126.9
|
|
130.1
|
____________________
(1)
|
The Company believes
that the Non-GAAP financial measure "Adjusted after-tax earnings
from continuing operations attributable to FMC stockholders" and
its presentation on a per share basis provides useful information
about the Company's operating results to management, investors, and
securities analysts. Adjusted earnings excludes the effects of
corporate special charges, tax-related adjustments and the results
of our discontinued operations. The Company also believes that
excluding the effects of these items from operating results allows
management and investors to compare more easily the financial
performance of its underlying business from period to
period.
|
|
|
(a)
|
Three Months Ended
June 30, 2022:
|
|
|
|
Restructuring and other
charges (income) is primarily comprised of $76.1 million in exit
charges related to our decision to cease operations and business in
Russia. Restructuring and other charges (income) also includes
charges relating to environmental sites of $0.9 million, as well as
severance, restructuring, and other charges of $3.4 million from
various restructuring programs and other charges of $0.4
million.
|
|
|
|
Three Months Ended June 30,
2021:
|
|
|
|
Restructuring and other
charges (income) is primarily comprised of costs related to
regional realignment activities, primarily the move of our European
headquarters, including severance and employee relocation costs, of
$7.2 million. Restructuring and other charges (income) also
includes charges associated with certain in-flight restructuring
programs from the integration of the DuPont Crop Protection
Business, including severance, accelerated depreciation on certain
fixed assets, and other costs of $1.7 million. These charges are
also comprised of severance and restructuring charges of $1.6
million from other restructuring programs, as well as environmental
sites of $3.7 million and other charges of $2.1 million.
|
|
|
|
Six Months Ended June 30, 2022:
|
|
|
|
Restructuring and other
charges (income) is primarily comprised of $76.1 million in exit
charges related to our decision to cease operations and business in
Russia. Restructuring and other charges (income) also
includes income relating to environmental sites of $2.4 million, as
well as severance, restructuring, and other charges of $14.6
million from various restructuring programs and other charges of
$1.6 million.
|
|
|
|
Six Months Ended June 30, 2021:
|
|
|
|
Restructuring and other
charges (income) is comprised of costs related to regional
realignment activities, primarily the move of our European
headquarters, including severance and employee relocation costs, of
$7.9 million. Restructuring and other charges (income) also
includes charges associated with certain in-flight restructuring
programs from the integration of the DuPont Crop Protection
Business, including severance, accelerated depreciation on certain
fixed assets, and other costs of $5.0 million. These charges are
also comprised of severance and restructuring charges of $3.9
million from other restructuring programs, as well as environmental
sites and other charges of $2.7 million.
|
|
|
(b)
|
Our non-operating
pension and postretirement charges (income) are defined as those
costs (benefits) related to interest, expected return on plan
assets, amortized actuarial gains and losses and the impacts of any
plan curtailments or settlements. These are excluded from our
Adjusted Earnings and are primarily related to changes in pension
plan assets and liabilities which are tied to financial market
performance and we consider these costs to be outside our
operational performance. We continue to include the service cost
and amortization of prior service cost in our Adjusted Earnings
results noted above. These elements reflect the current year
operating costs to our businesses for the employment benefits
provided to active employees.
|
|
|
(c)
|
Charges related to
legal and professional fees associated with acquisition
activities.
|
|
|
(d)
|
The income tax expense
(benefit) on Corporate special charges (income) is determined using
the applicable rates in the taxing jurisdictions in which the
corporate special charge or income occurred and includes both
current and deferred income tax expense (benefit) based on the
nature of the non-GAAP performance measure.
|
|
|
(e)
|
Discontinued operations
includes provisions, net of recoveries, for environmental
liabilities and legal reserves and expenses related to previously
discontinued operations and retained liabilities.
|
|
|
(f)
|
We exclude the GAAP tax
provision, including discrete items, from the Non-GAAP measure of
income, and include a Non-GAAP tax provision based upon the
projected annual Non-GAAP effective tax rate. The GAAP tax
provision includes certain discrete tax items including, but are
not limited to: income tax expenses or benefits that are not
related to continuing operating results in the current year; tax
adjustments associated with fluctuations in foreign currency
remeasurement of certain foreign operations; certain changes in
estimates of tax matters related to prior fiscal years; certain
changes in the realizability of deferred tax assets and related
interim accounting impacts; and changes in tax law. Management
believes excluding these discrete tax items assists investors and
securities analysts in understanding the tax provision and the
effective tax rate related to continuing operating results thereby
providing investors with useful supplemental information about
FMC's operational performance.
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
(in
Millions)
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Non-GAAP tax
adjustments
|
|
|
|
|
|
|
|
Revisions to valuation
allowances of historical deferred tax assets
|
$
—
|
|
$
0.4
|
|
$
—
|
|
$
0.5
|
Foreign currency
remeasurement and other discrete items
|
16.3
|
|
0.9
|
|
19.9
|
|
3.3
|
Total Non-GAAP tax
adjustments
|
$
16.3
|
|
$
1.3
|
|
$
19.9
|
|
$
3.8
|
RECONCILIATION OF
NET INCOME (LOSS) (GAAP) TO ADJUSTED EARNINGS FROM CONTINUING
OPERATIONS, BEFORE INTEREST, INCOME
TAXES, DEPRECIATION AND AMORTIZATION, AND NONCONTROLLING INTERESTS
(NON-GAAP)
|
|
(Unaudited, in
millions)
|
|
Three Months
Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Net income (loss)
(GAAP)
|
$
131.2
|
|
$
203.2
|
|
$
342.8
|
|
$
386.4
|
Restructuring and
other charges (income)
|
80.8
|
|
16.3
|
|
89.9
|
|
19.5
|
Non-operating pension
and postretirement charges (income)
|
3.9
|
|
4.8
|
|
8.2
|
|
9.6
|
Transaction-related
charges
|
—
|
|
—
|
|
—
|
|
0.4
|
Discontinued
operations, net of income taxes
|
10.8
|
|
14.6
|
|
26.0
|
|
22.7
|
Interest expense,
net
|
35.3
|
|
32.6
|
|
65.2
|
|
65.0
|
Depreciation and
amortization
|
42.8
|
|
42.5
|
|
85.2
|
|
85.1
|
Provision (benefit)
for income taxes
|
54.7
|
|
33.4
|
|
97.0
|
|
65.6
|
Adjusted earnings
from continuing operations, before interest, income taxes,
depreciation and amortization, and noncontrolling interests
(Non-GAAP) (1)
|
$
359.5
|
|
$
347.4
|
|
$
714.3
|
|
$
654.3
|
___________________
(1)
|
Referred to as Adjusted
EBITDA. Defined as operating profit excluding corporate special
charges (income) and depreciation and amortization
expense.
|
RECONCILIATION OF
CASH PROVIDED (REQUIRED) BY OPERATING ACTIVITIES OF CONTINUING
OPERATIONS (GAAP) TO FREE CASH FLOW (NON-GAAP)
|
(Unaudited, in
millions)
|
|
Three Months
Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Cash provided
(required) by operating activities of continuing operations
(GAAP)(1)
|
$ 195.9
|
|
$ 254.7
|
|
$
(401.9)
|
|
$ (39.4)
|
Transaction and
integration costs
|
—
|
|
1.3
|
|
0.5
|
|
5.8
|
Adjusted cash from
operations(2)
|
$ 195.9
|
|
$ 256.0
|
|
$
(401.4)
|
|
$
(33.6)
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
(23.4)
|
|
(21.9)
|
|
(73.7)
|
|
(46.9)
|
Other investing
activities
|
13.5
|
|
(5.1)
|
|
8.9
|
|
(19.0)
|
Capital additions
and other investing activities
|
$
(9.9)
|
|
$
(27.0)
|
|
$
(64.8)
|
|
$
(65.9)
|
|
|
|
|
|
|
|
|
Cash provided
(required) by operating activities of discontinued
operations
|
(20.6)
|
|
(23.5)
|
|
(31.6)
|
|
(32.4)
|
Transaction and
integration costs
|
—
|
|
(1.3)
|
|
(0.5)
|
|
(5.8)
|
Investment in
Enterprise Resource Planning system
|
—
|
|
(0.5)
|
|
—
|
|
(12.7)
|
Legacy and
transformation
|
$
(20.6)
|
|
$
(25.3)
|
|
$
(32.1)
|
|
$
(50.9)
|
|
|
|
|
|
|
|
|
Free cash flow
(Non-GAAP)(3)
|
$ 165.4
|
|
$ 203.7
|
|
$
(498.3)
|
|
$
(150.4)
|
___________________
(1)
|
The cash provided
(required) by operating activities for the three months ended June
30, 2022 and 2021 is the calculation of the six months ended June
30, 2022 and 2021 less the previously reported three months ended
March 31, 2022 and 2021, respectively.
|
(2)
|
Adjusted cash from
operations is defined as cash provided (required) by operating
activities of continuing operations excluding the effects of
transaction-related cash flows.
|
(3)
|
Free cash flow is
defined as Adjusted cash from operations reduced by spending for
capital additions and other investing activities as well as legacy
and transformation spending. We believe that this Non-GAAP
financial measure provides a useful basis for investors and
securities analysts about the cash generated by routine business
operations, including capital expenditures, in addition to
assessing our ability to repay debt, fund acquisitions and return
capital to shareholders through share repurchases and dividends.
Our use of free cash flow has limitations as an analytical tool and
should not be considered in isolation or as a substitute for an
analysis of our results under U.S. GAAP.
|
RECONCILIATION OF
REVENUE CHANGE (GAAP) TO
ORGANIC REVENUE
CHANGE (NON-GAAP) (1)
(Unaudited)
|
|
|
Three Months Ended
June
30, 2022 vs. 2021
|
|
Six Months Ended
June
30, 2022 vs. 2021
|
Total Revenue Change
(GAAP)
|
17 %
|
|
15 %
|
Less: Foreign Currency
Impact
|
(4) %
|
|
(4) %
|
Organic Revenue
Change (Non-GAAP)
|
21 %
|
|
19 %
|
___________________
(1)
|
We believe organic
revenue growth (non-GAAP) provides management and investors with
useful supplemental information regarding our on going revenue
performance and trends by presenting revenue growth excluding the
impact of fluctuations in foreign exchange rates.
|
FMC
CORPORATION
CONDENSED
CONSOLIDATED BALANCE SHEETS
(Unaudited, in
millions)
|
|
|
June 30,
2022
|
|
December 31,
2021
|
Cash and cash
equivalents
|
$
591.5
|
|
$
516.8
|
Trade receivables, net
of allowance of $36.5 in 2022 and $37.4 in 2021
|
2,885.1
|
|
2,583.7
|
Inventories
|
1,590.4
|
|
1,405.7
|
Prepaid and other
current assets
|
450.4
|
|
431.4
|
Total current
assets
|
$
5,517.4
|
|
$
4,937.6
|
|
|
|
|
Property, plant and
equipment, net
|
797.4
|
|
817.0
|
Goodwill
|
1,455.8
|
|
1,463.3
|
Other intangibles,
net
|
2,446.4
|
|
2,521.9
|
Deferred income
taxes
|
214.9
|
|
218.5
|
Other long-term
assets
|
612.3
|
|
623.0
|
Total
assets
|
$
11,044.2
|
|
$
10,581.3
|
|
|
|
|
Short-term debt and
current portion of long-term debt
|
$
1,155.1
|
|
$
440.8
|
Accounts payable, trade
and other
|
1,122.2
|
|
1,135.0
|
Advanced payments from
customers
|
1.8
|
|
630.7
|
Accrued and other
liabilities
|
594.3
|
|
631.2
|
Accrued customer
rebates
|
793.2
|
|
406.7
|
Guarantees of vendor
financing
|
204.9
|
|
206.2
|
Accrued pensions and
other postretirement benefits, current
|
4.3
|
|
4.3
|
Income taxes
|
109.9
|
|
65.4
|
Total current
liabilities
|
$
3,985.7
|
|
$
3,520.3
|
|
|
|
|
Long-term debt, less
current portion
|
$
2,731.7
|
|
$
2,731.7
|
Long-term
liabilities
|
1,199.5
|
|
1,277.4
|
Equity
|
3,127.3
|
|
3,051.9
|
Total liabilities
and equity
|
$
11,044.2
|
|
$
10,581.3
|
FMC
CORPORATION
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in
millions)
|
|
|
Six Months Ended
June 30,
|
|
2022
|
|
2021
|
Cash provided
(required) by operating activities of continuing
operations
|
$
(401.9)
|
|
$
(39.4)
|
|
|
|
|
Cash provided
(required) by operating activities of discontinued
operations
|
(31.6)
|
|
(32.4)
|
|
|
|
|
Cash provided
(required) by investing activities of continuing
operations
|
(65.3)
|
|
(81.2)
|
|
|
|
|
Cash provided
(required) by financing activities of continuing
operations
|
585.7
|
|
315.9
|
|
|
|
|
Effect of exchange rate
changes on cash
|
(12.2)
|
|
(3.3)
|
Increase (decrease) in
cash and cash equivalents
|
$
74.7
|
|
$
159.6
|
|
|
|
|
Cash and cash
equivalents, beginning of period
|
$
516.8
|
|
$
568.9
|
|
|
|
|
Cash and cash
equivalents, end of period
|
$
591.5
|
|
$
728.5
|
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SOURCE FMC Corporation