Results driven by robust start to the
Latin American season and strong
pricing actions across all regions
Third Quarter 2022 Highlights
- Revenue of $1.38 billion, an
increase of 15 percent versus Q3 2021 and up 19 percent
organically1
- Consolidated GAAP net income of $118
million, down 27 percent versus Q3 2021
- Adjusted EBITDA of $261 million,
down 11 percent versus Q3 2021
- Consolidated GAAP earnings of $0.95 per diluted share, down 23 percent versus
Q3 2021
- Adjusted earnings per diluted share of $1.23, down 14 percent versus Q3 2021
Full-Year Outlook2
- Raises revenue outlook to a range of $5.6 to $5.8
billion, reflecting 13 percent growth at the midpoint versus
2021
- Narrows adjusted EBITDA outlook to a range of $1.37 to $1.43
billion, reflecting 7 percent growth at the midpoint versus
2021
- Narrows adjusted earnings per diluted share outlook to a range
of $7.10 to $7.60, reflecting 7 percent growth at the
midpoint versus 2021, excluding any impact from potential 2022
share repurchases
- Reduces free cash flow outlook to a range of $440 to $560
million, reflecting the increased revenue outlook and
inflationary impacts on working capital
- Expects up to $200 million in
share repurchases, including $100
million completed in October
PHILADELPHIA, Nov. 1, 2022
/PRNewswire/ --
FMC Corporation (NYSE: FMC) today reported third quarter 2022
revenue of $1.38 billion, an increase
of 15 percent versus third quarter 2021, driven by strong volume
and pricing. Excluding the impact of foreign currencies, organic
revenue grew 19 percent year-over-year. On a GAAP basis, the
company reported earnings of $0.95 per diluted share in the third
quarter, down 23 percent versus third quarter 2021. Adjusted
earnings were $1.23 per diluted
share, a decrease of 14 percent versus third quarter 2021, and
$0.13 above the midpoint of the
guidance.
Third Quarter
Adjusted EPS versus Guidance (midpoint)*
|
+13
cents*
|
Adjusted
EBITDA
|
+11 cents
|
Depreciation and
amortization
|
+1 cent
|
Minority
interest
|
+3 cents
|
Interest
expense
|
-1 cent
|
Rounding
|
-1 cent
|
* Guidance refers to
midpoint of EPS guidance presented on August 3, 2022
|
|
"FMC's strong growth continued in the third quarter driven by a
robust start to the Latin American season and continued pricing
actions across all regions. In addition, we are starting to see the
benefits of our expanded market access in several key geographies.
EBITDA results were down versus the prior year as expected with
peak cost headwinds in the quarter," said Mark Douglas, FMC president and chief executive
officer.
FMC revenue growth in the third quarter was driven by a 12
percent contribution from volume and a 7 percent contribution from
price, offset partially by a 4 percent currency headwind.
Sales in North America grew 21
percent versus the third quarter of 2021. In the US, demand in the
Midwest on corn and other crops offset weakness on the West Coast
due to challenging weather conditions. Latin America sales grew 35 percent year over
year driven by strong herbicide and insecticide demand. In
Brazil, FMC is reaping the
benefits of investing in expanding market access for its products,
especially on soybean and corn acres. In Asia, revenue was down 6 percent (up 2 percent
organically) versus prior year period. Erratic weather in several
countries including India and
Pakistan, as well as currency
headwinds, offset the continued progress made with new product
launches in Asia. In EMEA, sales
were down 12 percent (up 1 percent organically) year over year;
regional performance was driven by strength in diamides, especially
in Germany, and herbicides for
cereals. The global biologicals portfolio grew 9 percent in the
quarter, continuing the rapid development of this platform.
FMC
Revenue
|
Q3
2022
|
Total Revenue Change
(GAAP)
|
15 %
|
Less FX
Impact
|
(4 %)
|
Organic1
Revenue Change (Non-GAAP)
|
19 %
|
|
|
Third quarter adjusted EBITDA was $261
million, a decrease of 11 percent from the prior-year
period. Pricing gains across all regions, as well as volume gains,
primarily in Latin America, were
more than offset by cost and currency headwinds in the quarter.
Full Year 2022 Outlook2
The company raised its forecast for full-year 2022 revenue to be
in the range of $5.6 billion to
$5.8 billion, representing an
increase of 13 percent at the midpoint versus 2021 driven by volume
and price growth in all regions partially offset by foreign
currency impacts. Full-year adjusted EBITDA range has been
narrowed and is now expected to be $1.37
billion to $1.43 billion,
representing 7 percent year-over-year growth at the midpoint. The
range for 2022 adjusted earnings per share is also narrowed and is
now expected to be $7.10 to
$7.60 per diluted share, representing
an increase of 7 percent year-over-year at the midpoint. Interest
expense is now expected to be $148
million to $154 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 lowered to a range of $440
million to $560 million,
reflecting the increased revenue outlook and inflationary impacts
on working capital. The company expects to repurchase up to
$200 million of FMC shares in 2022,
which includes $100 million already
repurchased in October.
Fourth Quarter Outlook2
Fourth quarter revenue is now expected to be in the range of
$1.42 billion to $1.62 billion, an 8 percent increase at the
midpoint compared to fourth quarter 2021. Adjusted EBITDA is now
forecasted to be in the range of $395
million to $455 million,
representing a 15 percent increase at the midpoint versus fourth
quarter 2021. FMC now expects adjusted earnings per diluted share
to be in the range of $2.05 to
$2.55 in the fourth quarter, which
represents growth of 9 percent at the midpoint versus fourth
quarter 2021.
"FMC's performance in the third quarter has set us up well for a
strong finish to the second half of the year. We continue to expand
our market access and are on track to deliver record results for
the year, overcoming significant headwinds from both cost inflation
and currency volatility," said Douglas.
|
Full Year 2022
Outlook2
|
Q4 2022
Outlook2
|
Revenue
|
$5.6 to $5.8
billion
|
$1.42 to $1.62
billion
|
Growth at midpoint
vs. 2021*
|
13 %
|
8 %
|
Adjusted
EBITDA
|
$1.37 to $1.43
billion
|
$395 to $455
million
|
Growth at midpoint
vs. 2021*
|
7 %
|
15 %
|
Adjusted
EPS^
|
$7.10 to
$7.60
|
$2.05 to
$2.55
|
Growth at midpoint
vs. 2021*
|
7 %
|
9 %
|
|
^Adjusted EPS
estimates assume 127 million diluted shares for full year and 127
million diluted shares for Q4. 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 and the
FMC logo 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. In addition to the continued
uncertainty generated by the ongoing COVID pandemic on our
financial condition, results of operations, cash flows and
performance, additional factors include, among other things, the
risk factors and other cautionary statements included within FMC's
2021 Form 10-K filed with the SEC as well as other SEC filings and
public communications. Moreover, investors are cautioned to
interpret many of these factors as being heightened as a result of
the ongoing and numerous adverse impacts of COVID.
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
September 30,
|
|
Nine Months Ended
September 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Revenue
|
$ 1,377.2
|
|
$ 1,194.0
|
|
$ 4,180.3
|
|
$ 3,631.6
|
Costs of sales and
services
|
899.7
|
|
682.5
|
|
2,539.1
|
|
2,078.4
|
Gross margin
|
$
477.5
|
|
$
511.5
|
|
$ 1,641.2
|
|
$ 1,553.2
|
Selling, general and
administrative expenses
|
179.4
|
|
183.5
|
|
562.7
|
|
519.0
|
Research and
development expenses
|
78.5
|
|
79.5
|
|
229.8
|
|
219.4
|
Restructuring and other
charges (income)
|
9.0
|
|
32.8
|
|
98.9
|
|
52.3
|
Total costs and
expenses
|
$ 1,166.6
|
|
$
978.3
|
|
$ 3,430.5
|
|
$ 2,869.1
|
Income from continuing operations before
non-operating pension
and postretirement charges (income), interest expense, net and
income taxes
|
$
210.6
|
|
$
215.7
|
|
$
749.8
|
|
$
762.5
|
Non-operating pension
and postretirement charges (income)
|
(1.7)
|
|
1.5
|
|
6.5
|
|
3.9
|
Interest expense,
net
|
41.8
|
|
33.1
|
|
107.0
|
|
98.1
|
Income (loss) from continuing operations before
income taxes
|
$
170.5
|
|
$
181.1
|
|
$
636.3
|
|
$
660.5
|
Provision (benefit) for
income taxes
|
36.0
|
|
9.2
|
|
133.0
|
|
75.8
|
Income (loss) from
continuing operations
|
$
134.5
|
|
$
171.9
|
|
$
503.3
|
|
$
584.7
|
Discontinued
operations, net of income taxes
|
(16.2)
|
|
(9.7)
|
|
(42.2)
|
|
(32.4)
|
Net income
(loss)
|
$
118.3
|
|
$
162.2
|
|
$
461.1
|
|
$
552.3
|
Less: Net income
(loss) attributable to noncontrolling interests
|
(2.7)
|
|
2.5
|
|
(1.5)
|
|
3.4
|
Net income (loss) attributable to FMC
stockholders
|
$
121.0
|
|
$
159.7
|
|
$
462.6
|
|
$
548.9
|
Amounts attributable to FMC
stockholders:
|
|
|
|
|
|
|
|
Income (loss)
from continuing operations
|
$
137.2
|
|
$
169.4
|
|
$
504.8
|
|
$
581.3
|
Discontinued
operations, net of tax
|
(16.2)
|
|
(9.7)
|
|
(42.2)
|
|
(32.4)
|
Net income (loss)
|
$
121.0
|
|
$
159.7
|
|
$
462.6
|
|
$
548.9
|
Basic earnings (loss) per common share attributable
to FMC stockholders:
|
|
|
|
|
|
|
|
Continuing
operations
|
$ 1.09
|
|
$ 1.32
|
|
$ 3.99
|
|
$ 4.51
|
Discontinued
operations
|
(0.13)
|
|
(0.08)
|
|
(0.33)
|
|
(0.25)
|
Basic earnings per common
share
|
$ 0.96
|
|
$ 1.24
|
|
$ 3.66
|
|
$ 4.26
|
Average number of
shares outstanding used in basic earnings per share
computations
|
126.2
|
|
128.3
|
|
126.2
|
|
129.0
|
Diluted earnings (loss) per common share attributable
to FMC stockholders:
|
|
|
|
|
|
|
|
Continuing
operations
|
$
1.08
|
|
$
1.32
|
|
$
3.98
|
|
$
4.48
|
Discontinued
operations
|
(0.13)
|
|
(0.08)
|
|
(0.33)
|
|
(0.25)
|
Diluted earnings per common
share
|
$ 0.95
|
|
$ 1.24
|
|
$ 3.65
|
|
$ 4.23
|
Average number of
shares outstanding used in diluted earnings per share
computations
|
126.9
|
|
129.0
|
|
126.9
|
|
129.7
|
|
|
|
|
|
|
|
|
Other Data:
|
|
|
|
|
|
|
|
Capital additions and
other investing activities
|
$ 37.9
|
|
$ 32.7
|
|
$
102.7
|
|
$ 98.6
|
Depreciation and
amortization expense
|
41.4
|
|
43.4
|
|
126.6
|
|
128.5
|
|
On July 1, 2022,
we changed our method for inventory costing from the last-in,
first-out ("LIFO") cost method to the first-in, first-out
("FIFO") cost method for inventory in the United States. On July 1,
2022, we also changed our method of accounting for the
determination of
the market-related value of assets for a class of assets within the
qualified U.S. defined benefit plan ("the Plan"), impacting our net
periodic
pension cost. Further detail will be included in our Q3 2022 Form
10-Q. Impacts to our recasted Condensed Consolidated Statements
of
Income (Loss) are not material. Certain prior year amounts within
these earnings tables have been recasted to reflect the accounting
policy
changes described above.
|
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
September 30,
|
|
Nine Months Ended
September 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Net income (loss)
attributable to FMC stockholders (GAAP)
|
$
121.0
|
|
$
159.7
|
|
$
462.6
|
|
$
548.9
|
Corporate special
charges (income):
|
|
|
|
|
|
|
|
Restructuring and
other charges (income) (a)
|
9.0
|
|
32.8
|
|
98.9
|
|
52.3
|
Non-operating pension
and postretirement charges (income) (b)
|
(1.7)
|
|
1.5
|
|
6.5
|
|
3.9
|
Transaction-related
charges (c)
|
—
|
|
—
|
|
—
|
|
0.4
|
Income tax expense
(benefit) on Corporate special charges (income)
(d)
|
(1.0)
|
|
(3.3)
|
|
(2.8)
|
|
(8.1)
|
Discontinued operations
attributable to FMC stockholders, net of income taxes
|
16.2
|
|
9.7
|
|
42.2
|
|
32.4
|
Tax adjustment
(f)
|
12.1
|
|
(16.5)
|
|
32.0
|
|
(12.7)
|
Adjusted after-tax earnings from continuing
operations attributable to FMC
stockholders (Non-GAAP) (1)
|
$
155.6
|
|
$
183.9
|
|
$
639.4
|
|
$
617.1
|
|
|
|
|
|
|
|
|
Diluted earnings per
common share (GAAP)
|
$ 0.95
|
|
$ 1.24
|
|
$ 3.65
|
|
$ 4.23
|
Corporate special
charges (income) per diluted share, before tax:
|
|
|
|
|
|
|
|
Restructuring and
other charges (income)
|
0.07
|
|
0.25
|
|
0.78
|
|
0.40
|
Non-operating pension
and postretirement charges (income)
|
(0.01)
|
|
0.01
|
|
0.05
|
|
0.04
|
Income tax expense
(benefit) on Corporate special charges (income), per diluted
share
|
(0.01)
|
|
(0.02)
|
|
(0.02)
|
|
(0.06)
|
Discontinued operations
attributable to FMC stockholders, net of income taxes per diluted
share (e)
|
0.13
|
|
0.08
|
|
0.33
|
|
0.25
|
Tax adjustments per
diluted share
|
0.10
|
|
(0.13)
|
|
0.25
|
|
(0.10)
|
Diluted adjusted after-tax earnings from continuing
operations per share,
attributable to FMC stockholders (Non-GAAP)
|
$ 1.23
|
|
$ 1.43
|
|
$ 5.04
|
|
$ 4.76
|
|
|
|
|
|
|
|
|
Average number of
shares outstanding used in diluted adjusted after-tax earnings
from continuing operations per share computations
|
126.9
|
|
129.0
|
|
126.9
|
|
129.7
|
|
|
|
|
|
|
|
|
|
|
(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
September 30, 2022:
|
|
|
|
Restructuring and other
charges (income) includes charges relating to environmental sites
of $3.4 million, as well as severance and other
restructuring-related charges of $2.0 million from various
restructuring programs and other charges of $3.6
million.
|
|
|
|
Three Months Ended
September 30, 2021:
|
|
|
|
Restructuring and other
charges (income) is primarily comprised of $23.8 million of charges
for the establishment of reserves for certain historical India
indirect tax matters that were triggered during the period. These
charges are also comprised of severance and restructuring charges
of $2.1 million from other restructuring programs, as well as
environmental sites of $3.7 million and other charges of $3.2
million.
|
|
|
|
Nine Months Ended
September 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 $1.0 million,
as well as severance and other restructuring-related charges of
$16.6 million from various restructuring programs and other charges
of $5.2 million.
|
|
|
|
Nine Months Ended
September 30, 2021:
|
|
|
|
Restructuring and other
charges (income) is comprised of costs related to India indirect
tax matters, as mentioned above, of $23.8 million. These charges
also include regional realignment activities, primarily the move of
our European headquarters, including severance and employee
relocation costs, of $8.9 million. Additionally, restructuring and
other charges (income) is comprised of 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 $5.8 million. These charges also include severance and
restructuring charges of $4.2 million from other restructuring
programs, as well as environmental sites and other charges of $9.6
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. See note on page 1 of earnings
release tables discussing accounting policy change for pensions on
July 1, 2022.
|
|
|
(c)
|
Charges related to
legal and professional fees associated with acquisition activities,
primarily associated with the DuPont Crop Protection Business
Acquisition.
|
|
|
(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)
|
Three and Nine Months Ended September 30, 2022 and
2021
|
|
|
|
Discontinued operations
includes provisions, net of recoveries, for environmental
liabilities and legal reserves and expenses related to previously
discontinued operations and retained liabilities. Discontinued
operations, net of income taxes for the three and nine months ended
September 30, 2021 includes a gain on sale of approximately $13
million, net of tax from the sale of land at a discontinued
site.
|
|
|
(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
September 30,
|
|
Nine Months Ended
September 30,
|
(in Millions)
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Non-GAAP tax adjustments
|
|
|
|
|
|
|
|
Revisions to valuation
allowances of historical deferred tax
assets
|
$
—
|
|
$
(5.9)
|
|
$
—
|
|
$
(5.4)
|
Foreign currency
remeasurement and other discrete items
|
12.1
|
|
(10.6)
|
|
32.0
|
|
(7.3)
|
Total Non-GAAP tax adjustments
|
$
12.1
|
|
$
(16.5)
|
|
$
32.0
|
|
$
(12.7)
|
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
September 30,
|
|
Nine Months Ended
September 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Net income (loss)
(GAAP)
|
$
118.3
|
|
$
162.2
|
|
$
461.1
|
|
$
552.3
|
Restructuring and
other charges (income)
|
9.0
|
|
32.8
|
|
98.9
|
|
52.3
|
Non-operating pension
and postretirement charges (income)
|
(1.7)
|
|
1.5
|
|
6.5
|
|
3.9
|
Transaction-related
charges
|
—
|
|
—
|
|
—
|
|
0.4
|
Discontinued
operations, net of income taxes
|
16.2
|
|
9.7
|
|
42.2
|
|
32.4
|
Interest expense,
net
|
41.8
|
|
33.1
|
|
107.0
|
|
98.1
|
Depreciation and
amortization
|
41.4
|
|
43.4
|
|
126.6
|
|
128.5
|
Provision (benefit)
for income taxes
|
36.0
|
|
9.2
|
|
133.0
|
|
75.8
|
Adjusted earnings from continuing operations, before
interest, income taxes,
depreciation and amortization, and noncontrolling interests
(Non-GAAP) (1)
|
$
261.0
|
|
$
291.9
|
|
$
975.3
|
|
$
943.7
|
|
|
|
|
|
|
|
|
|
|
(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 September
30,
|
|
Nine Months Ended September 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Cash provided
(required) by operating activities of continuing operations
(GAAP)(1)
|
$ 417.6
|
|
$ 337.6
|
|
$
15.7
|
|
$ 298.2
|
Transaction and
integration costs
|
—
|
|
2.6
|
|
0.5
|
|
8.4
|
Adjusted cash from
operations(2)
|
$ 417.6
|
|
$ 340.2
|
|
$
16.2
|
|
$ 306.6
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
(34.7)
|
|
(29.5)
|
|
(108.4)
|
|
(76.4)
|
Other investing
activities
|
(3.2)
|
|
(3.2)
|
|
5.7
|
|
(22.2)
|
Capital additions and other investing
activities
|
$
(37.9)
|
|
$
(32.7)
|
|
$
(102.7)
|
|
$
(98.6)
|
|
|
|
|
|
|
|
|
Cash provided
(required) by operating activities of discontinued
operations
|
(20.2)
|
|
(21.5)
|
|
(51.8)
|
|
(53.9)
|
Cash provided
(required) by investing activities of discontinued
operations
|
—
|
|
16.8
|
|
—
|
|
16.8
|
Transaction and
integration costs
|
—
|
|
(2.6)
|
|
(0.5)
|
|
(8.4)
|
Investment in
Enterprise Resource Planning system
|
—
|
|
—
|
|
—
|
|
(12.7)
|
Legacy and transformation
|
$
(20.2)
|
|
$
(7.3)
|
|
$
(52.3)
|
|
$
(58.2)
|
|
|
|
|
|
|
|
|
Free cash flow
(Non-GAAP)(3)
|
$ 359.5
|
|
$ 300.2
|
|
$
(138.8)
|
|
$ 149.8
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
The cash provided
(required) by operating activities for the three months ended
September 30, 2022 and 2021 is the calculation of the nine months
ended September 30, 2022 and 2021 less the previously reported six
months ended June 30, 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
September 30, 2022 vs. 2021
|
|
Nine Months Ended
September 30, 2022 vs. 2021
|
Total Revenue Change (GAAP)
|
15 %
|
|
15 %
|
Less: Foreign Currency
Impact
|
(4) %
|
|
(4) %
|
Organic Revenue Change
(Non-GAAP)
|
19 %
|
|
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)
|
|
|
September 30, 2022
|
|
December 31, 2021
|
Cash and cash
equivalents
|
$
363.8
|
|
$
516.8
|
Trade receivables, net
of allowance of $34.5 in 2022 and $37.4 in 2021
|
2,599.9
|
|
2,583.7
|
Inventories
|
1,731.5
|
|
1,521.9
|
Prepaid and other
current assets
|
415.4
|
|
431.4
|
Total current assets
|
$
5,110.6
|
|
$
5,053.8
|
|
|
|
|
Property, plant and
equipment, net
|
789.6
|
|
817.0
|
Goodwill
|
1,574.1
|
|
1,463.3
|
Other intangibles,
net
|
2,472.7
|
|
2,521.9
|
Deferred income
taxes
|
184.1
|
|
194.1
|
Other long-term
assets
|
633.6
|
|
623.0
|
Total assets
|
$
10,764.7
|
|
$
10,673.1
|
|
|
|
|
Short-term debt and
current portion of long-term debt
|
$
826.3
|
|
$
440.8
|
Accounts payable, trade
and other
|
1,045.7
|
|
1,135.0
|
Advanced payments from
customers
|
3.3
|
|
630.7
|
Accrued and other
liabilities
|
611.4
|
|
631.2
|
Accrued customer
rebates
|
857.7
|
|
406.7
|
Guarantees of vendor
financing
|
184.2
|
|
206.2
|
Accrued pensions and
other postretirement benefits, current
|
4.3
|
|
4.3
|
Income taxes
|
99.3
|
|
65.4
|
Total current liabilities
|
$
3,632.2
|
|
$
3,520.3
|
|
|
|
|
Long-term debt, less
current portion
|
$
2,732.5
|
|
$
2,731.7
|
Long-term
liabilities
|
1,196.4
|
|
1,277.4
|
Equity
|
3,203.6
|
|
3,143.7
|
Total liabilities and equity
|
$
10,764.7
|
|
$
10,673.1
|
FMC
CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited, in
millions)
|
|
|
Nine Months Ended September 30,
|
|
2022
|
|
2021
|
Cash provided
(required) by operating activities of continuing
operations
|
$
15.7
|
|
$
298.2
|
|
|
|
|
Cash provided
(required) by operating activities of discontinued
operations
|
(51.8)
|
|
(53.9)
|
|
|
|
|
Cash provided
(required) by investing activities of continuing
operations
|
(294.2)
|
|
(115.9)
|
|
|
|
|
Cash provided
(required) by investing activities of discontinued
operations
|
—
|
|
16.8
|
|
|
|
|
Cash provided
(required) by financing activities of continuing
operations
|
197.7
|
|
(367.0)
|
|
|
|
|
Effect of exchange rate
changes on cash
|
(20.4)
|
|
(6.1)
|
Increase (decrease) in
cash and cash equivalents
|
$
(153.0)
|
|
$
(227.9)
|
|
|
|
|
Cash and cash
equivalents of continuing operations, beginning of
period
|
$
516.8
|
|
$
568.9
|
|
|
|
|
Cash and cash
equivalents, beginning of period
|
$
516.8
|
|
$
568.9
|
|
|
|
|
Cash and cash equivalents, end of
period
|
$
363.8
|
|
$
341.0
|
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SOURCE FMC Corporation