LYDALL, INC. (NYSE: LDL) today announced financial results for the
first quarter ended March 31, 2020 and provided an update of
COVID-19 impacts.
FINANCIAL HIGHLIGHTS - Q1 2020 vs. Q1
2019
GAAP Financials
- Cash flow from operations was $26.7 million, compared to $14.4
million— First quarter ending cash balance of $87.8 million,
compared to $47.9 million
- Net sales of $200.5 million, down 8.0%
- Gross margin of 19.2%, down 10 basis points
- Operating loss of ($55.6) million, compared to operating income
of $9.1 million— Goodwill and other long-lived asset
impairment charges of $61.1 million, or ($3.35) per
share— Strategic initiatives expense of $1.9 million, or
($0.08) per share, compared to $0.8 million or ($0.04)
- Loss per share of ($3.25), compared to earnings per share of
$0.22
Non-GAAP Financial
Measures*
- Organic sales decline of 5.7%
- Adjusted gross margin of 19.2%, down 30 basis points
- Adjusted operating margin of 3.7%, down 100 basis points
- Adjusted earnings per share of $0.20, compared to adjusted
earnings of $0.28 per share
- Adjusted EBITDA of $20.0 million, compared to $21.8
million
*Reconciliations of
the Non-GAAP financial measures to Lydall’s GAAP financial results
are included at the end of this release. See also “Use of
Non-GAAP Financial Measures” below.
COVID-19 Business Update
“When it first became apparent that COVID-19
would have a significant impact on the global economy, we acted
rapidly and decisively to safeguard the health and safety of our
global workforce and the sustainability of our business,” Sara A.
Greenstein, President and Chief Executive Officer, said. “We
immediately responded to the large unmet need and global shortage
of supplies for front line and first responder personnel and
re-prioritized our manufacturing capabilities in North America and
Europe to produce filtration products used in N95 respirators,
surgical and medical masks, and medical wipes, pads and
gowns. In response to our automotive customers ceasing
operations in the U.S. and Europe late in the quarter, we quickly
ramped down production at our Thermal Acoustical Solutions
facilities in these geographies.”
To further solidify the Company’s financial
footing in response to the COVID-19 pandemic, Lydall’s executive
team took quick actions to protect and enhance our liquidity,
including:
- Drawing down $20.0 million on our revolving credit facility in
March
- Ramping down Lydall production facilities in each of our three
businesses that serve automotive end markets, impacting over 1,000
employees, approximately 30% of our total workforce
- Reducing the fixed cost structure in Thermal Acoustical
Solutions through recent reduction in force actions
- Seeking support from government programs and taking advantage
of specific benefits, including wage recovery provided by social
programs in Europe and deferral of domestic employer payroll tax in
the U.S. through the Coronavirus Aid, Relief, and Economic Security
(CARES) Act
- Reducing all non-critical capital spending
- Deferring company pension and 401(k) matching
contributions
“We have acted decisively with the intent of
emerging from this crisis strong, healthy and viable for the long
term,” said Ms. Greenstein. “As the global economy stabilizes, the
actions we've taken should better enable us to serve the structural
change in demand for specialty filtration and other engineered
materials products, while efficiently meeting the needs of our
automotive customers.”
Q1 2020 Consolidated
Results
Net sales decreased by $17.5 million, or 8.0%,
to $200.5 million, compared to $218.0 million in the first quarter
of 2019, primarily due to the effects of COVID-19. Even with
the effects of the pandemic, sales in the Performance Materials
("PM") segment increased by 1.0% to $65.2 million compared to the
same period last year; this was offset by lower sales in the
Thermal Acoustical Solutions ("TAS") segment, and to a lesser
extent the Technical Nonwovens ("TNW") segment. Gross margin
in the first quarter declined 10 basis points year-over-year to
19.2% driven primarily by a decline in the TAS segment, partially
offset by improved gross margin in PM. TNW gross margin was
flat.
Randall B. Gonzales, Executive Vice President
and Chief Financial Officer, stated, "We experienced very strong
sequential quarterly sales improvements in Performance Materials
with Filtration sales up 16.5% and Sealing and Advanced Solutions
sales up 17.1% compared to the fourth quarter of 2019."
Operating loss was ($55.6) million, compared to
operating income of $9.1 million in the first quarter of 2019,
including non-cash impairment charges of $61.1 million, principally
from goodwill impairment in the PM segment. While the PM
segment performed well in the first quarter, the COVID-19 pandemic
negatively impacted the outlook in automotive, sealing, and other
industrial end markets, requiring an impairment charge. On an
adjusted basis, operating income was $7.4 million compared to $10.3
million in the first quarter of 2019, negatively impacted by the
effects of COVID-19 and a charge of $0.9 million for flood-related
inventory losses at our Technical Nonwovens UK facility for which
we are pursuing a claim with our insurer. Adjusted EBITDA
margin in PM was 16.0%, up 420 basis points from the first quarter
of 2019. With compressed margins in TAS and TNW due to
COVID-19, consolidated adjusted EBITDA margin was 10.0%, flat to
the first quarter of 2019.
Mr. Gonzales added, "Adjusted EBITDA improved
$7.6 million sequentially to $20.0 million, up 61% compared to the
fourth quarter 2019, despite headwinds related to COVID-19.
Consolidated adjusted EBITDA margin expanded 360 basis points from
fourth quarter of 2019, with adjusted EBITDA margins in PM and TAS
increasing 600 and 340 basis points, respectively. These
results were driven by productivity gains in TAS, benefits from
reductions in force actions completed in the fourth quarter 2019,
and incremental volumes in our Sealing business."
Liquidity
Net cash provided by operations was $26.7
million in the first quarter of 2020 compared to $14.4 million in
the first quarter of 2019, aided by strong working capital
management including approximately $18.0 million of factoring of
select trade accounts receivable to a banking institution that
would have normally been collected from customers in the second
quarter of 2020. The Company’s cash balance was $87.8 million
at March 31, 2020, compared to $51.3 million at December 31, 2019,
which includes the $20.0 million draw down on the Company’s credit
facility in March. At April 30, 2020, the Company's cash
balance was $98.2 million.
As a result of the COVID-19 pandemic and
subsequent economic slowdown, the Company expected to be out of
compliance with at least one of its financial covenants starting in
the second quarter of 2020. As a result, Lydall executed an
amendment to its credit facility with the support of its current
banking syndicate. The amended credit facility consists of a
term loan of $144 million with a revolving facility of $170
million. The maximum net debt leverage ratio is 6.5 through
the period ending March 31, 2021, and steps down thereafter.
With these modifications, management believes the Company is well
positioned to remain compliant with its financial covenants going
forward. The fixed charge ratio is adjusted to 1.10 for the
period ending June 30, 2020. The applicable rate margin above
LIBOR expands to a maximum of 4.25%. The amendment required a
fee of 0.25%.
Outlook
Ms. Greenstein concluded, "Lydall's mission is
to create a cleaner, quieter, and safer world as we have been doing
for the past 150 years. COVID-19 highlights the enduring role
the Company has played in delivering life-saving capabilities in
specialty filtration. As experts in filtration, we have been
in regular contact with the highest levels of the U.S. government,
and in contact with leaders in Canada, Europe, and the United
Kingdom to provide solutions and expertise to help in the fight
against COVID-19.
"In response to the global shortage of personal
protective equipment (or PPE), we have re-deployed people and
assets, and have significantly increased production of filtration
materials. In May, we secured a major long-term agreement
with Honeywell to supply meltblown filtration media for their N95
mask production facilities. Our proven technical and
production capabilities were key factors in our selection. As
a result, we have already committed additional capital to acquire a
new meltblown production line to satisfy this and related
demand. We also recently developed a new application for
nonwoven materials used in medical gowns and secured an order from
the New York Department of Health for this product.
"April volumes for Performance Materials'
Filtration subsegment increased 20% compared to the prior year,
reflective of the demand for PPE. April volumes in the TAS
business were down almost 90%. Our China sites were back in
operation in the first quarter of 2020, while our European
automotive sites have started to slowly ramp up to support customer
requirements. In North America, Ford, GM and FCA have
announced plans to resume production on May 18. We are ready
to support this re-start and have completed a reduction in force
program in TAS to provide a leaner fixed cost structure as demand
comes back.
"In summary, despite substantial headwinds in
the quarter, we reacted quickly to this crisis, delivered
sequential margin expansion and strong cash flow, and have enhanced
our liquidity. Lydall's long history and product application
expertise as a trusted supplier of specialty filtration solutions
will be a cornerstone of our long-term strategic vision, with the
current crisis accelerating our focus on our filtration and
engineered materials businesses."
Conference Call
Lydall will host a conference call on May 12,
2020 at 10:00 a.m. Eastern Time to discuss results its first
quarter ended March 31, 2020 as well as general matters
related to its businesses and markets. The call may be
accessed at (888) 338-7142, from within the U.S., or (412)
902-4181, internationally. In addition, the audio of the call
will be webcast live and will be available for replay on the
Company's website at www.lydall.com in the Investor Relations
Section. A recording of the call will be available from 12:00
p.m. Eastern Time on May 12, 2020 through 11:59 p.m. Eastern Time
on May 19, 2020 at (877) 344-7529, from within the U.S., or (412)
317-0088, internationally, access code 10143431. Additional
information, including a presentation outlining key financial data
supporting the conference call, can be found on the Company’s
website www.lydall.com under the Investors Relations’ section.
Use of Non-GAAP Financial
Measures
In addition to the financial measures prepared
in accordance with generally accepted accounting principles
(“GAAP”), the Company uses certain non-GAAP financial measures,
including organic sales, adjusted gross profit, adjusted gross
margin, adjusted operating income, adjusted operating margin,
adjusted earnings per share, consolidated and segment EBITDA and
adjusted EBITDA. The attached financial tables address the
non-GAAP measures used in this press release and reconcile non-GAAP
measures to the most directly comparable GAAP measures. The
Company believes that the use of non-GAAP measures helps investors
gain a better understanding of our core operating results and
future prospects, consistent with how management measures and
forecasts the Company's performance, especially when comparing such
results to previous periods or forecasts. Adjusted segment
EBITDA is used as a basis to internally evaluate the financial
performance of the Company's segments because the Company believes
it reflects current core operating performance and provides an
indicator of the segment's ability to generate cash. Non-GAAP
measures should be considered in addition to, and not as a
replacement for or superior to, the corresponding GAAP measures,
and may not be comparable to similarly titled measures reported by
other companies.
Cautionary Note Concerning
Forward-Looking Statements
This press release contains “forward-looking
statements” within the Private Securities Litigation Reform Act of
1995. Any statements contained in this press release that are
not statements of historical fact, including statements about the
outlook for 2020, the expected impact of the coronavirus pandemic
(COVID-19) on the Company's businesses, and optimizing profit and
cash flow generation may be deemed to be forward-looking
statements. All such forward-looking statements are intended
to provide management’s current expectations for the future
operating and financial performance of the Company based on current
expectations and assumptions relating to the Company’s business,
the economy and other future conditions. Forward-looking
statements generally can be identified through the use of words
such as “believes,” “anticipates,” “may,” “should,” “will,”
“plans,” “projects,” “expects,” “expectations,” “estimates,”
“forecasts,” “predicts,” “targets,” “prospects,” “strategy,”
“signs,” and other words of similar meaning in connection with the
discussion of future operating or financial performance.
Because forward-looking statements relate to the future, they are
subject to inherent risks, uncertainties and changes in
circumstances that are difficult to predict. Such risks and
uncertainties which include, among others, worldwide economic or
political changes that affect the markets that the Company’s
businesses serve which could have an effect on demand for the
Company’s products and impact the Company’s profitability,
challenges encountered by the Company in the execution of
restructuring programs, challenges in integrating acquired
companies, disruptions in the global credit and financial markets,
including diminished liquidity and credit availability, changes in
international trade agreements, including tariffs and trade
restrictions, disruptions in the Company's businesses from the
coronavirus pandemic (COVID-19), foreign currency volatility,
swings in consumer confidence and spending, unstable economic
growth, raw material pricing and supply issues, fluctuations in
unemployment rates, retention of key, increases in fuel prices, and
outcomes of legal proceedings, claims and investigations.
Accordingly, the Company’s actual results may differ materially
from those contemplated by these forward-looking statements.
Investors, therefore, are cautioned against relying on any of these
forward-looking statements. They are neither statements of
historical fact nor guarantees or assurances of future
performance. Additional information regarding the factors
that may cause actual results to differ materially from these
forward-looking statements is available in Lydall’s filings with
the Securities and Exchange Commission, including the risks and
uncertainties identified in Part I, Item 1A - Risk Factors of
Lydall’s Annual Report on Form 10-K for the year ended December 31,
2019.
These forward-looking statements speak only as
of the date of this press release, and Lydall does not assume any
obligation to update or revise any forward-looking statement made
in this press release or that may from time to time be made by or
on behalf of the Company.
Lydall, Inc. is a New York Stock Exchange listed
company, headquartered in Manchester, Connecticut with global
manufacturing operations producing specialty engineered products
for the thermal/acoustical and filtration/separation markets. For
more information, visit http://www.lydall.com. Lydall® is a
registered trademark of Lydall, Inc. in the U.S. and other
countries.
Summary of
Operations |
|
|
|
In thousands except per share
data |
|
|
|
(Unaudited) |
|
|
|
|
Quarters Ended |
|
March 31, |
|
2020 |
|
2019 |
|
|
|
|
Net sales |
$ |
200,527 |
|
|
$ |
218,025 |
|
Cost of sales |
161,959 |
|
|
175,969 |
|
Gross profit |
38,568 |
|
|
42,056 |
|
|
|
|
|
Selling, product development
and administrative expenses |
33,027 |
|
|
33,006 |
|
Impairment of goodwill and
other long-lived assets |
61,109 |
|
|
— |
|
Operating (loss) income |
(55,568 |
) |
|
9,050 |
|
|
|
|
|
Employee benefit plans
settlement (income) expense |
385 |
|
|
— |
|
Interest expense |
2,857 |
|
|
3,628 |
|
Other (income) expense,
net |
(418 |
) |
|
399 |
|
(Loss) income before income
taxes |
(58,392 |
) |
|
5,023 |
|
|
|
|
|
Income tax (benefit)
expense |
(2,015 |
) |
|
1,106 |
|
Loss from equity method
investment |
44 |
|
|
27 |
|
Net (loss)
income |
$ |
(56,421 |
) |
|
$ |
3,890 |
|
|
|
|
|
(Loss) earnings per
share: |
|
|
|
Basic |
$ |
(3.25 |
) |
|
$ |
0.23 |
|
Diluted |
$ |
(3.25 |
) |
|
$ |
0.22 |
|
|
|
|
|
Weighted average number of
common shares outstanding |
17,336 |
|
|
17,254 |
|
Weighted average number of
common shares and equivalents outstanding |
17,336 |
|
|
17,318 |
|
|
|
|
|
|
|
Summary of Segment
Information |
|
|
|
|
and Corporate Office
Expenses |
|
|
|
|
In thousands |
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
Quarters Ended |
|
|
March 31, |
|
|
2020 |
|
2019 |
Net
Sales |
|
|
|
|
|
|
|
|
|
Performance Materials Segment |
|
$ |
65,220 |
|
|
$ |
64,580 |
|
Technical Nonwovens Segment
(1),(2) |
|
57,403 |
|
|
65,606 |
|
Thermal Acoustical
Solutions |
|
83,761 |
|
|
94,313 |
|
Eliminations and Other
(2) |
|
(5,857 |
) |
|
(6,474 |
) |
Consolidated Net Sales |
|
$ |
200,527 |
|
|
$ |
218,025 |
|
|
|
|
|
|
Operating
Income |
|
|
|
|
|
|
|
|
|
Performance Materials Segment
(3) |
|
$ |
(56,941 |
) |
|
$ |
1,459 |
|
Technical Nonwovens Segment
(1),(2),(4) |
|
3,813 |
|
|
4,734 |
|
Thermal Acoustical
Solutions |
|
5,628 |
|
|
9,491 |
|
Corporate Office Expenses |
|
(8,068 |
) |
|
(6,634 |
) |
Consolidated Operating (Loss)
Income |
|
$ |
(55,568 |
) |
|
$ |
9,050 |
|
(1) The Technical Nonwovens segment reports the
results of Geosol through the date of disposition of May 9,
2019.
(2) Included in the Technical Nonwovens segment
and Eliminations and Other is $5.0 million and $4.7 million in
intercompany sales to the Thermal Acoustical Solutions segment for
the quarters ended March 31, 2020 and 2019, respectively.
(3) Included in the Performance Materials
segment is $61.1 million of impairment charges related to goodwill
and other long-lived assets for the quarter ended March 31,
2020 and $4.0 million of intangible assets amortization for the
quarters ended March 31, 2020 and 2019.
(4) Included in the Technical Nonwovens segment
is $1.2 million and $1.3 million of intangible assets amortization
for the quarters ended March 31, 2020 and 2019,
respectively.
Financial
Position |
|
|
|
|
In thousands except ratio
data |
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
March 31, 2020 |
|
December 31, 2019 |
|
|
|
|
|
Cash and cash equivalents |
|
$ |
87,827 |
|
|
$ |
51,331 |
|
Working capital |
|
$ |
176,405 |
|
|
$ |
153,739 |
|
Total debt |
|
$ |
288,156 |
|
|
$ |
272,641 |
|
Stockholders' equity |
|
$ |
253,577 |
|
|
$ |
318,420 |
|
Total capitalization |
|
$ |
541,733 |
|
|
$ |
591,061 |
|
Total debt to total
capitalization |
|
53.2 |
% |
|
46.1 |
% |
Cash
Flows |
|
|
|
|
In thousands |
|
Quarters Ended |
(Unaudited) |
|
March 31, |
|
|
2020 |
|
2019 |
|
|
|
|
|
Net cash provided by operating activities |
|
$ |
26,741 |
|
|
$ |
14,370 |
|
Net cash used for investing
activities |
|
$ |
(7,499 |
) |
|
$ |
(8,983 |
) |
Net cash (used for) provided
by financing activities |
|
$ |
18,375 |
|
|
$ |
(7,110 |
) |
Depreciation and
amortization |
|
$ |
12,230 |
|
|
$ |
11,935 |
|
Capital expenditures |
|
$ |
(9,157 |
) |
|
$ |
(9,239 |
) |
Common Stock
Data |
|
|
|
|
|
|
Quarters Ended March 31, |
|
|
2020 |
|
2019 |
|
|
|
|
|
High |
|
$ |
22.93 |
|
|
$ |
31.71 |
|
Low |
|
$ |
4.79 |
|
|
$ |
19.96 |
|
Close |
|
$ |
6.46 |
|
|
$ |
23.46 |
|
During the first quarter of 2020, 9,958,583 shares of Lydall
common stock (LDL) were traded on the New York Stock Exchange.
Non-GAAP MeasuresIn thousands except ratio and
per share data(Unaudited)
The following tables address the non-GAAP measures used in this
press release and reconcile the non-GAAP measures to the most
directly comparable GAAP measures:
|
|
Quarters Ended March 31, |
|
|
2020 |
|
2019 |
|
|
|
|
|
Net sales |
|
$ |
200,527 |
|
|
$ |
218,025 |
|
Net sales,
adjusted |
|
$ |
200,527 |
|
|
$ |
218,025 |
|
|
|
|
|
|
Gross profit, as
reported |
|
$ |
38,568 |
|
|
$ |
42,056 |
|
TNW restructuring
expenses |
|
— |
|
|
351 |
|
Gross profit,
adjusted |
|
$ |
38,568 |
|
|
$ |
42,407 |
|
|
|
|
|
|
Gross margin, as
reported |
|
19.2 |
% |
|
19.3 |
% |
Gross margin,
adjusted |
|
19.2 |
% |
|
19.5 |
% |
|
|
|
|
|
Operating (loss)
income, as reported |
|
$ |
(55,568 |
) |
|
$ |
9,050 |
|
Strategic initiatives
expenses |
|
1,908 |
|
|
841 |
|
TNW restructuring
expenses |
|
— |
|
|
376 |
|
Impairment of goodwill and
long-lived assets |
|
61,109 |
|
|
— |
|
Operating income,
adjusted |
|
$ |
7,449 |
|
|
$ |
10,267 |
|
|
|
|
|
|
Operating margin, as
reported |
|
(27.7 |
)% |
|
4.2 |
% |
Operating margin,
adjusted |
|
3.7 |
% |
|
4.7 |
% |
|
|
|
|
|
(Loss) earnings per
share, as reported |
|
$ |
(3.25 |
) |
|
$ |
0.22 |
|
Strategic initiatives
expenses |
|
$ |
0.11 |
|
|
$ |
0.05 |
|
TNW restructuring
expenses |
|
$ |
— |
|
|
$ |
0.02 |
|
Impairment of goodwill and
long-lived assets |
|
$ |
3.52 |
|
|
$ |
— |
|
Employee benefit plans
settlement expenses |
|
$ |
0.02 |
|
|
$ |
— |
|
Tax effect of above
adjustments |
|
$ |
(0.20 |
) |
|
$ |
(0.01 |
) |
Diluted (loss)
earnings per share, adjusted |
|
$ |
0.20 |
|
|
$ |
0.28 |
|
This press release reports adjusted results for
the quarters ended March 31, 2020 and 2019, which excludes
strategic initiatives expenses, restructuring expenses in the
Technical Nonwovens segment, impairment charges in the Performance
Materials segment, and employee benefit plans settlement
expenses.
CONSOLIDATED AND SEGMENT EBITDA/ADJUSTED
EBITDAIn thousands except ratio data(Unaudited)
The following tables report consolidated and
segment earnings before interest, taxes, depreciation and
amortization ("EBITDA") and adjusted EBITDA for the quarters ended
March 31, 2020 and 2019. The Company uses segment
operating income (loss) for the purpose of calculating segment
EBITDA and adjusted EBITDA. Adjusted EBITDA excludes
strategic initiatives expenses, restructuring expenses, non-cash
impairment charges, and employee benefit plans settlement
expenses.
|
|
For the Quarter Ended March 31, 2020 |
|
|
Segments |
|
|
|
|
|
|
Performance Materials |
|
Technical Nonwovens |
|
Thermal Acoustical Solutions |
|
Total |
|
Corporate Office |
|
Consolidated Lydall |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
|
|
|
|
|
|
|
|
|
|
$ |
(56,421 |
) |
Employee benefits plans
settlement expense |
|
|
|
|
|
|
|
|
|
|
|
385 |
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
2,857 |
|
Income tax benefit |
|
|
|
|
|
|
|
|
|
|
|
(2,015 |
) |
Other income, net |
|
|
|
|
|
|
|
|
|
|
|
(418 |
) |
Loss from equity method
investment |
|
|
|
|
|
|
|
|
|
|
|
44 |
|
Operating (loss) income |
|
$ |
(56,941 |
) |
|
$ |
3,813 |
|
|
$ |
5,628 |
|
|
$ |
(47,500 |
) |
|
$ |
(8,068 |
) |
|
$ |
(55,568 |
) |
Depreciation and
amortization |
|
6,255 |
|
|
3,038 |
|
|
2,717 |
|
|
12,010 |
|
|
135 |
|
|
12,145 |
|
Employee benefits plans
settlement expense |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
385 |
|
|
385 |
|
Other income, net |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(418 |
) |
|
(418 |
) |
Loss from equity method
investment |
|
— |
|
|
44 |
|
|
— |
|
|
44 |
|
|
— |
|
|
44 |
|
EBITDA |
|
$ |
(50,686 |
) |
|
$ |
6,807 |
|
|
$ |
8,345 |
|
|
$ |
(35,534 |
) |
|
$ |
(7,900 |
) |
|
$ |
(43,434 |
) |
% of net
sales |
|
(77.7 |
)% |
|
11.9 |
% |
|
10.0 |
% |
|
(17.2 |
)% |
|
|
|
(21.7 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Strategic initiatives
expenses |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,908 |
|
|
$ |
1,908 |
|
Impairment of goodwill and
long-lived assets |
|
61,109 |
|
|
— |
|
|
— |
|
|
61,109 |
|
|
— |
|
|
61,109 |
|
Employee benefits plans
settlement expense |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
385 |
|
|
385 |
|
EBITDA,
adjusted |
|
$ |
10,423 |
|
|
$ |
6,807 |
|
|
$ |
8,345 |
|
|
$ |
25,575 |
|
|
$ |
(5,607 |
) |
|
$ |
19,968 |
|
% of net
sales |
|
16.0 |
% |
|
11.9 |
% |
|
10.0 |
% |
|
12.4 |
% |
|
|
|
10.0 |
% |
|
|
For the Quarter Ended March 31, 2019 |
|
|
Segments |
|
|
|
|
|
|
Performance Materials |
|
Technical Nonwovens |
|
Thermal Acoustical Solutions |
|
Total |
|
Corporate Office |
|
Consolidated Lydall |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
|
|
|
|
|
|
|
|
|
$ |
3,890 |
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
3,628 |
|
Income tax expense |
|
|
|
|
|
|
|
|
|
|
|
1,106 |
|
Other expense, net |
|
|
|
|
|
|
|
|
|
|
|
399 |
|
Loss from equity method
investment |
|
|
|
|
|
|
|
|
|
|
|
27 |
|
Operating income (loss) |
|
$ |
1,459 |
|
|
$ |
4,734 |
|
|
$ |
9,491 |
|
|
$ |
15,684 |
|
|
$ |
(6,634 |
) |
|
$ |
9,050 |
|
Depreciation and
amortization |
|
6,170 |
|
|
3,143 |
|
|
2,432 |
|
|
11,745 |
|
|
173 |
|
|
11,918 |
|
Other expense, net |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
399 |
|
|
399 |
|
Loss from equity method
investment |
|
— |
|
|
27 |
|
|
— |
|
|
27 |
|
|
— |
|
|
27 |
|
EBITDA |
|
$ |
7,629 |
|
|
$ |
7,850 |
|
|
$ |
11,923 |
|
|
$ |
27,402 |
|
|
$ |
(6,860 |
) |
|
$ |
20,542 |
|
% of net
sales |
|
11.8 |
% |
|
12.0 |
% |
|
12.6 |
% |
|
12.2 |
% |
|
|
|
9.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Strategic initiatives
expenses |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
841 |
|
|
$ |
841 |
|
TNW restructuring
expenses |
|
— |
|
|
376 |
|
|
— |
|
|
376 |
|
|
— |
|
|
376 |
|
EBITDA,
adjusted |
|
$ |
7,629 |
|
|
$ |
8,226 |
|
|
$ |
11,923 |
|
|
$ |
27,778 |
|
|
$ |
(6,019 |
) |
|
$ |
21,759 |
|
% of net
sales |
|
11.8 |
% |
|
12.5 |
% |
|
12.6 |
% |
|
12.4 |
% |
|
|
|
10.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Organic Sales(Unaudited)
|
|
Quarter Ended March 31, 2020 |
|
|
Performance Materials |
|
Technical Nonwovens |
|
Thermal Acoustical Solutions |
|
Consolidated |
Sales growth, as reported |
|
1.0 |
% |
|
(12.5 |
)% |
|
(11.2 |
)% |
|
(8.0 |
)% |
Acquisitions and
divestitures |
|
1.1 |
% |
|
(0.3 |
)% |
|
— |
% |
|
0.2 |
% |
Change in tooling
sales |
|
— |
% |
|
— |
% |
|
(3.4 |
)% |
|
(1.5 |
)% |
Foreign currency
translation |
|
(0.9 |
)% |
|
(1.2 |
)% |
|
(0.9 |
)% |
|
(1.0 |
)% |
Organic sales
growth |
|
0.8 |
% |
|
(11.0 |
)% |
|
(6.9 |
)% |
|
(5.7 |
)% |
This press release provides information
regarding organic sales change, defined as net sales change
excluding (1) sales from acquired and divested businesses (2) the
impact of foreign currency translation and (3) tooling sales.
Management believes that the presentation of organic sales change
is useful to investors because it enables them to assess, on a
consistent basis, sales trends related to the Company selling
products to customers, without the impact of foreign currency rate
changes that are not under management's control and do not reflect
the performance of the Company and management. Tooling sales
are excluded because tooling revenue is not generated from selling
the Company's products to customers, but rather is reimbursement
from our customers for the design and production of tools used by
the Company in our manufacturing processes. Tooling sales can
be sporadic and may mask underlying business conditions and obscure
business trends.
For further information:
Brendan Moynihan
Vice President, Financial Planning and Investor Relations
Telephone 860-646-1233
Facsimile 860-646-4917
info@lydall.com
www.lydall.com
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