LEXINGTON, Ky., Nov. 3, 2021 /PRNewswire/ --
Full-year highlights
- Reported net income of $420
million grew 32% and earnings per diluted share (EPS) of
$2.29 increased 36%
- Adjusted EPS of $1.95 increased
37% and adjusted EBITDA of $634 million improved 28%
- Sales grew 27% to $3 billion;
Retail Services sales increased 38% and Global Products sales
increased 20%
- Retail Services system-wide same-store sales (SSS) increased
21.2%, net system-wide unit additions of 9%, operating income
growth of 54%; adjusted EBITDA margin was 31.3%
- Global Products delivered volume growth of 16%, operating
income growth of 5%; adjusted EBITDA margin was 18.6%
- Retail Services represented 41% of total sales and 54% of total
segment adjusted EBITDA
- Company recently announced plan to accelerate its continued
transformation by pursuing separation of its two business segments,
Retail Services and Global Products
Fourth-quarter summary
- Reported net income of $168
million grew 38% and EPS of $0.92 increased 39%
- Adjusted EPS of $0.50 improved
11% and adjusted EBITDA of $155
million increased 5%
- Sales grew 28% to $835 million;
Retail Services sales increased 39% and Global Products sales
increased 21%
- Retail Services system-wide SSS increased 20.1%
Valvoline Inc. (NYSE: VVV), a global leader in vehicle care
powering the future of mobility through innovative services and
products, today reported financial results for its fourth quarter
and fiscal year ended September 30, 2021. All comparisons in
this press release are made to the same prior-year period; however,
comparisons to fiscal 2019 have also been included to show changes
from pre-COVID-19 pandemic periods.
"Our Q4 results represent another strong quarter of performance,
with operating income growing 26% and adjusted EBITDA increasing
20% versus our pre-pandemic performance in Q4 of 2019," said
Sam Mitchell, CEO. "We continue to
see robust global demand for our products and services, benefiting
from ongoing improvements in miles driven and increasing number and
age of vehicles in operation.
"The quarter marked the end of an exceptional fiscal year, with
both segments generating strong results. In fiscal 2021, Retail
Services system-wide same store sales increased for the 15th
consecutive year and were up 21% compared to last year and up
nearly 22% versus fiscal 2019, highlighting the superior
stay-in-your-car consumer experience delivered by our store teams.
This same store sales performance combined with unit growth of 9%
year-over-year drove tremendous profitability improvement, cash
generation and topline growth — with system-wide store sales of
nearly $2 billion. Our Retail
Services business is clearly a standout in the auto aftermarket
services space."
Mitchell continued, "For the fiscal year, our Global Products
segment delivered volume growth of 16% compared to fiscal 2020 and
7% versus fiscal 2019 as we continued to gain share in key
international markets and expanded distribution in North America, leveraging the strength of our
brand and technology. As expected, rising raw material costs did
pressure margins in the fourth quarter. Sales growth again exceeded
volume growth, demonstrating progress in passing through these cost
increases and positioning us for cost recovery during fiscal 2022.
The segment generated $213 million in
discretionary free cash flow in fiscal 2021, highlighting the
steady cash-generating nature of the business.
"The performance of both segments over the past few years
demonstrates the solid foundation we have built across our
businesses. Our transformation to a more service-driven business
model has led to Retail Services contributing 54% of our total
segment adjusted EBITDA this fiscal year. As we recently announced,
we believe that now is the time for both segments to develop unique
capital structures, capital allocation policies and operating
strategies to best position themselves for an evolving global car
parc. Our confidence in separating these two strong businesses
reflects the tremendous progress we have made in our strategic
transformation."
Recent Developments
On October 12, 2021, the Company
announced that it is pursuing a separation of its two business
segments, Retail Services and Global Products. No timetable has
been established for the completion of the separation, and
Valvoline does not intend to disclose further developments with
respect to this process, unless and until its Board approves a
specific transaction or action. The separation will allow Retail
Services to continue its growth and focus on leveraging its world
class service model and Global Products to continue to grow its
market leading, high-cash generating business.
Operating Segment Results
Fiscal Year
2021
|
(In millions, except
store count)
|
FY21
results
|
YoY
growth
|
Growth vs.
FY19
|
Retail
Services
|
|
|
|
Segment
sales
|
$
|
1,221
|
|
38
|
%
|
49
|
%
|
System-wide store
sales (a)
|
$
|
1,970
|
|
30
|
%
|
39
|
%
|
System-wide
SSS (a) growth
|
N/A
|
|
21.2
|
%
|
21.9
|
%
|
System-wide store
count (a)
|
1,594
|
|
9
|
%
|
15
|
%
|
Operating
income
|
$
|
321
|
|
54
|
%
|
57
|
%
|
Adjusted EBITDA
(a)
|
$
|
382
|
|
55
|
%
|
60
|
%
|
|
|
|
|
Global
Products
|
|
|
|
Lubricant sales
(gallons) (a)
|
160.9
|
|
16
|
%
|
7
|
%
|
Segment
sales
|
$
|
1,760
|
|
20
|
%
|
12
|
%
|
Operating
income
|
$
|
298
|
|
5
|
%
|
11
|
%
|
Adjusted EBITDA
(a)
|
$
|
327
|
|
6
|
%
|
10
|
%
|
Discretionary free
cash flow (a)
|
$
|
213
|
|
5
|
%
|
8
|
%
|
Fourth Quarter
2021
|
(In
millions)
|
Q4
results
|
YoY growth
(decline)
|
Growth (decline)
vs. Q4 FY19
|
Retail
Services
|
|
|
|
Segment
sales
|
$
|
352
|
|
39
|
%
|
59
|
%
|
System-wide store
sales (a)
|
$
|
555
|
|
29
|
%
|
46
|
%
|
System-wide SSS
(a) growth
|
N/A
|
20.1
|
%
|
28.6
|
%
|
Operating
income
|
$
|
88
|
|
33
|
%
|
57
|
%
|
Adjusted EBITDA
(a)
|
$
|
105
|
|
36
|
%
|
59
|
%
|
|
|
|
|
Global
Products
|
|
|
|
Lubricant sales
(gallons) (a)
|
41.2
|
|
9
|
%
|
6
|
%
|
Segment
sales
|
$
|
483
|
|
21
|
%
|
19
|
%
|
Operating
income
|
$
|
65
|
|
(24)
|
%
|
(14)
|
%
|
Adjusted EBITDA
(a)
|
$
|
72
|
|
(21)
|
%
|
(9)
|
%
|
Discretionary free
cash flow (a)
|
$
|
45
|
|
(25)
|
%
|
(13)
|
%
|
|
(a) Refer to Key
Business Measures, Use of Non-GAAP Measures, and Tables 4 and 5,
Information by Operating Segment, for a description of the metrics
presented above.
|
Balance Sheet and Cash Flow
- Total debt of approximately $1.7
billion and net debt of approximately $1.5 billion
- Full-year cash flow from operations of $404 million, discretionary free cash flow of
$368 million, and free cash flow of
$260 million
- Invested $144 million in capital
expenditures and $282 million in
acquisitions
- Returned $218 million of cash to
shareholders via dividends and share repurchases, including
$27 million of share repurchases in
the fourth quarter
Outlook
"The strength of our team, brand and preventive maintenance
business model drove excellent performance in fiscal 2021," added
Mitchell. "Our strong cash generation allowed us to make
significant growth investments while returning cash to
shareholders.
"Both segments are well-positioned going into fiscal 2022. In
Global Products, we expect robust topline growth and steady
discretionary free cash flow, though we also anticipate that supply
chain impacts will pressure margins in the first half of the year.
We expect our momentum in Retail Services to continue with strong
same-store sales growth and unit additions driving meaningful top-
and bottom-line increases."
Information regarding the Company's outlook for fiscal 2022 is
provided in the table below:
|
Outlook
|
Operating
Items
|
|
|
|
Sales
growth
|
19
|
—
|
21%
|
Retail Services
system-wide store additions
|
110
|
—
|
130
|
Retail Services
system-wide SSS growth
|
9
|
—
|
12%
|
Adjusted
EBITDA
|
$675
|
|
—
|
$700
million
|
Corporate
Items
|
|
|
|
Adjusted effective
tax rate
|
25
|
—
|
26%
|
Adjusted
EPS
|
$2.06
|
|
—
|
$2.18
|
Capital
expenditures
|
$180
|
|
—
|
$200
million
|
Free cash
flow
|
$260
|
|
—
|
$300
million
|
Valvoline's outlook for adjusted EBITDA, adjusted EPS and the
adjusted effective tax rate are non-GAAP financial measures that
are expected to be adjusted for items impacting comparability.
Valvoline is unable to reconcile these forward-looking non-GAAP
financial measures to the comparable GAAP measures estimated for
fiscal 2022 without unreasonable efforts, as the Company is
currently unable to predict with a reasonable degree of certainty
the type and extent of certain items that would be expected to
impact these GAAP measures in fiscal 2022 but would not impact
non-GAAP adjusted results.
Conference Call Webcast
Valvoline will host a live audio webcast of its fiscal fourth
quarter 2021 conference call at 9 a.m. ET on Thursday, November 4, 2021. The webcast and
supporting materials will be accessible through Valvoline's website
at http://investors.valvoline.com. Following the live event, an
archived version of the webcast and supporting materials will be
available.
Basis of Presentation
Valvoline realigned its global operations and related reporting
during the third quarter of fiscal 2021 to manage its business
through two operating segments, Retail Services and Global
Products. Prior period amounts presented herein have been recast to
conform to the current presentation consistent with this
realignment. These changes have no impact on the Company's
historical consolidated GAAP balance sheets, statements of income
or cash flows.
In addition, the Company adopted the current expected credit
losses accounting standard, effective at the beginning of fiscal
2021 using the required modified retrospective approach. Under this
approach, financial information related to periods prior to
adoption were not adjusted and are presented as originally reported
under the previous accounting guidance. The effects of adopting the
new current expected credit losses standard were recognized as an
adjustment that increased opening retained deficit by approximately
$2 million. The Company expects the
ongoing impacts will not be material to the consolidated financial
statements.
Key Business Measures
Valvoline tracks its operating performance and manages its
business using certain key measures, including system-wide,
company-operated and franchised store counts and SSS; system-wide
store sales; and lubricant volumes sold. Management believes these
measures are useful to evaluating and understanding Valvoline's
operating performance and should be considered as supplements to,
not substitutes for, Valvoline's sales and operating income, as
determined in accordance with U.S. GAAP.
Sales in the Retail Services reportable segment are influenced
by the number of service center stores and the business performance
of those stores. Stores are considered open upon acquisition or
opening for business. Temporary store closings remain in the
respective store counts with only permanent store closures
reflected in the activity and end of period store counts. SSS is
defined as sales by U.S. Retail Services stores (company-operated,
franchised and the combination of these for system-wide SSS), with
new stores, including franchised conversions, excluded from the
metric until the completion of their first full fiscal year in
operation as this period is generally required for new store sales
levels to begin to normalize.
Retail Services sales are limited to sales at company-operated
stores, sales of lubricants and other products to independent
franchisees and Express Care operators and royalties and other fees
from franchised stores. Although Valvoline does not recognize
store-level sales from franchised stores as sales in its Statements
of Consolidated Income, management believes system-wide and
franchised SSS comparisons, store counts, and total system-wide
store sales are useful to assess market position relative to
competitors and overall store and segment operating
performance.
Management believes lubricant volumes sold in gallons by its
consolidated subsidiaries is a useful measure in evaluating and
understanding the operating performance of the Global Products
segment. Volumes sold in other units of measure, including liters,
are converted to gallons utilizing standard conversions.
Use of Non-GAAP Measures
To supplement the financial measures prepared in accordance with
U.S. GAAP, certain items within this press release are presented on
an adjusted basis. These non-GAAP measures, presented on both a
consolidated and operating segment basis, have limitations as
analytical tools and should not be considered in isolation from, or
as an alternative to, or more meaningful than, the financial
results presented in accordance with U.S. GAAP. The financial
results presented in accordance with U.S. GAAP and the
reconciliations of non-GAAP measures should be carefully evaluated.
The non-GAAP information used by management may not be comparable
to similar measures disclosed by other companies, because of
differing methods used in calculating such measures.
This press release includes the following non-GAAP measures:
segment adjusted operating income, consolidated EBITDA,
consolidated and segment adjusted EBITDA, consolidated adjusted net
income and earnings per share, consolidated free cash flow, and
consolidated and segment discretionary free cash flow. Refer to
Tables 4-5 and 7-9 for management's definition of each non-GAAP
measure and reconciliation to the most comparable U.S. GAAP
measure.
Management believes the use of non-GAAP measures on a
consolidated and operating segment basis provides a useful
supplemental presentation of Valvoline's operating performance and
allows for transparency with respect to key metrics used by
management in operating the business and measuring performance.
Management believes EBITDA measures provide a meaningful
supplemental presentation of Valvoline's operating performance
between periods on a comparable basis due to the depreciable assets
associated with the nature of the Company's operations, and income
tax and interest costs related to Valvoline's tax and capital
structures, respectively.
Adjusted profitability measures enable comparison of financial
trends and results between periods where certain items may vary
independent of business performance. These adjusted measures
exclude the impact of certain unusual, infrequent or
non-operational activity not directly attributable to the
underlying business, which management believes impacts the
comparability of operational results between periods ("key items").
Key items are often related to legacy matters or market-driven
events considered by management to not be reflective of the ongoing
operating performance. Key items may consist of adjustments related
to: legacy businesses, including the separation from Valvoline's
former parent company and associated impacts of related
indemnities; significant acquisitions or divestitures;
restructuring-related matters; tax reform legislation; debt
extinguishment and modification costs; and other matters that are
non-operational or unusual in nature, including the
following:
- Net pension and other postretirement plan expense/income -
includes several elements impacted by changes in plan assets and
obligations that are primarily driven by changes in the debt and
equity markets, as well as those that are predominantly legacy in
nature and related to prior service to the Company from employees
(e.g., retirees, former employees and current employees with frozen
benefits). These elements include (i) interest cost, (ii) expected
return on plan assets, (iii) actuarial gains/losses, and (iv)
amortization of prior service cost/credit. Significant factors that
can contribute to changes in these elements include changes in
discount rates used to remeasure pension and other postretirement
obligations on an annual basis or upon a qualifying remeasurement,
differences between actual and expected returns on plan assets, and
other changes in actuarial assumptions, such as the life expectancy
of plan participants. Accordingly, management considers that these
elements may be more reflective of changes in current conditions in
global financial markets (in particular, interest rates), outside
the operational performance of the business, and are also primarily
legacy amounts that are not directly related to the underlying
business and do not have an immediate, corresponding impact on the
compensation and benefits provided to eligible employees for
current service. Adjusted profitability measures include the costs
of benefits provided to employees for current service, including
pension and other postretirement service costs.
- Changes in the last-in, first out (LIFO) inventory reserve -
charges or credits recognized in Cost of sales to value certain
lubricant inventories at the lower of cost or market using the LIFO
method. During inflationary or deflationary pricing environments,
the application of LIFO can result in variability of the cost of
sales recognized each period as the most recent costs are matched
against current sales, while preceding costs are retained in
inventories. LIFO adjustments are determined based on published
prices, which are difficult to predict and largely dependent on
future events. The application of LIFO can impact comparability and
enhance the lag period effects between changes in inventory costs
and related pricing adjustments.
Management uses free cash flow and discretionary free cash flow
as additional non-GAAP metrics of cash flow generation. By
including capital expenditures and certain other adjustments, as
applicable, management is able to provide an indication of the
ongoing cash being generated that is ultimately available for both
debt and equity holders as well as other investment opportunities.
Free cash flow includes the impact of capital expenditures,
providing a supplemental view of cash generation. Discretionary
free cash flow includes maintenance capital expenditures, which are
routine uses of cash that are necessary to maintain the Company's
operations and provides a supplemental view of cash flow generation
to maintain operations before discretionary investments in growth.
Free cash flow and discretionary free cash flow have certain
limitations, including that they do not reflect adjustments for
certain non-discretionary cash flows, such as mandatory debt
repayments.
About Valvoline™
Valvoline Inc. (NYSE: VVV) is a global leader in vehicle care
powering the future of mobility through innovative services and
products for vehicles with electric, hybrid and internal combustion
powertrains. Established in 1866, the Company introduced the
world's first branded motor oil and developed strong brand
recognition and customer satisfaction ratings across multiple
service and product channels over the years. The Company operates
and franchises approximately 1,600 service center locations and is
the No. 2 and No. 3 largest chain in the U.S. and Canada, respectively, by number of stores.
With sales in more than 140 countries and territories, Valvoline's
solutions are available for every engine and drivetrain, including
high-mileage and heavy-duty vehicles, and are offered at more than
80,000 locations worldwide. Creating the next generation of
advanced automotive solutions, Valvoline has established itself as
the world's No. 1 supplier of battery fluids to electric vehicle
manufacturers, offering tailored products to help extend vehicle
range and efficiency. To learn more, or to find a Valvoline service
center near you, visit www.valvoline.com.
Forward-Looking Statements
Certain statements in this press release, other than statements
of historical fact, including estimates, projections and statements
related to Valvoline's business plans and operating results, are
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Valvoline has
identified some of these forward-looking statements with words such
as "anticipates," "believes," "expects," "estimates," "is likely,"
"predicts," "projects," "forecasts," "may," "will," "should," and
"intends," and the negative of these words or other comparable
terminology. These forward-looking statements are based on
Valvoline's current expectations, estimates, projections, and
assumptions as of the date such statements are made and are subject
to risks and uncertainties that may cause results to differ
materially from those expressed or implied in the forward-looking
statements. Additional information regarding these risks and
uncertainties are described in the Company's filings with the
Securities and Exchange Commission (the "SEC"), including in the
"Risk Factors," "Management's Discussion and Analysis of Financial
Condition and Results of Operations," and "Quantitative and
Qualitative Disclosures about Market Risk" sections of Valvoline's
most recently filed periodic reports on Forms 10-K and 10-Q, which
are available on Valvoline's website at
http://investors.valvoline.com/sec-filings or on the SEC's website
at http://www.sec.gov. Valvoline assumes no obligation to update or
revise these forward-looking statements for any reason, even if new
information becomes available in the future, unless required by
law.
™ Trademark, Valvoline or its subsidiaries,
registered in various countries
SM Service mark, Valvoline or its subsidiaries,
registered in various countries
FOR FURTHER INFORMATION
Sean
T. Cornett
Sr. Director, Investor Relations
+1 (859) 357-2798
scornett@valvoline.com
Michele Gaither Sparks
Sr. Director, Corporate Communications
+1 (859) 230-8079
michele.sparks@valvoline.com
Valvoline Inc. and
Consolidated Subsidiaries
|
|
|
|
|
Table 1
|
STATEMENTS OF
CONSOLIDATED INCOME
|
|
|
|
|
|
(In millions, except
per share amounts - preliminary and unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Year
ended
|
|
September
30
|
|
September
30
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Sales
|
|
$
|
835
|
|
|
$
|
652
|
|
|
$
|
2,981
|
|
|
$
|
2,353
|
|
Cost of
sales
|
|
589
|
|
|
394
|
|
|
2,001
|
|
|
1,490
|
|
GROSS
PROFIT
|
|
246
|
|
|
258
|
|
|
980
|
|
|
863
|
|
Selling, general and
administrative expenses
|
|
138
|
|
|
123
|
|
|
520
|
|
|
442
|
|
Net legacy and
separation-related income
|
|
(26)
|
|
|
(30)
|
|
|
(24)
|
|
|
(30)
|
|
Equity and other
income, net
|
|
(8)
|
|
|
(11)
|
|
|
(44)
|
|
|
(34)
|
|
OPERATING
INCOME
|
|
142
|
|
|
176
|
|
|
528
|
|
|
485
|
|
Net pension and other
postretirement plan income
|
|
(85)
|
|
|
(32)
|
|
|
(126)
|
|
|
(59)
|
|
Net interest and
other financing expenses
|
|
19
|
|
|
20
|
|
|
111
|
|
|
93
|
|
INCOME BEFORE
INCOME TAXES
|
|
208
|
|
|
188
|
|
|
543
|
|
|
451
|
|
Income tax
expense
|
|
40
|
|
|
66
|
|
|
123
|
|
|
134
|
|
NET
INCOME
|
|
$
|
168
|
|
|
$
|
122
|
|
|
$
|
420
|
|
|
$
|
317
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET EARNINGS PER
SHARE
|
|
|
|
|
|
|
|
|
BASIC
|
|
$
|
0.93
|
|
|
$
|
0.66
|
|
|
$
|
2.30
|
|
|
$
|
1.70
|
|
DILUTED
|
|
$
|
0.92
|
|
|
$
|
0.66
|
|
|
$
|
2.29
|
|
|
$
|
1.69
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE
COMMON SHARES OUTSTANDING
|
|
|
|
|
|
|
BASIC
|
|
181
|
|
|
186
|
|
|
182
|
|
|
187
|
|
DILUTED
|
|
182
|
|
|
186
|
|
|
183
|
|
|
188
|
|
Valvoline Inc. and
Consolidated Subsidiaries
|
|
|
|
Table 2
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
(In millions -
preliminary and unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30
|
|
September
30
|
|
2021
|
|
2020
|
ASSETS
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
230
|
|
|
$
|
760
|
|
|
|
Receivables,
net
|
|
496
|
|
|
433
|
|
|
|
Inventories,
net
|
|
258
|
|
|
199
|
|
|
|
Prepaid expenses and
other current assets
|
|
53
|
|
|
46
|
|
|
Total current
assets
|
|
1,037
|
|
|
1,438
|
|
|
|
|
|
|
|
|
|
|
Noncurrent
assets
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
817
|
|
|
613
|
|
|
|
Operating lease
assets
|
|
|
307
|
|
|
261
|
|
|
|
Goodwill and
intangibles, net
|
|
775
|
|
|
529
|
|
|
|
Equity method
investments
|
|
47
|
|
|
44
|
|
|
|
Deferred income
taxes
|
|
14
|
|
|
34
|
|
|
|
Other noncurrent
assets
|
|
194
|
|
|
132
|
|
|
Total noncurrent
assets
|
|
2,154
|
|
|
1,613
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
3,191
|
|
|
$
|
3,051
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY (DEFICIT)
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Current portion of
long-term debt
|
|
$
|
17
|
|
|
$
|
—
|
|
|
|
Trade and other
payables
|
|
246
|
|
|
189
|
|
|
|
Accrued expenses and
other liabilities
|
|
306
|
|
|
255
|
|
|
Total current
liabilities
|
|
569
|
|
|
444
|
|
|
|
|
|
|
|
|
|
|
Noncurrent
liabilities
|
|
|
|
|
|
|
Long-term
debt
|
|
1,677
|
|
|
1,962
|
|
|
|
Employee benefit
obligations
|
|
258
|
|
|
317
|
|
|
|
Operating lease
liabilities
|
|
274
|
|
|
231
|
|
|
|
Deferred income
taxes
|
|
26
|
|
|
—
|
|
|
|
Other noncurrent
liabilities
|
|
252
|
|
|
173
|
|
|
Total noncurrent
liabilities
|
|
2,487
|
|
|
2,683
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity
(deficit)
|
|
135
|
|
|
(76)
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity (deficit)
|
|
$
|
3,191
|
|
|
$
|
3,051
|
|
Valvoline Inc. and
Consolidated Subsidiaries
|
|
|
|
Table 3
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
|
(In millions -
preliminary and unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended
|
|
September
30
|
|
2021
|
|
2020
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
Net income
|
|
$
|
420
|
|
|
$
|
317
|
|
|
Adjustments to
reconcile net income to cash flows from operating
activities
|
|
|
|
|
|
|
Loss on
extinguishment of debt
|
|
36
|
|
|
19
|
|
|
|
Depreciation and
amortization
|
|
92
|
|
|
66
|
|
|
|
Deferred income
taxes
|
|
48
|
|
|
92
|
|
|
|
Pension
contributions
|
|
(5)
|
|
|
(11)
|
|
|
|
Gain on pension and
other postretirement plan remeasurements
|
|
(72)
|
|
|
(22)
|
|
|
|
Stock-based
compensation expense
|
|
14
|
|
|
12
|
|
|
|
Other, net
|
|
4
|
|
|
(5)
|
|
|
Change in operating
assets and liabilities
|
|
(133)
|
|
|
(96)
|
|
Total cash provided
by operating activities
|
|
404
|
|
|
372
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
Additions to
property, plant and equipment
|
|
(144)
|
|
|
(151)
|
|
|
Notes receivable, net
of repayments of $3 in 2020
|
|
17
|
|
|
(31)
|
|
|
Acquisitions of
businesses, net of cash acquired
|
|
(282)
|
|
|
(40)
|
|
|
Other investing
activities, net
|
|
9
|
|
|
—
|
|
Total cash used in
investing activities
|
|
(400)
|
|
|
(222)
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
Proceeds from
borrowings
|
|
555
|
|
|
1,558
|
|
|
Payments of debt
issuance costs and discounts
|
|
(7)
|
|
|
(16)
|
|
|
Repayments on
borrowings
|
|
(829)
|
|
|
(929)
|
|
|
Premium paid to
extinguish debt
|
|
(26)
|
|
|
(15)
|
|
|
Repurchases of common
stock
|
|
(127)
|
|
|
(60)
|
|
|
Cash dividends
paid
|
|
(91)
|
|
|
(84)
|
|
|
Other financing
activities
|
|
(11)
|
|
|
(4)
|
|
Total cash (used in)
provided by financing activities
|
|
(536)
|
|
|
450
|
|
|
Effect of currency
exchange rate changes on cash, cash equivalents, and restricted
cash
|
|
2
|
|
|
2
|
|
(DECREASE)
INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED
CASH
|
|
(530)
|
|
|
602
|
|
Cash, cash
equivalents, and restricted cash - beginning of period
|
|
761
|
|
|
159
|
|
CASH, CASH
EQUIVALENTS, AND RESTRICTED CASH - END OF PERIOD
|
|
$
|
231
|
|
|
$
|
761
|
|
Valvoline Inc. and
Consolidated Subsidiaries
|
|
|
|
|
|
Table 4
|
INFORMATION BY
OPERATING SEGMENT - RETAIL SERVICES
|
|
|
|
|
|
|
(In millions, except
store counts - preliminary and unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Year ended
|
|
September
30
|
|
September
30
|
|
2021
|
|
2020
|
|
2019
|
|
2021
|
|
2020
|
|
2019
|
Sales
information
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Services
segment sales
|
|
$
|
352
|
|
|
$
|
254
|
|
|
$
|
222
|
|
|
$
|
1,221
|
|
|
$
|
883
|
|
|
$
|
822
|
|
Year-over-year
growth
|
|
39
|
%
|
|
14
|
%
|
|
23
|
%
|
|
38
|
%
|
|
7
|
%
|
|
25
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
System-wide store
sales (a)
|
|
$
|
555
|
|
|
$
|
430
|
|
|
$
|
380
|
|
|
$
|
1,970
|
|
|
$
|
1,520
|
|
|
$
|
1,419
|
|
Year-over-year
growth (a)
|
|
29
|
%
|
|
13
|
%
|
|
19
|
%
|
|
30
|
%
|
|
7
|
%
|
|
22
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same-store sales
growth (b)
|
|
|
|
|
|
|
|
|
|
|
|
|
Company-operated
|
|
17.3
|
%
|
|
9.0
|
%
|
|
9.4
|
%
|
|
19.6
|
%
|
|
2.6
|
%
|
|
9.6
|
%
|
Franchised
(a)
|
|
22.1
|
%
|
|
7.9
|
%
|
|
10.3
|
%
|
|
22.4
|
%
|
|
2.1
|
%
|
|
10.4
|
%
|
System-wide
(a)
|
|
20.1
|
%
|
|
8.4
|
%
|
|
10.0
|
%
|
|
21.2
|
%
|
|
2.3
|
%
|
|
10.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profitability
information
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(c)
|
|
$
|
88
|
|
|
$
|
66
|
|
|
$
|
56
|
|
|
$
|
321
|
|
|
$
|
208
|
|
|
$
|
205
|
|
Key items
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Adjusted operating
income (c)
|
|
88
|
|
|
66
|
|
|
56
|
|
|
321
|
|
|
208
|
|
|
205
|
|
Depreciation and
amortization
|
|
17
|
|
|
11
|
|
|
10
|
|
|
61
|
|
|
39
|
|
|
34
|
|
Adjusted EBITDA
(c)
|
|
$
|
105
|
|
|
$
|
77
|
|
|
$
|
66
|
|
|
$
|
382
|
|
|
$
|
247
|
|
|
$
|
239
|
|
Adjusted EBITDA
margin (d)
|
|
29.8
|
%
|
|
30.3
|
%
|
|
29.7
|
%
|
|
31.3
|
%
|
|
28.0
|
%
|
|
29.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discretionary cash
flow information
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
income (c)
|
|
$
|
88
|
|
|
$
|
66
|
|
|
$
|
56
|
|
|
$
|
321
|
|
|
$
|
208
|
|
|
$
|
205
|
|
Income tax expense
(e)
|
|
(17)
|
|
|
(16)
|
|
|
(11)
|
|
|
(75)
|
|
|
(52)
|
|
|
(48)
|
|
Maintenance additions
to property, plant, and equipment
|
|
(8)
|
|
|
(4)
|
|
|
(4)
|
|
|
(20)
|
|
|
(10)
|
|
|
(9)
|
|
Discretionary free
cash flow (f)
|
|
$
|
63
|
|
|
$
|
46
|
|
|
$
|
41
|
|
|
$
|
226
|
|
|
$
|
146
|
|
|
$
|
148
|
|
|
(a)
|
Measure includes
Valvoline franchisees, which are independent legal entities.
Valvoline does not consolidate the results of operations of its
franchisees.
|
(b)
|
Beginning in fiscal
2021, Valvoline determines SSS growth as sales by U.S. Retail
Services stores, with new stores, including franchised conversions,
excluded from the metric until the completion of their first full
fiscal year in operation. Previously, SSS growth was determined as
sales by U.S. Retail Services stores, with stores new to the U.S.
Retail Services system excluded from the metric until completion of
their first full year in operation. Prior period measures have been
revised to conform to the current basis of presentation.
|
(c)
|
Segment adjusted
operating income is segment operating income adjusted for key items
impacting comparability. Segment adjusted operating income is
further adjusted for depreciation and amortization to determine
segment adjusted EBITDA. Valvoline does not generally allocate
activity below operating income to its operating segments;
therefore, the table above reconciles operating income to Adjusted
EBITDA.
|
(d)
|
Adjusted EBITDA
margin is calculated as Adjusted EBITDA divided by segment
sales.
|
(e)
|
Income tax expense
estimated using the adjusted effective tax rate for the period
multiplied by operating segment adjusted operating
income.
|
(f)
|
Segment discretionary
free cash flow is defined as operating segment adjusted operating
income after-tax less maintenance capital expenditures.
|
Valvoline Inc. and
Consolidated Subsidiaries
|
|
|
|
|
|
|
|
Table 5
|
INFORMATION BY
OPERATING SEGMENT - GLOBAL PRODUCTS
|
|
|
(In millions -
preliminary and unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Year
ended
|
|
September
30
|
|
September
30
|
|
2021
|
|
2020
|
|
2019
|
|
2021
|
|
2020
|
|
2019
|
Volume
information
|
|
|
|
|
|
|
|
|
|
|
|
|
Lubricant sales
(gallons)
|
|
41.2
|
|
|
37.9
|
|
|
39.0
|
|
|
160.9
|
|
|
139.1
|
|
|
150.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
information
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales by geographic
region
|
|
|
|
|
|
|
|
|
|
|
|
|
North America
(a)
|
|
$
|
297
|
|
|
$
|
252
|
|
|
$
|
259
|
|
|
$
|
1,052
|
|
|
$
|
945
|
|
|
$
|
994
|
|
Europe, Middle East,
and Africa ("EMEA")
|
|
58
|
|
|
44
|
|
|
47
|
|
|
219
|
|
|
169
|
|
|
181
|
|
Asia Pacific
|
|
91
|
|
|
80
|
|
|
73
|
|
|
358
|
|
|
273
|
|
|
285
|
|
Latin America
(a)
|
|
37
|
|
|
22
|
|
|
28
|
|
|
131
|
|
|
83
|
|
|
108
|
|
Global Products
segment sales
|
|
$
|
483
|
|
|
$
|
398
|
|
|
$
|
407
|
|
|
$
|
1,760
|
|
|
$
|
1,470
|
|
|
$
|
1,568
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profitability
information
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(b)
|
|
$
|
65
|
|
|
$
|
85
|
|
|
$
|
76
|
|
|
$
|
298
|
|
|
$
|
284
|
|
|
$
|
269
|
|
Key items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition-related
gain
|
|
—
|
|
|
—
|
|
|
(4)
|
|
|
—
|
|
|
—
|
|
|
(4)
|
|
|
Business interruption
expenses
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
Adjusted operating
income (b)
|
|
65
|
|
|
85
|
|
|
72
|
|
|
298
|
|
|
284
|
|
|
271
|
|
Depreciation and
amortization
|
|
7
|
|
|
6
|
|
|
7
|
|
|
29
|
|
|
25
|
|
|
25
|
|
Adjusted EBITDA
(b)
|
|
$
|
72
|
|
|
$
|
91
|
|
|
$
|
79
|
|
|
$
|
327
|
|
|
$
|
309
|
|
|
$
|
296
|
|
Adjusted EBITDA
margin (c)
|
|
14.9
|
%
|
|
22.9
|
%
|
|
19.4
|
%
|
|
18.6
|
%
|
|
21.0
|
%
|
|
18.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discretionary cash
flow information
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
income (b)
|
|
$
|
65
|
|
|
$
|
85
|
|
|
$
|
72
|
|
|
$
|
298
|
|
|
$
|
284
|
|
|
$
|
271
|
|
Income tax expense
(d)
|
|
(13)
|
|
|
(20)
|
|
|
(14)
|
|
|
(71)
|
|
|
(70)
|
|
|
(64)
|
|
Maintenance additions
to property, plant, and equipment
|
|
(7)
|
|
|
(5)
|
|
|
(6)
|
|
|
(14)
|
|
|
(12)
|
|
|
(10)
|
|
Discretionary free
cash flow (e)
|
|
$
|
45
|
|
|
$
|
60
|
|
|
$
|
52
|
|
|
$
|
213
|
|
|
$
|
202
|
|
|
$
|
197
|
|
|
(a)
|
Valvoline includes
the United States and Canada in its North America region. Mexico is
included within the Latin America region.
|
(b)
|
Segment adjusted
operating income is segment operating income adjusted for key items
impacting comparability. Segment adjusted operating income is
further adjusted for depreciation and amortization to determine
segment adjusted EBITDA. Valvoline does not generally allocate
activity below operating income to its operating segments;
therefore, the table above reconciles operating income to Adjusted
EBITDA.
|
(c)
|
Adjusted EBITDA
margin is calculated as Adjusted EBITDA divided by segment
sales.
|
(d)
|
Income tax expense
estimated using the adjusted effective tax rate for the period
multiplied by operating segment adjusted operating
income.
|
(e)
|
Segment discretionary
free cash flow is defined as operating segment adjusted operating
income after-tax less maintenance capital expenditures.
|
Valvoline Inc. and
Consolidated Subsidiaries
|
|
|
|
|
|
Table 6
|
RETAIL SERVICES
STORE INFORMATION
|
|
|
|
|
|
|
(Preliminary and
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
System-wide stores
(a)
|
|
Fourth
Quarter
2021
|
|
Third
Quarter
2021
|
|
Second
Quarter
2021
|
|
First
Quarter
2021
|
|
Fourth
Quarter
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of
period
|
|
1,569
|
|
|
1,548
|
|
|
1,533
|
|
|
1,462
|
|
|
1,432
|
|
|
|
Opened
|
|
21
|
|
|
17
|
|
|
13
|
|
|
18
|
|
|
29
|
|
|
|
Acquired
|
|
7
|
|
|
5
|
|
|
3
|
|
|
54
|
|
|
2
|
|
|
|
Closed
|
|
(3)
|
|
|
(1)
|
|
|
(1)
|
|
|
(1)
|
|
|
(1)
|
|
|
End of period
(b)
|
|
1,594
|
|
|
1,569
|
|
|
1,548
|
|
|
1,533
|
|
|
1,462
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of stores
at end of period
|
|
Fourth
Quarter
2021
|
|
Third
Quarter
2021
|
|
Second
Quarter
2021
|
|
First
Quarter
2021
|
|
Fourth
Quarter
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company-operated
|
|
719
|
|
|
698
|
|
|
673
|
|
|
663
|
|
|
584
|
|
|
Franchised
(b)
|
|
875
|
|
|
871
|
|
|
875
|
|
|
870
|
|
|
878
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30
|
|
2021
|
|
2020
|
|
2019
|
|
System-wide store
count (a) (b)
|
|
|
|
|
|
1,594
|
|
|
1,462
|
|
|
1,385
|
|
|
Year-over-year
growth
|
|
|
|
|
|
9
|
%
|
|
6
|
%
|
|
12
|
%
|
(a)
|
System-wide store
count includes franchised service center stores. Valvoline
franchises are independent legal entities, and Valvoline does not
consolidate the results of operations of its
franchisees.
|
(b)
|
As of September 30,
2020, one franchised service center store included in the store
count was temporarily closed at the discretion of the respective
independent operator due to the impacts of COVID-19.
|
Valvoline Inc. and
Consolidated Subsidiaries
|
|
|
|
|
|
Table 7
|
RECONCILIATION OF
NON-GAAP DATA - NET INCOME AND DILUTED EARNINGS PER
SHARE
|
(In millions, except
per share amounts - preliminary and unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Year
ended
|
|
September
30
|
|
September
30
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
Reported net
income
|
|
$
|
168
|
|
|
$
|
122
|
|
|
$
|
420
|
|
|
$
|
317
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Net pension and other
postretirement plan income
|
|
(85)
|
|
|
(32)
|
|
|
(126)
|
|
|
(59)
|
|
|
Net legacy and
separation-related income
|
|
(26)
|
|
|
(30)
|
|
|
(24)
|
|
|
(30)
|
|
|
LIFO charge
(credit)
|
|
15
|
|
|
(3)
|
|
|
41
|
|
|
(15)
|
|
|
Debt extinguishment
and modification costs
|
|
—
|
|
|
—
|
|
|
36
|
|
|
19
|
|
|
Business interruption
recovery
|
|
—
|
|
|
(2)
|
|
|
(3)
|
|
|
(2)
|
|
|
Compensated absences
benefits change
|
|
—
|
|
|
(11)
|
|
|
—
|
|
|
(11)
|
|
|
Acquisition and
divestiture-related costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
Restructuring and
related adjustments
|
|
—
|
|
|
(1)
|
|
|
—
|
|
|
—
|
|
|
Total adjustments,
pre-tax
|
|
(96)
|
|
|
(79)
|
|
|
(76)
|
|
|
(96)
|
|
|
Income tax (expense)
benefit of adjustments
|
|
18
|
|
|
42
|
|
|
13
|
|
|
46
|
|
|
Income tax
adjustments (a)
|
|
—
|
|
|
(2)
|
|
|
—
|
|
|
—
|
|
|
Total adjustments,
after tax
|
|
(78)
|
|
|
(39)
|
|
|
(63)
|
|
|
(50)
|
|
Adjusted net
income (b)
|
|
$
|
90
|
|
|
$
|
83
|
|
|
$
|
357
|
|
|
$
|
267
|
|
|
|
|
|
|
|
|
|
|
Reported diluted
earnings per share
|
|
$
|
0.92
|
|
|
$
|
0.66
|
|
|
$
|
2.29
|
|
|
$
|
1.69
|
|
Adjusted diluted
earnings per share (c)
|
|
$
|
0.50
|
|
|
$
|
0.45
|
|
|
$
|
1.95
|
|
|
$
|
1.42
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
diluted common shares outstanding
|
|
182
|
|
|
186
|
|
|
183
|
|
|
188
|
|
|
(a)
|
Income tax
adjustments relate to the discrete impacts associated with tax
legislation changes in the U.S. and India.
|
(b)
|
Adjusted net income
is defined as net income adjusted for key items. Refer to "Use of
Non-GAAP Measures" in this press release for management's
definition of key items.
|
(c)
|
Adjusted diluted
earnings per share is defined as earnings per diluted share
calculated using adjusted net income.
|
Valvoline Inc. and
Consolidated Subsidiaries
|
|
|
|
|
|
Table 8
|
RECONCILIATION OF
NON-GAAP DATA - ADJUSTED EBITDA
|
|
|
|
|
(In millions -
preliminary and unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Year
ended
|
|
September
30
|
|
September
30
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Adjusted EBITDA -
Valvoline
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
168
|
|
|
$
|
122
|
|
|
$
|
420
|
|
|
$
|
317
|
|
Add:
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
40
|
|
|
66
|
|
|
123
|
|
|
134
|
|
Net interest and other
financing expenses
|
|
19
|
|
|
20
|
|
|
111
|
|
|
93
|
|
Depreciation and
amortization
|
|
24
|
|
|
18
|
|
|
92
|
|
|
66
|
|
EBITDA
(a)
|
|
251
|
|
|
226
|
|
|
746
|
|
|
610
|
|
Key items:
|
|
|
|
|
|
|
|
|
Net pension and other
postretirement plan income
|
|
(85)
|
|
|
(32)
|
|
|
(126)
|
|
|
(59)
|
|
Net legacy and
separation-related income
|
|
(26)
|
|
|
(30)
|
|
|
(24)
|
|
|
(30)
|
|
LIFO charge
(credit)
|
|
15
|
|
|
(3)
|
|
|
41
|
|
|
(15)
|
|
Business interruption
recovery
|
|
—
|
|
|
(2)
|
|
|
(3)
|
|
|
(2)
|
|
Compensated absences benefits change
|
|
—
|
|
|
(11)
|
|
|
—
|
|
|
(11)
|
|
Acquisition and
divestiture-related costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
Restructuring and
related adjustments
|
|
—
|
|
|
(1)
|
|
|
—
|
|
|
—
|
|
Key items -
subtotal
|
|
(96)
|
|
|
(79)
|
|
|
(112)
|
|
|
(115)
|
|
Adjusted EBITDA
(a)
|
|
$
|
155
|
|
|
$
|
147
|
|
|
$
|
634
|
|
|
$
|
495
|
|
|
|
|
|
|
|
|
|
|
Segment Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
Retail
Services
|
|
$
|
105
|
|
|
$
|
77
|
|
|
$
|
382
|
|
|
$
|
247
|
|
Global
Products
|
|
72
|
|
|
91
|
|
|
327
|
|
|
309
|
|
Segment Adjusted EBITDA
(b)
|
|
177
|
|
|
168
|
|
|
709
|
|
|
556
|
|
Corporate
|
|
(22)
|
|
|
(21)
|
|
|
(75)
|
|
|
(61)
|
|
Total Adjusted EBITDA
(a)
|
|
155
|
|
|
147
|
|
|
634
|
|
|
495
|
|
Net interest and
other financing expenses
|
|
(19)
|
|
|
(20)
|
|
|
(111)
|
|
|
(93)
|
|
Depreciation and
amortization
|
|
(24)
|
|
|
(18)
|
|
|
(92)
|
|
|
(66)
|
|
Key items
|
|
96
|
|
|
79
|
|
|
112
|
|
|
115
|
|
Income before income
taxes
|
|
$
|
208
|
|
|
$
|
188
|
|
|
$
|
543
|
|
|
$
|
451
|
|
|
|
|
|
|
|
|
|
|
(a)
|
EBITDA is defined as
net income, plus income tax expense, net interest and other
financing expenses, and depreciation and amortization.
Adjusted EBITDA is EBITDA adjusted for key items, as described in
"Use of Non-GAAP Measures" within this press release.
|
(b)
|
Segment adjusted
EBITDA represents the operations of the Company's two operating
segments, including expenses associated with each segment's
utilization of indirect resources. The costs of corporate
functions, in addition to certain corporate and non-operational
matters, or key items, are not included in segment adjusted EBITDA.
The table above reconciles segment adjusted EBITDA to consolidated
pre-tax income.
|
Valvoline Inc. and
Consolidated Subsidiaries
|
|
|
|
Table 9
|
RECONCILIATION OF
NON-GAAP DATA - FREE CASH FLOWS
|
|
|
(In millions -
preliminary and unaudited)
|
|
|
|
|
|
|
|
|
|
Free cash flow
(a)
|
|
Year ended
|
|
September
30
|
|
2021
|
|
2020
|
Total cash flows
provided by operating activities
|
|
$
|
404
|
|
|
$
|
372
|
|
Adjustments:
|
|
|
|
|
Additions to property,
plant, and equipment
|
|
(144)
|
|
|
(151)
|
|
Free cash
flow
|
|
$
|
260
|
|
|
$
|
221
|
|
|
|
|
|
|
Discretionary free
cash flow (b)
|
|
Year ended
|
|
September
30
|
|
2021
|
|
2020
|
Total cash flows
provided by operating activities
|
|
$
|
404
|
|
|
$
|
372
|
|
Adjustments:
|
|
|
|
|
Maintenance additions
to property, plant, and equipment
|
|
(36)
|
|
|
(30)
|
|
Discretionary free
cash flow
|
|
$
|
368
|
|
|
$
|
342
|
|
|
|
|
|
|
Free cash flow
(a)
|
|
Fiscal
year
|
|
|
2022
Outlook
|
Total cash flows
provided by operating activities
|
|
$
|
460
|
|
—
|
$
|
480
|
|
Adjustments:
|
|
|
|
|
Additions to property,
plant, and equipment
|
|
180
|
|
—
|
200
|
|
Free cash
flow
|
|
$
|
260
|
|
—
|
$
|
300
|
|
|
|
|
|
|
(a)
|
Free cash flow is
defined as cash flows from operating activities less capital
expenditures and certain other adjustments as
applicable.
|
(b)
|
Discretionary free
cash flow is defined as cash flows from operating activities less
maintenance capital expenditures and certain other adjustments as
applicable.
|
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SOURCE Valvoline Inc.