LEHIGH VALLEY, Pa.,
Feb. 4, 2021 /PRNewswire/ --
Q1 FY21 (comparisons versus prior year):
- GAAP EPS of $2.12, down one
percent, including an estimated $0.10-$0.15
negative impact from COVID-19; GAAP net income of $487 million, flat; and GAAP net income margin of
20.5 percent, down 120 basis points
- Adjusted EPS* of $2.12, down one
percent, including an estimated $0.10-$0.15
negative impact from COVID-19; adjusted EBITDA margin* of 39.2
percent, down 110 basis points
Q1 FY21 Highlights
- Continued to safely operate more than 750 facilities around the
world, reliably supplying customers and executing world-scale
projects despite the continued challenges of COVID-19
- Increased quarterly dividend 12 percent to $1.50 per share, representing the 39th
consecutive year that dividends have increased
- Announced agreement to provide proprietary LNG technology,
equipment and related process license and advisory services to
Energia Costa Azul LNG export terminal project in Mexico
- Named to the Dow Jones Sustainability North America Index
(DJSI) for 11th consecutive year, honored with Best Social
Responsibility Brand Award at 10th China Charity Festival for sixth
consecutive year, and received 100 percent score on the Corporate
Equality Index for the fifth consecutive year
#Earnings per share is calculated and
presented on a diluted basis from continuing operations and
attributable to Air Products.
*Certain results in this release, including in the highlights
above, include references to non-GAAP financial measures on a
consolidated, continuing operations basis and a segment basis.
Additional information regarding these measures and a
reconciliation of GAAP to non-GAAP historical results can be found
below.
Air Products (NYSE:APD) today reported first quarter fiscal 2021
GAAP EPS from continuing operations of $2.12, down one percent, despite an estimated
$0.10 to $0.15 negative impact from COVID-19; GAAP net
income of $487 million, including
$10 million from discontinued
operations, which was flat; and GAAP net income margin of 20.5
percent, down 120 basis points, each versus prior year.
On a non-GAAP basis, adjusted EPS from continuing operations of
$2.12 was down one percent, despite
an estimated $0.10 to $0.15 negative impact from COVID-19; adjusted
EBITDA* of $932 million was up three
percent; and adjusted EBITDA margin of 39.2 percent was down
110 basis points, each versus prior year.
First quarter sales of $2.4
billion increased five percent on three percent favorable
currency, two percent higher pricing and one percent higher energy
pass-through. Volumes declined one percent, as new plants,
acquisitions and increased sale-of-equipment activities were offset
by lower demand from COVID-19 and a reduced contribution from the
Lu'An gasification project in Asia
("Lu'An").
Commenting on the results, Air Products' Chairman, President and
Chief Executive Officer Seifi
Ghasemi said, "The resilient, hard-working and focused Air
Products team delivered higher adjusted EBITDA this quarter—as well
as maintained adjusted EBITDA margins of nearly 40 percent—despite
the continued challenges of the global pandemic. From our position
of financial strength, we continued to execute our growth strategy
focused on industrial gas projects that address significant energy
and environmental challenges. Meanwhile, we continue to create
shareholder value through the dividend, with our latest 12 percent
increase representing our 39th consecutive year of dividend payment
increases."
Fiscal First Quarter Results by Business
Segment
- Industrial Gases - Americas sales of $933 million were flat versus the prior year.
Three percent higher pricing and two percent higher energy
pass-through were offset by five percent lower volumes, primarily
due to the impact of COVID-19. Operating income of $226 million decreased 12 percent, due to lower
volumes and higher planned maintenance, partially offset by higher
pricing. Operating margin of 24.2 percent decreased 330 basis
points. Adjusted EBITDA of $400
million decreased two percent, due to lower volumes and
higher planned maintenance, partially offset by higher pricing and
the acquisition of hydrogen assets. Adjusted EBITDA margin of 42.9
percent decreased 90 basis points.
Sequentially, sales increased two percent on five percent higher
energy pass-through and one percent higher pricing, partially
offset by four percent lower volumes, primarily driven by
seasonality.
- Industrial Gases - EMEA sales of $563 million increased 13 percent over the prior
year. Volumes increased five percent, primarily driven by
acquisitions and higher onsite volumes, partially offset by lower
packaged gas demand from COVID-19. Three percent higher pricing and
six percent favorable currency more than offset one percent lower
energy pass-through. Operating income of $142 million increased 17 percent, primarily due
to higher pricing, favorable currency and acquisitions, and
operating margin of 25.1 percent increased 90 basis points.
Adjusted EBITDA of $222 million
increased 18 percent, primarily due to higher pricing, favorable
currency and acquisitions, and adjusted EBITDA margin of 39.4
percent increased 170 basis points.
Sequentially, sales increased 11 percent on six percent higher
volumes, driven by modest COVID-19-related recovery in the merchant
business, acquisitions and higher onsite volumes; two percent
favorable currency; two percent higher energy cost pass-through;
and one percent higher pricing.
- Industrial Gases - Asia sales of $718 million increased four percent from the
prior year on six percent favorable currency and one percent each
higher pricing and energy-pass through. Volumes decreased four
percent, primarily from a reduced contribution from Lu'An, while
the merchant business remained stable. Operating income of
$215 million decreased six percent,
primarily due to Lu'An, and operating margin of 29.9 percent
decreased 310 basis points. Adjusted EBITDA of $343 million decreased one percent, primarily due
to Lu'An, and adjusted EBITDA margin of 47.7 percent decreased 240
basis points.
Sequentially, sales increased one percent, as four percent
favorable currency more than offset three percent lower volumes,
including Lu'An.
Ghasemi added, "Despite continued, broad economic uncertainty in
most of the world, we remain confident in the profitable growth
strategy we are executing, providing innovative solutions for some
of the world's most significant energy and environmental
challenges. With our strong portfolio, we are able to meet
customers' and countries' drive for cleaner and more sustainable
solutions. We see great opportunities ahead in gasification, carbon
capture and hydrogen for mobility, and we continue to develop and
invest in strategic opportunities to drive our growth for decades
to come. I continue to be as optimistic as ever about the future of
Air Products."
Discontinued Operations
During the first quarter of fiscal 2021, Air Products recorded
net income from discontinued operations of $10.3 million ($0.05 per share), primarily from the settlement
of a state tax appeal related to the gain on the sale of the former
Performance Materials Division in fiscal year 2017. This settlement
did not have an impact on Air Products' statement of cash flows in
the first quarter.
Earnings Teleconference
Access the Q1 earnings teleconference scheduled for 10:00 a.m. Eastern Time on February 4, 2021
by calling 323-794-2094 and entering passcode 2829376 or access the
Event Details page on Air Products' Investor Relations website.
About Air Products
Air Products (NYSE:APD) is a world-leading industrial gases
company in operation for 80 years. Focused on serving energy,
environment and emerging markets, the Company provides essential
industrial gases, related equipment and applications expertise to
customers in dozens of industries, including refining, chemical,
metals, electronics, manufacturing, and food and beverage. Air
Products is also the global leader in the supply of liquefied
natural gas process technology and equipment. The Company develops,
engineers, builds, owns and operates some of the world's largest
industrial gas projects, including: gasification projects that
sustainably convert abundant natural resources into syngas for the
production of high-value power, fuels and chemicals; carbon capture
projects; and world-scale carbon-free hydrogen projects supporting
global transportation and the energy transition.
The Company had fiscal 2020 sales of $8.9
billion from operations in 50 countries and has a current
market capitalization of about $60
billion. More than 19,000 passionate, talented and committed
employees from diverse backgrounds are driven by Air Products'
higher purpose to create innovative solutions that benefit the
environment, enhance sustainability and address the challenges
facing customers, communities, and the world. For more information,
visit www.airproducts.com or follow us on LinkedIn, Twitter,
Facebook or Instagram.
Cautionary Note Regarding Forward-Looking Statements: This
release contains "forward-looking statements" within the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995, including statements about earnings guidance, business
outlook and investment opportunities. These forward-looking
statements are based on management's expectations and assumptions
as of the date of this release and are not guarantees of future
performance. While forward-looking statements are made in good
faith and based on assumptions, expectations and projections that
management believes are reasonable based on currently available
information, actual performance and financial results may differ
materially from projections and estimates expressed in the
forward-looking statements because of many factors, including,
without limitation: the duration and impacts of the novel
coronavirus ("COVID-19") global pandemic and efforts to contain its
transmission, including the effect of these factors on our
business, our customers, economic conditions and markets generally;
changes in global or regional economic conditions, supply and
demand dynamics in market segments we serve, or in the financial
markets that may affect the availability and terms on which we may
obtain financing; risks associated with having extensive
international operations, including political risks, risks
associated with unanticipated government actions and risks of
investing in developing markets; project delays, contract
terminations or customer cancellations or postponement of projects
and sales; future financial and operating performance of major
customers and joint venture partners; our ability to develop,
implement, and operate new technologies; our ability to execute the
projects in our backlog; our ability to develop and operate large
scale and technically complex projects, including gasification
projects; tariffs, economic sanctions and regulatory activities in
jurisdictions in which we and our affiliates and joint ventures
operate; the impact of environmental, tax or other legislation, as
well as regulations affecting our business and related compliance
requirements, including legislation or regulations related to
global climate change; changes in tax rates and other changes in
tax law; the timing, impact and other uncertainties relating to
acquisitions and divestitures, including our ability to integrate
acquisitions and separate divested businesses, respectively; risks
relating to cybersecurity incidents, including risks from the
interruption, failure or compromise of our information systems;
catastrophic events, such as natural disasters, public health
crises, acts of war, or terrorism; the impact on our
business and customers of price fluctuations in oil and natural gas
and disruptions in markets and the economy due to oil and natural
gas price volatility; costs and outcomes of legal or regulatory
proceedings and investigations; asset impairments due to economic
conditions or specific events; significant fluctuations in interest
rates and foreign currency exchange rates from those currently
anticipated; damage to facilities, pipelines or delivery systems,
including those we own or operate for third parties; availability
and cost of raw materials; the success of productivity and
operational improvement programs; and other risk factors described
in our Annual Report on Form 10-K for the fiscal year ended
September 30, 2020. Except as
required by law, we disclaim any obligation or undertaking to
update or revise any forward-looking statements contained herein to
reflect any change in the assumptions, beliefs, or expectations or
any change in events, conditions, or circumstances upon which any
such forward-looking statements are based.
AIR PRODUCTS AND
CHEMICALS, INC. and Subsidiaries
CONSOLIDATED
INCOME STATEMENTS
(Unaudited)
|
|
|
Three Months Ended
|
|
31
December
|
(Millions of
dollars, except for share and per share data)
|
2020
|
2019
|
Sales
|
$2,375.2
|
|
$2,254.7
|
|
Cost of
sales
|
1,632.4
|
|
1,486.6
|
|
Selling and
administrative
|
202.7
|
|
201.7
|
|
Research and
development
|
23.5
|
|
17.7
|
|
Other income
(expense), net
|
22.5
|
|
12.3
|
|
Operating
Income
|
539.1
|
|
561.0
|
|
Equity affiliates'
income
|
69.3
|
|
58.2
|
|
Interest
expense
|
36.7
|
|
18.7
|
|
Other non-operating
income (expense), net
|
18.6
|
|
9.1
|
|
Income From
Continuing Operations Before Taxes
|
590.3
|
|
609.6
|
|
Income tax
provision
|
113.9
|
|
120.7
|
|
Income From
Continuing Operations
|
476.4
|
|
488.9
|
|
Income from
discontinued operations, net of tax
|
10.3
|
|
—
|
|
Net
Income
|
486.7
|
|
488.9
|
|
Net income
attributable to noncontrolling interests of continuing
operations
|
4.7
|
|
13.3
|
|
Net Income
Attributable to Air Products
|
$482.0
|
|
$475.6
|
|
|
|
|
Net Income
Attributable to Air Products
|
|
|
Net income from
continuing operations
|
$471.7
|
|
$475.6
|
|
Net income from
discontinued operations
|
10.3
|
|
—
|
|
Net Income
Attributable to Air Products
|
$482.0
|
|
$475.6
|
|
|
|
|
Per Share
Data*
|
|
|
Basic EPS from
continuing operations
|
$2.13
|
|
$2.15
|
|
Basic EPS from
discontinued operations
|
0.05
|
|
—
|
|
Basic EPS
Attributable to Air Products
|
$2.18
|
|
$2.15
|
|
Diluted EPS from
continuing operations
|
$2.12
|
|
$2.14
|
|
Diluted EPS from
discontinued operations
|
0.05
|
|
—
|
|
Diluted EPS
Attributable to Air Products
|
$2.17
|
|
$2.14
|
|
|
|
|
Weighted Average
Common Shares (in millions)
|
|
|
Basic
|
221.5
|
|
220.9
|
|
Diluted
|
222.6
|
|
222.2
|
|
*Earnings per share
("EPS") is calculated independently for each component and may not
sum to total EPS due to rounding.
|
AIR PRODUCTS AND
CHEMICALS, INC. and Subsidiaries
CONSOLIDATED
BALANCE SHEETS
(Unaudited)
|
|
|
31
December
|
30
September
|
(Millions of
dollars)
|
2020
|
2020
|
Assets
|
|
|
Current
Assets
|
|
|
Cash and cash
items
|
$5,788.0
|
|
$5,253.0
|
|
Short-term
investments
|
412.0
|
|
1,104.9
|
|
Trade receivables,
net
|
1,419.7
|
|
1,274.8
|
|
Inventories
|
422.9
|
|
404.8
|
|
Prepaid
expenses
|
178.5
|
|
164.5
|
|
Other receivables and
current assets
|
588.7
|
|
482.9
|
|
Total Current
Assets
|
8,809.8
|
|
8,684.9
|
|
Investment in net
assets of and advances to equity affiliates
|
1,520.4
|
|
1,432.2
|
|
Plant and equipment,
at cost
|
26,308.1
|
|
25,176.2
|
|
Less: accumulated
depreciation
|
13,791.0
|
|
13,211.5
|
|
Plant and equipment,
net
|
12,517.1
|
|
11,964.7
|
|
Goodwill,
net
|
923.9
|
|
891.5
|
|
Intangible assets,
net
|
452.5
|
|
435.8
|
|
Noncurrent lease
receivables
|
816.2
|
|
816.3
|
|
Other noncurrent
assets
|
1,048.2
|
|
943.1
|
|
Total Noncurrent
Assets
|
17,278.3
|
|
16,483.6
|
|
Total
Assets
|
$26,088.1
|
|
$25,168.5
|
|
Liabilities and
Equity
|
|
|
Current
Liabilities
|
|
|
Payables and accrued
liabilities
|
$1,962.2
|
|
$1,833.2
|
|
Accrued income
taxes
|
108.4
|
|
105.8
|
|
Short-term
borrowings
|
9.2
|
|
7.7
|
|
Current portion of
long-term debt
|
906.1
|
|
470.0
|
|
Total Current
Liabilities
|
2,985.9
|
|
2,416.7
|
|
Long-term
debt
|
6,779.1
|
|
7,132.9
|
|
Long-term debt –
related party
|
312.5
|
|
297.2
|
|
Other noncurrent
liabilities
|
1,935.7
|
|
1,916.0
|
|
Deferred income
taxes
|
1,003.0
|
|
962.6
|
|
Total Noncurrent
Liabilities
|
10,030.3
|
|
10,308.7
|
|
Total
Liabilities
|
13,016.2
|
|
12,725.4
|
|
Air Products
Shareholders' Equity
|
12,683.6
|
|
12,079.8
|
|
Noncontrolling
Interests
|
388.3
|
|
363.3
|
|
Total
Equity
|
13,071.9
|
|
12,443.1
|
|
Total Liabilities
and Equity
|
$26,088.1
|
|
$25,168.5
|
|
AIR PRODUCTS AND
CHEMICALS, INC. and Subsidiaries
CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
|
Three Months
Ended
|
|
31
December
|
(Millions of
dollars)
|
2020
|
2019
|
Operating
Activities
|
|
|
Net income
|
$486.7
|
|
$488.9
|
|
Less: Net income
attributable to noncontrolling interest of continuing
operations
|
4.7
|
|
13.3
|
|
Net income
attributable to Air Products
|
482.0
|
|
475.6
|
|
Income from
discontinued operations
|
(10.3)
|
|
—
|
|
Income from
continuing operations attributable to Air Products
|
471.7
|
|
475.6
|
|
Adjustments to
reconcile income to cash provided by operating
activities:
|
|
|
Depreciation and
amortization
|
323.7
|
|
289.2
|
|
Deferred income
taxes
|
47.6
|
|
24.4
|
|
Undistributed earnings
of equity method investments
|
(10.8)
|
|
(26.2)
|
|
Gain on sale of assets
and investments
|
(1.1)
|
|
(1.1)
|
|
Share-based
compensation
|
9.8
|
|
13.9
|
|
Noncurrent lease
receivables
|
21.9
|
|
23.5
|
|
Other
adjustments
|
19.3
|
|
30.8
|
|
Working capital
changes that provided (used) cash, excluding effects of
acquisitions:
|
|
|
Trade
receivables
|
(44.1)
|
|
0.9
|
|
Inventories
|
(9.9)
|
|
(8.4)
|
|
Other
receivables
|
(30.1)
|
|
1.4
|
|
Payables and accrued
liabilities
|
24.2
|
|
(115.4)
|
|
Other working
capital
|
(47.5)
|
|
(41.6)
|
|
Cash Provided by
Operating Activities
|
774.7
|
|
667.0
|
|
Investing
Activities
|
|
|
Additions to plant
and equipment, including long-term deposits
|
(664.2)
|
|
(447.7)
|
|
Investment in and
advances to equity method investments
|
(20.0)
|
|
(7.1)
|
|
Proceeds from sale of
assets and investments
|
2.6
|
|
15.2
|
|
Purchases of
investments
|
(158.5)
|
|
—
|
|
Proceeds from
investments
|
855.0
|
|
177.0
|
|
Other investing
activities
|
3.3
|
|
1.9
|
|
Cash Provided by
(Used for) Investing Activities
|
18.2
|
|
(260.7)
|
|
Financing
Activities
|
|
|
Payments on long-term
debt
|
(1.1)
|
|
(2.8)
|
|
Net increase
(decrease) in commercial paper and short-term borrowings
|
4.5
|
|
(10.4)
|
|
Dividends paid to
shareholders
|
(296.2)
|
|
(255.7)
|
|
Proceeds from stock
option exercises
|
1.6
|
|
5.5
|
|
Other financing
activities
|
(15.9)
|
|
(6.9)
|
|
Cash Used for
Financing Activities
|
(307.1)
|
|
(270.3)
|
|
Effect of Exchange
Rate Changes on Cash
|
49.2
|
|
21.4
|
|
Increase in cash and
cash items
|
535.0
|
|
157.4
|
|
Cash and Cash items -
Beginning of Year
|
5,253.0
|
|
2,248.7
|
|
Cash and Cash
items - End of Period
|
$5,788.0
|
|
$2,406.1
|
|
Supplemental Cash
Flow Information
|
|
|
Cash paid for taxes
(net of refunds)
|
$73.4
|
|
$66.2
|
|
AIR PRODUCTS AND
CHEMICALS, INC. and Subsidiaries
SUMMARY BY BUSINESS SEGMENTS
(Unaudited)
|
|
(Millions of
dollars)
|
Industrial
Gases –
Americas
|
Industrial
Gases –
EMEA
|
Industrial
Gases –
Asia
|
Industrial
Gases –
Global
|
Corporate
and other
|
Total
|
|
Three Months Ended
31 December 2020
|
|
|
|
|
|
|
|
Sales
|
$933.0
|
|
$563.0
|
|
$717.5
|
|
$104.5
|
|
$57.2
|
|
$2,375.2
|
|
|
Operating income
(loss)
|
225.8
|
|
141.5
|
|
214.8
|
|
(4.6)
|
|
(38.4)
|
|
539.1
|
|
|
Depreciation and
amortization
|
151.8
|
|
55.4
|
|
107.9
|
|
2.6
|
|
6.0
|
|
323.7
|
|
|
Equity affiliates'
income
|
22.3
|
|
25.0
|
|
19.9
|
|
2.1
|
|
—
|
|
69.3
|
|
|
Three Months Ended
31 December 2019
|
|
|
|
|
|
|
|
Sales
|
$936.2
|
|
$498.7
|
|
$692.8
|
|
$92.6
|
|
$34.4
|
|
$2,254.7
|
|
|
Operating income
(loss)
|
257.2
|
|
120.5
|
|
228.5
|
|
3.6
|
|
(48.8)
|
|
561.0
|
|
|
Depreciation and
amortization
|
131.8
|
|
48.4
|
|
101.6
|
|
2.4
|
|
5.0
|
|
289.2
|
|
|
Equity affiliates'
income
|
20.6
|
|
19.3
|
|
16.9
|
|
1.4
|
|
—
|
|
58.2
|
|
|
Total
Assets
|
|
|
|
|
|
|
|
31 December
2020
|
$6,749.8
|
|
$4,249.2
|
|
$7,274.7
|
|
$485.3
|
|
$7,329.1
|
|
$26,088.1
|
|
|
30 September
2020
|
6,610.1
|
|
3,917.0
|
|
6,842.9
|
|
397.8
|
|
7,400.7
|
|
25,168.5
|
|
|
RECONCILIATIONS OF NON-GAAP FINANCIAL
MEASURES
(Millions of dollars unless otherwise indicated,
except for per share data)
We present certain financial measures, other than in accordance
with U.S. generally accepted accounting principles ("GAAP"), on an
"adjusted" or "non-GAAP" basis. On a consolidated basis, these
measures include adjusted diluted earnings per share ("EPS"),
adjusted EBITDA, adjusted EBITDA margin, and adjusted effective tax
rate. On a segment basis, these measures include adjusted EBITDA
and adjusted EBITDA margin. In addition to these measures, we also
present certain supplemental non-GAAP financial measures to help
the reader understand the impact that certain disclosed items, or
"non-GAAP adjustments," have on the calculation of our adjusted
diluted EPS. For each non-GAAP financial measure, we present a
reconciliation to the most directly comparable financial measure
calculated in accordance with GAAP.
Our non-GAAP financial measures are not meant to be considered
in isolation or as a substitute for the most directly comparable
measure calculated in accordance with GAAP. We believe these
non-GAAP financial measures provide investors, potential investors,
securities analysts, and others with useful information to evaluate
the performance of our business because such measures, when viewed
together with financial results computed in accordance with GAAP,
provide a more complete understanding of the factors and trends
affecting our historical financial performance and projected future
results.
In many cases, non-GAAP financial measures are determined by
adjusting the most directly comparable GAAP measure to exclude
non-GAAP adjustments that we believe are not representative of our
underlying business performance. For example, we previously
excluded certain expenses associated with cost reduction actions,
impairment charges, and gains on disclosed transactions. The reader
should be aware that we may recognize similar losses or gains in
the future. Readers should also consider the limitations associated
with these non-GAAP financial measures, including the potential
lack of comparability of these measures from one company to
another.
When applicable, the tax impact on our pre-tax non-GAAP
adjustments reflects the expected current and deferred income tax
impact of our non-GAAP adjustments. These tax impacts are primarily
driven by the statutory tax rate of the various relevant
jurisdictions and the taxability of the adjustments in those
jurisdictions.
ADJUSTED DILUTED EPS
There were no non-GAAP adjustments in the first quarter of fiscal
year 2021 or 2020 that impacted diluted EPS from continuing
operations.
When applicable, the table below provides a reconciliation to
the most directly comparable GAAP measure for each of the major
components used to calculate adjusted diluted EPS from continuing
operations, which we view as a key performance metric. In periods
that we have non-GAAP adjustments, we believe it is important for
the reader to understand the per share impact of each such
adjustment because management does not consider these impacts when
evaluating underlying business performance.
|
|
|
|
|
|
Q1 2021 vs. Q1
2020
|
Operating
Income
|
Equity
Affiliates'
Income
|
Income Tax
Provision
|
Net Income
Attributable to
Air Products
|
Diluted
EPS
|
2021 GAAP
|
$539.1
|
|
$69.3
|
|
$113.9
|
|
$471.7
|
|
$2.12
|
|
No non-GAAP
adjustments
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
2021 Non-GAAP Measure
("Adjusted")
|
$539.1
|
|
$69.3
|
|
$113.9
|
|
$471.7
|
|
$2.12
|
|
|
|
|
|
|
|
2020 GAAP
|
$561.0
|
|
$58.2
|
|
$120.7
|
|
$475.6
|
|
$2.14
|
|
No non-GAAP
adjustments
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
2020 Non-GAAP Measure
("Adjusted")
|
$561.0
|
|
$58.2
|
|
$120.7
|
|
$475.6
|
|
$2.14
|
|
Change GAAP and
Non-GAAP Measure ("Adjusted")
|
|
|
|
|
($0.02)
|
|
% Change GAAP and
Non-GAAP Measure ("Adjusted")
|
|
|
|
|
(1)
|
%
|
ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN
We define adjusted EBITDA as net income less income (loss) from
discontinued operations, net of tax, and excluding non-GAAP
adjustments, which we do not believe to be indicative of underlying
business trends, before interest expense, other non-operating
income (expense), net, income tax provision, and depreciation and
amortization expense. Adjusted EBITDA and adjusted EBITDA margin
provide useful metrics for management to assess operating
performance. Margins are calculated independently for each period
by dividing each line item by consolidated sales for the respective
period and may not sum to total margin due to rounding.
The tables below present consolidated sales and a reconciliation
of net income on a GAAP basis to adjusted EBITDA and net income
margin on a GAAP basis to adjusted EBITDA margin:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
FY2021
|
2021
|
$
|
Margin
|
|
$
|
Margin
|
|
$
|
Margin
|
|
$
|
Margin
|
|
$
|
Margin
|
Sales
|
$2,375.2
|
|
|
|
|
|
|
|
|
|
|
|
|
$2,375.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income and net
income margin
|
$486.7
|
|
20.5
|
%
|
|
|
|
|
|
|
|
|
|
|
$486.7
|
|
20.5
|
%
|
Less: Income (loss)
from discontinued operations, net of tax
|
10.3
|
|
0.4
|
%
|
|
|
|
|
|
|
|
|
|
|
10.3
|
|
0.4
|
%
|
Add: Interest
expense
|
36.7
|
|
1.5
|
%
|
|
|
|
|
|
|
|
|
|
|
36.7
|
|
1.5
|
%
|
Less: Other
non-operating income (expense), net
|
18.6
|
|
0.8
|
%
|
|
|
|
|
|
|
|
|
|
|
18.6
|
|
0.8
|
%
|
Add: Income tax
provision
|
113.9
|
|
4.8
|
%
|
|
|
|
|
|
|
|
|
|
|
113.9
|
|
4.8
|
%
|
Add: Depreciation and
amortization
|
323.7
|
|
13.6
|
%
|
|
|
|
|
|
|
|
|
|
|
323.7
|
|
13.6
|
%
|
Adjusted EBITDA
and adjusted EBITDA margin
|
$932.1
|
|
39.2
|
%
|
|
|
|
|
|
|
|
|
|
|
$932.1
|
|
39.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
FY2020
|
2020
|
$
|
Margin
|
|
$
|
Margin
|
|
$
|
Margin
|
|
$
|
Margin
|
|
$
|
Margin
|
Sales
|
$2,254.7
|
|
|
|
$2,216.3
|
|
|
|
$2,065.2
|
|
|
|
$2,320.1
|
|
|
|
$8,856.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income and net
income margin
|
$488.9
|
|
21.7
|
%
|
|
$490.4
|
|
22.1
|
%
|
|
$457.1
|
|
22.1
|
%
|
|
$494.7
|
|
21.3
|
%
|
|
$1,931.1
|
|
21.8
|
%
|
Less: Income (loss)
from discontinued operations, net of tax
|
—
|
|
—
|
%
|
|
(14.3)
|
|
(0.6)
|
%
|
|
—
|
|
—
|
%
|
|
—
|
|
—
|
%
|
|
(14.3)
|
|
(0.2)
|
%
|
Add: Interest
expense
|
18.7
|
|
0.8
|
%
|
|
19.3
|
|
0.9
|
%
|
|
32.1
|
|
1.6
|
%
|
|
39.2
|
|
1.7
|
%
|
|
109.3
|
|
1.2
|
%
|
Less: Other
non-operating income (expense), net
|
9.1
|
|
0.4
|
%
|
|
7.1
|
|
0.3
|
%
|
|
8.1
|
|
0.4
|
%
|
|
6.4
|
|
0.3
|
%
|
|
30.7
|
|
0.3
|
%
|
Add: Income tax
provision
|
120.7
|
|
5.4
|
%
|
|
148.5
|
|
6.7
|
%
|
|
109.3
|
|
5.3
|
%
|
|
99.9
|
|
4.3
|
%
|
|
478.4
|
|
5.4
|
%
|
Add: Depreciation and
amortization
|
289.2
|
|
12.8
|
%
|
|
294.7
|
|
13.3
|
%
|
|
290.6
|
|
14.1
|
%
|
|
310.5
|
|
13.4
|
%
|
|
1,185.0
|
|
13.4
|
%
|
Less: Company
headquarters relocation income (expense)
|
—
|
|
—
|
%
|
|
33.8
|
|
1.5
|
%
|
|
—
|
|
—
|
%
|
|
—
|
|
—
|
%
|
|
33.8
|
|
0.4
|
%
|
Less: India Finance
Act 2020 - equity affiliate income impact
|
—
|
|
—
|
%
|
|
33.8
|
|
1.5
|
%
|
|
—
|
|
—
|
%
|
|
—
|
|
—
|
%
|
|
33.8
|
|
0.4
|
%
|
Adjusted EBITDA
and adjusted EBITDA margin
|
$908.4
|
|
40.3
|
%
|
|
$892.5
|
|
40.3
|
%
|
|
$881.0
|
|
42.7
|
%
|
|
$937.9
|
|
40.4
|
%
|
|
$3,619.8
|
|
40.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 2021
vs.
Q1 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
Change
GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income $
change
|
|
($2.2)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income %
change
|
|
—%
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income margin
change
|
|
(120) bp
|
|
|
|
|
|
|
|
|
|
|
|
|
Change
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA $
change
|
|
$23.7
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA %
change
|
|
3%
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA margin
change
|
|
(110) bp
|
|
|
|
|
|
|
|
|
|
|
|
|
The tables below present sales and a reconciliation of operating
income and operating margin to adjusted EBITDA and adjusted EBITDA
margin for each of our regional industrial gas segments for the
three months ended 31 December 2020
and 2019:
Sales
|
Industrial
Gases–
Americas
|
Industrial
Gases–
EMEA
|
Industrial
Gases–
Asia
|
Q1 2021
|
$933.0
|
|
$563.0
|
|
$717.5
|
|
Q1 2020
|
936.2
|
|
498.7
|
|
692.8
|
|
|
|
|
|
|
Industrial
Gases–
Americas
|
Industrial
Gases–
EMEA
|
Industrial
Gases–
Asia
|
Q1 2021 GAAP
Measures
|
|
|
|
Operating
income
|
$225.8
|
|
$141.5
|
|
$214.8
|
|
Operating
margin
|
24.2
|
%
|
25.1
|
%
|
29.9
|
%
|
Q1 2020 GAAP
Measures
|
|
|
|
Operating
income
|
$257.2
|
|
$120.5
|
|
$228.5
|
|
Operating
margin
|
27.5
|
%
|
24.2
|
%
|
33.0
|
%
|
Q1 2021 vs. Q1
2020 Change GAAP
|
|
|
|
Operating income $
change
|
($31.4)
|
|
$21.0
|
|
($13.7)
|
|
Operating income %
change
|
(12)
|
%
|
17
|
%
|
(6)
|
%
|
Operating margin
change
|
(330)
|
bp
|
90
|
bp
|
(310)
|
bp
|
|
|
|
|
Q1 2021 Non-GAAP
Measures
|
|
|
|
Operating
income
|
$225.8
|
|
$141.5
|
|
$214.8
|
|
Add: Depreciation and
amortization
|
151.8
|
|
55.4
|
|
107.9
|
|
Add: Equity
affiliates' income
|
22.3
|
|
25.0
|
|
19.9
|
|
Adjusted
EBITDA
|
$399.9
|
|
$221.9
|
|
$342.6
|
|
Adjusted EBITDA
margin
|
42.9
|
%
|
39.4
|
%
|
47.7
|
%
|
Q1 2020 Non-GAAP
Measures
|
|
|
|
Operating
income
|
$257.2
|
|
$120.5
|
|
$228.5
|
|
Add: Depreciation and
amortization
|
131.8
|
|
48.4
|
|
101.6
|
|
Add: Equity
affiliates' income
|
20.6
|
|
19.3
|
|
16.9
|
|
Adjusted
EBITDA
|
$409.6
|
|
$188.2
|
|
$347.0
|
|
Adjusted EBITDA
margin
|
43.8
|
%
|
37.7
|
%
|
50.1
|
%
|
Q1 2021 vs. Q1
2020 Change Non-GAAP
|
|
|
|
Adjusted EBITDA $
change
|
($9.7)
|
|
$33.7
|
|
($4.4)
|
|
Adjusted EBITDA %
change
|
(2)
|
%
|
18
|
%
|
(1)
|
%
|
Adjusted EBITDA
margin change
|
(90)
|
bp
|
170
|
bp
|
(240)
|
bp
|
ADJUSTED EFFECTIVE TAX RATE
The effective tax rate equals the income tax provision divided
by income from continuing operations before taxes. There were no
non-GAAP adjustments in the first quarter of fiscal year 2021 or
2020 that impacted our effective tax rate.
When applicable, the tax impact of our pre-tax non-GAAP
adjustments reflects the expected current and deferred income tax
expense associated with each adjustment and is primarily dependent
upon the statutory tax rate of the various relevant jurisdictions
and the taxability of the adjustments in those jurisdictions.
|
|
Three Months
Ended
31 December
|
|
|
2020
|
2019
|
Income Tax
Provision
|
|
$113.9
|
|
$120.7
|
|
No non-GAAP
adjustments
|
|
—
|
|
—
|
|
Adjusted Income Tax
Provision
|
|
$113.9
|
|
$120.7
|
|
Income From
Continuing Operations Before Taxes
|
|
$590.3
|
|
$609.6
|
|
No non-GAAP
adjustments
|
|
—
|
|
—
|
|
Adjusted Income From
Continuing Operations Before Taxes
|
|
$590.3
|
|
$609.6
|
|
Effective and
Adjusted Effective Tax Rate
|
|
19.3
|
%
|
19.8
|
%
|
View original
content:http://www.prnewswire.com/news-releases/air-products-reports-fiscal-2021-first-quarter-gaap-eps-and-adjusted-eps-of-2-12--301222099.html
SOURCE Air Products