Crane NXT, Co. (NYSE: CXT) ("Crane NXT" or the "Company"), a
premier industrial technology company, today announced its
financial results for the fourth quarter and full year ended
December 31, 2024.
Fourth Quarter
2024 Highlights
- Sales growth of
11.8% with core sales growth of 2.8% year-over-year.
- GAAP operating
profit margin of 17.7% and Adjusted operating profit margin of
23.7%.
- GAAP earnings per
diluted share (EPS) of $1.00, and Adjusted EPS of $1.20.
- Secured a £300
million term loan commitment to finance De La Rue transaction.
- Declared a first
quarter 2025 dividend of $0.17 per share, an increase of 6% over
the prior year.
Full Year 2024
Highlights
- Completed the
acquisitions of OpSec Security and TruTag Smart Packaging and
signed agreement to acquire De La Rue Authentication
Solutions.
- Sales growth of
6.9% with core sales growth of 1.1% year-over-year.
- GAAP operating
profit margin of 18.1% and Adjusted operating profit margin of
23.6%.
- GAAP EPS of $3.19,
and Adjusted EPS of $4.26.
- Expanded revolving
credit facility and repaid existing term loan; ended year with net
leverage of ~1.5x.
Full Year 2025 Guidance
- Introducing 2025
guidance with Adjusted EPS of $4.00 to $4.30. Please see the "Full
Year 2025 Guidance" section in this press release for more
details.
Aaron W. Saak, Crane NXT's President, and Chief Executive
Officer stated: "We delivered 2024 results in line with our
expectations, with sales growth of approximately 7%, adjusted
segment operating margin of approximately 27%, and adjusted EPS of
$4.26. We reached a record-high backlog in Crane Currency during
2024, and in CPI we delivered mid-single-digit growth excluding
gaming. We also significantly increased our leadership in the
authentication market, with the OpSec integration progressing as
expected and the acquisition of De La Rue Authentication Solutions
on track to close in the second quarter."
Mr. Saak continued: "As we look ahead, we are committed to
building on our progress to grow and diversify our portfolio of
trusted technology solutions that secure, detect and authenticate
what matters most to our customers. With ample capacity, a strong
pipeline of M&A opportunities, and our disciplined approach to
capital allocation, we are well positioned to deliver future growth
and create long-term, sustainable value for our shareholders."
| Summary
of Fourth Quarter
2024 Results |
| |
|
Three Months Ended December 31, |
|
Change |
|
(unaudited, dollars in millions) |
|
|
2024 |
|
|
|
2023 |
|
|
$ |
|
% |
| Net
sales |
|
$ |
399.1 |
|
|
$ |
356.9 |
|
|
$ |
42.2 |
|
|
11.8 |
% |
|
Core sales |
|
|
|
|
|
$ |
10.0 |
|
|
2.8 |
% |
|
Acquisitions |
|
|
|
|
|
$ |
33.3 |
|
|
9.3 |
% |
|
Foreign exchange |
|
|
|
|
|
$ |
(1.1 |
) |
|
(0.3) |
% |
| |
|
|
|
|
|
|
|
|
| Operating profit |
|
$ |
70.8 |
|
|
$ |
72.4 |
|
|
$ |
(1.6 |
) |
|
(2.2) |
% |
| Adjusted operating profit* |
|
$ |
94.6 |
|
|
$ |
83.4 |
|
|
$ |
11.2 |
|
|
13.4 |
% |
| |
|
|
|
|
|
|
|
|
| Operating profit margin |
|
|
17.7 |
% |
|
|
20.3 |
% |
|
|
|
(260bps) |
|
| Adjusted operating profit
margin* |
|
|
23.7 |
% |
|
|
23.4 |
% |
|
|
|
30bps |
|
Totals may not sum due to rounding
*Please see the Non-GAAP Financial Measures
tables in this release
Fourth Quarter
2024 Results
Fourth quarter 2024 sales were $399.1 million, an increase of
$42.2 million, or 11.8%, compared with the fourth quarter of 2023,
driven by the sales benefit from the OpSec Security acquisition of
$33.3 million, or 9.3%, and core sales growth of $10.0 million, or
2.8%, partially offset by unfavorable foreign exchange of $1.1
million, or 0.3%.
Fourth quarter 2024 operating profit was $70.8 million, compared
with $72.4 million in the fourth quarter of 2023. Operating profit
margin was 17.7%, compared with 20.3% last year, reflecting
unfavorable product mix and the dilutive impact of the OpSec
Security acquisition, partially offset by lower manufacturing costs
and productivity gains. Adjusted operating profit margin of 23.7%
increased 30 basis points, compared with 23.4% in the prior year.
(Please see the Non-GAAP Financial Measures tables in this release
for a detailed reconciliation of reported results to adjusted
measures).
Fourth quarter 2024 GAAP EPS was $1.00, and Adjusted EPS was
$1.20. (Please see the Non-GAAP Financial Measures tables in this
release for a detailed reconciliation of reported results to
adjusted measures).
Fourth Quarter
2024 Segment Results
All comparisons detailed in this section refer
to operating results for the fourth quarter 2024 versus the fourth
quarter 2023.
| Crane
Payment Innovations |
| |
|
Three Months Ended December 31, |
|
Change |
|
(unaudited, dollars in millions) |
|
|
2024 |
|
|
|
2023 |
|
|
$ |
|
% |
| Net
sales |
|
$ |
214.9 |
|
|
$ |
215.1 |
|
|
$ |
(0.2 |
) |
|
(0.1)% |
|
Core sales |
|
|
|
|
|
$ |
(0.3 |
) |
|
(0.1)% |
|
Foreign exchange |
|
|
|
|
|
$ |
0.1 |
|
|
—% |
| |
|
|
|
|
|
|
|
|
| Operating profit |
|
$ |
49.7 |
|
|
$ |
56.5 |
|
|
$ |
(6.8 |
) |
|
(12.0)% |
| Adjusted operating profit* |
|
$ |
62.4 |
|
|
$ |
62.3 |
|
|
$ |
0.1 |
|
|
0.2% |
| |
|
|
|
|
|
|
|
|
| Operating profit margin |
|
|
23.1 |
% |
|
|
26.3 |
% |
|
|
|
(320bps) |
| Adjusted operating profit
margin* |
|
|
29.0 |
% |
|
|
29.0 |
% |
|
|
|
0bps |
| |
|
|
|
|
|
|
|
|
| Totals may not sum due to
rounding |
|
|
|
|
|
|
|
|
| *Please see the
Non-GAAP Financial Measures tables in this release |
Sales of $214.9 million decreased $0.2 million, or 0.1%,
compared with the fourth quarter of 2023, driven by a slight
decline in core sales. Operating profit margin of 23.1% decreased
320 basis points, compared with 26.3% last year, driven by
restructuring charges, and unfavorable product mix, partially
offset by lower manufacturing costs and productivity gains.
Adjusted operating profit margin was 29.0% in both periods.
| Security and
Authentication Technologies |
| |
|
Three Months EndedDecember 31, |
|
Change |
|
(unaudited, dollars in millions) |
|
|
2024 |
|
|
|
2023 |
|
|
$ |
|
% |
| Net
sales |
|
$ |
184.2 |
|
|
$ |
141.8 |
|
|
$ |
42.4 |
|
|
29.9% |
|
|
Core sales |
|
|
|
|
|
$ |
10.3 |
|
|
7.3% |
|
|
Acquisitions |
|
|
|
|
|
$ |
33.3 |
|
|
23.4% |
|
|
Foreign exchange |
|
|
|
|
|
$ |
(1.2 |
) |
|
(0.8)% |
| |
|
|
|
|
|
|
|
|
| Operating profit |
|
$ |
37.4 |
|
|
$ |
31.2 |
|
|
$ |
6.2 |
|
|
19.9% |
|
| Adjusted operating profit* |
|
$ |
45.5 |
|
|
$ |
34.8 |
|
|
$ |
10.7 |
|
|
30.7% |
|
| |
|
|
|
|
|
|
|
|
| Operating profit margin |
|
|
20.3 |
% |
|
|
22.0 |
% |
|
|
|
(170bps) |
| Adjusted operating profit
margin* |
|
|
24.7 |
% |
|
|
24.5 |
% |
|
|
|
20bps |
| |
|
|
|
|
|
|
|
|
| Totals may not sum due to
rounding |
|
|
|
|
|
|
|
|
| *Please see the
Non-GAAP Financial Measures tables in this release |
Sales of $184.2 million increased $42.4 million, or 29.9%,
compared with the fourth quarter of 2023, driven by the sales
benefit of the OpSec Security acquisition of 23.4%, and core sales
growth of 7.3%, driven by higher international sales. Operating
profit margin of 20.3% decreased 170 basis points, compared with
22.0% last year, as the impact of higher core sales and
productivity gains were more than offset by higher manufacturing
costs, unfavorable product mix, and the dilutive impact of the
OpSec Security acquisition. Adjusted operating profit margin was
24.7%, compared with 24.5% in the prior year.
| Summary
of Full Year 2024
Results |
| |
|
Full Year |
|
Change |
|
|
(unaudited, dollars in millions, except per share data) |
|
|
2024 |
|
|
|
2023 |
|
|
$ |
|
% |
2024 Guidance |
| Net
sales |
|
$ |
1,486.8 |
|
|
$ |
1,391.3 |
|
|
$ |
95.5 |
|
|
6.9 |
% |
+6% to +8% |
|
Core sales |
|
|
|
|
|
$ |
15.7 |
|
|
1.1 |
% |
|
|
Acquisitions |
|
|
|
|
|
$ |
86.0 |
|
|
6.2 |
% |
|
|
Foreign exchange |
|
|
|
|
|
$ |
(6.2 |
) |
|
(0.4) |
% |
|
| |
|
|
|
|
|
|
|
|
|
| Operating profit |
|
$ |
268.8 |
|
|
$ |
286.8 |
|
|
$ |
(18.0 |
) |
|
(6.3) |
% |
|
| Adjusted operating profit* |
|
$ |
351.6 |
|
|
$ |
345.2 |
|
|
$ |
6.4 |
|
|
1.9 |
% |
|
| |
|
|
|
|
|
|
|
|
|
| Operating profit margin |
|
|
18.1 |
% |
|
|
20.6 |
% |
|
|
|
(250bps) |
|
|
| Adjusted operating profit
margin* |
|
|
23.6 |
% |
|
|
24.8 |
% |
|
|
|
(120bps) |
|
|
| |
|
|
|
|
|
|
|
|
|
| GAAP EPS |
|
$ |
3.19 |
|
|
$ |
3.28 |
|
|
|
|
|
|
| Adjusted EPS* |
|
$ |
4.26 |
|
|
$ |
4.16 |
|
|
|
|
|
$4.22-$4.30 |
Totals may not sum due to rounding*Please see
the Non-GAAP Financial Measures tables in this release
Full Year 2024 Results
Full year 2024 sales were $1,486.8 million, an increase of
$95.5 million, or 6.9%, compared with full year 2023, primarily
driven by the sales benefit from the OpSec Security acquisition of
$86.0 million or 6.2%, and core sales growth of $15.7 million, or
1.1%, driven by international Currency sales, partially offset by
unfavorable foreign exchange of $6.2 million, or 0.4%.
Full year 2024 operating profit was $268.8 million, compared
with $286.8 million in full year 2023. Operating profit margin
was 18.1%, compared with 20.6% last year, reflecting unfavorable
product mix, lower volumes and restructuring charges in CPI, higher
manufacturing costs in the Currency business, and the dilutive
impact of the OpSec Security acquisition, partially offset by
favorable pricing and productivity gains across both segments, and
the impact of lower manufacturing costs and cost saving actions in
CPI. Adjusted operating profit margin of 23.6% decreased 120 basis
points, compared with 24.8% in the prior year. (Please see the
Non-GAAP Financial Measures tables in this release for a detailed
reconciliation of reported results to adjusted measures).
Full year 2024 GAAP EPS was $3.19, and Adjusted EPS was $4.26.
(Please see the Non-GAAP Financial Measures tables in this release
for a detailed reconciliation of reported results to adjusted
measures).
Full Year 2024
Cash Flow and Other Financial Metrics
Cash provided by operating activities was $214.1 million in
2024, compared with $276.3 million last year. Adjusted free cash
flow was $186.4 million in 2024, compared with $265.8 million last
year. The $79.4 million, or 30%, decrease in Adjusted free cash
flow was primarily related to the timing of shipments and higher
capital expenditures to support the U.S. currency redesign program
and other capital projects. (Please see the Non-GAAP Financial
Measures tables in this release for a detailed reconciliation of
reported results to adjusted measures).
The Company held cash and cash equivalents of $165.8 million as
of December 31, 2024, compared with $227.2 million as of December
31, 2023. Total debt was $750.6 million as of December 31, 2024,
compared with $644.9 million as of December 31, 2023. Proceeds from
the expanded revolving credit facility were used to repay the
outstanding term loan in 2024. The decrease in cash and cash
equivalents and the increase in total debt primarily reflect the
financing associated with the May 3, 2024 OpSec Security
acquisition.
Full Year 2025 Guidance
The Company is introducing full year 2025 guidance as shown in
the table below. Growth rates below represent growth over full year
2024.
|
Full Year 2025 Guidance Details |
| (dollars in millions, except
per share data) |
|
| CPI Sales Growth |
0% to +2% |
| SAT Sales Growth |
+3% to +5% |
| Crane NXT Sales Growth* |
+1% to +3% |
| Adjusted EPS |
$4.00 to $4.30 |
| Adjusted Segment Margin |
~26% to ~27% |
| Corporate Expense |
~$55 |
| Non-Operating Expense,
Net |
~$43 |
| Adjusted Tax Rate |
~21.5% |
| Adjusted Free Cash Flow
Conversion |
~90% to ~110% |
| Diluted Shares |
~58 million |
*Includes FX impact of -1% to -2%
Please see the Non-GAAP Financial Measures definitions in this
release
First Quarter 2025 Dividend
Crane NXT announced its quarterly dividend of $0.17 per share,
an increase of 6% over the prior year, for the first quarter of
2025. The dividend is payable on March 12, 2025 to shareholders of
record as of February 28, 2025.
Conference Call
Crane NXT scheduled a conference call to discuss the fourth
quarter and full year financial results, on Thursday, February 13,
2025, at 10:00 A.M. Eastern Time. Interested parties may listen to
a live webcast of the conference call by visiting the Investors
section of the Company’s website. For those wishing to participate
in the Q&A session of the call, please pre-register here.
Pre-registration may be completed at any time up to the call start
time. An accompanying slide presentation and a replay of the live
event will also be available on the Company’s website.
About Crane NXT, Co.
Crane NXT is a premier industrial technology company that
provides trusted technology solutions to secure, detect, and
authenticate what matters most to its customers. Through its two
industry-leading business segments, Security & Authentication
Technologies and Crane Payment Innovations, Crane NXT provides
customers with advanced technologies to secure high-value physical
products, sophisticated detection equipment and systems, and
proprietary products and services that protect brand identity and
digital content. Crane NXT’s approximately 4,500 employees help our
customers protect their most important assets and ensure secure,
seamless transactions around the world every day. For more
information, visit www.cranenxt.com.
On April 3, 2023, Crane NXT, Co. (formerly Crane Holdings, Co.)
completed the separation of its wholly-owned subsidiary at that
time, Crane Company, in a tax-free distribution of Crane Company
shares to Crane NXT stockholders (the "Separation").
Historical financial measures in this release for Crane NXT are
presented on a carve-out basis.
Forward-Looking Statements
Disclaimer
This press release contains forward-looking statements within
the meaning of the federal securities laws. Forward-looking
statements include all statements that are not historical
statements of fact and those regarding the Company's intent,
belief, or expectations.
Words such as “anticipate(s),” “expect(s),” “intend(s),”
“believe(s),” “plan(s),” “may,” “will,” “would,” “could,” “should,”
“seek(s),” and similar expressions, or the negative of these terms,
are intended to identify such forward-looking statements. These
statements are based on management’s current expectations and
beliefs and are subject to a number of risks and uncertainties that
could lead to actual results differing materially from those
projected, forecasted or expected. The Company assumes no (and
disclaims any) obligation to revise or update these statements to
reflect future events or circumstances. Although the Company
believes that the assumptions underlying the forward-looking
statements are reasonable, it can give no assurance that its
expectations will be attained. The Company cautions investors
not to place undue reliance on any such forward-looking
statements.
Risks and uncertainties that could cause actual results to
differ materially from the Company's expectations include, but are
not limited to: changes in global economic conditions (including
inflationary pressures) and geopolitical risks, including
macroeconomic fluctuations; demand for its products, which is
variable and subject to factors beyond its control; fluctuation in
the prices of, or disruption in its ability to source, components
and raw materials, and delays in the distribution of its products;
information systems and technology networks failures, breaches in
data security, theft of personally identifiable and other
information, and non-compliance with its contractual or other legal
obligations regarding such information; risks associated with
conducting a substantial portion of its business outside the U.S.;
being unable to successfully develop and introduce new products,
which would limit its ability to grow and maintain its competitive
position; loss of personnel or being able to hire and retain
additional personnel needed to sustain and grow its business as
planned; being unable to identify or complete acquisitions, or to
successfully integrate the businesses the Company acquires;
governmental regulations and failure to comply with those
regulations; risks from litigation, claims and investigations,
including those related to product liability and warranties, and
employee, commercial, intellectual property and environmental
matters; risks related to its ability to improve productivity,
reduce costs and align manufacturing capacity with customer demand;
the ability to protect its intellectual property; significant
competition in the Company's markets; adverse impacts from
intangible asset impairment charges; additional tax expenses or
exposures; inadequate or ineffective internal controls; and risks
related to the Separation, including not obtaining the intended tax
treatment of the Separation transaction, failure of Crane Company
to perform under the various transaction agreements and actual or
potential conflicts of interest with Crane Company.
Readers should carefully review Crane NXT, Co.’s financial
statements and the notes thereto, as well as the section entitled
“Risk Factors” in Item 1A of Crane NXT, Co.’s Annual Report on Form
10-K for the year ended December 31, 2023 and the other documents
Crane NXT, Co. and its subsidiaries file from time to time with the
SEC. These filings identify and address other important risks and
uncertainties that could cause actual events and results to differ
materially from those contained in the forward-looking
statements.
(Financial Tables Follow)
|
CRANE NXT, CO. AND SUBSIDIARIESConsolidated and
Combined Condensed Statements of Operations Data(unaudited, in
millions, except per share data) |
| |
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Net sales: |
|
|
|
|
|
|
|
| Crane Payment Innovations |
$ |
214.9 |
|
|
$ |
215.1 |
|
|
$ |
873.2 |
|
|
$ |
886.4 |
|
|
Security and Authentication Technologies |
|
184.2 |
|
|
|
141.8 |
|
|
|
613.6 |
|
|
|
504.9 |
|
|
Total net sales |
$ |
399.1 |
|
|
$ |
356.9 |
|
|
$ |
1,486.8 |
|
|
$ |
1,391.3 |
|
|
|
|
|
|
|
|
|
|
| Operating profit (loss): |
|
|
|
|
|
|
|
| Crane Payment Innovations |
$ |
49.7 |
|
|
$ |
56.5 |
|
|
$ |
228.4 |
|
|
$ |
242.8 |
|
| Security and Authentication
Technologies |
|
37.4 |
|
|
|
31.2 |
|
|
|
110.9 |
|
|
|
116.3 |
|
|
Corporate |
|
(16.3 |
) |
|
|
(15.3 |
) |
|
|
(70.5 |
) |
|
|
(72.3 |
) |
|
Total operating profit |
$ |
70.8 |
|
|
$ |
72.4 |
|
|
$ |
268.8 |
|
|
$ |
286.8 |
|
|
|
|
|
|
|
|
|
|
| Interest income |
|
0.2 |
|
|
|
0.4 |
|
|
|
1.6 |
|
|
|
1.1 |
|
| Interest expense |
|
(12.1 |
) |
|
|
(10.8 |
) |
|
|
(47.8 |
) |
|
|
(48.1 |
) |
| Related party interest
expense |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2.5 |
) |
|
Miscellaneous income (expense), net |
|
2.1 |
|
|
|
(0.6 |
) |
|
|
3.8 |
|
|
|
2.5 |
|
|
Income before income taxes |
|
61.0 |
|
|
|
61.4 |
|
|
|
226.4 |
|
|
|
239.8 |
|
| Provision for income
taxes |
|
3.4 |
|
|
|
11.9 |
|
|
|
42.3 |
|
|
|
51.5 |
|
|
Net income attributable to common shareholders |
$ |
57.6 |
|
|
$ |
49.5 |
|
|
$ |
184.1 |
|
|
$ |
188.3 |
|
|
|
|
|
|
|
|
|
|
| Earnings per diluted
share1 |
$ |
1.00 |
|
|
$ |
0.86 |
|
|
$ |
3.19 |
|
|
$ |
3.28 |
|
| |
|
|
|
|
|
|
|
| Average diluted shares
outstanding1 |
|
57.9 |
|
|
|
57.6 |
|
|
|
57.8 |
|
|
|
57.5 |
|
| Average basic shares
outstanding1 |
|
57.2 |
|
|
|
56.8 |
|
|
|
57.1 |
|
|
|
56.8 |
|
| |
|
|
|
|
|
|
|
| Supplemental data: |
|
|
|
|
|
|
|
| Cost of sales |
$ |
218.6 |
|
|
$ |
191.4 |
|
|
$ |
821.7 |
|
|
$ |
737.2 |
|
| Selling, general and
administrative |
|
102.3 |
|
|
|
92.6 |
|
|
|
386.2 |
|
|
|
366.8 |
|
| Restructuring charges |
|
7.4 |
|
|
|
0.5 |
|
|
|
10.1 |
|
|
|
0.5 |
|
| |
|
|
|
|
|
|
|
| 1The shares
presented for the three months and twelve months ended December
2023 are based on the average diluted and basic shares outstanding
of Crane NXT, Co. after the Separation. |
|
CRANE NXT, CO. AND SUBSIDIARIESConsolidated and
Condensed Balance Sheets(unaudited, in millions) |
| |
|
Balance as of December 31, |
|
|
|
|
2024 |
|
|
2023 |
|
Assets |
|
|
|
|
| Current assets: |
|
|
|
|
| Cash and cash equivalents |
|
$ |
165.8 |
|
$ |
227.2 |
| Accounts receivable, net |
|
|
265.9 |
|
|
214.9 |
| U.S. and foreign taxes on
income |
|
|
8.6 |
|
|
— |
| Inventories, net |
|
|
144.8 |
|
|
157.1 |
| Other current assets |
|
|
57.4 |
|
|
45.2 |
|
Total current assets |
|
|
642.5 |
|
|
644.4 |
| |
|
|
|
|
| Property, plant and equipment,
net |
|
|
272.3 |
|
|
261.2 |
| Long-term deferred tax
assets |
|
|
2.2 |
|
|
2.7 |
| Other assets |
|
|
93.6 |
|
|
71.0 |
| Intangible assets, net |
|
|
419.3 |
|
|
308.9 |
|
Goodwill |
|
|
956.6 |
|
|
841.2 |
|
Total assets |
|
$ |
2,386.5 |
|
$ |
2,129.4 |
|
|
|
|
|
|
| Liabilities and equity |
|
|
|
|
| Current liabilities: |
|
|
|
|
| Short-term borrowings |
|
$ |
210.0 |
|
$ |
4.6 |
| Accounts payable |
|
|
116.6 |
|
|
106.5 |
| Accrued liabilities |
|
|
211.2 |
|
|
210.5 |
| U.S. and foreign taxes on
income |
|
|
24.6 |
|
|
12.8 |
|
Total current liabilities |
|
|
562.4 |
|
|
334.4 |
| |
|
|
|
|
| Long-term debt |
|
|
540.6 |
|
|
640.3 |
| Accrued pension and
postretirement benefits |
|
|
19.4 |
|
|
22.5 |
| Long-term deferred tax
liability |
|
|
119.0 |
|
|
104.5 |
| Other liabilities |
|
|
80.2 |
|
|
63.7 |
| |
|
|
|
|
|
Total equity |
|
|
1,064.9 |
|
|
964.0 |
|
Total liabilities and equity |
|
$ |
2,386.5 |
|
$ |
2,129.4 |
|
CRANE NXT, CO. AND SUBSIDIARIESConsolidated and
Combined Condensed Statements of Cash Flows(unaudited, in
millions) |
|
| |
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
|
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
Operating activities: |
|
|
|
|
|
|
|
|
|
| Net income attributable to
common shareholders |
|
$ |
57.6 |
|
|
$ |
49.5 |
|
|
$ |
184.1 |
|
|
$ |
188.3 |
|
|
| Adjustments to reconcile net
income to net cash flows provided by operating activities: |
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
23.4 |
|
|
|
18.6 |
|
|
|
86.8 |
|
|
|
77.6 |
|
|
|
Stock-based compensation expense |
|
|
2.9 |
|
|
|
2.9 |
|
|
|
10.6 |
|
|
|
10.3 |
|
|
|
Unrealized loss on forward contracts |
|
|
3.1 |
|
|
|
— |
|
|
|
3.0 |
|
|
|
— |
|
|
|
Defined benefit plans and postretirement credit |
|
|
(0.2 |
) |
|
|
(0.5 |
) |
|
|
(2.1 |
) |
|
|
(1.1 |
) |
|
|
Deferred income taxes |
|
|
(17.3 |
) |
|
|
2.8 |
|
|
|
(17.6 |
) |
|
|
7.6 |
|
|
| Cash provided (used for) by
operating working capital |
|
|
21.2 |
|
|
|
12.2 |
|
|
|
(50.6 |
) |
|
|
— |
|
|
|
Other |
|
|
(9.6 |
) |
|
|
(7.0 |
) |
|
|
(0.1 |
) |
|
|
(6.4 |
) |
|
|
Total provided by operating activities |
|
$ |
81.1 |
|
|
$ |
78.5 |
|
|
$ |
214.1 |
|
|
$ |
276.3 |
|
|
|
Investing activities: |
|
|
|
|
|
|
|
|
|
| Payment for acquisitions, net of
cash acquired |
|
|
— |
|
|
|
— |
|
|
|
(269.9 |
) |
|
|
— |
|
|
| Settlement of forward
contracts |
|
|
(2.8 |
) |
|
|
— |
|
|
|
(2.7 |
) |
|
|
— |
|
|
| Capital
expenditures |
|
|
(10.8 |
) |
|
|
(15.0 |
) |
|
|
(45.4 |
) |
|
|
(31.1 |
) |
|
|
Total used for investing activities |
|
$ |
(13.6 |
) |
|
$ |
(15.0 |
) |
|
$ |
(318.0 |
) |
|
$ |
(31.1 |
) |
|
|
Financing activities: |
|
|
|
|
|
|
|
|
|
| Dividends paid |
|
|
(9.2 |
) |
|
|
(7.9 |
) |
|
|
(36.6 |
) |
|
|
(23.7 |
) |
|
| Proceeds from stock options
exercised |
|
|
0.3 |
|
|
|
2.9 |
|
|
|
3.3 |
|
|
|
5.0 |
|
|
| Payment of tax withholding on
equity awards vested |
|
|
(0.4 |
) |
|
|
(0.6 |
) |
|
|
(6.9 |
) |
|
|
(0.6 |
) |
|
| Debt issuance costs |
|
|
(2.7 |
) |
|
|
(0.4 |
) |
|
|
(2.7 |
) |
|
|
(5.7 |
) |
|
| Repayment of long-term debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(300.0 |
) |
|
| Proceeds from revolving credit
facility |
|
|
138.0 |
|
|
|
— |
|
|
|
448.5 |
|
|
|
20.0 |
|
|
| Repayments of revolving credit
facility |
|
|
(78.0 |
) |
|
|
— |
|
|
|
(238.5 |
) |
|
|
(20.0 |
) |
|
| Proceeds from term loan |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
350.0 |
|
|
| Repayment of term loan |
|
|
(101.7 |
) |
|
|
(70.0 |
) |
|
|
(105.0 |
) |
|
|
(245.0 |
) |
|
|
Net transfers to Crane |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(32.5 |
) |
|
|
Total (used for) provided by financing activities |
|
$ |
(53.7 |
) |
|
$ |
(76.0 |
) |
|
$ |
62.1 |
|
|
$ |
(252.5 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
| Effect
of exchange rates on cash, cash equivalents and restricted
cash |
|
|
(14.4 |
) |
|
|
10.7 |
|
|
|
(12.0 |
) |
|
|
3.8 |
|
|
|
Decrease in cash, cash equivalents and restricted cash |
|
|
(0.6 |
) |
|
|
(1.8 |
) |
|
|
(53.8 |
) |
|
|
(3.5 |
) |
|
| Cash,
cash equivalents and restricted cash at beginning of period |
|
|
174.0 |
|
|
|
229.0 |
|
|
|
227.2 |
|
|
|
230.7 |
|
|
|
Cash, cash equivalents and restricted cash at end of period |
|
$ |
173.4 |
|
|
$ |
227.2 |
|
|
$ |
173.4 |
|
|
$ |
227.2 |
|
|
|
CRANE NXT, CO. AND SUBSIDIARIES Order Backlog
(unaudited, in millions) |
|
|
|
December 31, 2024 |
|
September 30, 2024 |
|
June 30, 2024 |
|
March 31, 2024 |
|
December 31,2023 |
|
Crane Payment Innovations |
|
$ |
145.8 |
|
$ |
133.4 |
|
$ |
166.5 |
|
$ |
188.6 |
|
$ |
216.8 |
|
Security and Authentication Technologies1 |
|
$ |
248.3 |
|
$ |
351.4 |
|
$ |
335.4 |
|
$ |
233.4 |
|
$ |
243.0 |
|
Total backlog |
|
$ |
394.1 |
|
$ |
484.8 |
|
$ |
501.9 |
|
$ |
422.0 |
|
$ |
459.8 |
| |
| 1Includes
$32.1 million of backlog as of December 31, 2024, pertaining
to the OpSec Security business acquired in May 2024. |
|
CRANENXT, CO. AND SUBSIDIARIESNon-GAAP
Financial Measures(unaudited, in millions, except per
share data) |
| |
|
Three Months Ended December 31, |
| |
|
|
2024 |
|
|
|
2023 |
|
| Adjusted Operating
Profit and Adjusted Operating Profit Margin |
|
$ |
|
Per Share |
|
$ |
|
Per Share |
| Net sales (GAAP) |
|
$ |
399.1 |
|
|
|
|
$ |
356.9 |
|
|
|
| |
|
|
|
|
|
|
|
|
| Operating profit (GAAP) |
|
$ |
70.8 |
|
|
|
|
$ |
72.4 |
|
|
|
| Operating profit margin
(GAAP) |
|
|
17.7 |
% |
|
|
|
|
20.3 |
% |
|
|
| |
|
|
|
|
|
|
|
|
| Special items impacting
operating profit: |
|
|
|
|
|
|
|
|
|
Acquired intangible asset amortization |
|
|
13.1 |
|
|
|
|
|
8.9 |
|
|
|
|
Impact of acquisition related fair value step-up |
|
|
0.2 |
|
|
|
|
|
— |
|
|
|
|
Restructuring charges |
|
|
7.4 |
|
|
|
|
|
0.5 |
|
|
|
|
Transaction related expenses |
|
|
3.1 |
|
|
|
|
|
1.6 |
|
|
|
| Adjusted operating profit
(Non-GAAP) |
|
$ |
94.6 |
|
|
|
|
$ |
83.4 |
|
|
|
| Adjusted operating profit
margin (Non-GAAP) |
|
|
23.7 |
% |
|
|
|
|
23.4 |
% |
|
|
| |
|
|
|
|
|
|
|
|
| Adjusted Net Income
and Adjusted Net Income per Share |
|
|
|
|
|
|
|
|
| Net income attributable to
common shareholders (GAAP) |
|
$ |
57.6 |
|
|
$ |
1.00 |
|
|
$ |
49.5 |
|
|
$ |
0.86 |
|
|
Acquired intangible asset amortization |
|
|
13.1 |
|
|
|
0.23 |
|
|
|
8.9 |
|
|
|
0.15 |
|
|
Impact of acquisition related fair value step-up |
|
|
0.2 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Restructuring charges |
|
|
7.4 |
|
|
|
0.13 |
|
|
|
0.5 |
|
|
|
0.01 |
|
|
Transaction related expenses |
|
|
6.4 |
|
|
|
0.11 |
|
|
|
3.0 |
|
|
|
0.05 |
|
|
Impact of pension curtailments and settlements |
|
|
— |
|
|
|
— |
|
|
|
(0.4 |
) |
|
|
(0.01 |
) |
|
Tax adjustments |
|
|
(15.4 |
) |
|
|
(0.27 |
) |
|
|
(4.5 |
) |
|
|
(0.08 |
) |
| Adjusted net income
(Non-GAAP) |
|
$ |
69.3 |
|
|
$ |
1.20 |
|
|
$ |
57.0 |
|
|
$ |
0.99 |
|
| |
|
|
|
|
|
|
|
|
| Adjusted EBITDA and
Adjusted EBITDA margin |
|
|
|
|
|
|
|
|
| Net income attributable to
common shareholders (GAAP) |
|
$ |
57.6 |
|
|
|
|
$ |
49.5 |
|
|
|
| Net income margin (GAAP) |
|
|
14.4 |
% |
|
|
|
|
13.9 |
% |
|
|
| |
|
|
|
|
|
|
|
|
| Adjustments to net income
attributable to common shareholders: |
|
|
|
|
|
|
|
|
|
Income tax expense |
|
|
3.4 |
|
|
|
|
|
11.9 |
|
|
|
|
Interest expense, net |
|
|
11.9 |
|
|
|
|
|
10.4 |
|
|
|
|
Depreciation |
|
|
9.3 |
|
|
|
|
|
9.0 |
|
|
|
|
Intangible asset amortization |
|
|
13.3 |
|
|
|
|
|
8.9 |
|
|
|
|
Impact of acquisition related fair value step-up |
|
|
0.2 |
|
|
|
|
|
— |
|
|
|
|
Restructuring charges |
|
|
7.4 |
|
|
|
|
|
0.5 |
|
|
|
|
Transaction related expenses |
|
|
6.4 |
|
|
|
|
|
3.0 |
|
|
|
|
Impact of pension curtailments and settlements |
|
|
— |
|
|
|
|
|
(0.4 |
) |
|
|
| Adjusted EBITDA
(Non-GAAP) |
|
$ |
109.5 |
|
|
|
|
$ |
92.8 |
|
|
|
| Adjusted EBITDA Margin
(Non-GAAP) |
|
|
27.4 |
% |
|
|
|
|
26.0 |
% |
|
|
| |
|
|
|
|
|
|
|
|
| Totals may not sum due to
rounding |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
CRANE NXT, CO. AND SUBSIDIARIESNon-GAAP Financial
Measures(unaudited, in millions, except per share data) |
| |
|
Twelve Months Ended December 31, |
| |
|
|
2024 |
|
|
|
2023 |
|
| Adjusted Operating
Profit and Adjusted Operating Profit Margin |
|
$ |
|
Per Share |
|
$ |
|
Per Share |
| Net sales (GAAP) |
|
$ |
1,486.8 |
|
|
|
|
$ |
1,391.3 |
|
|
|
| |
|
|
|
|
|
|
|
|
| Operating profit (GAAP) |
|
$ |
268.8 |
|
|
|
|
$ |
286.8 |
|
|
|
| Operating profit margin
(GAAP) |
|
|
18.1 |
% |
|
|
|
|
20.6 |
% |
|
|
| |
|
|
|
|
|
|
|
|
| Special items impacting
operating profit: |
|
|
|
|
|
|
|
|
|
Acquired intangible asset amortization |
|
|
46.7 |
|
|
|
|
|
35.9 |
|
|
|
|
Impact of acquisition related fair value step-up |
|
|
6.1 |
|
|
|
|
|
— |
|
|
|
|
Restructuring charges |
|
|
10.1 |
|
|
|
|
|
0.5 |
|
|
|
|
Transaction related expenses |
|
|
19.9 |
|
|
|
|
|
22.0 |
|
|
|
| Adjusted operating profit
(Non-GAAP) |
|
$ |
351.6 |
|
|
|
|
$ |
345.2 |
|
|
|
| Adjusted operating profit
margin (Non-GAAP) |
|
|
23.6 |
% |
|
|
|
|
24.8 |
% |
|
|
| |
|
|
|
|
|
|
|
|
| Adjusted Net Income
and Adjusted Net Income per Share |
|
|
|
|
|
|
|
|
| Net income attributable to
common shareholders (GAAP) |
|
$ |
184.1 |
|
|
$ |
3.19 |
|
|
$ |
188.3 |
|
|
$ |
3.28 |
|
|
Acquired intangible asset amortization |
|
|
46.7 |
|
|
|
0.81 |
|
|
|
35.9 |
|
|
|
0.62 |
|
|
Impact of acquisition related fair value step-up |
|
|
6.1 |
|
|
|
0.11 |
|
|
|
— |
|
|
|
— |
|
|
Restructuring charges |
|
|
10.1 |
|
|
|
0.17 |
|
|
|
0.5 |
|
|
|
0.01 |
|
|
Transaction related expenses |
|
|
23.8 |
|
|
|
0.41 |
|
|
|
23.4 |
|
|
|
0.41 |
|
|
Impact of pension curtailments and settlements |
|
|
— |
|
|
|
— |
|
|
|
(0.4 |
) |
|
|
(0.01 |
) |
|
Interest adjustment1 |
|
|
— |
|
|
|
— |
|
|
|
2.5 |
|
|
|
0.04 |
|
|
Tax adjustments |
|
|
(24.6 |
) |
|
|
(0.43 |
) |
|
|
(10.9 |
) |
|
|
(0.19 |
) |
| Adjusted net income
(Non-GAAP) |
|
$ |
246.2 |
|
|
$ |
4.26 |
|
|
$ |
239.3 |
|
|
$ |
4.16 |
|
| |
|
|
|
|
|
|
|
|
| Adjusted EBITDA and
Adjusted EBITDA margin |
|
|
|
|
|
|
|
|
| Net income attributable to
common shareholders (GAAP) |
|
$ |
184.1 |
|
|
|
|
$ |
188.3 |
|
|
|
| Net income margin (GAAP) |
|
|
12.4 |
% |
|
|
|
|
13.5 |
% |
|
|
| |
|
|
|
|
|
|
|
|
| Adjustments to net income
attributable to common shareholders: |
|
|
|
|
|
|
|
|
|
Income tax expense |
|
|
42.3 |
|
|
|
|
|
51.5 |
|
|
|
|
Interest expense, net |
|
|
46.2 |
|
|
|
|
|
49.5 |
|
|
|
|
Depreciation |
|
|
37.1 |
|
|
|
|
|
39.6 |
|
|
|
|
Intangible asset amortization |
|
|
47.0 |
|
|
|
|
|
35.9 |
|
|
|
|
Impact of acquisition related fair value step-up |
|
|
6.1 |
|
|
|
|
|
— |
|
|
|
|
Restructuring charges |
|
|
10.1 |
|
|
|
|
|
0.5 |
|
|
|
|
Transaction related expenses |
|
|
23.8 |
|
|
|
|
|
23.4 |
|
|
|
|
Impact of pension curtailments and settlements |
|
|
— |
|
|
|
|
|
(0.4 |
) |
|
|
| Adjusted EBITDA
(Non-GAAP) |
|
$ |
396.7 |
|
|
|
|
$ |
388.3 |
|
|
|
| Adjusted EBITDA Margin
(Non-GAAP) |
|
|
26.7 |
% |
|
|
|
|
27.9 |
% |
|
|
| |
|
|
|
|
|
|
|
|
| Totals may not sum due to
rounding |
|
|
|
|
|
|
|
|
| 1Related party
interest with Crane Company incurred prior to the Separation. |
|
|
|
CRANE NXT, CO. AND SUBSIDIARIESNon-GAAP Financial
Measures by Segment(unaudited, in millions) |
|
Three Months Ended December 31, 2024 |
Crane Payment Innovations |
|
Security and Authentication Technologies |
|
Total Segment |
|
Corporate |
|
Total Company |
|
Net sales |
$ |
214.9 |
|
|
$ |
184.2 |
|
|
$ |
399.1 |
|
|
$ |
— |
|
|
$ |
399.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit (loss) (GAAP) |
$ |
49.7 |
|
|
$ |
37.4 |
|
|
$ |
87.1 |
|
|
$ |
(16.3 |
) |
|
$ |
70.8 |
|
|
Operating profit margin (GAAP) |
|
23.1 |
% |
|
|
20.3 |
% |
|
|
21.8 |
% |
|
|
|
|
17.7 |
% |
| |
|
|
|
|
|
|
|
|
|
| Special items impacting
operating profit (loss): |
|
|
|
|
|
|
|
|
|
|
Acquired intangible asset amortization |
|
5.3 |
|
|
|
7.8 |
|
|
|
13.1 |
|
|
|
— |
|
|
|
13.1 |
|
|
Impact of acquisition related fair value step-up |
|
— |
|
|
|
0.2 |
|
|
|
0.2 |
|
|
|
— |
|
|
|
0.2 |
|
|
Restructuring charges |
|
7.4 |
|
|
|
— |
|
|
|
7.4 |
|
|
|
— |
|
|
|
7.4 |
|
|
Transaction related expenses |
|
— |
|
|
|
0.1 |
|
|
|
0.1 |
|
|
|
3.0 |
|
|
|
3.1 |
|
|
Adjusted operating profit (loss) (non-GAAP) |
$ |
62.4 |
|
|
$ |
45.5 |
|
|
$ |
107.9 |
|
|
$ |
(13.3 |
) |
|
$ |
94.6 |
|
| Adjusted
operating profit margin (non-GAAP) |
|
29.0 |
% |
|
|
24.7 |
% |
|
|
27.1 |
% |
|
|
|
|
23.7 |
% |
| |
|
Three Months Ended December 31, 2023 |
Crane Payment Innovations |
|
Security and Authentication Technologies |
|
Total Segment |
|
Corporate |
|
Total Company |
|
N Net sales |
$ |
215.1 |
|
|
$ |
141.8 |
|
|
$ |
356.9 |
|
|
$ |
— |
|
|
$ |
356.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit (loss) (GAAP) |
$ |
56.5 |
|
|
$ |
31.2 |
|
|
$ |
87.7 |
|
|
$ |
(15.3 |
) |
|
$ |
72.4 |
|
|
Operating profit margin (GAAP) |
|
26.3 |
% |
|
|
22.0 |
% |
|
|
24.6 |
% |
|
|
|
|
20.3 |
% |
| |
|
|
|
|
|
|
|
|
|
| Special items impacting
operating profit (loss): |
|
|
|
|
|
|
|
|
|
|
Acquired intangible asset amortization |
|
5.3 |
|
|
|
3.6 |
|
|
|
8.9 |
|
|
|
— |
|
|
|
8.9 |
|
|
Restructuring charges |
|
0.5 |
|
|
|
— |
|
|
|
0.5 |
|
|
|
— |
|
|
|
0.5 |
|
|
Transaction related expenses |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1.6 |
|
|
|
1.6 |
|
|
Adjusted operating profit (loss) (non-GAAP) |
$ |
62.3 |
|
|
$ |
34.8 |
|
|
$ |
97.1 |
|
|
$ |
(13.7 |
) |
|
$ |
83.4 |
|
| Adjusted
operating profit margin (non-GAAP) |
|
29.0 |
% |
|
|
24.5 |
% |
|
|
27.2 |
% |
|
|
|
|
23.4 |
% |
| |
|
|
|
|
|
|
|
|
|
| Totals may not sum
due to rounding |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
CRANE NXT, CO. AND SUBSIDIARIESNon-GAAP Financial
Measures by Segment(unaudited, in millions) |
|
Twelve Months Ended December 31, 2024 |
Crane Payment Innovations |
|
Security and Authentication Technologies |
|
Total Segment |
|
Corporate |
|
Total Company |
|
Net sales |
$ |
873.2 |
|
|
$ |
613.6 |
|
|
$ |
1,486.8 |
|
|
$ |
— |
|
|
$ |
1,486.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit (loss) (GAAP) |
$ |
228.4 |
|
|
$ |
110.9 |
|
|
$ |
339.3 |
|
|
$ |
(70.5 |
) |
|
$ |
268.8 |
|
|
Operating profit margin (GAAP) |
|
26.2 |
% |
|
|
18.1 |
% |
|
|
22.8 |
% |
|
|
|
|
18.1 |
% |
| |
|
|
|
|
|
|
|
|
|
| Special items impacting
operating profit (loss): |
|
|
|
|
|
|
|
|
|
|
Acquired intangible asset amortization |
|
21.2 |
|
|
|
25.5 |
|
|
|
46.7 |
|
|
|
— |
|
|
|
46.7 |
|
|
Impact of acquisition related fair value step-up |
|
— |
|
|
|
6.1 |
|
|
|
6.1 |
|
|
|
— |
|
|
|
6.1 |
|
|
Restructuring charges |
|
10.1 |
|
|
|
— |
|
|
|
10.1 |
|
|
|
— |
|
|
|
10.1 |
|
|
Transaction related expenses |
|
0.6 |
|
|
|
0.1 |
|
|
|
0.7 |
|
|
|
19.2 |
|
|
|
19.9 |
|
|
Adjusted operating profit (loss) (non-GAAP) |
$ |
260.3 |
|
|
$ |
142.6 |
|
|
$ |
402.9 |
|
|
$ |
(51.3 |
) |
|
$ |
351.6 |
|
| Adjusted
operating profit margin (non-GAAP) |
|
29.8 |
% |
|
|
23.2 |
% |
|
|
27.1 |
% |
|
|
|
|
23.6 |
% |
| |
|
Twelve Months Ended December 31, 2023 |
Crane Payment Innovations |
|
Security and Authentication Technologies |
|
Total Segment |
|
Corporate |
|
Total Company |
|
Net sales |
$ |
886.4 |
|
|
$ |
504.9 |
|
|
$ |
1,391.3 |
|
|
$ |
— |
|
|
$ |
1,391.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit (loss) (GAAP) |
$ |
242.8 |
|
|
$ |
116.3 |
|
|
$ |
359.1 |
|
|
$ |
(72.3 |
) |
|
$ |
286.8 |
|
|
Operating profit margin (GAAP) |
|
27.4 |
% |
|
|
23.0 |
% |
|
|
25.8 |
% |
|
|
|
|
20.6 |
% |
| |
|
|
|
|
|
|
|
|
|
| Special items impacting
operating profit (loss): |
|
|
|
|
|
|
|
|
|
|
Acquired intangible asset amortization |
|
21.7 |
|
|
|
14.2 |
|
|
|
35.9 |
|
|
|
— |
|
|
|
35.9 |
|
|
Restructuring charges |
|
0.5 |
|
|
|
— |
|
— |
|
0.5 |
|
|
|
— |
|
|
|
0.5 |
|
|
Transaction related expenses |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
22.0 |
|
|
|
22.0 |
|
|
Adjusted operating profit (loss) (non-GAAP) |
$ |
265.0 |
|
|
$ |
130.5 |
|
|
$ |
395.5 |
|
|
$ |
(50.3 |
) |
|
$ |
345.2 |
|
| Adjusted
operating profit margin (non-GAAP) |
|
29.9 |
% |
|
|
25.8 |
% |
|
|
28.4 |
% |
|
|
|
|
24.8 |
% |
| |
|
|
|
|
|
|
|
|
|
| Totals may not sum
due to rounding |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
CRANE NXT, CO. AND SUBSIDIARIESFree Cash Flow,
Adjusted Free Cash Flow and Adjusted Free Cash Flow
Conversion(unaudited, in millions) |
| |
|
Three
Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
Cash Flow Items |
|
|
2024 |
|
|
2023 |
|
|
|
2024 |
|
|
2023 |
|
|
Cash provided by operating activities (GAAP) |
|
$ |
81.1 |
|
$ |
78.5 |
|
|
$ |
214.1 |
|
$ |
276.3 |
|
| Less:
Capital expenditures |
|
|
(10.8 |
) |
|
(15.0 |
) |
|
|
(45.4 |
) |
|
(31.1 |
) |
|
Free cash flow |
|
$ |
70.3 |
|
$ |
63.5 |
|
|
$ |
168.7 |
|
$ |
245.2 |
|
|
Transaction related expenses1 |
|
|
4.9 |
|
|
1.3 |
|
|
|
17.7 |
|
|
20.6 |
|
|
Adjusted free cash flow (non-GAAP) |
|
$ |
75.2 |
|
$ |
64.8 |
|
|
$ |
186.4 |
|
$ |
265.8 |
|
|
|
|
|
|
|
|
|
|
Adjusted net income (non-GAAP)* |
|
$ |
69.3 |
|
$ |
57.0 |
|
|
$ |
246.2 |
|
$ |
239.3 |
|
|
Adjusted free cash flow conversion (non-GAAP) |
|
|
109 |
% |
|
114 |
% |
|
|
76 |
% |
|
111 |
% |
|
|
|
|
|
|
|
|
| 1 Represents cash
paid for transaction related expenses. |
| *Please see the
Non-GAAP Financial Measures tables in this release. |
|
|
|
|
|
Net Leverage Ratio(unaudited, in millions, except net
leverage ratio) |
|
|
|
December 31, 2024 |
|
Total debt (excluding deferred financing costs of 9.4 million) |
|
$ |
760.0 |
|
| Less:
Cash and cash equivalents |
|
|
(165.8 |
) |
|
Net debt |
|
$ |
594.2 |
|
| TTM Adjusted EBITDA
(non-GAAP)* |
|
$ |
396.7 |
|
| Net leverage ratio |
|
|
1.5 |
|
| *Please refer to
the Non-GAAP Financial Measures tables in prior quarter releases
and in this release. |
Crane NXT reports its financial results in accordance with U.S.
generally accepted accounting principles (“GAAP”). This press
release includes certain non-GAAP financial measures, including
Adjusted operating profit, Adjusted operating margin, Adjusted EPS,
free cash flow, and Adjusted free cash flow, that are not prepared
in accordance with GAAP. These non-GAAP measures are an addition,
and not a substitute for or superior, to measures of financial
performance prepared in accordance with GAAP and should not be
considered as an alternative to operating income, net income or any
other performance measures derived in accordance with GAAP. The
Company's management believes that these non-GAAP measures of
financial results (including on a forward-looking or projected
basis) provide useful supplemental information to investors about
Crane NXT. However, there are a number of limitations related to
the use of these non-GAAP measures and their nearest GAAP
equivalents. For example, other companies may calculate non-GAAP
measures differently or may use other measures to calculate their
financial performance, and therefore the Company's non-GAAP
measures may not be directly comparable to similarly titled
measures of other companies.
Reconciliations of certain forward-looking and projected
non-GAAP measures, including Adjusted segment operating margin and
Adjusted EPS, to the closest corresponding GAAP measure are not
available without unreasonable efforts due to the high variability,
complexity and low visibility with respect to the charges excluded
from these non-GAAP measures, which could have a potentially
significant impact on Crane NXT's future GAAP results. Crane NXT
calculates Adjusted segment operating margin and Adjusted EPS as
described below.
- "Adjusted segment operating margin" is calculated as Adjusted
segment operating profit divided by sales. Adjusted segment
operating profit is calculated as segment operating profit
excluding acquired intangible asset amortization, restructuring
charges, impact of acquisition related fair value step-up, and
transaction related expenses. Impact of acquisition related fair
value step-up includes acquisition related inventory step-up
amortization and fixed asset step-up depreciation. Transaction
related expenses include acquisition related expenses such as
incremental professional fees associated with closing and
integration of the acquisition, and expenses associated with the
Separation. Segment operating profit is derived from adding
together the operating profit of our two segments, CPI and
SAT.
- "Adjusted EPS" is calculated as Adjusted net income divided by
diluted shares. Adjusted net income is calculated as net income
excluding acquired intangible asset amortization, restructuring
charges, impact of acquisition related fair value step-up,
transaction related expenses, the tax effect of these adjustments
and other discrete tax items. Impact of acquisition related fair
value step-up includes acquisition related inventory step-up
amortization and fixed asset step-up depreciation. Transaction
related expenses include acquisition related expenses such as
incremental professional fees associated with closing and
integration of the acquisition, and expenses associated with the
Separation.
The Company's management believes that each of the following
non-GAAP measures provides useful information to investors
regarding the Company’s financial conditions and operations:
- "Adjusted operating profit" and "Adjusted operating margin" add
back to operating profit items which are outside of the Company's
core performance, some of which may or may not be non-recurring,
and which management believes may complicate the interpretation of
the Company’s underlying earnings and operational performance.
These items include income and expense such as: acquired intangible
asset amortization, restructuring charges, impact of acquisition
related fair value step-up, and transaction related expenses.
Impact of acquisition related fair value step-up includes
acquisition related inventory step-up amortization and fixed asset
step-up depreciation. Transaction related expenses include
acquisition related expenses such as incremental professional fees
associated with closing and integration of the acquisition, and
expenses associated with the Separation. These items are not
incurred in all periods, the size of these items is difficult to
predict, and none of these items are indicative of the operations
of the underlying businesses. Management believes that non-GAAP
financial measures that exclude these items provide investors with
an alternative metric that can assist in predicting future earnings
and profitability that are complementary to GAAP metrics.
- "Adjusted net income" and "Adjusted EPS" exclude items which
are outside of the Company's core performance, some of which may or
may not be non-recurring, and which management believes may
complicate the presentation of the Company’s underlying earnings
and operational performance. These measures include income and
expense items that impacted operating profit such as: acquired
intangible asset amortization, restructuring charges, impact of
acquisition related fair value step-up, transaction related
expenses, the tax effect of these adjustments and other discrete
tax items. Impact of acquisition related fair value step-up
includes acquisition related inventory step-up amortization and
fixed asset step-up depreciation. Transaction related expenses
include acquisition related expenses such as incremental
professional fees associated with closing and integration of the
acquisition, and expenses associated with the Separation.
Additionally, these non-GAAP financial measures exclude income and
expense items that impacted net income and earnings per diluted
share such as related party interest with Crane Company incurred
prior to the Separation. These items are not incurred in all
periods, the size of these items is difficult to predict, and none
of these items are indicative of the operations of the underlying
businesses. Management believes that non-GAAP financial measures
that exclude these items provide investors with an alternative
metric that can assist in predicting future earnings and
profitability that are complementary to GAAP metrics.
- “Free cash flow,” “Adjusted free cash flow” and "Adjusted free
cash flow conversion” provide supplemental information to assist
management and investors in analyzing the Company’s ability to
generate liquidity from its operating activities. The measure of
free cash flow does not take into consideration certain other
non-discretionary cash requirements such as, for example, mandatory
principal payments on the Company’s long-term debt. Free cash flow
is calculated as cash provided by operating activities less capital
expenditures. Adjusted free cash flow is calculated as free cash
flow adjusted for certain cash items which management believes may
complicate the interpretation of the Company’s underlying free cash
flow performance such as certain transaction related cash flow
items. Adjusted free cash flow conversion is calculated as Adjusted
free cash flow divided by Adjusted net income. These items are not
incurred in all periods, the size of these items is difficult to
predict, and none of these items are indicative of the operations
of the underlying businesses. Management believes that non-GAAP
financial measures that exclude these items provide investors with
an alternative metric that can assist in predicting future cash
flows that are complementary to GAAP metrics.
- "Adjusted EBITDA" and "Adjusted EBITDA margin" exclude net
interest expense, tax expense and depreciation and amortization
expense from net income, as well as Special items such as
restructuring charges, impact of acquisition related fair value
step-up, and transaction related expenses. Impact of acquisition
related fair value step-up includes acquisition related inventory
step-up amortization and fixed asset step-up depreciation.
Transaction related expenses include acquisition related expenses
such as incremental professional fees associated with closing and
integration of the acquisition, and expenses associated with the
Separation. Management believes that non-GAAP financial measures
that exclude these items provide investors with an alternative
metric that can assist in predicting future earnings and
profitability that are complementary to GAAP metrics.
- "Net leverage ratio" refers to Net debt divided by trailing
twelve months (TTM) Adjusted EBITDA. "Net debt" represents total
debt (excluding deferred financing costs) less cash and cash
equivalents. Management believes that these non-GAAP financial
measures provide useful information about our ability to satisfy
our debt obligation with currently available funds.
- References to "core," such as "core sales," exclude currency
effects and, where applicable, the first-year impacts of
acquisitions and divestitures. Management believes that non-GAAP
financial measures that exclude these items provide investors with
an alternative metric that can assist in identifying underlying
growth trends in our business and facilitate comparison of our
sales performance, for example, with prior and future periods that
are complementary to GAAP metrics.
Contact:Matt RoacheVice President, Investor
Relations+1-781-864-4730matthew.roache@cranenxt.com
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