- Positive core organic growth
- EBX driving record margin and free cash flow
- Completed the acquisition of the welding business of Linde
Bangladesh
ESAB Corporation (“ESAB” or the “Company”) (NYSE: ESAB), a
focused premier industrial compounder, today announced financial
results for the second quarter of 2024.
ESAB reported second quarter sales of $707 million, a decrease
of 2% on a reported basis or an increase of 1% on core organic
growth before acquisitions and currency translation, as compared to
the prior year. ESAB also reported second quarter net income from
continuing operations attributable to ESAB of $84 million or $1.37
diluted earnings per share and core adjusted net income of $81
million or $1.32 diluted earnings per share. Core adjusted EBITDA
of $134 million rose 6% and margins expanded 150 basis points to
20.1%, both as compared to the prior year quarter.
“The ESAB team continues to execute well in a challenging
business environment. We are benefiting from our exposure to
high-growth markets, such as India and the Middle East, as well as
our strategy to improve our mix and focus on less cyclical end
markets. Our recent acquisition of the welding business of Linde
Bangladesh fills a gap for ESAB in Asia and cements our position as
the leading Fabtech company in this fast-growing region,” stated
Shyam P. Kambeyanda, President and CEO of ESAB. “We continue to
raise the bar with EBX to drive record margins and cash flow,
further strengthening our balance sheet, and remain well positioned
to deliver on our long-term goals.”
Updated Full Year 2024
Outlook
ESAB now expects total core sales growth of (2.5)% to (0.5)%,
flat core organic sales growth, M&A of 1.0% and FX of ~(2.5)%
from prior guidance of total core sales growth of 1.5% to 3.5%,
core organic sales growth of 2.5% to 4.5%, M&A of 0.5%, and FX
of ~(1.5)%. ESAB updated its estimated core adjusted EBITDA range
to $495 to $515 million, from prior guidance of core adjusted
EBITDA range of $500 to $520 million and core adjusted EPS of $4.75
to $4.95 remains the same.
About ESAB Corporation
Founded in 1904, ESAB Corporation is a focused premier
industrial compounder. The Company’s rich history of innovative
products, workflow solutions and its business system ESAB Business
Excellence (“EBX”), enables the Company’s purpose of Shaping the
world we imagineTM. ESAB Corporation is based in North Bethesda,
Maryland and employs approximately 9,000 associates and serves
customers in approximately 150 countries. To learn more, visit
www.ESABcorporation.com.
Conference Call and
Webcast
The Company will hold a conference call to discuss its second
quarter 2024 results beginning at 8:00 a.m. Eastern on Friday,
August 2, 2024, which will be open to the public by calling
+1-888-550-5302 (U.S. callers) and +1-646-960-0685 (International
callers) and referencing the conference ID number 4669992 and
through webcast via ESAB’s website www.ESABcorporation.com under
the “Investors” section. Access to a supplemental slide
presentation can also be found on ESAB's website under the same
heading. Both the audio of this call and the slide presentation
will be archived on the website later today and will be available
until the next quarterly call. The Company’s quarterly report on
Form 10-Q for the fiscal quarter ended June 28, 2024, filed August
2, 2024, is also available on ESAB’s website under the “Investors”
section.
Non-GAAP Financial Measures and Other
Adjustments
ESAB has provided in this press release financial information
that has not been prepared in accordance with accounting principles
generally accepted in the United States of America (“non-GAAP”).
ESAB presents some of these non-GAAP financial measures including
and excluding Russia due to economic and political volatility
caused by the war in Ukraine, which results in enhanced investor
interest in this information. Core non-GAAP financial measures
exclude Russia for the six months ended June 28, 2024 and June 30,
2023. These non-GAAP financial measures may include one or more of
the following: adjusted net income from continuing operations, Core
adjusted net income from continuing operations, adjusted EBITDA
(earnings before interest, taxes, pension settlement losses,
Restructuring and other related charges, acquisition-amortization
and other related charges and depreciation and other amortization),
Core adjusted EBITDA, organic sales growth, Core organic sales
growth, adjusted free cash flow and ratios based on the foregoing
measures. ESAB also provides adjusted EBITDA and adjusted EBITDA
margin on a segment basis, as well as Core adjusted EBITDA and Core
adjusted EBITDA margin on a segment basis.
Adjusted net income from continuing operations represents Net
income from continuing operations attributable to ESAB Corporation,
excluding Restructuring and other related charges,
acquisition-amortization and other related charges and pension
settlement losses. Adjusted net income, includes the tax effect of
non-GAAP adjusting items at applicable tax rates and excludes the
impact of discrete tax charges or gains in each period. ESAB also
presents adjusted net income margin from continuing operations,
which is subject to the same adjustments as adjusted net income
from continuing operations. Adjusted net income per diluted share
from continuing operations is a calculation of adjusted net income
from continuing operations over the weighted-average diluted shares
outstanding. ESAB also presents Core adjusted net income from
continuing operations and Core adjusted net income per share -
diluted from continuing operations, which are subject to the same
adjustments as Adjusted net income from continuing operations and
Adjusted net income per diluted share from continuing operations,
further removing the impact of Russia for the six months ended June
28, 2024 and June 30, 2023.
Adjusted EBITDA, excludes from Net income from continuing
operations, the effect of Income tax expense, Interest expense
(income) and other, net, Restructuring and other related charges,
acquisition-amortization and other related charges, pension
settlement losses and depreciation and other amortization. ESAB
presents adjusted EBITDA margins, which are subject to the same
adjustments as adjusted EBITDA. Further, ESAB presents these
non-GAAP performance measures on a segment basis, which excludes
the impact of Restructuring and other related charges, separation
costs, acquisition-amortization and other related charges, pension
settlement losses and depreciation and other amortization from
operating income. ESAB also presents Core adjusted EBITDA and Core
adjusted EBITDA margins, which are subject to the same adjustments
as Adjusted EBITDA and Adjusted EBITDA margins, respectively,
further removing the impact of Russia for the six months ended June
28, 2024 and June 30, 2023.
ESAB presents organic sales growth, which excludes the impact of
acquisitions and foreign exchange rate fluctuations and presents
core organic sales growth, which further excludes the impact of the
Russia business for the six months ended June 28, 2024 and June 30,
2023 from core organic sales growth.
Adjusted free cash flow represents cash flows from operating
activities excluding cash outflows related to the Company’s
separation from Enovis Corporation and discontinued operations,
less Purchases of property, plant and equipment net of proceeds
from sale of certain properties. Cash conversion represents
Adjusted free cash flow divided by Adjusted net income from
continuing operations.
These non-GAAP financial measures assist ESAB management in
comparing its operating performance over time because certain items
may obscure underlying business trends and make comparisons of
long-term performance difficult, as they are of a nature and/or
size that occur with inconsistent frequency or relate to unusual
events or discrete restructuring plans and other initiatives that
are fundamentally different from the ongoing productivity and core
business of the Company.
ESAB management also believes that presenting these measures
allows investors to view its performance using the same measures
that the Company uses in evaluating its financial and business
performance and trends.
Non-GAAP financial measures should not be considered in
isolation from, or as a substitute for, financial information
calculated in accordance with GAAP. Investors are encouraged to
review the reconciliation of these non-GAAP measures to their most
directly comparable GAAP financial measures. A reconciliation of
non-GAAP financial measures presented above to GAAP results has
been provided in the financial tables included in this press
release.
Forward Looking
Statements
This press release includes forward-looking statements,
including forward-looking statements within the meaning of the U.S.
Private Securities Litigation Reform Act of 1995. Such
forward-looking statements include, but are not limited to,
statements concerning the Company’s plans, goals, objectives,
outlook, expectations, and intentions, and other statements that
are not historical or current fact. Forward-looking statements are
based on the Company’s current expectations and involve risks and
uncertainties that could cause actual results to differ materially
from those expressed or implied in such forward-looking statements,
including general risks and uncertainties such as market
conditions, economic conditions, geopolitical events, changes in
laws, regulations or accounting rules, fluctuations in interest
rates, terrorism, wars or conflicts, major health concerns, natural
disasters or other disruptions of expected business conditions.
Factors that could cause the Company’s results to differ materially
from current expectations include, but are not limited to, risks
related to the impact of the wars in Ukraine and Middle East and
the resulting escalating geopolitical tensions; impact of supply
chain disruptions; the impact of creditworthiness and financial
viability of customers; impact of inflationary pressures, foreign
exchange fluctuations and commodity prices; other impacts on the
Company’s business and ability to execute business continuity
plans; and the other factors detailed in the Company’s Annual
Report on Form 10-K for the year ended December 31, 2023 filed with
the U.S. Securities and Exchange Commission (“SEC”) on February 29,
2024, as well as other risks discussed in the Company’s filings
with the SEC. In addition, these statements are based on
assumptions that are subject to change. This press release speaks
only as of the date hereof. The Company disclaims any duty to
update the information herein.
ESAB CORPORATION
CONSOLIDATED AND CONDENSED
STATEMENTS OF OPERATIONS
Dollars in thousands, except
per share data
(Unaudited)
Three Months Ended
Six Months Ended
June 28, 2024
June 30, 2023
June 28, 2024
June 30, 2023
Net sales
$
707,053
$
720,422
$
1,396,797
$
1,404,422
Cost of sales
436,738
456,499
871,455
893,110
Gross profit
270,315
263,923
525,342
511,312
Selling, general and administrative
expense
146,187
150,115
288,637
297,397
Restructuring and other related
charges
4,773
5,169
6,697
14,613
Operating income
119,355
108,639
230,008
199,302
Pension settlement loss
—
—
12,155
—
Interest expense and other, net
15,940
18,819
33,031
38,329
Income from continuing operations before
income taxes
103,415
89,820
184,822
160,973
Income tax expense
17,885
20,974
36,389
57,998
Net income from continuing operations
85,530
68,846
148,433
102,975
Loss from discontinued operations, net of
taxes
(1,161
)
(1,623
)
(2,470
)
(2,536
)
Net income
84,369
67,223
145,963
100,439
Income attributable to noncontrolling
interest, net of taxes
(1,462
)
(1,650
)
(3,105
)
(2,963
)
Net income attributable to ESAB
Corporation
$
82,907
$
65,573
$
142,858
$
97,476
Earnings (loss) per share – basic
Income from continuing operations
$
1.38
$
1.11
$
2.39
$
1.65
Loss on discontinued operations
$
(0.02
)
$
(0.03
)
$
(0.04
)
$
(0.04
)
Net income per share
$
1.36
$
1.08
$
2.35
$
1.61
Earnings (loss) per share – diluted
Income from continuing operations
$
1.37
$
1.10
$
2.37
$
1.64
Loss on discontinued operations
$
(0.02
)
$
(0.03
)
$
(0.04
)
$
(0.04
)
Net income per share – diluted
$
1.35
$
1.07
$
2.33
$
1.60
ESAB CORPORATION
RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES
Dollars in millions, except
per share data
(Unaudited)
Three Months Ended(1)
Six Months Ended(1)
June 28, 2024
June 30, 2023
June 28, 2024
June 30, 2023
Adjusted Net Income
Net income from continuing operations
(GAAP)
$
85.5
$
68.8
$
148.4
$
103.0
Less: Income attributable to
noncontrolling interest, net of taxes
1.5
1.7
3.1
3.0
Net income from continuing operations
attributable to ESAB Corporation (GAAP)
$
84.0
$
67.2
145.3
100.0
Restructuring and other related charges –
pretax(2)
4.8
5.2
6.7
14.6
Acquisition-amortization and other related
charges – pretax(3)
7.7
9.3
15.5
18.5
Pension settlement loss – pretax
—
—
12.2
—
Tax effect on above items(4)
(3.2
)
(3.6
)
(8.5
)
(7.8
)
Discrete tax adjustments(5)
(6.7
)
—
(6.7
)
19.6
Adjusted net income from continuing
operations (non-GAAP)
$
86.6
$
78.1
$
164.5
$
144.9
Adjusted net income from continuing
operations attributable to Russia (non-GAAP)(6)
5.2
3.9
9.5
7.5
Core adjusted net income from continuing
operations (non-GAAP)
$
81.4
$
74.2
$
155.0
$
137.4
Adjusted net income margin from continuing
operations
12.3
%
10.8
%
11.8
%
10.3
%
Adjusted Net Income Per Share
Net income per share – diluted from
continuing operations (GAAP)
$
1.37
$
1.10
$
2.37
$
1.64
Restructuring and other related charges –
pretax(2)
0.08
0.09
0.11
0.24
Acquisition-amortization and other related
charges – pretax(3)
0.12
0.15
0.24
0.31
Pension settlement loss – pretax
—
—
0.20
—
Tax effect on above items(4)
(0.05
)
(0.06
)
(0.14
)
(0.13
)
Discrete tax adjustments(5)
(0.11
)
—
(0.11
)
0.32
Adjusted net income per share – diluted
from continuing operations (non-GAAP)
$
1.41
$
1.28
$
2.67
$
2.38
Adjusted net income per share – diluted
from continuing operations attributable to Russia (non-GAAP)(6)
0.09
0.06
0.16
0.12
Core adjusted net income per share –
diluted from continuing operations (non-GAAP)
$
1.32
$
1.21
$
2.51
$
2.25
__________
(1)
Numbers may not sum due to rounding.
(2)
Includes severance and other termination
benefits, including outplacement services as well as the cost of
relocating associates, relocating equipment, lease termination
expenses, impairment of long-lived assets and other costs in
connection with the closure and optimization of facilities and
product lines.
(3)
Includes transaction expenses,
amortization of intangibles, fair value charges on acquired
inventories and integration expenses.
(4)
This line item reflects the aggregate tax
effect of all non-tax adjustments reflected in the proceeding line
items of the table. ESAB estimates the tax effect of each
adjustment item by applying ESAB’s overall estimated effective tax
rate to the pretax amount, unless the nature of the item and/or tax
jurisdiction in which the item has been recorded requires
application of a specific tax rate or tax treatment, in which case
the tax effect of such item is estimated by applying such specific
tax rate or tax treatment.
(5)
For 2024, discrete adjustments relate to a
favorable final ruling in the 2023 tax case in a foreign
jurisdiction mentioned below. For 2023, discrete tax adjustments
include the impact of net discrete tax expenses related to dividend
withholding tax and the impact of an uncertain tax position due to
an adverse court ruling in a foreign jurisdiction.
(6)
Represents Russia contribution for the
three and six months ended June 28, 2024 and June 30, 2023.
ESAB CORPORATION
RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES
Dollars in millions
(Unaudited)
Three Months Ended June 28,
2024(1)
Six Months Ended June 28,
2024(1)
Americas
EMEA & APAC
Total
Americas
EMEA & APAC
Total
Net income from continuing operations
(GAAP)
$
85.5
$
148.4
Income tax expense
17.9
36.4
Interest expense and other, net
15.9
33.0
Pension settlement loss
—
12.2
Operating income (GAAP)
$
55.9
$
63.4
$
119.4
101.9
128.1
230.0
Adjusted to add
Restructuring and other related
charges(2)
0.8
4.0
4.8
1.1
5.6
6.7
Acquisition-amortization and other related
charges(3)
4.3
3.3
7.7
8.7
6.8
15.5
Depreciation and other amortization
3.7
5.5
9.1
7.2
10.7
17.9
Adjusted EBITDA (non-GAAP)
$
64.7
$
76.2
$
141.0
$
118.8
$
151.2
$
270.0
Adjusted EBITDA attributable to Russia
(non-GAAP)(4)
—
6.9
6.9
—
12.9
12.9
Core adjusted EBITDA (non-GAAP)
$
64.7
$
69.3
$
134.0
$
118.8
$
138.3
$
257.1
Adjusted EBITDA margin (non-GAAP)
20.9
%
19.2
%
19.9
%
19.6
%
19.1
%
19.3
%
Core adjusted EBITDA margin
(non-GAAP)(5)
20.9
%
19.5
%
20.1
%
19.6
%
19.3
%
19.5
%
__________
(1)
Numbers may not sum due to rounding.
(2)
Includes severance and other termination
benefits, including outplacement services as well as the cost of
relocating associates, relocating equipment, lease termination
expenses, impairment of long-lived assets and other costs in
connection with the closure and optimization of facilities and
product lines.
(3)
Includes transaction expenses,
amortization of intangibles, fair value charges on acquired
inventories and integration expenses.
(4)
Numbers calculated following the same
definition as Adjusted EBITDA for total Company.
(5)
Net sales were $40.7 million and $74.4
million relating to Russia for the three and six months ended June
28, 2024, respectively.
ESAB CORPORATION
RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES
Dollars in millions
(Unaudited)
Three Months Ended June 30,
2023(1)
Six Months Ended June 30,
2023(1)
Americas
EMEA & APAC
Total
Americas
EMEA & APAC
Total
Net income from continuing operations
(GAAP)
$
68.8
$
103.0
Income tax expense
21.0
58.0
Interest expense and other, net
18.8
38.3
Operating income (GAAP)
$
46.1
$
62.6
$
108.6
$
86.0
$
113.3
$
199.3
Adjusted to add
Restructuring and other related
charges(2)
3.0
2.2
5.2
3.9
10.7
14.6
Acquisition-amortization and other related
charges(1)(3)
5.4
3.8
9.3
10.7
7.8
18.5
Depreciation and other amortization
3.8
5.2
9.0
7.1
10.5
17.6
Adjusted EBITDA (non-GAAP)
$
58.3
$
73.8
$
132.1
$
107.7
$
142.3
$
250.0
Adjusted EBITDA attributable to Russia
(non-GAAP)(4)
—
5.6
5.6
—
10.9
10.9
Core adjusted EBITDA (non-GAAP)
$
58.3
$
68.2
$
126.5
$
107.7
$
131.4
$
239.1
Adjusted EBITDA margin (non-GAAP)
18.8
%
18.0
%
18.3
%
17.9
%
17.7
%
17.8
%
Core adjusted EBITDA margin
(non-GAAP)(5)
18.8
%
18.4
%
18.6
%
17.9
%
18.1
%
18.0
%
(1)
Numbers may not sum due to rounding.
(2)
Includes severance and other termination
benefits, including outplacement services as well as the cost of
relocating associates, relocating equipment, lease termination
expenses, impairment of long-lived assets and other costs in
connection with the closure and optimization of facilities and
product lines.
(3)
Includes transaction expenses,
amortization of intangibles, fair value charges on acquired
inventories and integration expenses.
(4)
Numbers calculated following the same
definition as Adjusted EBITDA for total Company.
(5)
Net sales were $40.3 million and $77.5
million relating to Russia for the three and six months ended June
30, 2023, respectively.
ESAB CORPORATION
RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES
Change in Sales
Dollars in millions
(Unaudited)
Sales Growth(1)
Americas
EMEA & APAC
Total ESAB
$
Change %
$
Change %
$
Change %
For the three months ended June 30,
2023
$
310.3
$
410.1
$
720.4
Components of Change:
Existing businesses (organic sales
growth)(2)
12.5
4.0
%
(4.1
)
(1.0
)%
8.4
1.2
%
Acquisitions(3)
2.7
0.9
%
—
—
%
2.7
0.4
%
Foreign Currency translation(4)
(15.7
)
(5.1
)%
(8.8
)
(2.1
)%
(24.4
)
(3.4
)%
Total sales growth
(0.5
)
(0.2
)%
(12.9
)
(3.1
)%
(13.3
)
(1.8
)%
For the three months ended June 28,
2024
$
309.8
$
397.3
$
707.1
(1)
Numbers may not sum due to rounding.
(2)
Excludes the impact of acquisitions and
foreign exchange rate fluctuations, thus providing a measure of
change due to organic growth factors such as price, product mix and
volume.
(3)
Represents the incremental sales in
comparison to the portion of the prior period during which we did
not own the business.
(4)
Represents the difference between prior
year sales valued at the actual prior year foreign exchange rates
and prior year sales valued at current year foreign exchange
rates.
Core Sales
Growth(1)(5)
Americas
EMEA & APAC
ESAB
$
Change %
$
Change %
$
Change %
For the three months ended June 30,
2023
$
310.3
$
369.8
$
680.1
Components of Change:
Existing businesses (core organic sales
growth)(2)
12.5
4.0
%
(8.6
)
(2.3
)%
3.9
0.6
%
Acquisitions(3)
2.7
0.9
%
—
—
%
2.7
0.4
%
Foreign Currency translation(4)
(15.7
)
(5.1
)%
(4.7
)
(1.3
)%
(20.4
)
(3.0
)%
Total core sales growth
(0.5
)
(0.2
)%
(13.3
)
(3.6
)%
(13.8
)
(2.0
)%
For the three months ended June 28,
2024
$
309.8
$
356.6
$
666.3
(1)
Numbers may not sum due to rounding.
(2)
Excludes the impact of acquisitions and
foreign exchange rate fluctuations, thus providing a measure of
change due to organic growth factors such as price, product mix and
volume.
(3)
Represents the incremental sales in
comparison to the portion of the prior period during which we did
not own the business.
(4)
Represents the difference between prior
year sales valued at the actual prior year foreign exchange rates
and prior year sales valued at current year foreign exchange
rates.
(5)
Represents sales excluding Russia for the
three months ended June 28, 2024 and June 30, 2023.
ESAB CORPORATION
RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES
Change in Sales
Dollars in millions
(Unaudited)
Sales Growth(1)
Americas
EMEA & APAC
Total ESAB
$
Change %
$
Change %
$
Change %
For the six months ended June 30, 2023
601.8
$
802.6
$
1,404.4
Components of Change:
Existing businesses (organic sales
growth)(2)
21.4
3.6
%
3.6
0.4
%
25.0
1.8
%
Acquisitions(3)
3.6
0.6
%
0.1
—
%
3.7
0.3
%
Foreign Currency translation(4)
(21.0
)
(3.5
)%
(15.3
)
(1.9
)%
(36.3
)
(2.6
)%
Total sales growth
4.0
0.7
%
(11.6
)
(1.4
)%
(7.6
)
(0.5
)%
For the six months ended June 28, 2024
605.8
$
791.0
$
1,396.8
(1)
Numbers may not sum due to rounding.
(2)
Excludes the impact of acquisitions and
foreign exchange rate fluctuations, thus providing a measure of
change due to organic growth factors such as price, product mix and
volume.
(3)
Represents the incremental sales in
comparison to the portion of the prior period during which we did
not own the business.
(4)
Represents the difference between prior
year sales valued at the actual prior year foreign exchange rates
and prior year sales valued at current year foreign exchange
rates.
Core Sales
Growth(1)(5)
Americas
EMEA & APAC
ESAB
$
Change %
$
Change %
$
Change %
For the six months ended June 30, 2023
$
601.8
$
725.1
$
1,326.9
Components of Change:
Existing businesses (core organic sales
growth)(2)
21.4
3.6
%
(4.5
)
(0.6
)%
16.9
1.3
%
Acquisitions(3)
3.6
0.6
%
0.1
—
%
3.7
0.3
%
Foreign Currency translation(4)
(21.0
)
(3.5
)%
(4.2
)
(0.6
)%
(25.1
)
(1.9
)%
Total core sales growth
4.0
0.7
%
(8.6
)
(1.2
)%
(4.5
)
(0.3
)%
For the six months ended June 28, 2024
$
605.8
$
716.6
$
1,322.4
(1)
Numbers may not sum due to rounding.
(2)
Excludes the impact of acquisitions and
foreign exchange rate fluctuations, thus providing a measure of
change due to organic growth factors such as price, product mix and
volume.
(3)
Represents the incremental sales in
comparison to the portion of the prior period during which we did
not own the business.
(4)
Represents the difference between prior
year sales valued at the actual prior year foreign exchange rates
and prior year sales valued at current year foreign exchange
rates.
(5)
Represents sales excluding Russia for the
six months ended June 28, 2024 and June 30, 2023.
Three Months Ended
Six Months Ended
June 28, 2024
June 30, 2023
June 28, 2024
June 30, 2023
Net cash provided by operating activities
(GAAP)
$
83.0
$
62.6
$
127.5
$
100.7
Purchases of property, plant and equipment
(GAAP)
(9.0
)
(9.3
)
(16.4
)
(17.0
)
Proceeds from the sale of certain
properties(1)
—
0.9
—
0.9
Payments related to the Separation(2)
—
—
—
4.4
Payments related to discontinued
operations
4.8
4.4
8.5
9.7
Adjusted free cash flow (non-GAAP)
$
78.8
$
58.6
$
119.5
$
98.7
(1)
Includes proceeds from the sale of certain
properties related to restructuring efforts for which previous cash
outlays were included in Net cash provided by operating
activities.
(2)
Separation payments relate to one-time
non-recurring professional fees and employee costs incurred in the
planning and execution of the Separation from Enovis.
ESAB CORPORATION
2024 Outlook
Dollars in millions, except
per share amounts
(Unaudited)
ESAB 2024 Outlook
Previous Guidance
New Guidance
2023 Core net sales
$2.62B
$2.62B
Organic growth
2.5%-4.5%
Flat
Acquisitions
0.5
%
1.0
%
Currency
(1.5
)%
(2.5
)%
2024 Core net sales growth
range
1.5%-3.5%
(2.5)%-(0.5)%
2023 Core adjusted EBITDA
$
482.7
$
482.7
2024 Core adjusted EBITDA range
$500-$520
$495-$515
2023 Core adjusted EPS
$
4.46
$
4.46
2024 Core adjusted EPS range
$4.75-$4.95
$4.75-$4.95
ESAB CORPORATION
CONSOLIDATED AND CONDENSED
BALANCE SHEETS
Dollars in thousands, except
share and per share amounts
(Unaudited)
June 28, 2024
December 31, 2023
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$
228,470
$
102,003
Trade receivables, less allowance for
credit losses of $25,372 and $25,477
431,207
385,198
Inventories, net
426,520
392,858
Prepaid expenses
62,879
61,771
Other current assets
63,477
55,890
Total current assets
1,212,553
997,720
Property, plant and equipment, net
287,195
294,305
Goodwill
1,583,888
1,588,331
Intangible assets, net
476,510
499,535
Lease assets - right of use
89,743
95,607
Other assets
317,222
353,131
Total assets
$
3,967,111
$
3,828,629
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Accounts payable
$
350,125
$
306,593
Accrued liabilities
300,971
313,489
Total current liabilities
651,096
620,082
Long-term debt
1,079,624
1,018,057
Other liabilities
486,966
542,833
Total liabilities
2,217,686
2,180,972
Equity:
Common stock - $0.001 par value -
Authorized 600,000,000, 60,438,838 and 60,295,634 shares
outstanding as of June 28, 2024 and December 31, 2023,
respectively
60
60
Additional paid-in capital
1,886,367
1,881,054
Retained earnings
484,918
350,557
Accumulated other comprehensive loss
(663,373
)
(624,272
)
Total ESAB Corporation equity
1,707,972
1,607,399
Noncontrolling interest
41,453
40,258
Total equity
1,749,425
1,647,657
Total liabilities and equity
$
3,967,111
$
3,828,629
ESAB CORPORATION
CONSOLIDATED AND CONDENSED
STATEMENTS OF CASH FLOWS
Dollars in thousands
(Unaudited)
Six Months Ended
June 28, 2024
June 30, 2023
Cash flows from operating
activities:
Net income
$
145,963
$
100,439
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation, amortization, and other
impairment charges
32,930
39,561
Stock-based compensation expense
9,886
7,462
Deferred income tax
1,760
998
Non-cash interest expense
1,632
597
Pension settlement loss
12,155
—
Changes in operating assets and
liabilities:
Trade receivables, net
(56,680
)
(28,942
)
Inventories, net
(42,144
)
(24,733
)
Accounts payable
53,574
3,267
Other operating assets and liabilities
(31,593
)
2,072
Net cash provided by operating
activities
127,483
100,721
Cash flows from investing
activities:
Purchases of property, plant and
equipment
(16,437
)
(16,999
)
Proceeds from sale of property, plant and
equipment
608
1,936
Acquisition, net of cash received
(18,050
)
(18,235
)
Other investing
(3,059
)
—
Net cash used in investing
activities
(36,938
)
(33,298
)
Cash flows from financing
activities:
Proceeds from borrowings on Senior
Notes
700,000
—
Proceeds from borrowings on revolving
credit facilities and other
205,000
280,000
Repayments of borrowings on Term Loans
(597,500
)
—
Repayments of borrowings on revolving
credit facilities and other
(237,005
)
(340,537
)
Payment of debt issuance costs and
other
(15,718
)
—
Payment of dividends
(7,278
)
(6,061
)
Distributions to noncontrolling interest
holders
(1,218
)
(1,274
)
Net cash provided by (used in)
financing activities
46,281
(67,872
)
Effect of foreign exchange rates on Cash
and cash equivalents
(10,359
)
2,874
Increase in Cash and cash
equivalents
126,467
2,425
Cash and cash equivalents, beginning of
period
102,003
72,024
Cash and cash equivalents, end of
period
$
228,470
$
74,449
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240802409815/en/
Investor Relations Contact:
Mark Barbalato Vice President, Investor Relations E-mail:
investorrelations@esab.com Phone: 1-301-323-9098
Media Contact: Tilea Coleman
Vice President, Corporate Communications E-mail:
mediarelations@esab.com Phone: 1-301-323-9092
ESAB (NYSE:ESAB)
Historical Stock Chart
From Sep 2024 to Oct 2024
ESAB (NYSE:ESAB)
Historical Stock Chart
From Oct 2023 to Oct 2024