ALPHARETTA, GA, November 4, 2020 -- Schweitzer-Mauduit
International, Inc. ("SWM" or the "Company") (NYSE: SWM) reported
earnings results for the three month and nine month periods ended
September 30, 2020.
Adjusted measures are reconciled to GAAP at the
end of this release. Financial and operating comparisons are
versus the prior year period and are from continuing
operations. Figures may not sum to total due to
rounding. Definitions: Advanced Materials & Structures
(AMS), Engineered Papers (EP), Low Ignition Propensity (LIP),
"organic" - excluding acquisition benefit, "Tekra" - Tekra and
Trient acquisition that closed in March 2020
Third Quarter 2020 Financial Results
Summary
- Third quarter results reflected strong EP segment performance
and positive sequential sales and profitability trend improvements
in AMS as demand recovers from COVID-19 impacts
- Total sales were $279.3 million, up 9%
- GAAP operating profit was $37.0 million, or 13.2% of sales, up
7%
- Adjusted operating profit was $52.7 million, or 18.9% of sales,
up 26%
- GAAP EPS was $0.78, down 13% due to EP segment restructuring
expenses
- Adjusted EPS was $1.16, up 15%
- Year-to-date operating cash flow was $107.5 million and free
cash flow was $84.0 million
Management Commentary
Dr. Jeff Kramer, Chief Executive Officer,
commented, "We are pleased to report a strong quarter with sales
and adjusted profit growth in both segments. While the pandemic
continued to impact some of our end-markets, the global SWM team
continues to perform well under challenging circumstances. Our top
priority remains keeping our employees safe while delivering
consistent service and high-quality products to our customers. All
of our sites were fully operational throughout the entire quarter,
a testament to our people's commitment to the safety protocols
implemented across the company."
“Third quarter results again demonstrated that our diversified
portfolio is capable of delivering growth throughout the varying
conditions in an economic cycle, even in uncertain times such as
these. Adjusted EPS grew 15%, exceeding our expectations, and
year-to-date Adjusted EPS is now up 6%. Engineered Papers segment
results were particularly strong in the quarter as volumes
increased and margins expanded. Part of the positive sales
performance was attributable to large customers increasing
inventory levels and building safety stocks in response to the
COVID-19 related disruptions earlier in 2020. EP was also solid
across the cost structure, including discretionary spending
controls, manufacturing efficiencies, and input costs. Lastly, we
continued to focus on our supply chain and were able to work
closely with one of our customers to further optimize our product
line, resulting in our announcement to close our Spotswood, NJ
facility without sacrificing volumes."
"AMS results continued to reflect some COVID-19 related
challenges, but the portfolio remained resilient with top and
bottom-line trends improving sequentially. Overall, organic sales
were down 8%, and down only 3% when excluding transportation films,
which is our most directly impacted product line. Transportation
sales, though lower, improved sequentially as we have begun to see
improved order patterns. While COVID-19 risks remain, we are
optimistic that this important channel will resume sales growth in
the fourth quarter and enter 2021 on a healthy trajectory.
Air filtration products saw accelerated growth in the quarter
helping overall filtration sales, and medical and industrial
continued their positive momentum. Despite some top-line headwinds,
operating profits increased in the quarter with contributions from
the Tekra acquisition, effective cost controls, and lower input
costs providing positive offsets."
Dr. Kramer concluded, "As we enter the final quarter of 2020, we
are proud of our achievements to date and believe we are in
position to close out the year on a positive note. From a financial
standpoint we are on track to deliver another year with
approximately $100 million of free cash flow, have de-levered the
balance sheet since making the Tekra acquisition, and continued to
return capital to our shareholders through dividends. Our business
has withstood significant pressures on operations, end-markets, and
people, who not only managed their daily responsibilities to
deliver strong results through unprecedented times, but also
advanced numerous strategic initiatives to support our long-term
growth prospects."
Third Quarter 2020 Financial Results
Advanced Materials & Structures
segment sales were $138.9 million, up 10%, including the benefit
from the Tekra acquisition, while organic sales decreased 8% due
mostly to COVID-19 related impacts. The organic sales decline
improved sequentially from the 15% decline in 2Q:20 as demand began
to recover in transportation and infrastructure and construction.
Sales into medical end-markets increased in the high single-digits,
driven by continued robust volumes of facemask materials and
specialty hospital products. Industrial products also increased
largely due to continued strong sales of packaging films, while
filtration sales were flat as high growth in air filtration offset
softness in other areas. The Company's automotive aftermarket paint
protection film sales have been significantly impacted in 2020 due
to the global disruption of the auto industry. However, the third
quarter sales decrease was a significant improvement from the
sharper decline experienced during the second quarter, and
management expects continued improvements in the near-term.
Excluding transportation sales, AMS organic sales declined
3%. Infrastructure and construction sales were lower versus
last year, but the third quarter sales decrease also improved
compared to the 2Q:20 decline as COVID-19 related pressures began
to subside.
GAAP operating profit was $18.5 million, or
13.3% of sales, down 4%, reflecting higher purchase accounting
expenses related to the Tekra acquisition. Adjusted operating
profit was $25.0 million, up 2%, with margin down 130 basis points
to 18.0%. SG&A expense reductions and lower raw material costs
were offset by the organic sales decline and the negative mix
effect of the lower margin acquired Tekra business. On a
sequential basis, third quarter adjusted operating margin increased
230 basis points from 15.7% in the second quarter of 2020.
Engineered Papers segment sales were
$140.4 million, up 8%, driven by a 2% volume increase and favorable
price/mix performance of 6% (currency was neutral). Higher volumes
benefited from strong growth across cigarette paper products as
customers increased inventory levels to de-risk their supply chains
in the event of future potential disruptions from COVID-19. These
volume gains were partially offset by the continued de-emphasizing
of lower-margin non-tobacco paper products. Price/mix improved due
to the strong sales of higher-value cigarette papers, including
LIP, coupled with the favorable mix impact of lower non-tobacco
volumes.
GAAP operating profit was $28.2 million, or
20.1% of sales, up 3%. Adjusted operating profit was $37.3 million,
up 26%, with adjusted operating margin expanding 400 basis points
to 26.6%. Margins increased primarily due to good performance in
LIP and other cigarette papers, ongoing cost reduction activities,
and lower wood pulp input costs. Currency movements resulted in a
negative $1.1 million impact to operating profit.
Spotswood, NJ facility closure. During the
third quarter, the Company reached an agreement with a large
customer to shift production of papers purchased from the Company's
Spotswood, New Jersey site (which exclusively served this customer)
to other SWM facilities. As part of the transition, the Company
worked collaboratively with the customer to co-develop a new
production technology to better meet the customer's needs. The
Company has begun the process of shutting down the Spotswood
facility, which is expected to be completed by the end of 2020, and
SWM and the customer have signed a new multi-year supply agreement.
The Company incurred $7.4 million of restructuring and related
site-closure costs during the third quarter which are excluded from
adjusted financial metrics (see below non-GAAP Adjustments
discussion and non-GAAP reconciliation tables). The Company also
expects to record additional expenses in the fourth quarter of
approximately $2 million. Of the total expected $10 million of 2020
expenses related to the site closure, approximately half is
expected to be non-cash.
Unallocated GAAP and adjusted expenses
were $9.7 million and $9.6 million, respectively, versus $12.0
million for each in 3Q:19. Adjusted unallocated expenses were down
$2.4 million, and were 3.4% of total sales, down 130 basis points.
The decrease was related to timing of certain administrative and
third-party consulting fees.
Consolidated sales were $279.3 million,
up 9%, and currency impacts were immaterial. Excluding the Tekra
acquisition benefit, organic sales were flat. GAAP operating profit
was $37.0 million, up 7%, and GAAP operating profit margin was
13.2%. Adjusted operating profit was $52.7 million, up 26%, and
adjusted operating profit margin was 18.9%, up 260 basis points.
Adjusted EBITDA was $64.2 million, up 25%, and adjusted EBITDA
margin was 23.0%, up 300 basis points.
GAAP income was $24.5 million, down 12%; GAAP
EPS was $0.78. Adjusted income was $36.4 million, up 17%; Adjusted
EPS was $1.16.
Interest expense was $7.8 million, up from $6.7
million; interest expense on debt increased $0.5 million due to
higher average debt balances as a result of the Tekra acquisition
with the remainder of the increase reflecting year-ago expense
reversals related to Brazil tax assessments. Other expense was $1.0
million, versus other income of $1.7 million in the prior year
quarter.
The Company reported a tax rate of 17.0%, versus
10.8% in the prior year period. Excluding the impact of non-GAAP
adjustments, the third quarter 2020 tax rate was 19.7% (the implied
rate reflected in the Company's Adjusted EPS), versus 17.9% in the
prior year quarter, with the increase due to a shift in the
geographic earnings mix.
The Company's Chinese JVs contributed $0.04 to
both GAAP and Adjusted EPS, unchanged versus the prior year
quarter.
Net currency movements had a $1.0 million
negative impact on operating profits and the translation impact of
net currency movements was negative $0.03 to both GAAP EPS and
Adjusted EPS.
Non-GAAP Adjustments reflect items
included in GAAP operating profit, income, and EPS, but excluded
from adjusted operating profit, income, and EPS (see non-GAAP
reconciliation tables). The most significant adjustments to third
quarter 2020 results were related to the planned Spotswood site
shutdown within the EP segment. During 3Q:20 the company recorded
restructuring costs of $4.2 million, primarily related to
severance, which are reflected in the restructuring and impairment
expenses on the consolidated income statement. The Company also
recorded related site closure costs of $3.2 million primarily
related to accelerated depreciation and spare parts inventory
write-downs that are reflected in costs of goods sold on the income
statement. Under GAAP these are not considered restructuring
expenses. In aggregate, the $7.4 million of site shutdown costs are
excluded from all adjusted financial metrics and equate to $0.18
per share.
In addition to the Spotswood shutdown costs,
non-GAAP adjustments included other EP segment restructuring
expenses of $0.05 per share related to cost reduction activities,
and purchase accounting expenses of $0.15 per share (purchase
accounting expenses reflect the ongoing non-cash intangible asset
amortization, as well as non-cash one-time inventory step-up
charges, associated with AMS acquisitions). The most significant
prior year quarter non-GAAP adjustments included purchase
accounting expenses of $0.13 per share, $0.05 per share of
restructuring expenses, and $0.07 of various tax benefits that were
excluded from Adjusted EPS.
2020 Year-to-Date Financial Results
Advanced Materials & Structures
segment sales were $394.6 million, up 6%, including the acquisition
benefit from the Tekra acquisition, while organic sales decreased
9%. COVID-19 related pressures in several end-markets began in the
first quarter and persisted through the third quarter, but are
beginning to subside. Medical sales exhibited strong double-digit
growth, driven by significant demand for facemask materials and
specialty hospital products. Industrial products also increased,
largely due to higher demand for packaging films and materials for
wind turbine manufacturing. Filtration sales declined slightly with
strong air filtration growth offsetting softness in other areas.
Infrastructure and construction sales declined, primarily due to
overall weakness in the oil and gas sector. Transportation
experienced the most significant decline in the portfolio, as
discussed above. Excluding transportation sales, AMS organic sales
were down only 1% versus the prior year period. GAAP operating
profit was $45.3 million, down 17%, which reflected higher purchase
accounting expenses related to the Tekra acquisition. Adjusted
operating profit was $65.1 million, down 7%, with margin
contracting 220 basis points to 16.5%. The organic sales decline
and the addition of the lower margin Tekra business contributed to
the margin contraction, offsetting effective SG&A expense
controls and lower raw material costs.
Engineered Papers segment sales were
$400.4 million down 3%, but down 1% versus the prior year period
absent negative currency impacts due mostly to a lower Euro
exchange rate. Positive price/mix performance of 4% offset a volume
decline of 5%. Price/mix benefited from a higher mix of LIP volumes
and smaller proportion of lower-margin non-tobacco volumes compared
to the prior year period. The year-to-date volume decline was
driven primarily by cigarette paper declines consistent with
industry attrition and the continued strategic de-emphasis of
non-tobacco volumes. GAAP operating profit was $93.3 million, up
5%, and included the $7.4 million site closure expenses related to
the Spotswood, NJ facility as discussed above. Adjusted operating
profit was $103.6 million, up 13%, with adjusted operating margin
increasing 350 basis point to 25.9%. Year-to-date profits and
margins increased mainly due to positive price/mix impacts, cost
structure improvements, lower raw material costs, and currency,
which more than offset the impacts of lower volumes and the
temporary site closures related to COVID-19 during the second
quarter of 2020. Currency movements resulted in a $2.5 million
benefit to operating profit, due to lower local currency operating
costs in Brazil.
Unallocated GAAP and adjusted expenses
were each $33.1 million and $33.0 million, respectively, versus
$33.9 million for each in the prior year period. Adjusted
unallocated expenses were down $0.9 million, and were 4.1% of total
sales, down 20 basis points.
Consolidated sales were $795.0 million,
up 1%, or up 2% absent negative Euro-driven currency impacts.
Excluding the Tekra acquisition benefit, organic sales declined 5%.
GAAP operating profit was $105.5 million, down 3%, and GAAP
operating profit margin was 13.3%. Adjusted operating profit was
$135.7 million, up 6%, and adjusted operating profit margin was
17.1% up 80 basis points. Adjusted EBITDA was $166.0 million, up
6%, and adjusted EBITDA margin was 20.9%, up 100 basis points.
GAAP income was $68.5 million, up 4%; GAAP EPS
was $2.18. Adjusted income was $90.9 million, up 7%; this equated
to Adjusted EPS of $2.91.
Interest expense was $22.8 million, down from
$29.6 million, with the decrease due mainly to $7.1 million of
non-recurring interest expense in the prior year period related to
Brazil tax assessments. Interest expense on debt was $22.8 million,
up $0.3 million. Other expense was $0.7 million, versus other
expense of $1.6 million in the prior year period.
The Company reported a tax rate of 18.9%, versus
16.4% in the prior year period. Excluding the impact of non-GAAP
adjustments, the year-to-date tax rate was 20.8% (the implied rate
reflected in the Company's Adjusted EPS), versus 20.2% in the prior
year period.
The Company's Chinese JVs contributed $0.06 to
both GAAP and Adjusted EPS, versus $0.01 per share in the prior
year period, due to higher volumes.
Net currency movements were a $2.4 million
benefit to operating profits and the translation impact of net
currency movements was positive $0.04 to both GAAP EPS and Adjusted
EPS.
Non-GAAP Adjustments reflect items
included in GAAP operating profit, income, and EPS, but excluded
from adjusted operating profit, income, and EPS (see non-GAAP
reconciliation tables). The most significant adjustments to
year-to-date 2020 results were purchase accounting expenses of
$0.47 per share (purchase accounting expenses reflect the ongoing
non-cash intangible asset amortization, as well as non-cash
one-time inventory step-up charges, associated with AMS
acquisitions). The Company also recorded restructuring and
impairment expenses and related site closure expenses which totaled
$0.27 per share; these expenses were primarily in the EP segment
and related mostly to the Spotswood, NJ site closure (discussed
above). The most significant prior year period non-GAAP adjustments
included purchase accounting expenses of $0.41 per share, $0.21 per
share of expenses related to the Brazil tax assessments, and $0.06
per share of restructuring expenses.
Cash Flow, Debt, & Dividend
Year-to-date 2020 cash provided by operating
activities was $107.5 million, down from $118.9 million, due
primarily to timing of working capital changes. The Company's
working capital-related cash outflows were $19.0 million, compared
to $9.1 million in the prior year period.
Capital spending and capitalized software
totaled $23.5 million, down $0.4 million, which annualizes below
the $40 million to $45 million capital expenditure guidance the
Company provided in February 2020. In response to COVID-19 related
impacts to certain end-markets, management continues to monitor
cash flow trends and has deferred some discretionary capital
spending originally planned for 2020. Year-to-date free cash flow
was $84.0 million compared to $95.0 million in the prior year
period.
On March 13, 2020, the Company closed on the
Tekra acquisition. The total net cash consideration of $169.3
million was comprised of the originally announced $155.0 million
purchase price as well as customary post-closing adjustments, which
relate primarily to tax benefits expected to be realized by the
Company. The Company funded the transaction using its previously
undrawn credit revolver.
Total debt was $632.9 million as of
September 30, 2020, up $90.2 million from year end 2019,
reflecting the Tekra acquisition financing, and total cash was
$66.3 million; net debt was $566.6 million on September 30,
2020, up $126.9 million. The Company's total debt is comprised
primarily of $90 million of borrowings under the revolving credit
facility, which is due in 2023 and represents the Company's nearest
material debt maturity, $196 million of an outstanding term loan
due in 2025, and $350 million of senior notes due in 2026 (these
amounts do not sum to total debt due mainly to unamortized discount
and issuance costs). The Company's liquidity position is $476
million, consisting of $66 million of cash and $410 million of
revolver availability, which takes into account $5 million of
letters of credit issued by the Company. Management believes
current cash balances, anticipated cash generation, and borrowing
capacity will be sufficient to fund the Company's operating needs
and financial obligations, including dividend payments.
Pursuant to the debt covenants, the Company's
net debt to adjusted EBITDA was approximately 2.5x as of
September 30, 2020, up from 2.1x from year end 2019, due
primarily to financing the Tekra acquisition. Per the terms of the
Company's credit agreement, the Company's maximum leverage covenant
is 5.0x through the duration of 2020 and is required to be below
4.5x by the end of the second quarter of 2021.
The Company announced a quarterly cash dividend
of $0.44 per share. The dividend will be payable on
December 18, 2020 to stockholders of record as of
November 27, 2020. Through the third quarter of 2020, the
Company has paid dividends to stockholders totaling $41.2
million.
Conference Call
SWM will hold a conference call to review third
quarter 2020 results with investors and analysts at 8:30 a.m.
Eastern time on Thursday, November 5, 2020. The earnings conference
call will be simultaneously broadcast over the Internet at
www.swmintl.com. To listen to the call, please go to the
Company’s website at least 15 minutes prior to the call to register
and to download and install any necessary audio software. For those
unable to listen to the live broadcast, a replay will be available
on the Company’s website shortly after the call.
SWM will use a presentation in conjunction with
its conference call. The presentation can be found on the
Company's website under the Investor Relations section in advance
of the earnings conference call. The presentation can also be
accessed via the earnings conference call webcast.
About SWM
SWM is a leading global performance materials company. Our
highly engineered papers, films, nets and nonwovens are designed
and manufactured using natural fibers and polymers for a variety of
industries and applications. We provide our customers with critical
components that enhance the performance of their products. End
markets served include filtration, transportation, infrastructure
and construction, medical, industrial, tobacco, energy, food
services and home décor. SWM and its subsidiaries manufacture on
four continents, conduct business in over 90 countries and employ
approximately 3,400 people worldwide. For further information,
please visit SWM’s website at www.swmintl.com.
Forward-Looking Statements
This press release contains forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995 and other federal securities laws that are
subject to the safe harbor created by such laws and other legal
protections. Forward-looking statements include, without
limitation, those regarding future performance, capital
expenditures, future market and EPS trends, sales and volume
trends, growth prospects, currency rates and trends and impact on
EPS, future cash flows, effective tax rates, planned
investments, impacts of the COVID-19 pandemic on our operations,
profitability, and cash flow, and other statements generally
identified by words such as "believe," "expect," "intend,"
"guidance," "plan," "forecast," "potential," "anticipate,"
"confident," "project," "appear," "future," "should," "likely,"
"could," "may," "typically," "will," and similar words. These
statements are not guarantees of future performance and certain
risks, uncertainties (some of which are beyond the Company’s
control) and assumptions that may cause actual results to differ
materially from our expectations as of the date of this
release. These risks include, among other things, the
following factors:
- Risks associated with pandemics and other public health
emergencies, including the continued spread and impact of, and the
governmental and third party response to, the COVID-19
pandemic;
- The impact of mandatory business closures, limits on
non-essential travel, “social or physical distancing” guidelines,
“shelter-in-place” mandates and similar governmental and private
measures taken to combat the spread of COVID-19;
- Changes in sales or production volumes, pricing and/or
manufacturing costs of Recon products, cigarette paper (including
for LIP cigarettes), including any change by our customers in their
tobacco and tobacco-related blends for their cigarettes, their
target inventory levels and/or the overall demand for their
products, new technologies such as e-cigarettes, inventory
adjustments and rebalancings in our EP segment. Additionally,
competition and changes in AMS end-market products due to changing
customer demands;
- Changes in the Chinese economy, including relating to the
demand for reconstituted tobacco, premium cigarettes and netting
and due to impact of tariffs;
- Risks associated with the implementation of our strategic
growth initiatives, including diversification, and the Company's
understanding of, and entry into, new industries and
technologies;
- Changes in the source and intensity of competition in our
commercial segments. We operate in highly competitive markets
in which alternative supplies and technologies may attract our
customers away from our products. In addition, our customers
may, in some cases, produce for themselves the components that the
Company sells to them for incorporation into their products, thus
reducing or eliminating their purchases from us;
- Our ability to attract and retain key personnel, due to our
prior restructuring actions, the tobacco industry in which we
operate or otherwise;
- Weather conditions, including potential impacts, if any, from
climate change, known and unknown, seasonality factors that affect
the demand for virgin tobacco leaf and natural disasters or unusual
weather events;
- Seasonal or cyclical market and industry fluctuations which may
result in reduced net sales and operating profits during certain
periods;
- Increases in commodity prices and lack of availability of such
commodities, including energy, wood pulp and resins, which could
impact the sales and profitability of our products;
- Adverse changes in the oil, gas, automotive, construction and
infrastructure, and mining sectors impacting key AMS segment
customers;
- Increases in operating costs due to inflation or otherwise,
such as labor expense, compensation and benefits costs;
- Employee retention and labor shortages;
- Changes in employment, wage and hour laws and regulations in
the U.S., France and elsewhere, including the loi de Securisation
de l'emploi in France, unionization rule and regulations by the
National Labor Relations Board in the U.S., equal pay initiatives,
additional anti-discrimination rules or tests and different
interpretations of exemptions from overtime laws;
- Labor strikes, stoppages, disruptions or other disruptions at
our facilities;
- The impact of tariffs, and the imposition of any future
additional tariffs and other trade barriers, and the effects of
retaliatory trade measures;
- Existing and future governmental regulation and the enforcement
thereof, for example relating to the tobacco industry, taxation and
the environment (including the impact thereof on our Chinese joint
ventures);
- New reports as to the effect of smoking on human health or the
environment;
- Changes in general economic, financial and credit conditions in
the U.S., Europe, China and elsewhere, including the impact thereof
on currency exchange rates (including any weakening of the Euro and
Real) and on interest rates and the effects of the ongoing
discussions between the U.K. and European Union to determine the
terms of the U.K.'s withdrawal from the European Union;
- Changes in the method pursuant to which LIBOR rates are
determined and the potential phasing out of LIBOR after 2021;
- Changes in the manner in which we finance our debt and future
capital needs, including potential acquisitions;
- The success of, and costs associated with, our current or
future restructuring initiatives, including the granting of any
needed governmental approvals and the occurrence of work stoppages
or other labor disruptions;
- Changes in the discount rates, revenue growth, cash flow growth
rates or other assumptions used by the Company in its assessment
for impairment of assets and adverse economic conditions or other
factors that would result in significant impairment charges;
- The failure of one or more material suppliers, including
energy, resin and pulp suppliers, to supply materials as needed to
maintain our product plans and cost structure;
- International conflicts and disputes, which restrict our
ability to supply products into affected regions, due to the
corresponding effects on demand, the application of international
sanctions, or practical consequences on transportation, banking
transactions, and other commercial activities in troubled
regions;
- Compliance with the FCPA and other anti-corruption laws or
trade control laws, as well as other laws governing our
operations;
- The pace and extent of further international adoption of LIP
cigarette standards and the nature of standards so adopted;
- Risks associated with our 50%-owned, non-U.S. joint ventures
relating to control and decision-making, compliance, accounting
standards, transparency and customer relations, among others;
- A failure in our risk management and/or currency or interest
rate swaps and hedging programs, including the failures of any
insurance company or counterparty;
- The number, type, outcomes (by judgment or settlement) and
costs of legal, tax, regulatory or administrative proceedings,
litigation and/or amnesty programs, including those in Brazil,
France and Germany;
- The outcome and cost of LIP-related intellectual property
infringement and validity litigation in Europe and the Glatz's
German Patent Court invalidation proceedings;
- Risks associated with our technological advantages in our
intellectual property and the likelihood that our current
technological advantages are unable to continue indefinitely;
- Risks associated with acquisitions or other strategic
transactions, including acquired liabilities and restrictions,
retaining customers from businesses acquired, achieving any
expected results or synergies from acquired businesses, complying
with new regulatory frameworks, difficulties in integrating
acquired businesses or implementing strategic transactions
generally and risks associated with international acquisition
transactions, including in countries where we do not currently have
a material presence;
- Risks associated with dispositions, including post-closing
claims being made against us, disruption to our other businesses
during a sale process or thereafter, credit risks associated with
any buyer of such disposed assets and our ability to collect funds
due from any such buyer;
- Risks associated with our global asset realignment initiatives,
including: changes in tax law, treaties, interpretations, or
regulatory determinations; audits made by applicable regulatory
authorities and/or our auditor; and our ability to operate our
business in a manner consistent with the regulatory requirements
for such realignment;
- Increased taxation on tobacco-related products;
- Costs and timing of implementation of any upgrades or changes
to our information technology systems;
- Failure by us to comply with any privacy or data security laws
or to protect against theft of customer, employee and corporate
sensitive information;
- Changes in tax rates, the adoption of new U.S. or international
tax legislation or exposure to additional tax liabilities;
- Changes in construction and infrastructure spending and its
impact on demand for certain products;
- Potential loss of consumer awareness and demand for acquired
companies’ products if it is decided to rebrand those products
under the Company’s legacy brand names; and
- Other factors described elsewhere in this document and from
time to time in documents that we file with the SEC.
All forward-looking statements made in this
document are qualified by these cautionary statements.
Forward-looking statements herein are made only as of the date of
this document, and we do not undertake any obligation, other than
as may be required by law, to update or revise any forward-looking
or cautionary statements to reflect changes in assumptions, the
occurrence of events, unanticipated or otherwise, or changes in
future operating results over time or otherwise.
Comparisons of results for current and any prior
periods are not intended to express any future trends or
indications of future performance unless expressed as such and
should only be viewed as historical data. The financial
results reported in this release are unaudited.
For additional factors and further discussion of
these factors, please see SWM's Annual Report on Form 10-K for the
year ended December 31, 2019, Quarterly Reports on Form 10-Q
for the quarters ended March 31, 2020 and June 30, 2020, and other
reports we file from time to time, which can be found at the SEC’s
website www.sec.gov. The discussion of these risks is specifically
incorporated by reference into this release. The financial results
reported in this release are unaudited.
Non-GAAP Financial Measures
Certain financial measures and comments
contained in this press release exclude restructuring and
impairment expenses, certain purchase accounting adjustments
related to AMS segment acquisitions, interest expense, the effect
of income tax provisions and other tax impacts, capital spending,
capitalized software costs, loss from discontinued operations, and
depreciation and amortization. This press release also
provides certain information regarding the Company's financial
results excluding currency impacts. This information
estimates the impact of changes in foreign currency rates on the
translation of the Company's current financial results as compared
to the applicable comparable period and is derived by translating
the current local currency results into U.S. Dollars based upon the
foreign currency exchange rates for the applicable comparable
period. Financial measures which exclude or include these
items have not been determined in accordance with accounting
principles generally accepted in the United States (GAAP) and are
therefore "non-GAAP" financial measures. Reconciliations of these
non-GAAP financial measures to the most closely analogous measure
determined in accordance with GAAP are included in the financial
schedules attached to this release.
The Company believes that the presentation of
non-GAAP financial measures in addition to the related GAAP
measures provides investors with greater transparency on the
information used by the Company’s management in its financial and
operational decision-making. Management also believes that
the non-GAAP financial measures provide additional insight for
analysts and investors in evaluating the Company’s financial and
operational performance in the same way that management evaluates
the Company's financial performance. Management believes that
providing this information enables investors to better understand
the Company’s operating performance and financial condition.
These non-GAAP financial measures are not calculated or presented
in accordance with, and are not intended to be considered in
isolation or as alternatives or substitutes for, or superior to,
financial measures prepared and presented in accordance with GAAP,
and should be read only in conjunction with the Company's financial
measures prepared and presented in accordance with GAAP. The
non-GAAP financial measures used in this release may be different
from the measures used by other companies.
SOURCE SWM:
CONTACT
Andrew WamserChief Financial
Officer+1-770-569-4271
Or
Mark ChekanowDirector of Investor
Relations+1-770-569-4229
Website: http://www.swmintl.com
SCHWEITZER-MAUDUIT INTERNATIONAL, INC. AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF
INCOME(Dollars in millions, except per share
amounts)(Unaudited)
|
Three Months Ended September 30, |
|
|
|
2020 |
|
2019 |
|
% Change |
Net sales |
$ |
279.3 |
|
|
$ |
256.4 |
|
|
8.9 |
% |
Cost of products sold |
199.1 |
|
|
184.2 |
|
|
8.1 |
|
Gross profit |
80.2 |
|
|
72.2 |
|
|
11.1 |
|
|
|
|
|
|
|
Selling expense |
9.0 |
|
|
8.6 |
|
|
4.7 |
|
Research and development expense |
3.6 |
|
|
3.1 |
|
|
16.1 |
|
General expense |
24.6 |
|
|
24.3 |
|
|
1.2 |
|
Total nonmanufacturing expenses |
37.2 |
|
|
36.0 |
|
|
3.3 |
|
|
|
|
|
|
|
Restructuring and
impairment expense |
6.0 |
|
|
1.6 |
|
|
N.M. |
Operating
profit |
37.0 |
|
|
34.6 |
|
|
6.9 |
|
Interest expense |
7.8 |
|
|
6.7 |
|
|
16.4 |
|
Other (expense) income, net |
(1.0) |
|
|
1.7 |
|
|
N.M. |
Income from
continuing operations before income taxes and income from equity
affiliates |
28.2 |
|
|
29.6 |
|
|
(4.7) |
|
|
|
|
|
|
|
Provision for income taxes |
4.8 |
|
|
3.2 |
|
|
50.0 |
|
Income from equity affiliates, net of income taxes |
1.1 |
|
|
1.3 |
|
|
(15.4) |
|
Income from
continuing operations |
24.5 |
|
|
27.7 |
|
|
(11.6) |
|
Net income |
$ |
24.5 |
|
|
$ |
27.7 |
|
|
(11.6) |
% |
|
|
|
|
|
|
Net income per
share - basic: |
|
|
|
|
|
Income per share from continuing operations |
$ |
0.78 |
|
|
$ |
0.90 |
|
|
(13.3) |
% |
Net income per share – basic |
$ |
0.78 |
|
|
$ |
0.90 |
|
|
(13.3) |
% |
|
|
|
|
|
|
Net income per
share – diluted: |
|
|
|
|
|
Income per share from continuing operations |
$ |
0.78 |
|
|
$ |
0.90 |
|
|
(13.3) |
% |
Net income per share – diluted |
$ |
0.78 |
|
|
$ |
0.90 |
|
|
(13.3) |
% |
|
|
|
|
|
|
Cash dividends
declared per share |
$ |
0.44 |
|
|
$ |
0.44 |
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
30,909,700 |
|
|
30,662,800 |
|
|
|
|
|
|
|
|
|
Diluted |
31,142,500 |
|
|
30,831,900 |
|
|
|
N.M. - Not Meaningful
SCHWEITZER-MAUDUIT INTERNATIONAL, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF
INCOME(Dollars in millions, except per share
amounts)(Unaudited)
|
Nine Months Ended September 30, |
|
|
|
2020 |
|
2019 |
|
% Change |
Net sales |
$ |
795.0 |
|
|
$ |
784.3 |
|
|
1.4 |
% |
Cost of products sold |
566.2 |
|
|
565.2 |
|
|
0.2 |
|
Gross profit |
228.8 |
|
|
219.1 |
|
|
4.4 |
|
|
|
|
|
|
|
Selling expense |
27.3 |
|
|
25.8 |
|
|
5.8 |
|
Research and development expense |
10.4 |
|
|
10.1 |
|
|
3.0 |
|
General expense |
77.9 |
|
|
72.0 |
|
|
8.2 |
|
Total nonmanufacturing expenses |
115.6 |
|
|
107.9 |
|
|
7.1 |
|
|
|
|
|
|
|
Restructuring and
impairment expense |
7.7 |
|
|
2.0 |
|
|
N.M. |
Operating
profit |
105.5 |
|
|
109.2 |
|
|
(3.4) |
|
Interest expense |
22.8 |
|
|
29.6 |
|
|
(23.0) |
|
Other expense, net |
(0.7) |
|
|
(1.6) |
|
|
(56.3) |
|
Income from
continuing operations before income taxes and income from equity
affiliates |
82.0 |
|
|
78.0 |
|
|
5.1 |
|
|
|
|
|
|
|
Provision for income taxes |
15.5 |
|
|
12.8 |
|
|
21.1 |
|
Income from equity affiliates, net of income taxes |
2.0 |
|
|
0.4 |
|
|
N.M. |
Income from
continuing operations |
68.5 |
|
|
65.6 |
|
|
4.4 |
|
Net income |
$ |
68.5 |
|
|
$ |
65.6 |
|
|
4.4 |
% |
|
|
|
|
|
|
Net income per
share - basic: |
|
|
|
|
|
Income per share from continuing operations |
$ |
2.19 |
|
|
$ |
2.13 |
|
|
2.8 |
% |
Net income per share – basic |
$ |
2.19 |
|
|
$ |
2.13 |
|
|
2.8 |
% |
|
|
|
|
|
|
Net income per
share – diluted: |
|
|
|
|
|
Income per share from continuing operations |
$ |
2.18 |
|
|
$ |
2.12 |
|
|
2.8 |
% |
Net income per share – diluted |
$ |
2.18 |
|
|
$ |
2.12 |
|
|
2.8 |
% |
|
|
|
|
|
|
Cash dividends
declared per share |
$ |
1.32 |
|
|
$ |
1.32 |
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
30,805,300 |
|
|
30,648,400 |
|
|
|
|
|
|
|
|
|
Diluted |
31,020,100 |
|
|
30,804,700 |
|
|
|
N.M. - Not Meaningful
SCHWEITZER-MAUDUIT INTERNATIONAL, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE
SHEETS(Dollars in
millions)(Unaudited)
|
September 30, 2020 |
|
December 31, 2019 |
ASSETS |
|
|
|
Cash and cash
equivalents |
$ |
66.3 |
|
|
$ |
103.0 |
|
Accounts
receivable, net |
166.5 |
|
|
143.2 |
|
Inventories |
172.8 |
|
|
161.4 |
|
Other current
assets |
16.8 |
|
|
19.9 |
|
Property, plant
and equipment, net |
327.7 |
|
|
330.3 |
|
Goodwill |
400.3 |
|
|
337.4 |
|
Other noncurrent
assets |
440.2 |
|
|
376.5 |
|
Total Assets |
$ |
1,590.6 |
|
|
$ |
1,471.7 |
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
Current debt |
$ |
2.7 |
|
|
$ |
1.9 |
|
Other current
liabilities |
156.6 |
|
|
155.7 |
|
Long-term
debt |
630.2 |
|
|
540.8 |
|
Pension and other
postretirement benefits |
33.6 |
|
|
31.6 |
|
Deferred income
tax liabilities |
48.7 |
|
|
48.2 |
|
Long-term income
tax payable |
17.6 |
|
|
21.4 |
|
Other noncurrent
liabilities |
72.7 |
|
|
74.4 |
|
Stockholders’
equity |
628.5 |
|
|
597.7 |
|
Total Liabilities and Stockholders’ Equity |
$ |
1,590.6 |
|
|
$ |
1,471.7 |
|
SCHWEITZER-MAUDUIT INTERNATIONAL, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOW(Dollars in
millions)(Unaudited)
|
Nine Months Ended September 30, |
|
2020 |
|
2019 |
Operating |
|
|
|
Net income |
$ |
68.5 |
|
|
$ |
65.6 |
|
Non-cash items included in net income: |
|
|
|
Depreciation and amortization |
52.3 |
|
|
43.4 |
|
Deferred income tax |
1.5 |
|
|
(2.2) |
|
Pension and other postretirement benefits |
2.6 |
|
|
2.1 |
|
Stock-based compensation |
5.6 |
|
|
4.0 |
|
Loss from equity affiliates |
(2.0) |
|
|
(0.4) |
|
Brazil tax assessment accruals, net |
— |
|
|
10.9 |
|
Cash dividends received from equity affiliates |
2.7 |
|
|
2.6 |
|
Other items |
(4.7) |
|
|
2.0 |
|
Changes in operating working capital |
(19.0) |
|
|
(9.1) |
|
Cash provided by operations |
107.5 |
|
|
118.9 |
|
|
|
|
|
Investing |
|
|
|
Capital spending |
(20.7) |
|
|
(20.0) |
|
Capitalized software costs |
(2.8) |
|
|
(3.9) |
|
Acquisitions, net of cash acquired |
(169.3) |
|
|
— |
|
Other investing |
2.3 |
|
|
1.1 |
|
Cash used in investing |
(190.5) |
|
|
(22.8) |
|
|
|
|
|
Financing |
|
|
|
Cash dividends paid to SWM stockholders |
(41.2) |
|
|
(40.8) |
|
Changes in short-term debt |
— |
|
|
(0.1) |
|
Proceeds from issuances of long-term debt |
212.7 |
|
|
0.1 |
|
Payments on long-term debt |
(124.6) |
|
|
(60.9) |
|
Purchases of common stock |
(0.9) |
|
|
(1.0) |
|
Cash provided by (used in) financing |
46.0 |
|
|
(102.7) |
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents |
0.3 |
|
|
(2.3) |
|
|
|
|
|
Decrease in cash
and cash equivalents |
$ |
(36.7) |
|
|
$ |
(8.9) |
|
SCHWEITZER-MAUDUIT INTERNATIONAL, INC. AND
SUBSIDIARIESBUSINESS SEGMENT
REPORTING(Dollars in
millions)(Unaudited)
Net Sales |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2020 |
|
2019 |
|
% Change |
|
2020 |
|
2019 |
|
% Change |
AMS |
$ |
138.9 |
|
|
$ |
126.1 |
|
|
10.2 |
% |
|
$ |
394.6 |
|
|
$ |
373.3 |
|
|
5.7 |
% |
EP |
140.4 |
|
|
130.3 |
|
|
7.8 |
% |
|
400.4 |
|
|
411.0 |
|
|
(2.6) |
% |
Total Consolidated |
$ |
279.3 |
|
|
$ |
256.4 |
|
|
8.9 |
% |
|
$ |
795.0 |
|
|
$ |
784.3 |
|
|
1.4 |
% |
Operating Profit |
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
|
|
|
Return on Net Sales |
|
|
|
|
|
Return on Net Sales |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
AMS |
$ |
18.5 |
|
|
$ |
19.3 |
|
|
13.3 |
% |
|
15.3 |
% |
|
$ |
45.3 |
|
|
$ |
54.6 |
|
|
11.5 |
% |
|
14.6 |
% |
EP |
28.2 |
|
|
27.3 |
|
|
20.1 |
% |
|
21.0 |
% |
|
93.3 |
|
|
88.5 |
|
|
23.3 |
% |
|
21.5 |
% |
Unallocated |
(9.7) |
|
|
(12.0) |
|
|
|
|
|
|
(33.1) |
|
|
(33.9) |
|
|
|
|
|
Total Consolidated |
$ |
37.0 |
|
|
$ |
34.6 |
|
|
13.2 |
% |
|
13.5 |
% |
|
$ |
105.5 |
|
|
$ |
109.2 |
|
|
13.3 |
% |
|
13.9 |
% |
Non-GAAP Adjustments to Operating Profit |
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
AMS - Restructuring & Impairment Expenses |
$ |
— |
|
|
$ |
— |
|
|
$ |
0.5 |
|
|
$ |
— |
|
AMS - Purchase Accounting Adjustments |
6.5 |
|
|
5.1 |
|
|
19.3 |
|
|
15.3 |
|
EP - Restructuring & Impairment Expenses, plant closure
expenses, and Tax Assessment |
9.1 |
|
|
2.2 |
|
|
10.3 |
|
|
3.5 |
|
Unallocated |
0.1 |
|
|
— |
|
|
0.1 |
|
|
— |
|
Total Consolidated |
$ |
15.7 |
|
|
$ |
7.3 |
|
|
$ |
30.2 |
|
|
$ |
18.8 |
|
Adjusted Operating Profit * |
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
|
|
|
Return on Net Sales |
|
|
|
|
|
Return on Net Sales |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
AMS |
$ |
25.0 |
|
|
$ |
24.4 |
|
|
18.0 |
% |
|
19.3 |
% |
|
$ |
65.1 |
|
|
$ |
69.9 |
|
|
16.5 |
% |
|
18.7 |
% |
EP |
37.3 |
|
|
29.5 |
|
|
26.6 |
% |
|
22.6 |
% |
|
103.6 |
|
|
92.0 |
|
|
25.9 |
% |
|
22.4 |
% |
Unallocated |
(9.6) |
|
|
(12.0) |
|
|
|
|
|
|
(33.0) |
|
|
(33.9) |
|
|
|
|
|
Total Consolidated |
$ |
52.7 |
|
|
$ |
41.9 |
|
|
18.9 |
% |
|
16.3 |
% |
|
$ |
135.7 |
|
|
$ |
128.0 |
|
|
17.1 |
% |
|
16.3 |
% |
* Adjusted Operating Profit, a non-GAAP
financial measure, is calculated by adding Restructuring &
Impairment Expenses and Purchase Accounting Adjustments to
Operating Profit.
SCHWEITZER-MAUDUIT INTERNATIONAL, INC. AND
SUBSIDIARIESRECONCILIATION OF NON-GAAP FINANCIAL
MEASURES AND SUPPLEMENTAL DATA(Dollars in
millions, except per share amounts)
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Operating profit |
$ |
37.0 |
|
|
$ |
34.6 |
|
|
$ |
105.5 |
|
|
$ |
109.2 |
|
Plus: Restructuring and impairment, and plant closure expenses |
9.2 |
|
|
1.6 |
|
|
10.9 |
|
|
2.0 |
|
Plus: Purchase accounting adjustments |
6.5 |
|
|
5.1 |
|
|
19.3 |
|
|
15.3 |
|
Plus: Brazil tax assessments |
— |
|
|
0.6 |
|
|
— |
|
|
1.5 |
|
Adjusted Operating Profit |
$ |
52.7 |
|
|
$ |
41.9 |
|
|
$ |
135.7 |
|
|
$ |
128.0 |
|
|
|
|
|
|
|
|
|
Income |
$ |
24.5 |
|
|
$ |
27.7 |
|
|
$ |
68.5 |
|
|
$ |
65.6 |
|
Plus: Restructuring and impairment expense |
6.0 |
|
|
1.6 |
|
|
7.7 |
|
|
2.0 |
|
Less: Tax impact of restructuring and impairment expense |
(1.5) |
|
|
(0.2) |
|
|
(2.0) |
|
|
(0.3) |
|
Plus: Plant closure |
3.2 |
|
|
— |
|
|
3.2 |
|
|
— |
|
Less: Tax impact of plant closure |
(0.7) |
|
|
— |
|
|
(0.7) |
|
|
— |
|
Plus: Purchase accounting adjustments |
6.5 |
|
|
5.1 |
|
|
19.3 |
|
|
15.3 |
|
Less: Tax impact of purchase accounting adjustments |
(1.6) |
|
|
(0.9) |
|
|
(4.7) |
|
|
(2.8) |
|
Plus: Brazil tax assessments |
— |
|
|
— |
|
|
— |
|
|
10.8 |
|
Less: Tax impact of Brazil tax assessments |
— |
|
|
(1.0) |
|
|
— |
|
|
(4.1) |
|
Less: Transitional Tax Adjustment |
— |
|
|
(0.6) |
|
|
— |
|
|
(0.6) |
|
Less: Tax legislative changes, net of other discrete items |
— |
|
|
(0.5) |
|
|
(0.4) |
|
|
(0.8) |
|
Adjusted Income |
$ |
36.4 |
|
|
$ |
31.2 |
|
|
$ |
90.9 |
|
|
$ |
85.1 |
|
|
|
|
|
|
|
|
|
Earnings per share - diluted |
$ |
0.78 |
|
|
$ |
0.90 |
|
|
$ |
2.18 |
|
|
$ |
2.12 |
|
Earnings per share from continuing operations |
0.78 |
|
|
0.90 |
|
|
2.18 |
|
|
2.12 |
|
Plus: Restructuring and impairment expense |
0.19 |
|
|
0.06 |
|
|
0.25 |
|
|
0.07 |
|
Less: Tax impact of restructuring and impairment expense |
(0.04) |
|
|
(0.01) |
|
|
(0.06) |
|
|
(0.01) |
|
Plus: Plant closure |
0.10 |
|
|
— |
|
|
0.10 |
|
|
— |
|
Less: Tax impact of plant closure |
(0.02) |
|
|
— |
|
|
(0.02) |
|
|
— |
|
Plus: Purchase accounting adjustments |
0.20 |
|
|
0.16 |
|
|
0.62 |
|
|
0.50 |
|
Less: Tax impact of purchase accounting adjustment |
(0.05) |
|
|
(0.03) |
|
|
(0.15) |
|
|
(0.09) |
|
Plus: Brazil tax assessments |
— |
|
|
— |
|
|
— |
|
|
0.35 |
|
Less: Tax impact of Brazil tax assessments |
— |
|
|
(0.03) |
|
|
— |
|
|
(0.14) |
|
Less: Transitional Tax Adjustment |
— |
|
|
(0.02) |
|
|
— |
|
|
(0.02) |
|
Less: Tax legislative changes, net of other discrete items |
— |
|
|
(0.02) |
|
|
(0.01) |
|
|
(0.03) |
|
Adjusted Earnings Per Share - Diluted |
$ |
1.16 |
|
|
$ |
1.01 |
|
|
$ |
2.91 |
|
|
$ |
2.75 |
|
SCHWEITZER-MAUDUIT INTERNATIONAL, INC. AND
SUBSIDIARIESRECONCILIATION OF NON-GAAP FINANCIAL
MEASURES AND SUPPLEMENTAL DATA(Dollars in
millions, except per share amounts)
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Net income |
$ |
24.5 |
|
|
$ |
27.7 |
|
|
$ |
68.5 |
|
|
$ |
65.6 |
|
Income from continuing operations |
24.5 |
|
|
27.7 |
|
|
68.5 |
|
|
65.6 |
|
Plus: Interest expense on debt |
7.8 |
|
|
7.3 |
|
|
22.8 |
|
|
22.5 |
|
Plus: Interest expense on Brazil tax assessments |
— |
|
|
(0.6) |
|
|
— |
|
|
7.1 |
|
Plus: Provision for income taxes |
4.8 |
|
|
3.2 |
|
|
15.5 |
|
|
12.8 |
|
Plus: Depreciation and amortization |
19.2 |
|
|
14.6 |
|
|
50.8 |
|
|
43.6 |
|
Plus: Restructuring and impairment expense |
6.0 |
|
|
1.6 |
|
|
7.7 |
|
|
2.0 |
|
Plus: Inventory write-down expense related to plant closure |
2.0 |
|
|
— |
|
|
2.0 |
|
|
— |
|
Plus: Income from equity affiliates |
(1.1) |
|
|
(1.3) |
|
|
(2.0) |
|
|
(0.4) |
|
Plus: Other expense (income), net |
1.0 |
|
|
(1.7) |
|
|
0.7 |
|
|
1.6 |
|
Plus: Brazil tax assessments |
— |
|
|
0.6 |
|
|
— |
|
|
1.5 |
|
Adjusted EBITDA from continuing operations |
$ |
64.2 |
|
|
$ |
51.4 |
|
|
$ |
166.0 |
|
|
$ |
156.3 |
|
|
|
|
|
|
|
|
|
AMS adjusted EBITDA |
$ |
29.1 |
|
|
$ |
27.8 |
|
|
$ |
76.6 |
|
|
$ |
79.9 |
|
EP adjusted EBITDA |
44.4 |
|
|
35.4 |
|
|
121.7 |
|
|
109.6 |
|
Unallocated adjusted EBITDA |
(9.3) |
|
|
(11.8) |
|
|
(32.3) |
|
|
(33.2) |
|
Adjusted EBITDA from continuing operations |
$ |
64.2 |
|
|
$ |
51.4 |
|
|
$ |
166.0 |
|
|
$ |
156.3 |
|
|
|
|
|
|
|
|
|
Cash provided by operating activities |
$ |
58.2 |
|
|
$ |
63.9 |
|
|
$ |
107.5 |
|
|
$ |
118.9 |
|
Less: Capital spending |
(5.8) |
|
|
(4.8) |
|
|
(20.7) |
|
|
(20.0) |
|
Less: Capitalized software costs |
(1.1) |
|
|
(1.1) |
|
|
(2.8) |
|
|
(3.9) |
|
Free Cash Flow |
$ |
51.3 |
|
|
$ |
58.0 |
|
|
$ |
84.0 |
|
|
$ |
95.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2020 |
|
December 31, 2019 |
|
|
|
|
|
|
|
|
Total Debt |
|
|
|
|
$ |
632.9 |
|
|
$ |
542.7 |
|
Less: Cash |
|
|
|
|
66.3 |
|
|
103.0 |
|
Net Debt |
|
|
|
|
$ |
566.6 |
|
|
$ |
439.7 |
|
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