https://www.avient.com/sites/default/files/2024-07/Colorants _ Additives for Appliances Brochure.pdf
Relying on material knowledge and state-of-the-
art equipment, key elements such as polymer properties,
surface finish, and regulatory compliance are carefully
considered in the masterbatch formulation to fulfill both
the application and the customers’ specific requirements.
These include high-temperature,
engineering and recycled polymers.
For our masterbatches
and ready-to-use formulations going into electrical
and electronic applications, we can develop
formulations to comply with and provide the
following declarations as needed on a product-
specific basis:
• Food contact according to Reg.
https://www.avient.com/sites/default/files/2021-07/avnt-q2-2021-earnings-release.pdf
Factors
that could cause actual results to differ materially from those implied by these forward-looking
statements include disruptions, uncertainty or volatility in the credit markets that could adversely
impact the availability of credit already arranged and the availability and cost of credit in the
future; the effect on foreign operations of currency fluctuations, tariffs and other political,
economic and regulatory risks; the current and potential future impact of the COVID-19
pandemic on our business, results of operations, financial position or cash flows including
without any limitation, any supply chain and logistics issues; our ability to achieve the strategic
and other objectives relating to the acquisition of Clariant's Masterbatch business, including any
expected synergies; changes in polymer consumption growth rates and laws and regulations
regarding plastics in jurisdictions where we conduct business; fluctuations in raw material
prices, quality and supply, and in energy prices and supply; production outages or material
costs associated with scheduled or unscheduled maintenance programs; unanticipated
developments that could occur with respect to contingencies such as litigation and
environmental matters; an inability to achieve the anticipated financial benefit from initiatives
related to acquisition and integration working capital reductions, cost reductions and employee
productivity goals; our ability to pay regular quarterly cash dividends and the amounts and
timing of any future dividends; information systems failures and cyberattacks; our ability to
consummate and successfully integrate acquisitions; and amounts for cash and non-cash
charges related to restructuring plans that may differ from original estimates, including because
of timing changes associated with the underlying actions.
Three Months Ended
June 30,
Six Months Ended
June 30,
2021 2020 2021 2020
Sales:
Color, Additives and Inks $ 624.4 $ 226.8 $ 1,233.7 $ 483.3
Specialty Engineered Materials 240.6 158.8 457.1 344.1
Distribution 404.4 238.8 767.1 528.3
Corporate and eliminations (34.2) (15.3) (60.4) (35.1)
Sales $ 1,235.2 $ 609.1 $ 2,397.5 $ 1,320.6
Gross margin:
Color, Additives and Inks $ 193.4 $ 75.7 $ 390.9 $ 165.1
Specialty Engineered Materials 69.6 42.5 134.3 95.1
Distribution 40.1 27.2 79.4 60.8
Corporate and eliminations (14.4) 4.3 (13.5) 0.2
Gross margin $ 288.7 $ 149.7 $ 591.1 $ 321.2
Selling and administrative expense:
Color, Additives and Inks $ 107.1 $ 43.4 $ 215.8 $ 92.3
Specialty Engineered Materials 32.3 25.5 62.8 55.8
Distribution 16.4 12.6 31.7 26.8
Corporate and eliminations 24.8 30.2 52.3 55.5
Selling and administrative expense $ 180.6 $ 111.7 $ 362.6 $ 230.4
Operating income:
Color, Additives and Inks $ 86.3 $ 32.3 $ 175.1 $ 72.8
Specialty Engineered Materials 37.3 17.0 71.5 39.3
Distribution 23.7 14.6 47.7 34.0
Corporate and eliminations (39.2) (25.9) (65.8) (55.3)
Operating income $ 108.1 $ 38.0 $ 228.5 $ 90.8
Earnings before interest, taxes, depreciation and
amortization (EBITDA):
Color, Additives and Inks $ 111.6 $ 42.9 $ 227.7 $ 94.4
Specialty Engineered Materials 45.4 24.6 87.4 54.4
Distribution 23.9 14.7 48.1 34.2
Corporate and eliminations (39.0) (23.3) (63.8) (51.4)
Other income, net 1.2 9.5 $ 2.7 $ 11.1
EBITDA $ 143.1 $ 68.4 $ 302.1 $ 142.7
12
Attachment 7
Avient Corporation
Reconciliation of Non-GAAP Financial Measures (Unaudited)
(In millions, except per share data)
Senior management uses gross margin before special items and operating income before special items to assess performance
and allocate resources because senior management believes that these measures are useful in understanding current
profitability levels and how it may serve as a basis for future performance.
Reconciliation of Pro Forma Adjusted Earnings per Share:
Three Months
Ended
June 30, 2020
Six Months
Ended
June 30, 2020
Year Ended
December 31,
2020
Net income from continuing operations attributable to Avient
shareholders $ 23.0 $ 56.1 $ 132.0
Special items, after tax 2.6 11.2 24.8
Adjusted net income from continuing operations excluding special
items 25.6 67.3 156.8
Clariant MB pro forma adjustments to net income from continuing
operations(2) 12.9 20.7 20.7
Pro forma adjusted net income from continuing operations attributable
to Avient shareholders $ 38.5 $ 88.0 $ 177.5
Weighted average diluted shares 91.8 89.4 90.6
Pro forma impact to diluted shares from January 2020 equity
offering(2) — 2.9 1.5
Pro forma weighted average diluted shares 91.8 92.3 92.1
Adjusted EPS - excluding special items pro forma for Clariant MB
acquisition $ 0.42 $ 0.95 $ 1.93
(2) Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020) and to give effects to the financing for the acquisition
14
Three Months Ended
June 30, 2020
Reconciliation of Pro Forma Adjusted
Earnings per Share Avient
Special
Items
Adjusted
Avient
Clariant MB
Pro Forma
Adjustments(2)
Pro Forma
Adjusted
Avient
Sales $ 609.1 $ — $ 609.1 $ 261.1 $ 870.2
Operating income $ 38.0 $ 9.0 $ 47.0 $ 22.0 $ 69.0
Interest expense, net (16.2) — (16.2) (5.3) (21.5)
Other income, net 9.5 (6.6) 2.9 — 2.9
Income taxes (7.9) 0.2 (7.7) (3.8) (11.5)
Net income attributable to noncontrolling
interests (0.4) — (0.4) — (0.4)
Net income from continuing operations
attributable to Avient shareholders $ 23.0 $ 2.6 $ 25.6 $ 12.9 $ 38.5
Weighted average diluted shares 91.8
Pro forma adjusted EPS $ 0.42
(2) Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020) and to give effects to the financing for the acquisition
Six Months Ended
June 30, 2020
Reconciliation of Pro Forma Adjusted
Earnings per Share: Avient
Special
Items
Adjusted
Avient
Clariant MB
Pro Forma
Adjustments(2)
Pro Forma
Adjusted
Avient
Sales $ 1,320.6 $ — $ 1,320.6 $ 540.5 $ 1,861.1
Operating income $ 90.8 $ 18.7 $ 109.5 $ 45.0 $ 154.5
Interest expense, net (25.6) — (25.6) (18.1) (43.7)
Other income, net 11.1 (6.7) 4.4 — 4.4
Income taxes (19.8) (0.8) (20.6) (6.2) (26.8)
Net income attributable to noncontrolling
interests (0.4) — (0.4) — (0.4)
Net income from continuing operations
attributable to Avient shareholders $ 56.1 $ 11.2 $ 67.3 $ 20.7 $ 88.0
Weighted average diluted shares 89.4
Impact to diluted shares from January 2020 equity offering 2.9
Pro forma weighted average diluted shares 92.3
Pro forma adjusted EPS $ 0.95
(2) Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020) and to give effects to the financing for the acquisition
15
Reconciliation of EBITDA by Segment
Three Months Ended
June 30,
Six Months Ended
June 30
2021 2020 2021 2020
Operating income:
Color, Additives and Inks $ 86.3 $ 32.3 $ 175.1 $ 72.8
Specialty Engineered Materials 37.3 17.0 71.5 39.3
Distribution 23.7 14.6 47.7 34.0
Corporate and eliminations (39.2) (25.9) (65.8) (55.3)
Operating income $ 108.1 $ 38.0 $ 228.5 $ 90.8
Items below OI in Corporate:
Other income, net $ 1.2 $ 9.5 $ 2.7 $ 11.1
Depreciation & amortization:
Color, Additives and Inks $ 25.3 $ 10.6 $ 52.6 $ 21.6
Specialty Engineered Materials 8.1 7.6 15.9 15.1
Distribution 0.2 0.1 0.4 0.2
Corporate and eliminations 0.2 2.6 2.0 3.9
Depreciation & Amortization $ 33.8 $ 20.9 $ 70.9 $ 40.8
EBITDA:
Color, Additives and Inks $ 111.6 $ 42.9 $ 227.7 $ 94.4
Specialty Engineered Materials 45.4 24.6 87.4 54.4
Distribution 23.9 14.7 48.1 34.2
Corporate and eliminations (39.0) (23.3) (63.8) (51.4)
EBITDA $ 143.1 $ 68.4 $ 302.1 $ 142.7
EBITDA as a % of Sales:
Color, Additives and Inks 17.9 % 18.9 % 18.5 % 19.5 %
Specialty Engineered Materials 18.9 % 15.5 % 19.1 % 15.8 %
Distribution 5.9 % 6.2 % 6.3 % 6.5 %
16
Reconciliation of Pro Forma EBITDA - Color, Additives and Inks
Three Months Ended
June 30,
Six Months Ended
June 30,
2021 2020 2021 2020
Sales:
Color, Additives and Inks $ 624.4 $ 226.8 $ 1,233.7 $ 483.3
Clariant MB pro forma adjustments(2) — 261.1 — 540.5
Pro forma sales $ 624.4 $ 487.9 $ 1,233.7 $ 1,023.8
Operating income:
Color, Additives and Inks $ 86.3 $ 32.3 $ 175.1 $ 72.8
Clariant MB pro forma adjustments(2) — 22.0 — 45.0
Pro forma operating income $ 86.3 $ 54.3 $ 175.1 $ 117.8
Depreciation & amortization:
Color, Additives and Inks $ 25.3 $ 10.6 $ 52.6 $ 21.6
Clariant MB pro forma adjustments(2) — 15.0 — 30.1
Pro forma depreciation & amortization $ 25.3 $ 25.6 $ 52.6 $ 51.7
Earnings Before Interest, Taxes, Depreciation and Amortization
(EBITDA):
Color, Additives and Inks $ 111.6 $ 42.9 $ 227.7 $ 94.4
Clariant MB pro forma adjustments(2) — 37.0 — 75.1
Pro forma EBITDA $ 111.6 $ 79.9 $ 227.7 $ 169.5
Pro forma EBITDA as a % of Sales 17.9 % 16.4 % 18.5 % 16.6 %
(2) Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020) and to give effects to the financing for the acquisition
Three Months Ended
June 30,
Six Months Ended
June 30,
Reconciliation to Pro Forma Adjusted EBITDA: 2021 2020 2021 2020
Net income from continuing operations – GAAP $ 69.4 $ 23.4 $ 149.1 $ 56.5
Income tax expense 20.4 7.9 43.3 19.8
Interest expense 19.5 16.2 38.8 25.6
Depreciation and amortization from continuing operations 33.8 20.9 70.9 40.8
EBITDA $ 143.1 $ 68.4 $ 302.1 $ 142.7
Special items, before tax 14.2 2.4 16.6 12.0
Interest expense included in special items — (0.5) — (0.5)
Depreciation and amortization included in special items 1.4 (1.2) 0.8 (1.2)
Adjusted EBITDA $ 158.7 $ 69.1 $ 319.5 $ 153.0
Clariant MB pro forma adjustments(2) — 37.0 — 75.1
Pro forma adjusted EBITDA $ 158.7 $ 106.1 $ 319.5 $ 228.1