https://www.avient.com/sites/default/files/2022-11/Avient Announces Third Quarter 2022 Results.pdf
Adjusted EPS excluding intangible amortization for the third quarter of $0.59 was slightly below
prior year of $0.61.
2
“As we announced in our September 27th release, we are experiencing weaker global demand
conditions precipitated by the war in Ukraine, recession fears, higher energy costs and inflation,”
said Robert M.
Eastern Time on November 2, 2022.
Webcast Details
Avient will host a webcast on Wednesday, November 2, 2022 at 8:00 a.m.
https://www.avient.com/sites/default/files/2021-04/avnt-first-quarter-2021-news-release.pdf
Coupled with expanding margins, and early
synergy capture related to the Clariant Masterbatch acquisition, this led to a 68% increase in
adjusted EPS to $0.89 versus $0.53 in the prior year.
2
Specialty EBITDA Margins
Mr.
Three Months Ended
March 31, 2021
Three Months Ended
Reconciliation to Condensed Consolidated Statements of Income $ EPS $ EPS
Net income from continuing operations attributable to Avient shareholders $ 79.3 $ 0.86 $ 33.1 $ 0.38
Special items, after tax (Attachment 3) 2.6 0.03 8.6 0.10
Adjusted net income / EPS - excluding special items $ 81.9 $ 0.89 $ 41.7 $ 0.48
7
Attachment 2
Condensed Consolidated Statements of Income (Unaudited)
Three Months Ended
Sales $ 1,162.3 $ 711.5
Cost of sales 859.9 540.0
Gross margin 302.4 171.5
Selling and administrative expense 182.0 118.7
Operating income 120.4 52.8
Interest expense, net (19.3) (9.4)
Other income, net 1.5 1.6
Income from continuing operations before income taxes 102.6 45.0
Income taxes (22.9) (11.9)
Net income from continuing operations 79.7 33.1
Loss from discontinued operations, net of income taxes — (0.3)
Net income 79.7 32.8
Net income attributable to noncontrolling interests (0.4) —
Net income attributable to Avient common shareholders $ 79.3 $ 32.8
Earnings per share attributable to Avient common shareholders - Basic:
Continuing operations $ 0.87 $ 0.38
Discontinued operations — —
Total $ 0.87 $ 0.38
Earnings per share attributable to Avient common shareholders - Diluted:
Continuing operations $ 0.86 $ 0.38
Discontinued operations — —
Total $ 0.86 $ 0.38
Cash dividends declared per share of common stock $ 0.2125 $ 0.2025
Weighted-average shares used to compute earnings per common share:
Basic 91.3 86.3
Diluted 92.2 86.7
8
Attachment 3
Summary of Special Items (Unaudited)
Special items (1)
March 31,
Cost of sales:
Restructuring costs, including accelerated depreciation and amortization $ (1.8) $ —
Environmental remediation costs (0.5) (0.4)
Reimbursement of previously incurred environmental costs 4.5 0.2
Impact on cost of sales 2.2 (0.2)
Selling and administrative expense:
Restructuring, legal and other (1.3) (1.8)
Acquisition earn-out adjustments — (1.0)
Acquisition related costs (3.3) (6.7)
Impact on selling and administrative expense (4.6) (9.5)
Impact on operating income (2.4) (9.7)
Other income, net — 0.1
Impact on income from continuing operations before income taxes (2.4) (9.6)
Income tax benefit on above special items 0.9 2.0
Tax adjustments(2) (1.1) (1.0)
Impact of special items on net income from continuing operations
attributable to Avient Shareholders $ (2.6) $ (8.6)
Diluted earnings per common share impact $ (0.03) $ (0.10)
Weighted average shares used to compute adjusted earnings per share:
Diluted 92.2 86.7
(1) Special items include charges related to specific strategic initiatives or financial restructuring such as: consolidation of operations; debt
extinguishment costs; costs incurred directly in relation to acquisitions or divestitures; employee separation costs resulting from personnel
reduction programs, plant realignment costs, executive separation agreements; asset impairments; settlement gains or losses and mark-to-
market adjustments associated with actuarial gains and losses on pension and other post-retirement benefit plans; environmental
remediation costs, fines, penalties and related insurance recoveries related to facilities no longer owned or closed in prior years; gains and
losses on the divestiture of operating businesses, joint ventures and equity investments; gains and losses on facility or property sales or
disposals; results of litigation, fines or penalties, where such litigation (or action relating to the fines or penalties) arose prior to the
commencement of the performance period; one-time, non-recurring items; and the effect of changes in accounting principles or other such
laws or provisions affecting reported results
Reconciliation of Pro Forma Adjusted Earnings per Share:
Three Months Ended
Net income from continuing operations attributable to Avient shareholders $ 33.1
Special items, after tax (Attachment 3) 8.6
Adjusted net income from continuing operations excluding special items 41.7
Clariant MB pro forma adjustments to net income from continuing operations(2) 7.8
Pro forma adjusted net income from continuing operations attributable to Avient shareholders $ 49.5
Weighted average diluted shares 86.7
Pro forma impact to diluted shares from January 2020 equity offering 6.1
Pro forma weighted average diluted shares 92.8
Adjusted EPS - excluding special items pro forma for Clariant MB acquisition $ 0.53
December 31, 2020
Reconciliation of Pro Forma Adjusted
Earnings per Share: Avient
Special
Adjusted
Clariant MB
Pro Forma
Adjustments(2)
Pro Forma
Adjusted
Sales $ 3,242.1 $ — $ 3,242.1 $ 540.4 $ 3,782.5
Operating income $ 189.3 $ 73.7 $ 263.0 $ 45.0 $ 308.0
Interest expense, net (74.6) 10.1 (64.5) (18.1) (82.6)
Other income, net 24.3 (17.6) 6.7 — 6.7
Income taxes (5.2) (41.4) (46.6) (6.2) (52.8)
Net income attributable to noncontrolling
interests (1.8) — (1.8) — (1.8)
Net income from continuing operations
attributable to Avient shareholders $ 132.0 $ 24.8 $ 156.8 $ 20.7 $ 177.5
Weighted average diluted shares 90.6
Impact to diluted shares from January 2020 equity offering 1.5
Pro forma weighted average diluted shares 92.1
Pro forma adjusted EPS $ 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
December 31, 2019
Reconciliation of Pro Forma Adjusted
Earnings per Share: Avient
Special
Adjusted
Clariant MB
Pro Forma
Adjustments(3)
Pro Forma
Adjusted
Sales $ 2,862.7 $ — $ 2,862.7 $ 1,118.6 $ 3,981.3
Operating income $ 156.8 $ 71.7 $ 228.5 $ 72.9 $ 301.4
Interest expense, net (59.5) — (59.5) (33.4) (92.9)
Other income, net 12.1 (10.0) 2.1 — 2.1
Income taxes (33.7) (5.9) (39.6) (9.1) (48.7)
Net income attributable to noncontrolling
interests (0.2) — (0.2) — (0.2)
Net income from continuing operations
attributable to Avient shareholders $ 75.5 $ 55.8 $ 131.3 $ 30.4 $ 161.7
Weighted average diluted shares 77.7
Impact to diluted shares from January 2020 equity offering 15.3
Pro forma weighted average diluted shares 93.0
Pro forma adjusted EPS $ 1.74
(3) 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
Year Ended December 31,
2021 2020 2020 2019 2018
Color, Additives and Inks $ 88.8 $ 40.5 $ 180.8 $ 147.4 $ 158.5
Specialty Engineered Materials 34.2 22.3 94.4 83.7 72.3
Distribution 24.0 19.4 69.5 75.4 71.5
Corporate and eliminations (26.6) (29.4) (155.4) (149.7) (123.7)
Operating income $ 120.4 $ 52.8 $ 189.3 $ 156.8 $ 178.6
Items Below OI in Corporate
Other income, net $ 1.5 $ 1.6 $ 24.3 $ 12.1 $ (12.9)
Depreciation & Amortization:
Color, Additives and Inks $ 27.4 $ 10.9 $ 75.1 $ 42.7 $ 44.3
Specialty Engineered Materials 7.8 7.5 30.0 29.5 23.2
Distribution 0.2 0.1 0.7 0.5 0.7
Corporate and eliminations 1.7 1.4 9.2 5.4 4.4
Depreciation & Amortization $ 37.1 $ 19.9 $ 115.0 $ 78.1 $ 72.6
EBITDA
Color, Additives and Inks $ 116.2 $ 51.4 $ 255.9 $ 190.1 $ 202.8
Specialty Engineered Materials 42.0 29.8 124.4 113.2 95.5
Distribution 24.2 19.5 70.2 75.9 72.2
Corporate and eliminations (24.9) (28.0) (146.2) (144.3) (119.3)
EBITDA $ 159.0 $ 74.3 $ 328.6 $ 247.0 $ 238.3
EBITDA as a % of Sales:
Color, Additives and Inks 19.1 % 20.0 % 17.0 % 18.9 % 19.4 %
Specialty Engineered Materials 19.4 % 16.1 % 17.6 % 15.2 % 14.8 %
Distribution 6.7 % 6.7 % 6.3 % 6.4 % 5.7 %
16
Reconciliation of Pro Forma EBITDA - Color,
Additives and Inks
Three Months Ended
March 31,
Year Ended
December 31,
2020 2020 2019 2018
Sales:
Color, Additives and Inks $ 256.5 $ 1,502.9 $ 1,003.8 $ 1,046.5
Clariant MB pro forma adjustments(4) 279.4 540.4 1,118.6 1,209.8
Pro forma sales $ 535.9 $ 2,043.3 $ 2,122.4 $ 2,256.3
Color, Additives and Inks $ 40.5 $ 180.8 $ 147.4 $ 158.5
Clariant MB pro forma adjustments(4) 23.0 45.0 72.9 80.3
Pro forma operating income $ 63.5 $ 225.8 $ 220.3 $ 238.8
Depreciation & amortization:
Color, Additives and Inks $ 10.9 $ 75.1 $ 42.7 $ 44.3
Clariant MB pro forma adjustments(4) 15.1 30.1 60.3 61.2
Pro forma depreciation & amortization $ 26.0 $ 105.2 $ 103.0 $ 105.5
Earnings Before Interest, Taxes, Depreciation
and Amortization (EBITDA):
Color, Additives and Inks $ 51.4 $ 255.9 $ 190.1 $ 202.8
Clariant MB pro forma adjustments(4) 38.1 75.1 133.2 141.5
Pro forma EBITDA $ 89.5 $ 331.0 $ 323.3 $ 344.3
Pro forma EBITDA as a % of Sales 16.7 % 16.2 % 15.2 % 15.3 %
Three Months Ended
March 31,
Year Ended
December 31,
Reconciliation to Adjusted EBITDA: 2021 2020 2020 2019 2018
Net income from continuing operations – GAAP $ 79.7 $ 33.1 $ 133.8 $ 75.7 $ 87.4
Income tax expense 22.9 11.9 5.2 33.7 14.4
Interest expense 19.3 9.4 74.6 59.5 62.8
Debt extinguishment cost — — 1.1
Depreciation and amortization from continuing operations 37.1 19.9 115.0 78.1 72.6
EBITDA $ 159.0 $ 74.3 $ 328.6 $ 247.0 $ 238.3
Special items, before tax 2.4 9.6 66.2 61.7 59.5
Interest expense included in special items — — (10.1) — —
Accelerated depreciation included in special items (0.5) — (3.2) — (3.0)
Adjusted EBITDA $ 160.9 $ 83.9 $ 381.6 $ 308.7 $ 294.8
Reconciliation of Pro Forma Sales:
Three Months Ended
Sales $ 711.5
Clariant MB pro forma adjustment to sales(4) 279.4
Pro forma sales $ 990.9
(4) Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020)
17
Avient Announces Record First Quarter 2021 Results; Increases Full Year Guidance.pdf
NEWS RELEASE
4.29 232pm News Release (002).pdf
https://www.avient.com/sites/default/files/2022-10/Paint Sprayer Application Snapshot_0.pdf
INDUSTRIAL
EQUIPMENT OEM
P A I N T S P R A Y E R
• Meet or exceed UL94 V-2 flame rating
• Able to interact with existing bulk chemistry without
compromising functionality or brand color and aesthetics
• Deliver cost targets while providing operational efficiency
and a working capital strategy
• Accelerate product development timeline, and provide
UL94 testing verification prior to production trials
• Achieved all flame rating requirements and
assisted with regulatory approvals
• Developed a proprietary Smartbatch solution that
minimized potential effects from interaction with
current bulk chemistries
• Provided needed support with qualification process
and testing requirements, saving time and cost
• Afforded on-going support with A2LA test labs,
sampling, and lot-to-lot consistency with exacting
performance
Smartbatch™ Formulation: Cesa™ Flame
Retardant Additives and OnColor™ Colorants
KEY REQUIREMENTS
WHY AVIENT?
https://www.avient.com/sites/default/files/2021-08/versaflex-machine-cover-case-study-one-pager.pdf
RESPIRATORY
DEVICE
MANUFACTURER
C P A P M A C H I N E C O V E R
• Good aesthetics with high COF for grip functionality
• Chemically bondable to FR PC/ABS down to 1mm
• NCS S 9000-N color suitable for UV laser marking to white
• Good scratch and mar resistance
• Good chemical resistance to detergents, alcohols and bleach
• Pass VOCs & out-gassing in accordance to ISO 18562-3/2:2017
• Customized formulation to balance mar
resistance, flow, and laser marking
whiteness and clarity
• Collaborated on tooling improvements to
widen processing window and increase
yield rate
• Provided application development and on-
site technical support to manage short
shot, sink marks, burn marks and air trap
Customized VersaflexTM TPEs
WHY AVIENT?