https://www.avient.com/sites/default/files/2024-08/AVNT Second Quarter Earnings Press Release.pdf
Rose
Vice President, Marketing and Communications
Avient Corporation
+1 440-930-3162
kyle.rose@avient.com
7
Attachment 1
Avient Corporation
Summary of Condensed Consolidated Statements of Income (Unaudited)
(In millions, except per share data)
Three Months Ended
June 30,
Six Months Ended
June 30,
2024 2023 2024 2023
Sales $ 849.7 $ 824.4 $ 1,678.7 $ 1,670.1
Operating Income 72.5 62.3 166.5 119.4
Net income from continuing operations attributable to Avient
shareholders 33.6 22.1 83.0 42.9
Diluted earnings per share from continuing operations attributable to
Avient shareholders $ 0.36 $ 0.24 $ 0.90 $ 0.47
Senior management uses comparisons of adjusted net income from continuing operations attributable to Avient shareholders
and diluted adjusted earnings per share (EPS) from continuing operations attributable to Avient shareholders, excluding special
items, to assess performance and facilitate comparability of results.
Three Months Ended
June 30,
2024 2023
Reconciliation to Condensed Consolidated Statements of Income $ EPS $ EPS
Net income from continuing operations attributable to Avient shareholders $ 33.6 $ 0.36 $ 22.1 $ 0.24
Special items, after-tax (Attachment 3) 21.8 0.24 19.6 0.21
Amortization expense, after-tax 14.8 0.16 16.2 0.18
Adjusted net income / EPS $ 70.2 $ 0.76 $ 57.9 $ 0.63
Six Months Ended
June 30,
2024 2023
Reconciliation to Condensed Consolidated Statements of Income $ EPS $ EPS
Net income from continuing operations attributable to Avient shareholders $ 83.0 $ 0.90 $ 42.9 $ 0.47
Special items, after-tax (Attachment 3) 27.3 0.30 41.9 0.46
Amortization expense, after-tax 29.7 0.32 31.3 0.34
Adjusted net income / EPS $ 140.0 $ 1.52 $ 116.1 $ 1.27
8
Attachment 2
Avient Corporation
Condensed Consolidated Statements of Income (Unaudited)
(In millions, except per share data)
Three Months Ended
June 30,
Six Months Ended
June 30,
2024 2023 2024 2023
Sales $ 849.7 $ 824.4 $ 1,678.7 $ 1,670.1
Cost of sales 592.1 583.7 1,142.9 1,181.8
Gross margin 257.6 240.7 535.8 488.3
Selling and administrative expense 185.1 178.4 369.3 368.9
Operating income 72.5 62.3 166.5 119.4
Interest expense, net (26.6) (29.4) (53.2) (58.2)
Other (expense) income, net (0.9) (0.2) (1.8) 0.5
Income from continuing operations before income taxes 45.0 32.7 111.5 61.7
Income tax expense (11.2) (10.4) (28.0) (18.1)
Net income from continuing operations 33.8 22.3 83.5 43.6
Loss from discontinued operations, net of income taxes — — — (0.9)
Net income $ 33.8 $ 22.3 $ 83.5 $ 42.7
Net income attributable to noncontrolling interests (0.2) (0.2) (0.5) (0.7)
Net income attributable to Avient common shareholders $ 33.6 $ 22.1 $ 83.0 $ 42.0
Earnings (loss) per share attributable to Avient common shareholders - Basic:
Continuing operations $ 0.37 $ 0.24 $ 0.91 $ 0.47
Discontinued operations — — — (0.01)
Total $ 0.37 $ 0.24 $ 0.91 $ 0.46
Earnings (loss) per share attributable to Avient common shareholders - Diluted:
Continuing operations $ 0.36 $ 0.24 $ 0.90 $ 0.47
Discontinued operations — — — (0.01)
Total $ 0.36 $ 0.24 $ 0.90 $ 0.46
Cash dividends declared per share of common stock $ 0.2575 $ 0.2475 $ 0.5150 $ 0.4950
Weighted-average shares used to compute earnings per common share:
Basic 91.3 91.1 91.3 91.1
Diluted 92.2 91.9 92.0 91.9
9
Attachment 3
Avient Corporation
Summary of Special Items (Unaudited)
(In millions, except per share data)
Special items (1)
Three Months Ended
June 30,
Six Months Ended
June 30,
2024 2023 2024 2023
Cost of sales:
Restructuring costs, including accelerated depreciation $ 0.2 $ (1.2) $ 3.8 $ (7.8)
Environmental remediation costs (21.8) (13.0) (25.8) (14.4)
Impact on cost of sales (21.6) (14.2) (22.0) (22.2)
Selling and administrative expense:
Restructuring and employee separation costs (2.8) (0.5) (3.5) (11.9)
Legal and other (2.3) (6.4) (5.8) (10.6)
Acquisition related costs (0.5) (0.7) (2.1) (4.2)
Impact on selling and administrative expense (5.6) (7.6) (11.4) (26.7)
Impact on operating income (27.2) (21.8) (33.4) (48.9)
Interest expense, net - financing costs (1.0) — (1.0) —
Other income (loss) 0.1 0.1 0.1 (0.1)
Impact on income from continuing operations before income taxes (28.1) (21.7) (34.3) (49.0)
Income tax benefit on above special items 7.0 5.5 8.4 12.4
Tax adjustments(2) (0.7) (3.4) (1.4) (5.3)
Impact of special items on net income from continuing operations $ (21.8) $ (19.6) $ (27.3) $ (41.9)
Diluted earnings per common share impact $ (0.24) $ (0.21) $ (0.30) $ (0.46)
Weighted average shares used to compute adjusted earnings per share:
Diluted 92.2 91.9 92.0 91.9
(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 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, 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
Three Months Ended
June 30,
Six Months Ended
June 30,
2024 2023 2024 2023
Sales:
Color, Additives and Inks $ 542.0 $ 524.5 $ 1,057.3 $ 1,061.5
Specialty Engineered Materials 308.1 300.8 622.5 610.5
Corporate (0.4) (0.9) (1.1) (1.9)
Sales $ 849.7 $ 824.4 $ 1,678.7 $ 1,670.1
Gross margin:
Color, Additives and Inks $ 184.5 $ 164.1 $ 355.7 $ 326.1
Specialty Engineered Materials 94.7 91.5 201.7 185.4
Corporate (21.6) (14.9) (21.6) (23.2)
Gross margin $ 257.6 $ 240.7 $ 535.8 $ 488.3
Selling and administrative expense:
Color, Additives and Inks $ 98.4 $ 96.1 $ 194.8 $ 192.5
Specialty Engineered Materials 51.9 51.8 105.5 102.6
Corporate 34.8 30.5 69.0 73.8
Selling and administrative expense $ 185.1 $ 178.4 $ 369.3 $ 368.9
Operating income:
Color, Additives and Inks $ 86.1 $ 68.0 $ 160.9 $ 133.6
Specialty Engineered Materials 42.8 39.7 96.2 82.8
Corporate (56.4) (45.4) (90.6) (97.0)
Operating income $ 72.5 $ 62.3 $ 166.5 $ 119.4
Depreciation & amortization:
Color, Additives and Inks $ 21.8 $ 25.7 $ 43.7 $ 51.5
Specialty Engineered Materials 20.8 19.9 40.4 41.1
Corporate 2.3 2.0 5.1 5.5
Depreciation & amortization $ 44.9 $ 47.6 $ 89.2 $ 98.1
Earnings before interest, taxes, depreciation and
amortization (EBITDA):
Color, Additives and Inks $ 107.9 $ 93.7 $ 204.6 $ 185.1
Specialty Engineered Materials 63.6 59.6 136.6 123.9
Corporate (54.1) (43.4) (85.5) (91.5)
Other (expense) income, net (0.9) (0.2) (1.8) 0.5
EBITDA from continuing operations $ 116.5 $ 109.7 $ 253.9 $ 218.0
Special items, before tax 28.1 21.7 34.3 49.0
Interest expense included in special items (1.0) — (1.0) —
Depreciation & amortization included in special items (0.3) (0.1) (0.8) (1.9)
Adjusted EBITDA $ 143.3 $ 131.3 $ 286.4 $ 265.1
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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.
https://www.avient.com/sites/default/files/2024-05/3b - Corporate Governance Guidelines.Draft Feb. 2024.v1.2.Revised.4-16-24.Final_.pdf
Committees
The Board has an Audit Committee, a Compensation Committee, a Governance and
Corporate Responsibility Committee, and an Environmental, Health and Safety
Committee.
The Board has delegated specific risk oversight responsibility to the committees of the
Board as follows: (i) the Audit Committee oversees risks related to the Company’s
financial statements, financial reporting processes, internal controls, information
technology, and cybersecurity; (ii) the Compensation Committee oversees risks related to
the Company’s compensation programs; (iii) the Governance and Corporate
Responsibility Committee oversees risks related to the Company’s programs, policies,
and practices related to certain sustainability and governance matters, including a review
of the Company’s Sustainability Report; and (iv) the Environmental, Health and Safety
Committee oversees risks related to safety, health, physical security, environmental, and
product stewardship matters.
The
Compensation Committee reviews market data for director compensation to ensure that
the Company’s director compensation is reasonable and competitive in relation to similar
companies.
https://www.avient.com/resources/safety-data-sheets?page=5792
Avient has transitioned our Material Safety Data Sheets (MSDSs) to Safety Data Sheets (SDSs) for our manufactured products to meet the requirements of the Globally Harmonized System of Classification and Labeling of Chemicals (GHS), and CLP classification in Europe.
Technical Data Sheets
Safety Data Sheets
https://www.avient.com/resources/safety-data-sheets?page=783
Avient has transitioned our Material Safety Data Sheets (MSDSs) to Safety Data Sheets (SDSs) for our manufactured products to meet the requirements of the Globally Harmonized System of Classification and Labeling of Chemicals (GHS), and CLP classification in Europe.
Technical Data Sheets
Safety Data Sheets
https://www.avient.com/resources/safety-data-sheets?page=5024
Avient has transitioned our Material Safety Data Sheets (MSDSs) to Safety Data Sheets (SDSs) for our manufactured products to meet the requirements of the Globally Harmonized System of Classification and Labeling of Chemicals (GHS), and CLP classification in Europe.
Technical Data Sheets
Safety Data Sheets
https://www.avient.com/sites/default/files/2022-05/Avient_ALL_Policies_2022_0.pdf
Bob Patterson
Chairman, President, and CEO
February 2, 2022
SAFETY & HEALTH POLICY
Avient Corporation believes that safety and health are the highest corporate priority.
As a member
of the American Chemistry Council, we have adopted Responsible Care® Guiding
Principles and the Process Safety Management Practices to continuously guide our
efforts to improve safety performance.
Our
practices reinforce these imperatives, and our commitment to excellence in safety
and health is absolute.
https://www.avient.com/resources/safety-data-sheets?page=6299
Avient has transitioned our Material Safety Data Sheets (MSDSs) to Safety Data Sheets (SDSs) for our manufactured products to meet the requirements of the Globally Harmonized System of Classification and Labeling of Chemicals (GHS), and CLP classification in Europe.
Technical Data Sheets
Safety Data Sheets
https://www.avient.com/resources/safety-data-sheets?page=4163
Avient has transitioned our Material Safety Data Sheets (MSDSs) to Safety Data Sheets (SDSs) for our manufactured products to meet the requirements of the Globally Harmonized System of Classification and Labeling of Chemicals (GHS), and CLP classification in Europe.
Technical Data Sheets
Safety Data Sheets
https://www.avient.com/resources/safety-data-sheets?page=5394
Avient has transitioned our Material Safety Data Sheets (MSDSs) to Safety Data Sheets (SDSs) for our manufactured products to meet the requirements of the Globally Harmonized System of Classification and Labeling of Chemicals (GHS), and CLP classification in Europe.
Technical Data Sheets
Safety Data Sheets
https://www.avient.com/resources/safety-data-sheets?page=2073
Avient has transitioned our Material Safety Data Sheets (MSDSs) to Safety Data Sheets (SDSs) for our manufactured products to meet the requirements of the Globally Harmonized System of Classification and Labeling of Chemicals (GHS), and CLP classification in Europe.
Technical Data Sheets
Safety Data Sheets