Fourth quarter 2020 GAAP EPS from continuing operations was $0.81 and compared to
"I am extremely pleased with our record fourth quarter results, as every segment and end market grew over the prior year fourth quarter. SEM generated its highest-ever quarterly operating income at
The Company highlighted that integration of the Clariant Masterbatch business is continuing to exceed expectations. Total expected cost synergy estimates increased from
2021 Outlook
Commenting on the Company's 2021 outlook,
The Company noted it will provide more details on its 2021 outlook during the webcast scheduled for
*Pro Forma
The Company acquired the Clariant Masterbatch business ("CMB") on
Webcast Details
The company will host a webcast at
A recording of the webcast and the investor presentation will be available at avient.com/investors. In addition, a recording of the audio will be available for one week, beginning at
About
Forward-looking Statements
In this press release, statements that are not reported financial results or other historical information are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give current expectations or forecasts of future events and are not guarantees of future performance. They are based on management's expectations that involve a number of business risks and uncertainties, any of which could cause actual results to differ materially from those expressed in or implied by the forward-looking statements. They use words such as "will," "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," and other words and terms of similar meaning in connection with any discussion of future operating or financial condition, performance and/or sales. Factors that could cause actual results to differ materially from those implied by these forward-looking statements include the impact the COVID-19 pandemic has on our business, results from operations, financial condition and liquidity; our ability to achieve the strategic and other objectives relating to the acquisition of Clariant's Masterbatch business, including any expected synergies; 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; changes in polymer consumption growth rates and laws and regulations regarding plastics in jurisdictions where we conduct business; changes in global industry capacity or in the rate at which anticipated changes in industry capacity come online; 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; our ability to continue to pay cash dividends including at the increased rate; an inability to raise or sustain prices for products or services; an ability to achieve or delays in achieving or achievement of less than the anticipated financial benefit from initiatives related to acquisitions and integration, working capital reductions, costs reductions and employee productivity goals; information systems failures and cyberattacks; and other factors affecting our business beyond our control, including, without limitation, changes in the general economy, changes in interest rates and changes in the rate of inflation. The above list of factors is not exhaustive.
We undertake no obligation to publicly update forward-looking statements, whether as a result of new information, future events or otherwise. You are advised to consult any further disclosures we make on related subjects in our reports on Form 10-Q, 8-K and 10-K that we provide to the
Non-GAAP Reconciliation
The Company does not provide reconciliations of forward-looking non-GAAP financial measures, such as outlook for adjusted earnings per share, to the most comparable GAAP financial measures on a forward-looking basis because the Company is unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and amount of certain items, such as, but not limited to, restructuring costs, environmental remediation costs, acquisition related costs, and other non-routine costs. Each of such adjustments has not yet occurred, are out of the Company's control and/or cannot be reasonably predicted. For the same reasons, the Company is unable to address the probable significance of the unavailable information.
Attachment 1 |
|||||||||||||||
Avient Corporation |
|||||||||||||||
Summary of Condensed Consolidated Statements of Income (Unaudited) |
|||||||||||||||
(In millions, except per share data) |
|||||||||||||||
Three Months Ended |
Year Ended |
||||||||||||||
2020 |
2019 |
2020 |
2019 |
||||||||||||
Sales |
$ |
997.0 |
$ |
658.6 |
$ |
3,242.1 |
$ |
2,862.7 |
|||||||
Operating Income |
65.0 |
20.5 |
189.3 |
156.8 |
|||||||||||
Net income from continuing operations attributable to |
74.2 |
6.4 |
132.0 |
75.5 |
|||||||||||
Basic earnings per share from continuing operations attributable to |
$ |
0.81 |
$ |
0.08 |
$ |
1.47 |
$ |
0.98 |
|||||||
Diluted earnings per share from continuing operations attributable to |
$ |
0.81 |
$ |
0.08 |
$ |
1.46 |
$ |
0.97 |
Senior management uses comparisons of adjusted net income from continuing operations attributable to
Three Months Ended |
|||||||||||||||
2020 |
2019 |
||||||||||||||
Reconciliation to Condensed Consolidated Statements of Income |
$ |
EPS(1) |
$ |
EPS(1) |
|||||||||||
Net income from continuing operations attributable to |
$ |
74.2 |
$ |
0.81 |
$ |
6.4 |
$ |
0.08 |
|||||||
Special items, after tax (Attachment 3) |
(26.7) |
(0.29) |
19.9 |
0.26 |
|||||||||||
Adjusted net income / EPS - excluding special items |
$ |
47.5 |
$ |
0.52 |
$ |
26.3 |
$ |
0.34 |
|||||||
(1) Per share amounts may not recalculate from figures presented herein due to rounding |
Year Ended |
|||||||||||||||
2020 |
2019 |
||||||||||||||
Reconciliation to Condensed Consolidated Statements of Income |
$ |
EPS(1) |
$ |
EPS(1) |
|||||||||||
Net income from continuing operations attributable to |
$ |
132.0 |
$ |
1.46 |
$ |
75.5 |
$ |
0.97 |
|||||||
Special items, after tax (Attachment 3) |
24.8 |
0.27 |
55.8 |
0.72 |
|||||||||||
Adjusted net income / EPS - excluding special items |
$ |
156.8 |
1.73 |
$ |
131.3 |
1.69 |
|||||||||
(1) Per share amounts may not recalculate from figures presented herein due to rounding |
Attachment 2 |
|||||||||||||||
|
|||||||||||||||
Condensed Consolidated Statements of Income (Unaudited) |
|||||||||||||||
(In millions, except per share data) |
|||||||||||||||
Three Months Ended |
Year Ended |
||||||||||||||
2020 |
2019 |
2020 |
2019 |
||||||||||||
Sales |
$ |
997.0 |
$ |
658.6 |
$ |
3,242.1 |
$ |
2,862.7 |
|||||||
Cost of sales |
744.1 |
505.3 |
2,457.8 |
2,205.5 |
|||||||||||
Gross margin |
252.9 |
153.3 |
784.3 |
657.2 |
|||||||||||
Selling and administrative expense |
187.9 |
132.8 |
595.0 |
500.4 |
|||||||||||
Operating income |
65.0 |
20.5 |
189.3 |
156.8 |
|||||||||||
Interest expense, net |
(19.3) |
(11.9) |
(74.6) |
(59.5) |
|||||||||||
Other income, net |
11.7 |
10.7 |
24.3 |
12.1 |
|||||||||||
Income from continuing operations before income taxes |
57.4 |
19.3 |
139.0 |
109.4 |
|||||||||||
Income tax benefit (expense) |
17.3 |
(12.9) |
(5.2) |
(33.7) |
|||||||||||
Net income from continuing operations |
74.7 |
6.4 |
133.8 |
75.7 |
|||||||||||
Income (loss) from discontinued operations, net of income taxes |
0.1 |
458.9 |
(0.4) |
513.1 |
|||||||||||
Net income |
74.8 |
465.3 |
133.4 |
588.8 |
|||||||||||
Net income attributable to noncontrolling interests |
(0.5) |
— |
(1.8) |
(0.2) |
|||||||||||
Net income attributable to |
$ |
74.3 |
$ |
465.3 |
$ |
131.6 |
$ |
588.6 |
|||||||
Earnings per share attributable to |
|||||||||||||||
Continuing operations |
$ |
0.81 |
$ |
0.08 |
$ |
1.47 |
$ |
0.98 |
|||||||
Discontinued operations |
— |
5.97 |
(0.01) |
6.64 |
|||||||||||
Total |
$ |
0.81 |
$ |
6.05 |
$ |
1.46 |
$ |
7.62 |
|||||||
Earnings per share attributable to |
|||||||||||||||
Continuing operations |
$ |
0.81 |
$ |
0.08 |
$ |
1.46 |
$ |
0.97 |
|||||||
Discontinued operations |
— |
5.92 |
(0.01) |
6.61 |
|||||||||||
Total |
$ |
0.81 |
$ |
6.00 |
$ |
1.45 |
$ |
7.58 |
|||||||
Cash dividends declared per share of common stock |
$ |
0.2125 |
$ |
0.2025 |
$ |
0.8200 |
$ |
0.7875 |
|||||||
Weighted-average shares used to compute earnings per common share: |
|||||||||||||||
Basic |
91.4 |
76.9 |
90.1 |
77.2 |
|||||||||||
Diluted |
92.1 |
77.5 |
90.6 |
77.7 |
Attachment 3 |
|||||||||||||||
|
|||||||||||||||
Summary of Special Items (Unaudited) |
|||||||||||||||
(In millions, except per share data) |
|||||||||||||||
Special items (1) |
Three Months Ended |
Year Ended |
|||||||||||||
2020 |
2019 |
2020 |
2019 |
||||||||||||
Cost of sales: |
|||||||||||||||
Restructuring costs, including accelerated depreciation |
$ |
(1.8) |
$ |
— |
$ |
(4.3) |
$ |
0.3 |
|||||||
Environmental remediation costs |
(1.1) |
0.3 |
(20.4) |
(10.1) |
|||||||||||
Reimbursement of previously incurred environmental costs |
— |
0.5 |
8.7 |
4.5 |
|||||||||||
Inventory fair market value step-up expense |
1.2 |
— |
(9.3) |
(2.0) |
|||||||||||
Impact on cost of sales |
(1.7) |
0.8 |
(25.3) |
(7.3) |
|||||||||||
Selling and administrative expense: |
|||||||||||||||
Restructuring, legal and other |
(13.0) |
(4.4) |
(22.5) |
(18.6) |
|||||||||||
Acquisition earn-out adjustments |
1.5 |
(15.7) |
(1.0) |
(36.4) |
|||||||||||
Acquisition related costs |
(1.4) |
(5.3) |
(24.9) |
(9.4) |
|||||||||||
Impact on selling and administrative expense |
(12.9) |
(25.4) |
(48.4) |
(64.4) |
|||||||||||
Impact on operating income |
(14.6) |
(24.6) |
(73.7) |
(71.7) |
|||||||||||
Costs related to committed financing in interest expense, net |
— |
— |
(10.1) |
— |
|||||||||||
Other income, net |
0.1 |
0.1 |
0.4 |
0.5 |
|||||||||||
Pension settlement/curtailment gains and mark-to-market adjustment |
10.3 |
9.5 |
17.2 |
9.5 |
|||||||||||
Impact on income from continuing operations before income taxes |
(4.2) |
(15.0) |
(66.2) |
(61.7) |
|||||||||||
Income tax benefit (expense) on above special items |
(1.3) |
(0.4) |
14.1 |
11.1 |
|||||||||||
Tax adjustments(2) |
32.2 |
(4.5) |
27.3 |
(5.2) |
|||||||||||
Impact of special items on net income from continuing operations |
$ |
26.7 |
$ |
(19.9) |
$ |
(24.8) |
$ |
(55.8) |
|||||||
Diluted earnings per common share impact of special items on net income |
$ |
0.29 |
$ |
(0.26) |
$ |
(0.27) |
$ |
(0.72) |
|||||||
Weighted average shares used to compute adjusted earnings per share: |
|||||||||||||||
Diluted |
92.1 |
77.5 |
90.6 |
77.7 |
(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. |
(2) |
Tax adjustments include the net tax benefit/(expense) from one-time income tax items, adjustments to uncertain tax position reserves and deferred income tax valuation allowances. |
Attachment 4 |
|||||||
|
|||||||
Condensed Consolidated Balance Sheets (Unaudited) |
|||||||
(In millions) |
|||||||
Year Ended |
|||||||
2020 |
2019 |
||||||
ASSETS |
|||||||
Current assets: |
|||||||
Cash and cash equivalents |
$ |
649.5 |
$ |
864.7 |
|||
Accounts receivable, net |
516.6 |
330.0 |
|||||
Inventories, net |
327.5 |
260.9 |
|||||
Other current assets |
89.9 |
57.7 |
|||||
Total current assets |
1,583.5 |
1,513.3 |
|||||
Property, net |
694.9 |
407.4 |
|||||
|
1,308.1 |
685.7 |
|||||
Intangible assets, net |
1,008.5 |
469.3 |
|||||
Operating lease assets, net |
80.9 |
63.8 |
|||||
Other non-current assets |
195.4 |
133.8 |
|||||
Total assets |
$ |
4,871.3 |
$ |
3,273.3 |
|||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||||
Current liabilities: |
|||||||
Short-term and current portion of long-term debt |
$ |
18.6 |
$ |
18.4 |
|||
Accounts payable |
471.7 |
287.7 |
|||||
Current operating lease obligations |
25.1 |
21.0 |
|||||
Accrued expenses and other current liabilities |
289.2 |
375.4 |
|||||
Total current liabilities |
804.6 |
702.5 |
|||||
Non-current liabilities: |
|||||||
Long-term debt |
1,854.0 |
1,210.9 |
|||||
Pension and other post-retirement benefits |
115.0 |
56.6 |
|||||
Deferred income taxes |
150.7 |
63.5 |
|||||
Non-current operating lease obligations |
56.0 |
42.8 |
|||||
Other non-current liabilities |
192.8 |
144.3 |
|||||
Total non-current liabilities |
2,368.5 |
1,518.1 |
|||||
SHAREHOLDERS' EQUITY |
|||||||
|
1,683.6 |
1,051.9 |
|||||
Noncontrolling interest |
14.6 |
0.8 |
|||||
Total equity |
1,698.2 |
1,052.7 |
|||||
Total liabilities and equity |
$ |
4,871.3 |
$ |
3,273.3 |
Attachment 5 |
|||||||
|
|||||||
Condensed Consolidated Statements of Cash Flows (Unaudited) |
|||||||
(In millions) |
|||||||
Year Ended |
|||||||
2020 |
2019 |
||||||
Operating activities |
|||||||
Net income |
$ |
133.4 |
$ |
588.8 |
|||
Adjustments to reconcile net income to net cash provided by operating activities: |
|||||||
Gain on sale of business, net of tax |
— |
(457.7) |
|||||
Depreciation and amortization |
111.8 |
87.5 |
|||||
Accelerated depreciation and fixed asset charges associated with restructuring activities |
3.2 |
— |
|||||
Deferred income tax benefit |
(1.1) |
(3.2) |
|||||
Share-based compensation expense |
11.3 |
11.6 |
|||||
Changes in assets and liabilities, net of the effect of acquisitions: |
|||||||
(Increase) decrease in accounts receivable |
(4.6) |
29.7 |
|||||
Decrease in inventories |
40.2 |
40.2 |
|||||
Increase (decrease) in accounts payable |
79.5 |
(22.7) |
|||||
Increase (decrease) in pension and other post-retirement benefits |
30.7 |
(19.7) |
|||||
Increase in post-acquisition earnout liabilities |
1.0 |
36.4 |
|||||
(Decrease) increase in accrued expenses and other assets and liabilities - net |
(3.7) |
9.9 |
|||||
Taxes paid on gain on sale of business |
(142.0) |
— |
|||||
Payment of post-acquisition date earnout liability |
(38.1) |
— |
|||||
Net cash provided by operating activities |
221.6 |
300.8 |
|||||
Investing activities |
|||||||
Capital expenditures |
(63.7) |
(81.7) |
|||||
Business acquisitions, net of cash acquired |
(1,380.2) |
(119.6) |
|||||
Net proceeds from divestiture |
7.1 |
761.8 |
|||||
Net proceeds from other assets |
5.2 |
51.4 |
|||||
Net cash (used) provided by investing activities |
(1,431.6) |
611.9 |
|||||
Financing activities |
|||||||
Debt offering proceeds |
650.0 |
— |
|||||
Borrowings under credit facilities |
— |
963.4 |
|||||
Repayments under credit facilities |
— |
(1,083.9) |
|||||
Purchase of common shares for treasury |
(22.4) |
(26.9) |
|||||
Cash dividends paid |
(71.3) |
(60.3) |
|||||
Repayment of other debt |
— |
(1.8) |
|||||
Repayment of long-term debt |
(7.8) |
(6.5) |
|||||
Payments on withholding tax on share awards |
(2.3) |
(2.1) |
|||||
Debt financing costs |
(9.5) |
(0.2) |
|||||
Equity offering proceeds, net of underwriting discount and issuance costs |
496.1 |
— |
|||||
Payment of acquisition date earnout liability |
(50.8) |
— |
|||||
Net cash provided (used) by financing activities |
982.0 |
(218.3) |
|||||
Effect of exchange rate changes on cash |
12.8 |
(0.6) |
|||||
(Decrease) increase in cash and cash equivalents |
(215.2) |
693.8 |
|||||
Cash and cash equivalents at beginning of year |
864.7 |
170.9 |
|||||
Cash and cash equivalents at end of year |
$ |
649.5 |
$ |
864.7 |
Attachment 6 |
|||||||||||||||
|
|||||||||||||||
Business Segment Operations (Unaudited) |
|||||||||||||||
(In millions) |
|||||||||||||||
Operating income at the segment level does not include: special items as defined in Attachment 3; corporate general and |
|||||||||||||||
Three Months Ended |
Year Ended |
||||||||||||||
2020 |
2019 |
2020 |
2019 |
||||||||||||
Sales: |
|||||||||||||||
Color, Additives and Inks |
$ |
525.8 |
$ |
226.7 |
$ |
1,502.9 |
$ |
1,003.8 |
|||||||
Specialty Engineered Materials |
190.6 |
177.5 |
708.8 |
745.7 |
|||||||||||
Distribution |
305.1 |
272.4 |
1,110.3 |
1,192.2 |
|||||||||||
Corporate and eliminations |
(24.5) |
(18.0) |
(79.9) |
(79.0) |
|||||||||||
Sales |
$ |
997.0 |
$ |
658.6 |
$ |
3,242.1 |
$ |
2,862.7 |
|||||||
Gross margin: |
|||||||||||||||
Color, Additives and Inks |
$ |
164.3 |
$ |
73.9 |
$ |
484.4 |
$ |
338.4 |
|||||||
Specialty Engineered Materials |
59.1 |
47.7 |
207.6 |
200.2 |
|||||||||||
Distribution |
32.4 |
31.0 |
124.0 |
132.1 |
|||||||||||
Corporate and eliminations |
(2.9) |
0.7 |
(31.7) |
(13.5) |
|||||||||||
Gross margin |
$ |
252.9 |
$ |
153.3 |
$ |
784.3 |
$ |
657.2 |
|||||||
Selling and administrative expense: |
|||||||||||||||
Color, Additives and Inks |
$ |
106.8 |
$ |
46.7 |
$ |
303.6 |
$ |
191.0 |
|||||||
Specialty Engineered Materials |
28.7 |
28.9 |
113.2 |
116.5 |
|||||||||||
Distribution |
14.4 |
14.0 |
54.5 |
56.7 |
|||||||||||
Corporate and eliminations |
38.0 |
43.2 |
123.7 |
136.2 |
|||||||||||
Selling and administrative expense |
$ |
187.9 |
$ |
132.8 |
$ |
595.0 |
$ |
500.4 |
|||||||
Operating income: |
|||||||||||||||
Color, Additives and Inks |
$ |
57.5 |
$ |
27.2 |
$ |
180.8 |
$ |
147.4 |
|||||||
Specialty Engineered Materials |
30.4 |
18.8 |
94.4 |
83.7 |
|||||||||||
Distribution |
18.0 |
17.0 |
69.5 |
75.4 |
|||||||||||
Corporate and eliminations |
(40.9) |
(42.5) |
(155.4) |
(149.7) |
|||||||||||
Operating income |
$ |
65.0 |
$ |
20.5 |
$ |
189.3 |
$ |
156.8 |
Attachment 7 |
|||||||||||||||
|
|||||||||||||||
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. In addition, operating income before the effect of special items is a component of |
|||||||||||||||
Three Months Ended |
Year Ended |
||||||||||||||
Reconciliation to Consolidated Statements of Income |
2020 |
2019 |
2020 |
2019 |
|||||||||||
Sales |
$ |
997.0 |
$ |
658.6 |
$ |
3,242.1 |
$ |
2,862.7 |
|||||||
Gross margin - GAAP |
252.9 |
153.3 |
784.3 |
657.2 |
|||||||||||
Special items in gross margin (Attachment 3) |
1.7 |
(0.8) |
25.3 |
7.3 |
|||||||||||
Adjusted Gross margin |
$ |
254.6 |
$ |
152.5 |
$ |
809.6 |
$ |
664.5 |
|||||||
Adjusted Gross margin as a percent of sales |
25.5 |
% |
23.2 |
% |
25.0 |
% |
23.2 |
% |
|||||||
Operating income - GAAP |
65.0 |
20.5 |
189.3 |
156.8 |
|||||||||||
Special items in operating income (Attachment 3) |
14.6 |
24.6 |
73.7 |
71.7 |
|||||||||||
Adjusted Operating income |
$ |
79.6 |
$ |
45.1 |
$ |
263.0 |
$ |
228.5 |
|||||||
Adjusted Operating income as a percent of sales |
8.0 |
% |
6.8 |
% |
8.1 |
% |
8.0 |
% |
The table below reconciles pre-special income tax expense and the pre-special effective tax rate to their most comparable US GAAP figures.
Three Months Ended |
|||||||||||||||||||||||||||
2020 |
2019 |
||||||||||||||||||||||||||
GAAP |
Special |
Adjusted |
GAAP |
Special |
Adjusted |
||||||||||||||||||||||
Income from continuing operations before income taxes |
$ |
57.4 |
$ |
4.2 |
$ |
61.6 |
$ |
19.3 |
$ |
15.0 |
$ |
34.3 |
|||||||||||||||
Income tax (expense) benefit - GAAP |
17.3 |
— |
17.3 |
(12.9) |
— |
(12.9) |
|||||||||||||||||||||
Income tax impact of special items (Attachment 3) |
— |
1.3 |
1.3 |
— |
0.4 |
0.4 |
|||||||||||||||||||||
Tax adjustments (Attachment 3) |
— |
(32.2) |
(32.2) |
— |
4.5 |
4.5 |
|||||||||||||||||||||
Income tax (expense) benefit |
$ |
17.3 |
$ |
(30.9) |
$ |
(13.6) |
$ |
(12.9) |
$ |
4.9 |
$ |
(8.0) |
|||||||||||||||
Effective Tax Rate(1) |
(30.1) |
% |
22.1 |
% |
66.8 |
% |
23.3 |
% |
|||||||||||||||||||
(1) Rates may not recalculate from figures presented herein due to rounding |
|||||||||||||||||||||||||||
Year Ended |
|||||||||||||||||||||||||||
2020 |
2019 |
||||||||||||||||||||||||||
GAAP |
Special |
Adjusted |
GAAP |
Special |
Adjusted |
||||||||||||||||||||||
Income from continuing operations before income taxes |
$ |
139.0 |
$ |
66.2 |
$ |
205.2 |
$ |
109.4 |
$ |
61.7 |
$ |
171.1 |
|||||||||||||||
Income tax expense - GAAP |
(5.2) |
— |
(5.2) |
(33.7) |
— |
(33.7) |
|||||||||||||||||||||
Income tax impact of special items (Attachment 3) |
— |
(14.1) |
(14.1) |
— |
(11.1) |
(11.1) |
|||||||||||||||||||||
Tax adjustments (Attachment 3) |
— |
(27.3) |
(27.3) |
— |
5.2 |
5.2 |
|||||||||||||||||||||
Income tax expense |
$ |
(5.2) |
$ |
(41.4) |
$ |
(46.6) |
$ |
(33.7) |
$ |
(5.9) |
$ |
(39.6) |
|||||||||||||||
Effective Tax Rate(1) |
3.7 |
% |
22.7 |
% |
30.8 |
% |
23.1 |
% |
|||||||||||||||||||
(1) Rates may not recalculate from figures presented herein due to rounding |
The following pro forma adjustments are referenced by management to provide comparable business performance by incorporating the Clariant Masterbatch business in periods prior to the acquisition date (
Reconciliation of Pro Forma Adjusted Earnings per Share: |
Three Months Ended |
Year Ended |
|||||||||
2019 |
2020 |
2019 |
|||||||||
Net income from continuing operations attributable to |
$ |
6.4 |
$ |
132.0 |
$ |
75.5 |
|||||
Special items, after tax (Attachment 3) |
19.9 |
24.8 |
55.8 |
||||||||
Adjusted net income from continuing operations |
26.3 |
156.8 |
131.3 |
||||||||
Clariant MB pro forma adjustments to net income |
1.6 |
20.7 |
30.4 |
||||||||
Pro forma adjusted net income from continuing |
$ |
27.9 |
$ |
177.5 |
$ |
161.7 |
|||||
Weighted average diluted shares |
77.5 |
90.6 |
77.7 |
||||||||
Pro forma impact to diluted shares from |
15.3 |
1.5 |
15.3 |
||||||||
Pro forma weighted average diluted shares |
92.8 |
92.1 |
93.0 |
||||||||
Pro forma adjusted EPS - excluding special items pro |
$ |
0.30 |
$ |
1.93 |
$ |
1.74 |
|||||
(2) Pro forma adjustments for the periods prior to the acquisition date ( |
Year Ended |
|||
Sales |
$ |
3,242.1 |
|
Clariant MB pro forma adjustment to sales(2) |
540.4 |
||
Pro forma sales |
$ |
3,782.5 |
(2) Pro forma adjustments for the periods prior to the acquisition date ( |
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SOURCE
Investor Relations Contact: Giuseppe (Joe) Di Salvo, Vice President, Treasurer and Investor Relations, Avient Corporation, +1 440-930-1921, giuseppe.disalvo@avient.com; Media Contact: Kyle G. Rose, Vice President, Corporate Communications, Avient Corporation, +1 440-930-3162, kyle.rose@avient.com