"During the third quarter we completed the acquisition of the protective materials business of DSM ("Dyneema") and announced that we reached an agreement to divest our Distribution segment. These transactions represent the most recent steps in our multi-year portfolio transformation to becoming a pure play specialty formulator," said
The company has updated its projections to include Dyneema, present the Distribution segment as discontinued operations, and adjust its outlook to reflect current demand conditions and additional unfavorable currency exchange.
The acquisition of Dyneema closed on
The below table provides detail related to the company's updated guidance for adjusted EPS, which will now exclude intangible amortization from acquisitions. Pro Forma adjusted EPS presents the full year 2022 as if the Dyneema acquisition and Distribution divestiture had happened as of
Q3 2022 |
FY 2022 |
FY 2022 |
|||||||||||||||||||
Adjusted EPS - Prior Estimate |
$ 0.80 |
$ 3.50 |
$ 3.50 |
||||||||||||||||||
Discontinued Operations |
(0.25) |
(0.93) |
(0.93) |
||||||||||||||||||
Adjusted EPS - Continuing Operations |
0.55 |
2.57 |
2.57 |
||||||||||||||||||
Forecast Revision (ex. FX) |
(0.04) |
(0.25) |
(0.25) |
||||||||||||||||||
Foreign Exchange |
(0.02) |
(0.05) |
(0.05) |
||||||||||||||||||
Forecast Revision |
(0.06) |
(0.30) |
(0.30) |
||||||||||||||||||
Dyneema |
0.04 |
0.13 |
0.46 |
||||||||||||||||||
Interest Expense |
(0.09) |
(0.25) |
(0.38) |
||||||||||||||||||
Intangible Amortization(1) |
0.14 |
0.55 |
0.75 |
||||||||||||||||||
Adjusted EPS |
$ 0.58* |
$ 2.70* |
$ 3.10 |
||||||||||||||||||
* Updated forecast |
|||||||||||||||||||||
(1) Intangible amortization expense for 2022 pro forma includes a preliminary estimate of |
|||||||||||||||||||||
The remaining |
"Following the acquisition of Dyneema and divestiture of Distribution, the company expects to be modestly levered at 2.9x net debt to pro forma adjusted EBITDA, positioning us well to navigate the near term uncertainty in economic conditions," said
To facilitate investor review, Avient has provided pro forma financial information to reflect the Distribution segment as discontinued operations and the Dyneema acquisition as if it occurred on
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, but are not limited to: 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, including recessionary conditions; the current and potential future impact of the COVID-19 pandemic on our business, results of operations, financial position or cash flows; 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 raise or sustain prices for products or services; our ability to pay regular quarterly cash dividends and the amounts and timing of any future dividends; information systems failures and cyberattacks; 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; the ability to obtain required regulatory approvals and otherwise consummate the proposed sale of the Distribution business; and other factors affecting our business beyond our control, including without limitation, changes in the general economy, changes in interest rates, changes in the rate of inflation and any recessionary conditions. The above list of factors is not exhaustive.
Any forward-looking statement speaks only as of the date on which such statement is made, and 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 Financial Measures
The Company uses both GAAP (generally accepted accounting principles) and non-GAAP financial measures. The non-GAAP financial measures include: net debt to pro forma adjusted EBITDA and adjusted EPS.
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.
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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