https://www.avient.com/sites/default/files/2023-11/AVNT Q3 2023 Earnings Press Release.pdf
To access Avient’s news library online, please visit www.avient.com/news.
Three Months Ended
September 30, 2023
Three Months Ended
September 30, 2022
Reconciliation to Condensed Consolidated Statements of Income $ EPS $ EPS
Net income (loss) from continuing operations attributable to Avient
shareholders $ 5.1 $ 0.06 $ (27.4) $ (0.30)
Special items, after tax (Attachment 3) 32.0 0.35 68.3 0.75
Amortization expense, after-tax 15.2 0.16 13.4 0.14
Adjusted net income / EPS $ 52.3 $ 0.57 $ 54.3 $ 0.59
Nine Months Ended
September 30, 2023
Nine Months Ended
September 30, 2022
Reconciliation to Condensed Consolidated Statements of Income $ EPS $ EPS
Net income from continuing operations attributable to Avient shareholders $ 48.0 $ 0.52 $ 99.8 $ 1.08
Special items, after tax (Attachment 3) 73.9 0.81 77.9 0.85
Amortization expense, after-tax 46.5 0.51 34.9 0.38
Adjusted net income / EPS $ 168.4 $ 1.84 $ 212.6 $ 2.31
8
Attachment 2
Avient Corporation
Condensed Consolidated Statements of Income (Unaudited)
(In millions, except per share data)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2023 2022 2023 2022
Sales $ 753.7 $ 823.3 $ 2,423.8 $ 2,606.5
Cost of sales 558.4 627.9 1,740.2 1,895.8
Gross margin 195.3 195.4 683.6 710.7
Selling and administrative expense 161.0 154.8 529.9 467.8
Operating income 34.3 40.6 153.7 242.9
Interest expense, net (30.3) (37.3) (88.5) (70.4)
Other income (expense), net 1.0 (32.3) 1.5 (31.3)
Income (loss) from continuing operations before income taxes 5.0 (29.0) 66.7 141.2
Income tax benefit (expense) 0.1 1.2 (18.0) (41.5)
Net income (loss) from continuing operations 5.1 (27.8) 48.7 99.7
Income (loss) from discontinued operations, net of income taxes — 17.1 (0.9) 58.8
Net income (loss) 5.1 (10.7) 47.8 158.5
Net loss (income) attributable to noncontrolling interests — 0.4 (0.7) 0.1
Net income (loss) attributable to Avient common shareholders $ 5.1 $ (10.3) $ 47.1 $ 158.6
Earnings (loss) per share attributable to Avient common shareholders - Basic:
Continuing operations $ 0.06 $ (0.30) $ 0.53 $ 1.09
Discontinued operations — 0.19 (0.01) 0.65
Total $ 0.06 $ (0.11) $ 0.52 $ 1.74
Earnings (loss) per share attributable to Avient common shareholders - Diluted:
Continuing operations $ 0.06 $ (0.30) $ 0.52 $ 1.08
Discontinued operations — 0.19 (0.01) 0.64
Total $ 0.06 $ (0.11) $ 0.51 $ 1.72
Cash dividends declared per share of common stock $ 0.2475 $ 0.2375 $ 0.7425 $ 0.7125
Weighted-average shares used to compute earnings per common share:
Basic 91.1 90.9 91.1 91.3
Diluted 91.9 90.9 91.8 92.0
9
Attachment 3
Avient Corporation
Summary of Special Items (Unaudited)
(In millions, except per share data)
Special items (1) Three Months Ended
September 30,
Nine Months Ended
September 30,
2023 2022 2023 2022
Cost of sales:
Restructuring costs, including accelerated depreciation $ (2.1) $ (2.8) $ (9.9) $ (9.8)
Environmental remediation costs (38.1) (18.8) (52.5) (23.8)
Reimbursement of previously incurred environmental costs — 0.1 — 8.3
Acquisition related costs — (10.3) — (10.3)
Impact on cost of sales (40.2) (31.8) (62.4) (35.6)
Selling and administrative expense:
Restructuring and employee separation costs (2.0) 0.3 (13.8) (1.0)
Legal and other 1.7 (0.5) (9.1) 1.0
Acquisition related costs (0.5) (8.2) (4.6) (13.2)
Impact on selling and administrative expense (0.8) (8.4) (27.5) (13.2)
Impact on operating income (41.0) (40.2) (89.9) (48.8)
Interest expense, net - financing costs (2.2) (10.0) (2.2) (10.0)
Mark-to-market on derivative instruments — (31.8) — (30.9)
Other — — (0.1) 0.1
Impact on other expense, net — (31.8) (0.1) (30.8)
Impact on income from continuing operations before income taxes (43.2) (82.0) (92.2) (89.6)
Income tax benefit on above special items 10.8 20.5 23.2 22.5
Tax adjustments(2) 0.4 (6.8) (4.9) (10.8)
Impact of special items on net income from continuing operations $ (32.0) $ (68.3) $ (73.9) $ (77.9)
Diluted earnings per common share impact $ (0.35) $ (0.75) $ (0.81) $ (0.85)
Weighted average shares used to compute adjusted earnings per share:
Diluted 91.9 91.6 91.8 92.0
(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
2) Tax adjustments include the net tax impact from non-recurring income tax items, adjustments to uncertain tax position reserves and the
establishment, reversal or changes to valuation allowances.
10
Attachment 4
Avient Corporation
Condensed Consolidated Balance Sheets
(In millions)
(Unaudited)
September 30, 2023
December 31,
2022
ASSETS
Current assets:
Cash and cash equivalents $ 439.6 $ 641.1
Accounts receivable, net 436.9 440.6
Inventories, net 349.6 372.7
Other current assets 138.2 115.3
Total current assets 1,364.3 1,569.7
Property, net 978.2 1,049.2
Goodwill 1,681.3 1,671.9
Intangible assets, net 1,563.0 1,597.6
Other non-current assets 202.9 196.6
Total assets $ 5,789.7 $ 6,085.0
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term and current portion of long-term debt $ 9.5 $ 2.2
Accounts payable 389.5 454.4
Accrued expenses and other current liabilities 328.1 412.8
Total current liabilities 727.1 869.4
Non-current liabilities:
Long-term debt 2,070.8 2,176.7
Pension and other post-retirement benefits 65.1 67.2
Deferred income taxes 293.2 342.5
Other non-current liabilities 337.6 276.4
Total non-current liabilities 2,766.7 2,862.8
SHAREHOLDERS' EQUITY
Avient shareholders’ equity 2,276.9 2,334.5
Noncontrolling interest 19.0 18.3
Total equity 2,295.9 2,352.8
Total liabilities and equity $ 5,789.7 $ 6,085.0
11
Attachment 5
Avient Corporation
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In millions)
Nine Months Ended
September 30,
2023 2022
Operating Activities
Net income $ 47.8 $ 158.5
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 142.6 110.3
Accelerated depreciation 1.9 4.0
Share-based compensation expense 9.7 9.5
Changes in assets and liabilities, net of the effect of acquisitions:
Increase in accounts receivable (5.7) (66.5)
Decrease (increase) in inventories 16.5 (12.5)
(Decrease) increase in accounts payable (59.1) 43.5
Taxes paid on gain on sale of business (104.1) —
Accrued expenses and other assets and liabilities, net (2.5) (22.9)
Net cash provided by operating activities 47.1 223.9
Investing activities
Capital expenditures (75.0) (55.1)
Business acquisitions, net of cash acquired — (1,426.1)
Settlement of foreign exchange derivatives — 93.3
Net proceeds from divestiture 7.3 —
Other investing activities 2.3 —
Net cash used by investing activities (65.4) (1,387.9)
Financing activities
Debt proceeds — 1,300.0
Purchase of common shares for treasury — (36.4)
Cash dividends paid (67.6) (65.2)
Repayment of long-term debt (103.8) (6.8)
Debt financing costs (2.3) (49.3)
Other financing (2.3) (4.2)
Net cash (used) provided by financing activities (176.0) 1,138.1
Effect of exchange rate changes on cash (7.2) (30.9)
Decrease in cash and cash equivalents (201.5) (56.8)
Cash and cash equivalents at beginning of year 641.1 601.2
Cash and cash equivalents at end of period $ 439.6 $ 544.4
12
Attachment 6
Avient Corporation
Business Segment Operations (Unaudited)
(In millions)
Operating income and earnings before interest, taxes, depreciation and amortization (EBITDA) at the segment level does not
include: special items as defined in Attachment 3; corporate general and administration costs that are not allocated to segments;
intersegment sales and profit eliminations; share-based compensation costs; and certain other items that are not included in the
measure of segment profit and loss that is reported to and reviewed by the chief operating decision maker.
https://www.avient.com/sites/default/files/resources/POL%2520KeyBanc%2520IR%2520Presentation%2520w%2520non-GAAP%252009%252010%25202013.pdf
The non-GAAP financial measures
include: adjusted EPS, earnings before interest, tax, depreciation and
amortization (EBITDA), adjusted EBITDA, net debt, Specialty platform operating
income, Specialty platform gross margin percentage, adjusted operating income,
return on invested capital, net debt/ EBITDA, and the exclusion of corporate
charges in certain calculations.
EPS: $1.00
$0.54
$0.68
$0.30
$0.45
$0.60
$0.75
H1'12 H1'13
Adjusted EPS
$101.0
$132.6
$50.0
$100.0
$150.0
H1'12 H1'13
Adjusted Operating Income
(millions)
+31%
$68.8
$97.7
$50.0
$75.0
$100.0
H1'12 H1'13
Specialty Operating Income
(millions)
First Half 2013 Financial Highlights
• Adjusted EPS increased 26% over prior
year first half
• Operating Income expanded 31%
versus first half 2012
• Specialty operating income up 42%
• Revenue grew 22% versus 1H ‘12
• Portfolio transformation activities
Completed acquisition of Spartech
Divested non-core Resin business
+26%
+42%
Page 12
• Significant Debt Maturities $ 1,010
Other Debt 21
• Total Debt at 6/30/13
Less: Cash
Net Debt
• Available Liquidity
Cash
ABL Availability
Total Liquidity
• Net Debt / EBITDA = 1.9x
• Net Debt / EBITDA = 2.1x*(tax adjusted)
$392
310
$702
$1,031
392
$639
$50
$360
$600
$0
$100
$200
$300
$400
$500
$600
$700
$800
2015 2020 2023
Significant Debt Maturities
As of June 30, 2013
($ millions)
Page 13
Coupon Rates: 7.500% 7.375% 5.250%
*Pro Forma TTM for taxes on resin gain
Debt Maturities & Liquidity Summary – 6/30/13
Cash Balance = $392M
Net Debt / EBITDA* = 1.9x
• Repurchased
~3.0M shares
YTD in 2013
• 17 million shares
are available for
repurchase under
the current
authorization
Share
Repurchase
• Introduced a
quarterly dividend
in Q1 2011 and
increased in Q1
2012 (25%) and
Q1 2013 (20%)
• Objective of
maintaining and
growing
Dividends
• Expanding our
sales, marketing,
and technical
capabilities is top
priority
• Investing in
operational and
LSS initiatives
(including synergy
capture)
• CAPEX
Organic
Growth
• Targets that expand our:
• Specialty offering
• End market presence
• Geographic footprint
• Synergy opportunities
• Adjacent material solutions
• North American
manufacturing alignment
Acquisitions
*TTM 6/30/2013
Use of Cash
Page 14
Why Invest In PolyOne?
Adjusted EPS 2006Y* 2007Y* 2008Y* 2009Y 2010Y*** 2011Y*** 2012Y***
*Net Income attributable to PolyOne common
shareholders $ 130.9 $ 40.9 $ (417.0) $ 106.7 $ 152.5 $ 153.4 $ 53.3
SunBelt equity earnings, after tax (68.5) (26.1) (20.8) (19.0) (14.7) (3.7) -
Special items, after tax (21.2) 41.4 310.0 (31.0) 15.8 (30.5) 35.7
Tax adjustments (30.0) (30.7) 147.2 (44.9) (88.3) (42.3) 0.5
Adjusted net income $ 11.2 $ 25.5 $ 19.4 $ 11.8 $ 65.3 $ 76.9 $ 89.5
Diluted shares 92.8 93.1 92.7 93.4 96.0 94.3 89.8
Adjusted EPS $ 0.12 $ 0.27 $ 0.21 $ 0.13 $ 0.68 $ 0.82 $ 1.00
Adjusted EPS H1 2012*** H1 2013***
*Net Income attributable to PolyOne common
shareholders $ 33.7 $ 49.8
Special items, after tax 14.1 15.0
Tax adjustments 1.0 0.7
Adjusted net income $ 48.8 $ 65.5
Diluted shares 90.7 95.8
Adjusted EPS $ 0.54 $ 0.68
*** Restated results to exclude the Resin business and to remove Specialty Coatings from the Performance Products and Solutions segment into
Global Color, Additives and Inks segment.
https://www.avient.com/sites/default/files/resources/PolyOne%2520IR%2520Presentation%2520-%2520Gabelli%2520%2526%2520Company%2520Specialty%2520Chemical%2520Conference.pdf
Adjusted EPS attributable to PolyOne common shareholders is calculated as follows:
2009* 2010 2011 2012 2013 2014 2015 2016
Net income attributable to PolyOne common shareholders $ 106.7 $ 152.5 $ 153.4 $ 53.3 $ 94.0 $ 78.0 $ 144.6 $ 165.2
Joint venture equity earnings, after tax (19.0) (14.7) (3.7) — — — — —
Special items, before tax(1) (48.7) 24.2 (48.1) 55.1 46.3 164.2 87.6 35.5
Special items, tax adjustments(1) (27.2) (96.7) (24.7) (18.9) (13.7) (73.7) (58.7) (20.7)
Adjusted net income attributable to PolyOne common shareholders $ 11.8 $ 65.3 $ 76.9 $ 89.5 $ 126.6 $ 168.5 $ 173.5 $ 180.0
Diluted shares 93.4 96.0 94.3 89.8 96.5 93.5 88.7 84.6
Adjusted EPS attributable to PolyOne common shareholders $ 0.13 $ 0.68 $ 0.82 $ 1.00 $ 1.31 $ 1.80 $ 1.96 $ 2.13
Adjusted operating income is calculated as follows:
2006* 2016
Operating income $ 233.6 $ 281.9
Special items (1) (39.1) 35.3
Joint venture equity earnings (107.0) 0.0
Adjusted operating income $ 87.5 $ 317.2
* Historical results are shown as presented in prior filings and have not been updated to reflect subsequent changes in accounting principle, discontinued operations or the related resegmentation
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; 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; the effect of changes in accounting principles or other
such laws or provisions affecting reported results and tax adjustments.
Tax adjustments include the net tax expense/benefit from one-time income tax items, the set-up or reversal of uncertain tax position reserves and deferred income tax valuation allowance
adjustments.
https://www.avient.com/news/new-lsfoh-formulation-avient-helps-prevent-environmental-stress-cracking-armored-cables
Avient’s new ECCOH™ 5983 Formulation helps prevent stress cracking in low and medium-voltage armored power cables.
We are pleased to provide a reliable solution to help overcome this and show testament to our commitment.”
To access Avient’s news library online, please visit www.avient.com/news.
https://www.avient.com/sites/default/files/2023-02/AVNT Q4 2022 Earnings Press Release-1.pdf
To access Avient’s news library online, please visit www.avient.com/news.
Three Months Ended
December 31,
2022 2021
GAAP
Results
Special
Items
Adjusted
Results
GAAP
Results
Special
Items
Adjusted
Results
(Loss) income from continuing operations before income
taxes $ (77.4) $ 104.3 $ 26.9 $ 27.4 $ 20.5 $ 47.9
Income tax benefit (expense) - GAAP 60.8 — 60.8 (17.1) — (17.1)
Income tax impact of special items (Attachment 3) — (26.8) (26.8) — (4.1) (4.1)
Tax adjustments (Attachment 3) — (39.2) (39.2) — 7.5 7.5
Income tax benefit (expense) $ 60.8 $ (66.0) $ (5.2) $ (17.1) $ 3.4 $ (13.7)
Effective Tax Rate(1) 78.5 % 19.6 % 62.4 % 28.6 %
(1) Rates may not recalculate from figures presented herein due to rounding
15
Year Ended
December 31,
2022 2021
GAAP
Results
Special
Items
Adjusted
Results
GAAP
Results
Special
Items
Adjusted
Results
Income from continuing operations before income taxes $ 63.8 $ 194.0 $ 257.8 $ 203.5 $ 57.1 $ 260.6
Income tax benefit (expense) - GAAP 19.3 — 19.3 (51.9) — (51.9)
Income tax impact of special items (Attachment 3) — (49.4) (49.4) — (13.0) (13.0)
Tax adjustments (Attachment 3) — (28.4) (28.4) — 5.9 5.9
Income tax expense $ 19.3 $ (77.8) $ (58.5) $ (51.9) $ (7.1) $ (59.0)
Effective Tax Rate(1) (30.2)% 22.7 % 25.5 % 22.7 %
(1) Rates may not recalculate from figures presented herein due to rounding
Three Months Ended Year Ended
Reconciliation of Pro Forma Adjusted Earnings per Share December 31, 2022
Net (loss) income from continuing operations attributable to Avient
shareholders $ (17.0) $ 82.8
Special items, after tax (Attachment 3) 38.3 116.2
Amortization expense, after-tax (Attachment 1) 14.6 49.0
Adjusted net income from continuing operations excluding special items 35.9 248.0
APM pro forma adjustments to net income from continuing operations* 2.5 13.6
APM amortization expense, after tax* — 19.1
Pro forma adjusted net income from continuing operations attributable to Avient
shareholders $ 38.4 $ 280.7
Weighted average diluted shares 91.7 92.2
Pro forma adjusted EPS - excluding special items $ 0.42 $ 3.04
* Pro forma adjustment for January - August 2022 APM results (period before Avient ownership) including the impacts of debt financing and
prepayments on net income from continuing operations.
Reconciliation of Pro Forma Net Debt
December 31,
2022
Short-term and current portion of long term debt $ 2.2
Total long-term debt, net 2,176.7
Unamortized discount and debt issuance cost 37.4
Total debt $ 2,216.3
Cash (641.1)
Net taxes due from sale of business 105.0
Adjusted cash $ (536.1)
Net debt $ 1,680.2
16
Free Cash Flow Calculation
December 31,
2022
Cash provided by operating activities 398.4
Capital expenditures (105.5)
Free cash flow $ 292.9
Reconciliation to EBITDA and Adjusted EBITDA
Year Ended
December 31, 2022
Net (loss) income from continuing operations – GAAP $ 83.1
Income tax (benefit) expense (19.3)
Interest expense 119.8
Depreciation and amortization from continuing operations 162.5
EBITDA $ 346.1
Special items, before income tax 194.0
Interest expense included in special items (26.0)
Depreciation and amortization included in special items (5.5)
APM pro forma adjustments - 8 months 2022* 83.1
Adjusted EBITDA $ 591.7
* Pro forma adjustment for January - August 2022 APM results (period before Avient ownership).
https://www.avient.com/sites/default/files/2019-12/Fermium_IR_Deck_12.16.19_for_Website.pdf
Factors that could cause actual results to differ materially from those implied by these forward-looking statements include, but are not limited to:
• Our ability to identify and evaluate acquisition targets and consummate and integrate acquisitions
• 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 the disposal of plastic 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;
• An inability to raise or sustain prices for products or services;
• Information systems failures and cyber attacks; 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.
Adjusted EPS attributable to PolyOne common shareholders is calculated as follows:
2009* 2010* 2011* 2012* 2013* 2014* 2015* 2016 2017 2018
Net income from continuing operations attributable to
PolyOne common shareholders $ 106.7 $ 152.5 $ 153.4 $ 53.3 $ 94.0 $ 78.0 $ 144.6 $ 166.4 $ 173.5 $ 161.1
Joint venture equity earnings, after tax (19.0) (14.7) (3.7) — — — — — — —
Special items, before tax(1) (48.7) 24.2 (48.1) 55.1 46.3 164.2 87.6 23.8 32.9 59.5
Special items, tax adjustments(1) (27.2) (96.7) (24.7) (18.9) (13.7) (73.7) (58.7) (15.9) (24.8) (25.3)
Adjusted net income from continuing operations
attributable to PolyOne common shareholders $ 11.8 $ 65.3 $ 76.9 $ 89.5 $ 126.6 $ 168.5 $ 173.5 $ 174.3 $ 181.6 $ 195.3
Diluted shares 93.4 96.0 94.3 89.8 96.5 93.5 88.7 84.6 82.1 80.4
Adjusted EPS attributable to PolyOne common
shareholders $ 0.13 $ 0.68 $ 0.82 $ 1.00 $ 1.31 $ 1.80 $ 1.96 $ 2.06 $ 2.21 $ 2.43
* Historical results are shown as presented in prior filings and have not been updated to reflect subsequent changes in accounting principle, discontinued operations or the related resegmentation
Tax adjustments include the net tax benefit/(expense) from one-time income tax items, the set-up or reversal of uncertain tax position
reserves and deferred income tax valuation allowance adjustments.
https://www.avient.com/news/polyone-eco-conscious-solutions-help-schneider-electric-achieve-sustainability-goals
Homepage
//
News Center
//
PolyOne Eco-Conscious Solutions Help Schneider Electric Achieve Sustainability Goals
FISCHBACH, Luxembourg – PolyOne Corporation today announced that advanced, halogen-free material solutions are helping Schneider Electric to engineer better product performance, improve efficiency and strengthen its globally recognized sustainability strategy.
To access PolyOne’s news library online, please go to www.polyone.com/news.
https://www.avient.com/sites/default/files/resources/PolyOne%2520Investor%2520Presentation%2520Longbow%2520Basic%2520Materials%2520Conference%2520-%2520March%25202016.pdf
The non-GAAP financial measures
include: adjusted EPS, earnings before interest, tax, depreciation and amortization
(EBITDA), adjusted EBITDA, net debt, Specialty platform operating income, Specialty
platform gross margin percentage, adjusted operating income, return on invested
capital, net debt/ EBITDA, and the exclusion of corporate charges in certain
calculations
Adjusted EPS is calculated as follows:
Adjusted EPS 2006Y* 2007Y* 2008Y* 2009Y* 2010Y 2011Y 2012Y 2013Y 2014Y 2015Y
Net income (loss) attributable to PolyOne common
shareholders $ 130.9 $ 40.9 $ (417.0) $ 106.7 $ 152.5 $ 153.4 $ 53.3 $ 94.0 $ 78.0 $ 144.6
Joint venture equity earnings, after tax (68.5) (26.1) (20.8) (19.0) (14.7) (3.7) - - - -
Special items, after tax(1) (51.2) 10.7 457.2 (75.9) (72.5) (72.8) 36.2 32.6 90.5 28.9
Adjusted net income $ 11.2 $ 25.5 $ 19.4 $ 11.8 $ 65.3 $ 76.9 $ 89.5 $ 126.6 $ 168.5 $ 173.5
Diluted shares 92.8 93.1 92.7 93.4 96.0 94.3 89.8 96.5 93.5 88.7
Adjusted EPS $ 0.12 $ 0.27 $ 0.21 $ 0.13 $ 0.68 $ 0.82 $ 1.00 $ 1.31 $ 1.80 $ 1.96
Adjusted EPS Q1 2009* Q2 2009* Q3 2009* Q4 2009* Q1 2010 Q2 2010 Q3 2010 Q4 2010
Net income attributable to PolyOne common shareholders $ 3.3 $ 1.3 $ 51.3 $ 50.8 $ 20.1 $ 44.7 $ 0.1 $ 87.6
Joint venture equity earnings, after tax (8.2) (5.8) (3.0) (2.0) (0.5) (4.5) (6.2) (3.5)
Special items, after tax(1) (10.2) 9.2 (36.9) (38.0) (3.8) (22.1) 25.4 (72.0)
Adjusted net (loss) income $ (15.1) $ 4.7 $ 11.4 $ 10.8 $ 15.8 $ 18.1 $ 19.3 $ 12.1
Diluted shares 92.2 93.5 93.9 94.4 95.3 96.3 96.3 97.4
Adjusted EPS $ (0.16) $ 0.05 $ 0.12 $ 0.11 $ 0.17 $ 0.19 $ 0.20 $ 0.12
Adjusted EPS Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012
Net income attributable to PolyOne common shareholders $ 106.0 $ 23.1 $ 16.0 $ 8.3 $ 15.3 $ 18.4 $ 19.4 $ 0.2
Joint venture equity earnings, after tax (3.7) - - - - - - -
Special items, after tax(1) (81.3) 1.3 2.8 4.4 6.2 8.9 5.4 15.7
Adjusted net income $ 21.0 $ 24.4 $ 18.8 $ 12.7 $ 21.5 $ 27.3 $ 24.8 $ 15.9
Diluted shares 96.4 95.5 94.0 91.9 90.7 90.7 90.2 90.5
Adjusted EPS $ 0.22 $ 0.26 $ 0.20 $ 0.14 $ 0.24 $ 0.30 $ 0.28 $ 0.18
2
Adjusted EPS Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014
Net income (loss) attributable to PolyOne common
shareholders $ 11.2 $ 38.6 $ 23.2 $ 21.0 $ 29.4 $ 30.9 $ 32.3 $ (14.6)
Special items, after tax(1) 17.7 (2.0) 12.3 4.6 12.5 17.4 13.1 47.5
Adjusted net income $ 28.9 $ 36.6 $ 35.5 $ 25.6 $ 41.9 $ 48.3 $ 45.4 $ 32.9
Diluted shares 92.8 99.1 98.1 97.2 95.7 94.3 93.1 91.3
Adjusted EPS $ 0.31 $ 0.37 $ 0.36 $ 0.26 $ 0.44 $ 0.51 $ 0.49 $ 0.36
Adjusted EPS Q1 2015 Q2 2015 Q3 2015 Q4 2015
Net income attributable to PolyOne common shareholders $ 30.2 $ 66.8 $ 44.5 $ 3.1
Special items, after tax(1) 11.4 (15.9) 3.0 30.4
Adjusted net income $ 41.6 $ 50.9 $ 47.5 $ 33.5
Diluted shares 90.1 89.8 88.4 86.6
Adjusted EPS $ 0.46 $ 0.57 $ 0.54 $ 0.39
Adjusted operating margin is calculated as follows:
Adjusted operating margin Q1 2009* Q2 2009* Q3 2009* Q4 2009* YTD 2009* Q1 2010 Q2 2010 Q3 2010 Q4 2010 YTD 2010
Operating Income $ 9.9 $ 17.1 $ 57.9 $ 52.2 $ 137.1 $ 32.3 $ 58.6 $ 42.0 $ 26.3 $ 159.2
Special items (1) (1.3) 4.6 (27.5) (24.5) (48.7) - (14.5) 5.5 4.2 (4.8)
Joint venture equity earnings (12.8) (9.0) (4.8) (3.1) (29.7) (0.8) (7.1) (9.7) (5.5) (23.1)
Adjusted operating (loss) income $ (4.2) $ 12.7 $ 25.6 $ 24.6 $ 58.7 $ 31.5 $ 37.0 $ 37.8 $ 25.0 $ 131.3
Sales $ 463.4 $ 496.5 $ 548.3 $ 552.5 $ 2,060.7 $ 604.0 $ 666.2 $ 650.7 $ 585.3 $ 2,506.2
Operating Margin (0.9)% 2.6% 4.7% 4.5% 2.8% 5.2% 5.6% 5.8% 4.3% 5.2%
Adjusted operating margin Q1 2011 Q2 2011 Q3 2011 Q4 2011 YTD 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 YTD 2012
Operating income (loss) $ 173.4 $ 42.4 $ 33.4 $ (46.2) $ 203.0 $ 37.4 $ 43.3 $ 43.5 $ 13.3 $ 137.5
Special items (1) (127.2) 2.7 4.9 72.9 (46.7) 8.5 11.8 8.3 25.3 53.9
Joint venture equity earnings (5.7) - - - (5.7) - - - - -
Adjusted operating income $ 40.5 $ 45.1 $ 38.3 $ 26.7 $ 150.6 $ 45.9 $ 55.1 $ 51.8 $ 38.6 $ 191.4
Sales $ 682.8 $ 723.4 $ 694.0 $ 609.2 $ 2,709.4 $ 745.5 $ 756.6 $ 707.7 $ 651.0 $ 2,860.8
Operating Margin 5.9% 6.2% 5.5% 4.4% 5.6% 6.2% 7.3% 7.3% 5.9% 6.7%
3
Adjusted operating margin Q1 2013 Q2 2013 Q3 2013 Q4 2013 YTD 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 YTD 2014
Operating income (loss) $ 40.5 $ 80.7 $ 61.6 $ 48.7 $ 231.5 $ 56.4 $ 49.4 $ 63.6 $ (14.3) $ 155.1
Special items (1) 16.6 (5.2) 10.8 7.8 30.0 22.9 39.8 22.0 80.2 164.9
Adjusted operating income $ 57.1 $ 75.5 $ 72.4 $ 56.5 $ 261.5 $ 79.3 $ 89.2 $ 85.6 $ 65.9 $ 320.0
Sales $ 801.1 $ 1,037.6 $ 1,008.9 $ 923.6 $ 3,771.2 $ 1,002.3 $ 1,005.5 $ 958.4 $ 869.3 $ 3,835.5
Operating Margin 7.1% 7.3% 7.2% 6.1% 6.9% 7.9% 8.9% 8.9% 7.6% 8.3%
Adjusted operating margin Q1 2015 Q2 2015 Q3 2015 Q4 2015 YTD 2015
Operating income $ 70.1 $ 80.3 $ 69.2 $ 31.3 $ 250.9
Special items (1) 9.3 11.9 18.7 31.4 71.3
Adjusted operating income $ 79.4 $ 92.2 $ 87.9 $ 62.7 $ 322.2
Sales $ 873.1 $ 887.1 $ 841.6 $ 775.8 $ 3,377.6
Operating Margin 9.1% 10.4% 10.4% 8.1% 9.5%
Adjusted gross margin is calculated as follows:
(In millions) Twelve Months Ended December 31, 2015
Gross margin - GAAP $ 681.5
Special items in gross margin(1) 39.7
Gross margin before special items $ 721.2
Specialty operating income mix percentage is calculated as follows:
Platform operating income mix percentage 2005* 2010* 2015
Color, Additives and Inks $ 4.3 $ 37.7 $ 135.4
Specialty Engineered Materials 0.4 49.7 79.6
Designed Structures and Solutions - - 13.8
Specialty Platform $ 4.7 $ 87.4 $ 228.8
Performance Products and Solutions 75.7 54.0 57.4
Distribution 19.5 42.0 68.0
Joint ventures 91.9 18.9 —
Corporate and eliminations (51.5) (27.7) (103.3)
Operating income GAAP $ 140.3 $ 174.6 $ 250.9
Less: Corporate operating expense 51.5 27.7 103.3
Operating income excluding Corporate $ 191.8 $ 202.3 $ 354.2
Specialty platform operating mix percentage 2% 43% 65%
4
Adjusted EBITDA and net debt to adjusted EBITDA is calculated as follows:
(In millions) Twelve Months Ended December 31, 2015
Income from continuing operations, before income taxes $ 167.7
Interest expense, net 64.1
Depreciation and amortization 104.3
Special items, impact on income from continuing operations before income taxes(1) 87.6
Accelerated depreciation included in special items (6.2)
Adjusted EBITDA $ 417.5
Short-term and current portion of long-term debt $ 18.6
Long-term debt 1,128.0
Less: Cash and cash equivalents (279.8)
Net Debt 866.8
Net Debt/TTM Adjusted EBITDA 2.1
* Historical results are shown as presented in prior filings and have not been updated to reflect subsequent changes in accounting principal, discontinued operations or the related resegmentation
Tax adjustments include the net tax expense/benefit from one-time income tax items, the set-up or reversal of uncertain tax position reserves and deferred income tax valuation allowance adjustments.
https://www.avient.com/sites/default/files/2022-11/Avient Announces Third Quarter 2022 Results.pdf
To access Avient’s news library online, please visit www.avient.com/news
# # #
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.
Three Months Ended
September 30,
Nine Months Ended
September 30,
Reconciliation to Consolidated Statements of Income 2022 2021 2022 2021
Sales $ 823.3 $ 818.0 $ 2,606.5 $ 2,508.5
Gross margin - GAAP 195.4 215.6 710.7 727.3
Special items in gross margin (Attachment 3) 31.8 17.3 35.6 27.7
Adjusted gross margin $ 227.2 $ 232.9 $ 746.3 $ 755.0
Adjusted gross margin as a percent of sales 27.7 % 28.5 % 28.6 % 30.1 %
Operating income - GAAP 40.6 52.8 242.9 229.6
Special items in operating income (Attachment 3) 40.2 20.0 48.8 36.6
Adjusted operating income $ 80.8 $ 72.8 $ 291.7 $ 266.2
Adjusted operating income as a percent of sales 9.8 % 8.9 % 11.2 % 10.6 %
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 September 30,
2022 2021
GAAP
Results
Special
Items
Adjusted
Results
GAAP
Results
Special
Items
Adjusted
Results
(Loss) income from continuing operations before income
taxes $ (29.0) $ 82.0 $ 53.0 $ 35.4 $ 19.9 $ 55.3
Income tax expense - GAAP 1.2 — 1.2 (2.0) — (2.0)
Income tax impact of special items (Attachment 3) — (20.5) (20.5) — (4.6) (4.6)
Tax adjustments (Attachment 3) — 6.8 6.8 — (3.6) (3.6)
Income tax (expense) benefit $ 1.2 $ (13.7) $ (12.5) $ (2.0) $ (8.2) $ (10.2)
Effective Tax Rate(1) 4.1 % 23.7 % 5.7 % 18.4 %
(1) Rates may not recalculate from figures presented herein due to rounding
14
Nine Months Ended September 30,
2022 2021
GAAP
Results
Special
Items
Adjusted
Results
GAAP
Results
Special
Items
Adjusted
Results
Income from continuing operations before income taxes $141.2 $ 89.6 $ 230.8 $176.1 $ 36.5 $ 212.6
Income tax expense - GAAP (41.5) — (41.5) (32.1) — (32.1)
Income tax impact of special items (Attachment 3) — (22.5) (22.5) — (8.9) (8.9)
Tax adjustments (Attachment 3) — 10.8 10.8 — (1.6) (1.6)
Income tax (expense) benefit $ (41.5) $ (11.7) $ (53.2) $ (32.1) $ (10.5) $ (42.6)
Effective Tax Rate(1) 29.4 % 23.1 % 18.2 % 20.0 %
(1) Rates may not recalculate from figures presented herein due to rounding
Three Months Ended
September 30,
Nine Months Ended
September 30,
Reconciliation to EBITDA and Adjusted EBITDA: 2022 2021 2022 2021
Net (loss) income from continuing operations – GAAP $ (27.8) $ 33.4 $ 99.7 $ 144.0
Income tax (benefit) expense (1.2) 2.0 41.5 32.1
Interest expense 37.3 19.0 70.4 57.8
Depreciation and amortization from continuing operations 39.8 36.6 113.7 107.1
EBITDA $ 48.1 $ 91.0 $ 325.3 $ 341.0
Special items, before tax 82.0 19.9 89.6 36.5
Interest expense included in special items (10.0) — (10.0) —
Depreciation and amortization included in special items (0.8) (0.9) (4.0) (0.1)
Adjusted EBITDA $ 119.3 $ 110.0 $ 400.9 $ 377.4
NEWS RELEASE
Attachment 1
https://www.avient.com/sites/default/files/resources/POL%2520IR%2520Presentation%2520-%2520BOAML%2520Basic%2520Materials%2520Conference%2520w%2520non-GAAP%252012%252011%25202014.pdf
Factors that could cause actual results to differ materially from those implied by these forward-looking statements include, but are not limited to:
The final amount of charges resulting from the planned North American asset realignment and the Company’s ability to realize anticipated
savings and operational benefits from the asset realignment;
Our ability to achieve the strategic and other objectives relating to the acquisition of Spartech Corporation, including any expected synergies;
Our ability to successfully integrate Spartech and achieve the expected results of the acquisition, including, without limitation, the acquisition
being accretive;
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 financial condition of our customers, including the ability of customers (especially those that may be highly leveraged and those with
inadequate liquidity) to maintain their credit availability;
The speed and extent of an economic recovery, including the recovery of the housing market;
Our ability to achieve new business gains;
The effect on foreign operations of currency fluctuations, tariffs, and other political, economic and regulatory risks;
Changes in polymer consumption growth rates in the markets 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;
An inability to achieve or delays in achieving or achievement of less than the anticipated financial benefit from initiatives related to working
capital reductions, cost reductions, employee productivity goals, and an inability to raise or sustain prices for products or services;
An inability to raise or sustain prices for products or services;
An inability to maintain appropriate relations with unions and employees;
The inability to achieve expected results from our acquisition activities;
Our ability to continue to pay cash dividends;
The amount and timing of repurchases of our common shares, if any; 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.
The non-GAAP financial measures
include: adjusted EPS, earnings before interest, tax, depreciation and amortization
(EBITDA), adjusted EBITDA, net debt, Specialty platform operating income, Specialty
platform gross margin percentage, adjusted operating income, return on invested
capital, net debt/ EBITDA, and the exclusion of corporate charges in certain
calculations.
Adjusted EPS 2006Y* 2007Y* 2008Y* 2009Y* 2010Y 2011Y 2012Y 2013Y
YTD
Net income attributable to
PolyOne common
shareholders $ 130.9 $ 40.9 $ (417.0) $ 106.7 $ 152.5 $ 153.4 $ 53.3 $ 94.0 $ 92.6
Joint venture equity
earnings, after tax (68.5) (26.1) (20.8) (19.0) (14.7) (3.7) - - -
Special items, after tax (21.2) 41.4 310.0 (31.0) 15.8 (30.5) 35.7 30.4 49.9
Tax adjustments (30.0) (30.7) 147.2 (44.9) (88.3) (42.3) 0.5 2.2 (6.9)
Adjusted net income $ 11.2 $ 25.5 $ 19.4 $ 11.8 $ 65.3 $ 76.9 $ 89.5 $ 126.6 $ 135.6
Diluted shares 92.8 93.1 92.7 93.4 96.0 94.3 89.8 96.5 94.3
Adjusted EPS $ 0.12 $ 0.27 $ 0.21 $ 0.13 $ 0.68 $ 0.82 $ 1.00 $ 1.31 $ 1.44
* Historical results are shown as presented in prior filings and have not been updated to reflect subsequent changes in accounting principal or discontinued operations.