https://www.avient.com/sites/default/files/2020-09/oncolor-sc-product-bulletin-8.5x11.pdf
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https://www.avient.com/sites/default/files/2022-10/PREPERM Automotive Application Bulletin.pdf
This literature shall NOT operate as permission, recommendation, or inducement to practice any patented invention without permission of the patent owner. 1.844.4AVIENT www.avient.com Typical dielectric properties of PREPERM radome grades as a function of frequency Technical measurement data value depends on a final application and conditions of use for our products.
https://www.avient.com/sites/default/files/2022-06/Colorant Chromatics FEP UV Laser Marking Product Bulletin.pdf
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THE CHALLENGE A leading manufacturer of data cables in Zhuhai, China, ran into a serious challenge.
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https://www.avient.com/sites/default/files/2021-07/avnt-q2-2021-earnings-release.pdf
Rose Vice President, Corporate Communications Avient Corporation +1 440-930-3162 kyle.rose@avient.com 6 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, 2021 2020 2021 2020 Sales $ 1,235.2 $ 609.1 $ 2,397.5 $ 1,320.6 Operating Income 108.1 38.0 228.5 90.8 Net income from continuing operations attributable to Avient shareholders 68.8 23.0 148.1 56.1 Basic earnings per share from continuing operations attributable to Avient shareholders $ 0.75 $ 0.25 $ 1.62 $ 0.63 Diluted earnings per share from continuing operations attributable to Avient shareholders $ 0.74 $ 0.25 $ 1.60 $ 0.63 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, 2021 Three Months Ended June 30, 2020 Reconciliation to Condensed Consolidated Statements of Income $ EPS $ EPS Net income from continuing operations attributable to Avient shareholders $ 68.8 $ 0.74 $ 23.0 $ 0.25 Special items, after tax (Attachment 3) 11.7 0.13 2.6 0.03 Adjusted net income / EPS - excluding special items $ 80.5 $ 0.87 $ 25.6 $ 0.28 Six Months Ended June 30, 2021 Six Months Ended June 30, 2020 Reconciliation to Condensed Consolidated Statements of Income $ EPS $ EPS Net income from continuing operations attributable to Avient shareholders $ 148.1 $ 1.60 $ 56.1 $ 0.63 Special items, after tax (Attachment 3) 14.3 0.16 11.2 0.12 Adjusted net income / EPS - excluding special items $ 162.4 $ 1.76 $ 67.3 $ 0.75 7 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, 2021 2020 2021 2020 Sales $ 1,235.2 $ 609.1 $ 2,397.5 $ 1,320.6 Cost of sales 946.5 459.4 1,806.4 999.4 Gross margin 288.7 149.7 591.1 321.2 Selling and administrative expense 180.6 111.7 362.6 230.4 Operating income 108.1 38.0 228.5 90.8 Interest expense, net (19.5) (16.2) (38.8) (25.6) Other income, net 1.2 9.5 2.7 11.1 Income from continuing operations before income taxes 89.8 31.3 192.4 76.3 Income taxes (20.4) (7.9) (43.3) (19.8) Net income from continuing operations 69.4 23.4 149.1 56.5 Loss from discontinued operations, net of income taxes — (0.2) — (0.5) Net income 69.4 23.2 149.1 56.0 Net income attributable to noncontrolling interests (0.6) (0.4) (1.0) (0.4) Net income attributable to Avient common shareholders $ 68.8 $ 22.8 $ 148.1 $ 55.6 Earnings per share attributable to Avient common shareholders - Basic: Continuing operations $ 0.75 $ 0.25 $ 1.62 $ 0.63 Discontinued operations — — — — Total $ 0.75 $ 0.25 $ 1.62 $ 0.63 Earnings per share attributable to Avient common shareholders - Diluted: Continuing operations $ 0.74 $ 0.25 $ 1.60 $ 0.63 Discontinued operations — — — (0.01) Total $ 0.74 $ 0.25 $ 1.60 $ 0.62 Cash dividends declared per share of common stock $ 0.2125 $ 0.2025 $ 0.4250 $ 0.4050 Weighted-average shares used to compute earnings per common share: Basic 91.3 91.4 91.3 88.8 Diluted 92.4 91.8 92.3 89.4 8 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, 2021 2020 2021 2020 Cost of sales: Restructuring costs, including accelerated depreciation and amortization $ (1.5) $ (1.2) $ (3.3) $ (1.2) Environmental remediation costs (12.5) (3.1) (13.0) (3.5) Reimbursement of previously incurred environmental costs — 8.5 4.5 8.7 Acquisition related costs 1.4 — 1.4 — Impact on cost of sales (12.6) 4.2 (10.4) 4.0 Selling and administrative expense: Restructuring, legal and other (1.4) (3.5) (2.7) (5.3) Acquisition earn-out adjustments — — — (1.0) Acquisition related costs (0.2) (9.7) (3.5) (16.4) Impact on selling and administrative expense (1.6) (13.2) (6.2) (22.7) Impact on operating income (14.2) (9.0) (16.6) (18.7) Costs related to committed financing in interest expense, net — (0.5) — (0.5) Other income, net — 0.2 — 0.3 Pension settlement gain and mark-to-market adjustment — 6.9 — 6.9 Impact on income from continuing operations before income taxes (14.2) (2.4) (16.6) (12.0) Income tax benefit on above special items 3.4 0.7 4.3 2.7 Tax adjustments(2) (0.9) (0.9) (2.0) (1.9) Impact of special items on net income from continuing operations attributable to Avient Shareholders $ (11.7) $ (2.6) $ (14.3) $ (11.2) Diluted earnings per common share impact $ (0.13) $ (0.03) $ (0.16) $ (0.12) Weighted average shares used to compute adjusted earnings per share: Diluted 92.4 91.8 92.3 89.4 (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, the set-up or reversal of uncertain tax position reserves and deferred income tax valuation allowance adjustments. 9 Attachment 4 Avient Corporation Condensed Consolidated Balance Sheets (In millions) (Unaudited) June 30, 2021 December 31, 2020 ASSETS Current assets: Cash and cash equivalents $ 616.2 $ 649.5 Accounts receivable, net 705.2 516.6 Inventories, net 412.5 327.5 Other current assets 124.2 108.5 Total current assets 1,858.1 1,602.1 Property, net 680.1 694.9 Goodwill 1,281.7 1,308.1 Intangible assets, net 944.9 1,008.5 Operating lease assets, net 87.3 80.9 Other non-current assets 195.3 176.0 Total assets $ 5,047.4 $ 4,870.5 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Short-term and current portion of long-term debt $ 18.8 $ 18.6 Accounts payable 574.6 471.7 Current operating lease obligations 24.9 25.1 Accrued expenses and other current liabilities 316.0 285.6 Total current liabilities 934.3 801.0 Non-current liabilities: Long-term debt 1,852.2 1,854.0 Pension and other post-retirement benefits 112.6 115.0 Non-current operating lease obligations 62.8 56.0 Other non-current liabilities 299.1 332.8 Total non-current liabilities 2,326.7 2,357.8 SHAREHOLDERS' EQUITY Avient shareholders’ equity 1,768.2 1,697.1 Noncontrolling interest 18.2 14.6 Total equity 1,786.4 1,711.7 Total liabilities and equity $ 5,047.4 $ 4,870.5 10 Attachment 5 Avient Corporation Condensed Consolidated Statements of Cash Flows (Unaudited) (In millions) Six Months Ended June 30, 2021 2020 Operating Activities Net income $ 149.1 $ 56.0 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 69.5 40.8 Accelerated depreciation and amortization 1.4 — Share-based compensation expense 5.6 5.7 Changes in assets and liabilities, net of the effect of acquisitions: (Increase) decrease in accounts receivable (196.1) 16.8 (Increase) decrease in inventories (88.1) 17.4 Increase (decrease) in accounts payable 108.4 (23.5) Decrease in pension and other post-retirement benefits (9.2) (12.7) Increase (decrease) in accrued expenses and other assets and liabilities, net 27.5 (3.5) Payment of post-acquisition date earnout liability — (21.0) Net cash provided by operating activities 68.1 76.0 Investing activities Capital expenditures (42.1) (21.3) Net proceeds from divestiture — 7.1 Net cash proceeds provided by other assets (2.0) 5.2 Net cash used by investing activities (44.1) (9.0) Financing activities Debt offering proceeds — 650.0 Purchase of common shares for treasury (4.2) (13.6) Cash dividends paid (38.8) (34.3) Repayment of long-term debt (4.4) (4.2) Payments of withholding tax on share awards (4.2) (1.6) Debt financing costs — (9.7) Equity offering proceeds, net of underwriting discount and issuance costs — 496.1 Payment of acquisition date earnout liability — (32.9) Net cash (used) provided by financing activities (51.6) 1,049.8 Effect of exchange rate changes on cash (5.7) (4.5) (Decrease) increase in cash and cash equivalents (33.3) 1,112.3 Cash and cash equivalents at beginning of year 649.5 864.7 Cash and cash equivalents at end of period $ 616.2 $ 1,977.0 11 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.
Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Sales: Color, Additives and Inks $ 624.4 $ 226.8 $ 1,233.7 $ 483.3 Specialty Engineered Materials 240.6 158.8 457.1 344.1 Distribution 404.4 238.8 767.1 528.3 Corporate and eliminations (34.2) (15.3) (60.4) (35.1) Sales $ 1,235.2 $ 609.1 $ 2,397.5 $ 1,320.6 Gross margin: Color, Additives and Inks $ 193.4 $ 75.7 $ 390.9 $ 165.1 Specialty Engineered Materials 69.6 42.5 134.3 95.1 Distribution 40.1 27.2 79.4 60.8 Corporate and eliminations (14.4) 4.3 (13.5) 0.2 Gross margin $ 288.7 $ 149.7 $ 591.1 $ 321.2 Selling and administrative expense: Color, Additives and Inks $ 107.1 $ 43.4 $ 215.8 $ 92.3 Specialty Engineered Materials 32.3 25.5 62.8 55.8 Distribution 16.4 12.6 31.7 26.8 Corporate and eliminations 24.8 30.2 52.3 55.5 Selling and administrative expense $ 180.6 $ 111.7 $ 362.6 $ 230.4 Operating income: Color, Additives and Inks $ 86.3 $ 32.3 $ 175.1 $ 72.8 Specialty Engineered Materials 37.3 17.0 71.5 39.3 Distribution 23.7 14.6 47.7 34.0 Corporate and eliminations (39.2) (25.9) (65.8) (55.3) Operating income $ 108.1 $ 38.0 $ 228.5 $ 90.8 Earnings before interest, taxes, depreciation and amortization (EBITDA): Color, Additives and Inks $ 111.6 $ 42.9 $ 227.7 $ 94.4 Specialty Engineered Materials 45.4 24.6 87.4 54.4 Distribution 23.9 14.7 48.1 34.2 Corporate and eliminations (39.0) (23.3) (63.8) (51.4) Other income, net 1.2 9.5 $ 2.7 $ 11.1 EBITDA $ 143.1 $ 68.4 $ 302.1 $ 142.7 12 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/2021-04/avnt-fourth-quarter-2020-news-release.pdf
Rose Vice President, Corporate Communications Avient Corporation +1 440-930-3162 kyle.rose@avient.com 5 Attachment 1 Avient Corporation Summary of Condensed Consolidated Statements of Income (Unaudited) (In millions, except per share data) Three Months Ended December 31, Year Ended December 31, 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 Avient shareholders 74.2 6.4 132.0 75.5 Basic earnings per share from continuing operations attributable to Avient shareholders $ 0.81 $ 0.08 $ 1.47 $ 0.98 Diluted earnings per share from continuing operations attributable to Avient shareholders $ 0.81 $ 0.08 $ 1.46 $ 0.97 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 December 31, 2020 2019 Reconciliation to Condensed Consolidated Statements of Income $ EPS(1) $ EPS(1) Net income from continuing operations attributable to Avient shareholders $ 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 December 31, 2020 2019 Reconciliation to Condensed Consolidated Statements of Income $ EPS(1) $ EPS(1) Net income from continuing operations attributable to Avient shareholders $ 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 6 Attachment 2 Avient Corporation Condensed Consolidated Statements of Income (Unaudited) (In millions, except per share data) Three Months Ended December 31, Year Ended December 31, 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 Avient common shareholders $ 74.3 $ 465.3 $ 131.6 $ 588.6 Earnings per share attributable to Avient common shareholders - Basic: 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 Avient common shareholders - Diluted: 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 7 Attachment 3 Avient Corporation Summary of Special Items (Unaudited) (In millions, except per share data) Special items (1) Three Months Ended December 31, Year Ended December 31, 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 attributable to Avient Shareholders $ 26.7 $ (19.9) $ (24.8) $ (55.8) Diluted earnings per common share impact of special items on net income from continuing operations attributable to Avient shareholders $ 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. 8 Attachment 4 Avient Corporation Condensed Consolidated Balance Sheets (Unaudited) (In millions) Year Ended December 31, 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 Goodwill 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 Avient 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 9 Attachment 5 Avient Corporation Condensed Consolidated Statements of Cash Flows (Unaudited) (In millions) Year Ended December 31, 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 10 Attachment 6 Avient Corporation 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 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.
Three Months Ended December 31, Year Ended December 31, 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 11 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/2023-07/AVNT Q2 2023 Earnings Press Release%5B43%5D.pdf
Rose Vice President, Marketing and Communications Avient Corporation +1 440-930-3162 kyle.rose@avient.com mailto:giuseppe.disalvo@avient.com mailto: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, 2023 2022 2023 2022 Sales $ 824.4 $ 891.0 $ 1,670.1 $ 1,783.2 Operating Income 62.3 100.1 119.4 202.3 Net income from continuing operations attributable to Avient shareholders 22.1 62.8 42.9 127.2 Basic earnings per share from continuing operations attributable to Avient shareholders $ 0.24 $ 0.69 $ 0.47 $ 1.39 Diluted earnings per share from continuing operations attributable to Avient shareholders $ 0.24 $ 0.68 $ 0.47 $ 1.38 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, 2023 Three Months Ended June 30, 2022 Reconciliation to Condensed Consolidated Statements of Income $ EPS $ EPS Net income from continuing operations attributable to Avient shareholders $ 22.1 $ 0.24 $ 62.8 $ 0.68 Special items, after tax (Attachment 3) 19.6 0.21 3.2 0.03 Amortization expense, after-tax 16.2 0.18 10.5 0.12 Adjusted net income / EPS $ 57.9 $ 0.63 $ 76.5 $ 0.83 Six Months Ended June 30, 2023 Six Months Ended June 30, 2022 Reconciliation to Condensed Consolidated Statements of Income $ EPS $ EPS Net income from continuing operations attributable to Avient shareholders $ 42.9 $ 0.47 $ 127.2 $ 1.38 Special items, after tax (Attachment 3) 41.9 0.46 9.6 0.10 Amortization expense, after-tax 31.3 0.34 21.3 0.23 Adjusted net income / EPS $ 116.1 $ 1.27 $ 158.1 $ 1.71 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, 2023 2022 2023 2022 Sales $ 824.4 $ 891.0 $ 1,670.1 $ 1,783.2 Cost of sales 583.7 630.1 1,181.8 1,267.9 Gross margin 240.7 260.9 488.3 515.3 Selling and administrative expense 178.4 160.8 368.9 313.0 Operating income 62.3 100.1 119.4 202.3 Interest expense, net (29.4) (16.2) (58.2) (33.1) Other (expense) income, net (0.2) 1.6 0.5 1.0 Income from continuing operations before income taxes 32.7 85.5 61.7 170.2 Income tax expense (10.4) (22.7) (18.1) (42.7) Net income from continuing operations 22.3 62.8 43.6 127.5 Income (loss) from discontinued operations, net of income taxes — 21.9 (0.9) 41.7 Net income 22.3 84.7 42.7 169.2 Net income attributable to noncontrolling interests (0.2) — (0.7) (0.3) Net income attributable to Avient common shareholders $ 22.1 $ 84.7 $ 42.0 $ 168.9 Earnings (loss) per share attributable to Avient common shareholders - Basic: Continuing operations $ 0.24 $ 0.69 $ 0.47 $ 1.39 Discontinued operations — 0.24 (0.01) 0.46 Total $ 0.24 $ 0.93 $ 0.46 $ 1.85 Earnings (loss) per share attributable to Avient common shareholders - Diluted: Continuing operations $ 0.24 $ 0.68 $ 0.47 $ 1.38 Discontinued operations — 0.24 (0.01) 0.45 Total $ 0.24 $ 0.92 $ 0.46 $ 1.83 Cash dividends declared per share of common stock $ 0.2475 $ 0.2375 $ 0.4950 $ 0.4750 Weighted-average shares used to compute earnings per common share: Basic 91.1 91.4 91.1 91.4 Diluted 91.9 92.1 91.9 92.2 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, 2023 2022 2023 2022 Cost of sales: Restructuring costs, including accelerated depreciation $ (1.2) $ (2.6) $ (7.8) $ (7.0) Environmental remediation costs (13.0) (3.0) (14.4) (5.0) Reimbursement of previously incurred environmental costs — 7.6 — 8.2 Impact on cost of sales (14.2) 2.0 (22.2) (3.8) Selling and administrative expense: Restructuring (0.5) (2.9) (11.9) (1.3) Legal and other (6.4) 1.2 (10.6) 1.5 Acquisition related costs (0.7) (2.1) (4.2) (5.0) Impact on selling and administrative expense (7.6) (3.8) (26.7) (4.8) Impact on operating income (21.8) (1.8) (48.9) (8.6) Other income (loss), net 0.1 0.9 (0.1) 1.0 Impact on income from continuing operations before income taxes (21.7) (0.9) (49.0) (7.6) Income tax expense (benefit) on above special items 5.5 0.2 12.4 2.0 Tax adjustments(2) (3.4) (2.5) (5.3) (4.0) Impact of special items on net income from continuing operations $ (19.6) $ (3.2) $ (41.9) $ (9.6) Diluted earnings per common share impact $ (0.21) $ (0.03) $ (0.46) $ (0.10) Weighted average shares used to compute adjusted earnings per share: Diluted 91.9 92.1 91.9 92.2 (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) June 30, 2023 December 31, 2022 ASSETS Current assets: Cash and cash equivalents $ 528.7 $ 641.1 Accounts receivable, net 506.4 440.6 Inventories, net 359.0 372.7 Other current assets 116.6 115.3 Total current assets 1,510.7 1,569.7 Property, net 1,007.4 1,049.2 Goodwill 1,705.7 1,671.9 Intangible assets, net 1,614.7 1,597.6 Other non-current assets 213.3 196.6 Total assets $ 6,051.8 $ 6,085.0 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Short-term debt $ 2.2 $ 2.2 Accounts payable 428.7 454.4 Accrued expenses and other current liabilities 345.6 412.8 Total current liabilities 776.5 869.4 Non-current liabilities: Long-term debt 2,179.2 2,176.7 Pension and other post-retirement benefits 67.3 67.2 Deferred income taxes 304.8 342.5 Other non-current liabilities 370.3 276.4 Total non-current liabilities 2,921.6 2,862.8 SHAREHOLDERS' EQUITY Avient shareholders’ equity 2,334.7 2,334.5 Noncontrolling interest 19.0 18.3 Total equity 2,353.7 2,352.8 Total liabilities and equity $ 6,051.8 $ 6,085.0 11 Attachment 5 Avient Corporation Condensed Consolidated Statements of Cash Flows (Unaudited) (In millions) Six Months Ended June 30, 2023 2022 Operating Activities Net income $ 42.7 $ 169.2 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 96.2 71.1 Accelerated depreciation 1.9 3.2 Share-based compensation expense 6.5 6.3 Changes in assets and liabilities, net of the effect of acquisitions: Increase in accounts receivable (66.6) (133.2) Decrease (increase) in inventories 14.0 (45.9) (Decrease) increase in accounts payable (26.2) 98.5 Accrued expenses and other assets and liabilities, net (93.2) (62.5) Net cash (used) provided by operating activities (24.7) 106.7 Investing activities Capital expenditures (45.9) (34.0) Settlement of foreign exchange derivatives — 75.1 Net proceeds from divestiture 7.3 — Net cash used by investing activities (38.6) 41.1 Financing activities Purchase of common shares for treasury — (36.4) Cash dividends paid (45.0) (43.5) Repayment of long-term debt (1.0) (4.4) Other financing (2.3) (4.1) Net cash used by financing activities (48.3) (88.4) Effect of exchange rate changes on cash (0.8) (15.5) Decrease in cash and cash equivalents (112.4) 43.9 Cash and cash equivalents at beginning of year 641.1 601.2 Cash and cash equivalents at end of period $ 528.7 $ 645.1 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.
Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Sales: Color, Additives and Inks $ 524.5 $ 649.1 $ 1,061.5 $ 1,298.6 Specialty Engineered Materials 300.8 242.3 610.5 485.4 Corporate (0.9) (0.4) (1.9) (0.8) Sales $ 824.4 $ 891.0 $ 1,670.1 $ 1,783.2 Gross margin: Color, Additives and Inks $ 164.1 $ 193.4 $ 326.1 $ 385.5 Specialty Engineered Materials 91.5 66.0 185.4 134.4 Corporate (14.9) 1.5 (23.2) (4.6) Gross margin $ 240.7 $ 260.9 $ 488.3 $ 515.3 Selling and administrative expense: Color, Additives and Inks $ 96.1 $ 99.8 $ 192.5 $ 197.4 Specialty Engineered Materials 51.8 30.8 102.6 60.9 Corporate 30.5 30.2 73.8 54.7 Selling and administrative expense $ 178.4 $ 160.8 $ 368.9 $ 313.0 Operating income: Color, Additives and Inks $ 68.0 $ 93.6 $ 133.6 $ 188.1 Specialty Engineered Materials 39.7 35.2 82.8 73.5 Corporate (45.4) (28.7) (97.0) (59.3) Operating income $ 62.3 $ 100.1 $ 119.4 $ 202.3 Depreciation & amortization: Color, Additives and Inks $ 25.7 $ 25.8 $ 51.5 $ 51.9 Specialty Engineered Materials 19.9 7.6 41.1 15.5 Corporate 2.0 3.1 5.5 6.9 Depreciation & Amortization $ 47.6 $ 36.5 $ 98.1 $ 74.3 Earnings before interest, taxes, depreciation and amortization (EBITDA): Color, Additives and Inks $ 93.7 $ 119.4 $ 185.1 $ 240.0 Specialty Engineered Materials 59.6 42.8 123.9 89.0 Corporate (43.4) (25.6) (91.5) (52.4) Other income (expense), net (0.2) 1.6 0.5 1.0 EBITDA including special items $ 109.7 $ 138.2 $ 218.0 $ 277.6 Total Company special items in EBITDA 21.6 (0.2) 47.1 4.4 Total Company, EBITDA adjusted $ 131.3 $ 138.0 $ 265.1 $ 282.0 13 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/2023-11/AVNT Q3 2023 Earnings Press Release.pdf
Rose Vice President, Marketing and Communications Avient Corporation +1 440-930-3162 kyle.rose@avient.com mailto:giuseppe.disalvo@avient.com mailto: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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Sales $ 753.7 $ 823.3 $ 2,423.8 $ 2,606.5 Operating Income 34.3 40.6 153.7 242.9 Net income (loss) from continuing operations attributable to Avient shareholders 5.1 (27.4) 48.0 99.8 Basic earnings per share from continuing operations attributable to Avient shareholders $ 0.06 $ (0.30) $ 0.53 $ 1.09 Diluted earnings per share from continuing operations attributable to Avient shareholders $ 0.06 $ (0.30) $ 0.52 $ 1.08 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 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.
Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Sales: Color, Additives and Inks $ 486.5 $ 565.6 $ 1,548.0 $ 1,864.2 Specialty Engineered Materials 267.9 258.2 878.4 743.6 Corporate (0.7) (0.5) (2.6) (1.3) Sales $ 753.7 $ 823.3 $ 2,423.8 $ 2,606.5 Gross margin: Color, Additives and Inks $ 156.8 $ 161.3 $ 482.9 $ 546.8 Specialty Engineered Materials 78.3 66.9 263.7 201.3 Corporate (39.8) (32.8) (63.0) (37.4) Gross margin $ 195.3 $ 195.4 $ 683.6 $ 710.7 Selling and administrative expense: Color, Additives and Inks $ 92.3 $ 92.7 $ 284.8 $ 290.1 Specialty Engineered Materials 48.0 35.5 150.6 96.4 Corporate 20.7 26.6 94.5 81.3 Selling and administrative expense $ 161.0 $ 154.8 $ 529.9 $ 467.8 Operating income: Color, Additives and Inks $ 64.5 $ 68.6 $ 198.1 $ 256.7 Specialty Engineered Materials 30.3 31.4 113.1 104.9 Corporate (60.5) (59.4) (157.5) (118.7) Operating income $ 34.3 $ 40.6 $ 153.7 $ 242.9 Depreciation & amortization: Color, Additives and Inks $ 24.6 $ 24.2 $ 76.1 $ 76.1 Specialty Engineered Materials 20.5 12.9 61.6 28.4 Corporate 1.3 2.7 6.8 9.2 Depreciation & Amortization $ 46.4 $ 39.8 $ 144.5 $ 113.7 Earnings before interest, taxes, depreciation and amortization (EBITDA): Color, Additives and Inks $ 89.1 $ 92.8 $ 274.2 $ 332.8 Specialty Engineered Materials 50.8 44.3 174.7 133.3 Corporate (59.2) (56.7) (150.7) (109.5) Other income (expense), net 1.0 (32.3) 1.5 (31.3) EBITDA including special items $ 81.7 $ 48.1 $ 299.7 $ 325.3 Special items in EBITDA 41.0 71.2 88.1 75.6 Total Company, EBITDA adjusted $ 122.7 $ 119.3 $ 387.8 $ 400.9 13 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/2022-02/Q4 2021 Avient Earnings Release_0.pdf
Rose Vice President, Corporate Communications Avient Corporation +1 440-930-3162 kyle.rose@avient.com mailto:giuseppe.disalvo@avient.com mailto: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 December 31, Year Ended December 31, 2021 2020 2021 2020 Sales $ 1,201.5 $ 997.0 $ 4,818.8 $ 3,242.1 Operating Income 74.0 65.0 381.2 189.3 Net income from continuing operations attributable to Avient shareholders 29.8 74.2 230.8 132.0 Basic earnings per share from continuing operations attributable to Avient shareholders $ 0.33 $ 0.81 $ 2.53 $ 1.47 Diluted earnings per share from continuing operations attributable to Avient shareholders $ 0.32 $ 0.81 $ 2.51 $ 1.46 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 December 31, 2021 2020 Reconciliation to Condensed Consolidated Statements of Income $ EPS(1) $ EPS(1) Net income from continuing operations attributable to Avient shareholders $ 29.8 $ 0.32 $ 74.2 $ 0.81 Special items, after tax (Attachment 3) 24.0 0.26 (26.7) (0.29) Adjusted net income / EPS - excluding special items $ 53.8 $ 0.58 $ 47.5 $ 0.52 (1) Per share amounts may not recalculate from figures presented herein due to rounding Year Ended December 31, 2021 2020 Reconciliation to Condensed Consolidated Statements of Income $ EPS(1) $ EPS(1) Net income from continuing operations attributable to Avient shareholders $ 230.8 $ 2.51 $ 132.0 $ 1.46 Special items, after tax (Attachment 3) 50.0 0.54 24.8 0.27 Adjusted net income / EPS - excluding special items $ 280.8 3.05 $ 156.8 1.73 (1) Per share amounts may not recalculate from figures presented herein due to rounding 8 Attachment 2 Avient Corporation Condensed Consolidated Statements of Income (Unaudited) (In millions, except per share data) Three Months Ended December 31, Year Ended December 31, 2021 2020 2021 2020 Sales $ 1,201.5 $ 997.0 $ 4,818.8 $ 3,242.1 Cost of sales 948.4 744.1 3,719.2 2,457.8 Gross margin 253.1 252.9 1,099.6 784.3 Selling and administrative expense 179.1 187.9 718.4 595.0 Operating income 74.0 65.0 381.2 189.3 Interest expense, net (17.5) (19.3) (75.3) (74.6) Other (expense) income, net (5.4) 11.7 (1.3) 24.3 Income from continuing operations before income taxes 51.1 57.4 304.6 139.0 Income tax (expense) benefit (22.2) 17.3 (74.0) (5.2) Net income from continuing operations 28.9 74.7 230.6 133.8 Income (loss) from discontinued operations, net of income taxes — 0.1 — (0.4) Net income 28.9 74.8 230.6 133.4 Net loss (income) attributable to noncontrolling interests 0.9 (0.5) 0.2 (1.8) Net income attributable to Avient common shareholders $ 29.8 $ 74.3 $ 230.8 $ 131.6 Earnings per share attributable to Avient common shareholders - Basic: Continuing operations $ 0.33 $ 0.81 $ 2.53 $ 1.47 Discontinued operations — — — (0.01) Total $ 0.33 $ 0.81 $ 2.53 $ 1.46 Earnings per share attributable to Avient common shareholders - Diluted: Continuing operations $ 0.32 $ 0.81 $ 2.51 $ 1.46 Discontinued operations — — — (0.01) Total $ 0.32 $ 0.81 $ 2.51 $ 1.45 Cash dividends declared per share of common stock $ 0.2375 $ 0.2125 $ 0.8750 $ 0.8200 Weighted-average shares used to compute earnings per common share: Basic 91.5 91.4 91.4 90.1 Diluted 92.4 92.1 92.1 90.6 9 Attachment 3 Avient Corporation Summary of Special Items (Unaudited) (In millions, except per share data) Special items (1) Three Months Ended December 31, Year Ended December 31, 2021 2020 2021 2020 Cost of sales: Restructuring costs, including accelerated depreciation $ (6.0) $ (1.8) $ (14.6) $ (4.3) Environmental remediation costs (0.5) (1.1) (22.9) (20.4) Reimbursement of previously incurred environmental costs — — 4.5 8.7 Acquisition related costs 0.6 1.2 (0.6) (9.3) Impact on cost of sales (5.9) (1.7) (33.6) (25.3) Selling and administrative expense: Restructuring, legal and other (4.2) (13.0) (5.9) (22.5) Acquisition earn-out adjustments — 1.5 — (1.0) Acquisition related costs (1.1) (1.4) (8.3) (24.9) Impact on selling and administrative expense (5.3) (12.9) (14.2) (48.4) Impact on operating income (11.2) (14.6) (47.8) (73.7) Costs related to committed financing in interest expense, net — — — (10.1) Other income, net — 0.1 0.1 0.4 Pension settlement/curtailment and mark-to-market adjustment (loss) gain (9.4) 10.3 (9.4) 17.2 Impact on income from continuing operations before income taxes (20.6) (4.2) (57.1) (66.2) Income tax benefit (expense) on above special items 4.1 (1.3) 13.0 14.1 Tax adjustments(2) (7.5) 32.2 (5.9) 27.3 Impact of special items on net income from continuing operations attributable to Avient Shareholders $ (24.0) $ 26.7 $ (50.0) $ (24.8) Diluted earnings per common share impact of special items on net income from continuing operations attributable to Avient shareholders $ (0.26) $ 0.29 $ (0.54) $ (0.27) Weighted average shares used to compute adjusted earnings per share: Diluted 92.4 92.1 92.1 90.6 (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. 10 Attachment 4 Avient Corporation Condensed Consolidated Balance Sheets (Unaudited) (In millions) Year Ended December 31, 2021 2020 ASSETS Current assets: Cash and cash equivalents $ 601.2 $ 649.5 Accounts receivable, net 642.3 516.6 Inventories, net 461.1 327.5 Other current assets 128.1 108.5 Total current assets 1,832.7 1,602.1 Property, net 676.1 694.9 Goodwill 1,286.4 1,308.1 Intangible assets, net 925.2 1,008.5 Operating lease assets, net 74.1 80.9 Other non-current assets 208.4 176.0 Total assets $ 5,002.9 $ 4,870.5 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Short-term and current portion of long-term debt $ 8.6 $ 18.6 Accounts payable 553.9 471.7 Current operating lease obligations 24.2 25.1 Accrued expenses and other current liabilities 359.6 285.6 Total current liabilities 946.3 801.0 Non-current liabilities: Long-term debt 1,850.3 1,854.0 Pension and other post-retirement benefits 100.0 115.0 Deferred income taxes 100.6 140.0 Non-current operating lease obligations 50.1 56.0 Other non-current liabilities 165.1 192.8 Total non-current liabilities 2,266.1 2,357.8 SHAREHOLDERS' EQUITY Avient shareholders’ equity 1,774.7 1,697.1 Noncontrolling interest 15.8 14.6 Total equity 1,790.5 1,711.7 Total liabilities and equity $ 5,002.9 $ 4,870.5 11 Attachment 5 Avient Corporation Condensed Consolidated Statements of Cash Flows (Unaudited) (In millions) Year Ended December 31, 2021 2020 Operating activities Net income $ 230.6 $ 133.4 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 144.2 111.8 Accelerated depreciation 1.7 3.2 Share-based compensation expense 11.2 11.3 Changes in assets and liabilities, net of the effect of acquisitions: Increase in accounts receivable (143.1) (4.6) (Increase) decrease in inventories (139.5) 40.2 Increase in accounts payable 95.3 78.4 (Decrease) increase in pension and other post-retirement benefits (10.9) 30.7 Increase in post-acquisition earnout liabilities — 1.0 Increase (decrease) in accrued expenses and other assets and liabilities, net 44.3 (3.7) Taxes paid on gain on divestiture — (142.0) Payment of post-acquisition date earnout liability — (38.1) Net cash provided by operating activities 233.8 221.6 Investing activities Capital expenditures (100.6) (63.7) Business acquisitions, net of cash acquired (47.6) (1,380.2) Net proceeds from divestiture — 7.1 Other investing activities (2.0) 5.2 Net cash used by investing activities (150.2) (1,431.6) Financing activities Debt offering proceeds — 650.0 Purchase of common shares for treasury (4.2) (22.4) Cash dividends paid (77.7) (71.3) Repayment of long-term debt (18.5) (7.8) Payments on withholding tax on share awards (10.7) (2.3) Debt financing costs — (9.5) Equity offering proceeds, net of underwriting discount and issuance costs — 496.1 Payment of acquisition date earnout liability — (50.8) Other financing activities (3.5) — Net cash (used) provided by financing activities (114.6) 982.0 Effect of exchange rate changes on cash (17.3) 12.8 Decrease in cash and cash equivalents (48.3) (215.2) Cash and cash equivalents at beginning of year 649.5 864.7 Cash and cash equivalents at end of year $ 601.2 $ 649.5 12 Attachment 6 Avient Corporation 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 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.
Three Months Ended December 31, Year Ended December 31, 2021 2020 2021 2020 Sales: Color, Additives and Inks $ 581.3 $ 525.8 $ 2,401.6 $ 1,502.9 Specialty Engineered Materials 228.2 190.6 918.9 708.8 Distribution 425.0 305.1 1,630.9 1,110.3 Corporate and eliminations (33.0) (24.5) (132.6) (79.9) Sales $ 1,201.5 $ 997.0 $ 4,818.8 $ 3,242.1 Gross margin: Color, Additives and Inks $ 164.5 $ 164.3 $ 727.5 $ 484.4 Specialty Engineered Materials 60.0 59.1 257.4 207.6 Distribution 36.5 32.4 155.8 124.0 Corporate and eliminations (7.9) (2.9) (41.1) (31.7) Gross margin $ 253.1 $ 252.9 $ 1,099.6 $ 784.3 Selling and administrative expense: Color, Additives and Inks $ 103.3 $ 106.8 $ 424.4 $ 303.6 Specialty Engineered Materials 31.2 28.7 125.4 113.2 Distribution 14.8 14.4 62.6 54.5 Corporate and eliminations 29.8 38.0 106.0 123.7 Selling and administrative expense $ 179.1 $ 187.9 $ 718.4 $ 595.0 Operating income: Color, Additives and Inks $ 61.2 $ 57.5 $ 303.1 $ 180.8 Specialty Engineered Materials 28.8 30.4 132.0 94.4 Distribution 21.7 18.0 93.2 69.5 Corporate and eliminations (37.7) (40.9) (147.1) (155.4) Operating income $ 74.0 $ 65.0 $ 381.2 $ 189.3 13 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.