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TEXAS ORANGE
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Three Months Ended
March 31,
2024 2023
Reconciliation to Condensed Consolidated Statements of Income $ EPS $ EPS
Net income from continuing operations attributable to Avient shareholders $ 49.4 $ 0.54 $ 20.8 $ 0.23
Special items, after-tax (Attachment 3) 5.5 0.06 22.3 0.24
Amortization expense, after-tax 14.9 0.16 15.1 0.16
Adjusted net income / EPS $ 69.8 $ 0.76 $ 58.2 $ 0.63
7
Attachment 2
Avient Corporation
Condensed Consolidated Statements of Income (Unaudited)
(In millions, except per share data)
Three Months Ended
March 31,
2024 2023
Sales $ 829.0 $ 845.7
Cost of sales 550.8 598.1
Gross margin 278.2 247.6
Selling and administrative expense 184.2 190.5
Operating income 94.0 57.1
Interest expense, net (26.6) (28.8)
Other (expense) income, net (0.9) 0.7
Income from continuing operations before income taxes 66.5 29.0
Income tax expense (16.8) (7.7)
Net income from continuing operations 49.7 21.3
Loss from discontinued operations, net of income taxes — (0.9)
Net income 49.7 20.4
Net income attributable to noncontrolling interests (0.3) (0.5)
Net income attributable to Avient common shareholders $ 49.4 $ 19.9
Earnings (loss) per share attributable to Avient common shareholders - Basic:
Continuing operations $ 0.54 $ 0.23
Discontinued operations — (0.01)
Total $ 0.54 $ 0.22
Earnings (loss) per share attributable to Avient common shareholders - Diluted:
Continuing operations $ 0.54 $ 0.23
Discontinued operations — (0.01)
Total $ 0.54 $ 0.22
Cash dividends declared per share of common stock $ 0.2575 $ 0.2475
Weighted-average shares used to compute earnings per common share:
Basic 91.2 91.0
Diluted 92.0 91.8
8
Attachment 3
Avient Corporation
Summary of Special Items (Unaudited)
(In millions, except per share data)
Special items (1)
Three Months Ended
March 31,
2024 2023
Cost of sales:
Restructuring costs, including accelerated depreciation $ 3.6 $ (6.6)
Environmental remediation costs (4.0) (1.4)
Impact on cost of sales (0.4) (8.0)
Selling and administrative expense:
Restructuring and employee separation costs (0.7) (11.3)
Legal and other (3.5) (4.4)
Acquisition related costs (1.6) (3.4)
Impact on selling and administrative expense (5.8) (19.1)
Impact on operating income (6.2) (27.1)
Other income (loss), net — (0.2)
Impact on income from continuing operations before income taxes (6.2) (27.3)
Income tax benefit on above special items 1.4 6.9
Tax adjustments(2) (0.7) (1.9)
Impact of special items on net income from continuing operations $ (5.5) $ (22.3)
Diluted earnings per common share impact $ (0.06) $ (0.24)
Weighted average shares used to compute adjusted earnings per share:
Diluted 92.0 91.8
(1) Special items include charges related to specific strategic initiatives or financial restructuring such as: consolidation of operations; debt
extinguishment costs; costs incurred directly in relation to acquisitions or divestitures; employee separation costs resulting from personnel
reduction programs, plant realignment costs, executive separation agreements; asset impairments; settlement gains or losses and mark-to-
market adjustments associated with gains and losses on pension and other post-retirement benefit plans; environmental remediation costs,
fines, penalties and related insurance recoveries related to facilities no longer owned or closed in prior years; gains and losses on the
divestiture of operating businesses, gains and losses on facility or property sales or disposals; results of litigation, fines or penalties, where
such litigation (or action relating to the fines or penalties) arose prior to the commencement of the performance period; one-time, non-
recurring items; and the effect of changes in accounting principles or other such laws or provisions affecting reported results
Three Months Ended
March 31,
Reconciliation to Consolidated Statements of Income 2024 2023
Sales $ 829.0 $ 845.7
Gross margin - GAAP 278.2 247.6
Special items in gross margin (Attachment 3) 0.4 8.0
Adjusted gross margin $ 278.6 $ 255.6
Adjusted gross margin as a percent of sales 33.6 % 30.2 %
Operating income - GAAP 94.0 57.1
Special items in operating income (Attachment 3) 6.2 27.1
Adjusted operating income $ 100.2 $ 84.2
Adjusted operating income as a percent of sales 12.1 % 10.0 %
Three Months Ended
March 31,
Reconciliation to EBITDA and Adjusted EBITDA: 2024 2023
Net income from continuing operations - GAAP $ 49.7 $ 21.3
Income tax expense 16.8 7.7
Interest expense, net 26.6 28.8
Depreciation and amortization 44.3 50.5
EBITDA from continuing operations 137.4 108.3
Special items, before tax 6.2 27.3
Depreciation and amortization included in special items (0.5) (1.8)
Adjusted EBITDA $ 143.1 $ 133.8
Adjusted EBITDA as a percent of sales 17.3 % 15.8 %
Year Ended
December 31, 2023
Reconciliation to Condensed Consolidated Statements of Income $ EPS
Net income from continuing operations attributable to Avient shareholders $ 75.8 $ 0.83
Special items, after-tax 79.3 0.86
Amortization expense, after-tax 61.5 0.67
Adjusted net income / EPS $ 216.6 $ 2.36
13
Three Months Ended
June 30, 2023
Reconciliation to Condensed Consolidated Statements of Income $ EPS
Net income from continuing operations attributable to Avient shareholders $ 22.1 $ 0.24
Special items, after-tax 19.6 0.21
Amortization expense, after-tax 16.2 0.18
Adjusted net income / EPS $ 57.9 $ 0.63
NEWS RELEASE
Attachment 1
https://www.avient.com/sites/default/files/resources/POL%2520Sidoti%2520IR%2520Presentation%2520w%2520Non%2520GAAP%25203%252018%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 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
Net income attributable to PolyOne
common shareholders $ 130.9 $ 40.9 $ (417.0) $ 106.7 $ 152.5 $ 153.4 $ 53.3 $ 94.0
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 30.4
Tax adjustments (30.0) (30.7) 147.2 (44.9) (88.3) (42.3) 0.5 2.2
Adjusted net income $ 11.2 $ 25.5 $ 19.4 $ 11.8 $ 65.3 $ 76.9 $ 89.5 $ 126.6
Diluted shares 92.8 93.1 92.7 93.4 96.0 94.3 89.8 96.1
Adjusted EPS $ 0.12 $ 0.27 $ 0.21 $ 0.13 $ 0.68 $ 0.82 $ 1.00 $ 1.31
* Historical results include the Resin and Specialty Coatings businesses within the Performance Products and Solutions segment.
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Reporting & SEC Filings
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La Porte, Texas 7.
Special “life skills” training
sessions help HYPE participants in areas such as benefits enrollment and filing a
personal tax return.
Through
Avient Academy, associates can participate in classroom, online, and webinar based
training sessions.
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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.
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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).
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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.
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