https://www.avient.com/sites/default/files/2022-09/Avient Discontinued Operations Financial Information.pdf
G A A P I N C O M E S TAT E M E N T R E C A S T F O R A V I E N T D I S T R I B U T I O N A S A
D I S C O N T I N U E D O P E R AT I O N
Avient Corporation 3
Q1 2021 Q2 2021 Q3 2021 Q4 2021 2021 YTD Q1 2022 Q2 2022 YTD 2022
Sales 826.0$ 864.5$ 818.0$ 807.1$ 3,315.6$ 892.2$ 891.0$ 1,783.2$
Cost of sales 562.9 615.9 602.4 590.5 2,371.7 637.8 630.1 1,267.9
Gross margin 263.1 248.6 215.6 216.6 943.9 254.4 260.9 515.3
Selling and administrative 168.7 166.2 162.8 166.4 664.1 152.2 160.8 313.0
Operating income 94.4 82.4 52.8 50.2 279.8 102.2 100.1 202.3
Interest expense, net (19.3) (19.5) (19.0) (17.5) (75.3) (16.9) (16.2) (33.1)
Other income (expense), net 1.6 1.1 1.6 (5.3) (1.0) (0.6) 1.6 1.0
Income before income taxes 76.7 64.0 35.4 27.4 203.5 84.7 85.5 170.2
Income tax (expense) benefit (16.3) (13.8) (2.0) (16.2) (48.3) (20.0) (22.7) (42.7)
Net income from continuing operations 60.4 50.2 33.4 11.2 155.2 64.7 62.8 127.5
Net income from discontinued operations, net of income taxes 19.3 19.2 19.2 17.7 75.4 19.8 21.9 41.7
Net income 79.7 69.4 52.6 28.9 230.6 84.5 84.7 169.2
Net (income) loss attributable to noncontrolling interests (0.4) (0.6) 0.3 0.9 0.2 (0.3) - (0.3)
Net income attributable to Avient common shareholders 79.3$ 68.8$ 52.9$ 29.8$ 230.8$ 84.2$ 84.7$ 168.9$
Earnings per share attributable to Avient common shareholders - Basic
Continuing operations 0.66$ 0.54$ 0.37$ 0.13$ 1.70$ 0.70$ 0.69$ 1.39$
Discontinued operations 0.21$ 0.21$ 0.21$ 0.20$ 0.83$ 0.22$ 0.24$ 0.46$
Total 0.87$ 0.75$ 0.58$ 0.33$ 2.53$ 0.92$ 0.93$ 1.85$
Earnings per share attributable to Avient common shareholders - Diluted
Continuing operations 0.65$ 0.54$ 0.37$ 0.13$ 1.69$ 0.70$ 0.68$ 1.38$
Discontinued operations 0.21$ 0.20$ 0.20$ 0.19$ 0.82$ 0.21$ 0.24$ 0.45$
Total 0.86$ 0.74$ 0.57$ 0.32$ 2.51$ 0.91$ 0.92$ 1.83$
A D J U S T E D F I N A N C I A L I N F O R M AT I O N R E C A S T F O R A V I E N T D I S T R I B U T I O N A S A
D I S C O N T I N U E D O P E R AT I O N
Avient Corporation 4
Q1 2021 Q2 2021 Q3 2021 Q4 2021 2021 YTD Q1 2022 Q2 2022 YTD 2022
Sales 826.0$ 864.5$ 818.0$ 807.1$ 3,315.6$ 892.2$ 891.0$ 1,783.2$
Cost of sales 565.1 603.3 585.1 584.6 2,338.1 632.0 632.1 1,264.1
Gross margin 260.9 261.2 232.9 222.5 977.5 260.2 258.9 519.1
Selling and administrative 164.1 164.6 160.1 161.1 649.9 151.3 157.0 308.3
Operating income 96.8 96.6 72.8 61.4 327.6 108.9 101.9 210.8
Interest expense, net (19.3) (19.5) (19.0) (17.5) (75.3) (16.9) (16.2) (33.1)
Other income (expense), net 1.6 1.1 1.5 4.1 8.3 (0.7) 0.7 0.0
Income before income taxes 79.1 78.2 55.3 48.0 260.6 91.3 86.4 177.7
Income tax expense (16.1) (16.3) (10.2) (12.8) (55.4) (20.2) (20.4) (40.6)
Net income from continuing operations 63.0 61.9 45.1 35.2 205.2 71.1 66.0 137.1
Net (income) loss attributable to noncontrolling interests
(0.4) (0.6) 0.3 0.9 0.2 (0.3) - (0.3)
Adjusted Net income attributable to Avient common
shareholders - continuing operations 62.6$ 61.3$ 45.4$ 36.1$ 205.4$ 70.8$ 66.0$ 136.8$
Adjusted earnings per share attributable to Avient
common shareholders - Diluted 0.68$ 0.66$ 0.49$ 0.39$ 2.23$ 0.77$ 0.72$ 1.48$
Weighted average diluted Shares 92.2 92.4 92.2 92.4 92.1 92.3 92.1 92.2
S E G M E N T D ATA R E C A S T F O R AV I E N T D I S T R I B U T I O N A S A D I S C O N T I N U E D
O P E R AT I O N
Avient Corporation 5
Q1 2021 Q2 2021 Q3 2021 Q4 2021 2021 YTD Q1 2022 Q2 2022 2022 YTD
Sales:
Color, Additives and Inks 609.3$ 624.4$ 586.6$ 581.3$ 2,401.6$ 649.5$ 649.1$ 1,298.6$
Specialty Engineered Materials 214.7 238.9 231.7 226.3 911.6 243.1 242.3 485.4
Corporate and Eliminations 2.0 1.2 (0.3) (0.5) 2.4 (0.4) (0.4) (0.8)
Sales 826.0 864.5 818.0 807.1 3,315.6 892.2 891.0 1,783.2
Gross Margin:
Color, Additives and Inks 197.5$ 193.4$ 172.1$ 164.5$ 727.5$ 192.1$ 193.4$ 385.5$
Specialty Engineered Materials 63.1 68.1 61.4 58.3 250.9 68.4 66.0 134.4
Corporate and Eliminations 2.5 (12.9) (17.9) (6.2) (34.5) (6.1) 1.5 (4.6)
Gross Margin 263.1 248.6 215.6 216.6 943.9 254.4 260.9 515.3
Selling and Administrative Expense:
Color, Additives and Inks 108.7$ 107.1$ 105.3$ 103.3$ 424.4$ 97.6$ 99.8$ 197.4$
Specialty Engineered Materials 30.5 32.3 31.4 31.2 125.4 30.1 30.8 60.9
Corporate and Eliminations 29.5 26.8 26.1 31.9 114.3 24.5 30.2 54.7
Selling and Administrative Expense 168.7 166.2 162.8 166.4 664.1 152.2 160.8 313.0
Operating Income:
Color, Additives and Inks 88.8$ 86.3$ 66.8$ 61.2$ 303.1$ 94.5$ 93.6$ 188.1$
Specialty Engineered Materials 32.6 35.8 30.0 27.1 125.5 38.3 35.2 73.5
Corporate and Eliminations (27.0) (39.7) (44.0) (38.1) (148.8) (30.6) (28.7) (59.3)
Operating Income 94.4 82.4 52.8 50.2 279.8 102.2 100.1 202.3
Earnings Before Interest, Taxes,
Depreciation and Amortization (EBITDA):
Color, Additives and Inks 116.2$ 111.6$ 93.4$ 87.6$ 408.8$ 120.5$ 119.5$ 240.0$
Specialty Engineered Materials 40.4 43.9 37.9 35.1 157.3 46.1 42.9 89.0
Corporate and Eliminations (25.3) (39.5) (41.9) (34.6) (141.3) (26.8) (26.0) (52.8)
Other income (expense) 1.6 1.1 1.6 (5.3) (1.0) (0.6) 1.6 1.0
EBITDA 132.9 117.1 91.0 82.8 423.8 139.2 138.0 277.2
N O N - G A A P R E C O N C I L I AT I O N S F O R R E C A S T H I S T O R I C A L R E S U LT S
Avient Corporation 6
Special
Adjusted
Special
Adjusted
Special
Adjusted
Special
Adjusted
Special
Adjusted
Sales $ 826.0 $ - $ 826.0 $ 864.5 $ - $ 864.5 $ 818.0 $ - $ 818.0 $ 807.1 $ - $ 807.1 $ 3,315.6 $ - $ 3,315.6
Gross margin 263.1 (2.2) 260.9 248.6 12.6 261.2 215.6 17.3 232.9 216.6 5.9 222.5 943.9 33.6 977.5
Selling and administrative expense 168.7 (4.6) 164.1 166.2 (1.6) 164.6 162.8 (2.7) 160.1 166.4 (5.3) 161.1 664.1 (14.2) 649.9
Operating income 94.4 2.4 96.8 82.4 14.2 96.6 52.8 20.0 72.8 50.2 11.2 61.4 279.8 47.8 327.6
Interest expense, net (19.3) - (19.3) (19.5) - (19.5) (19.0) - (19.0) (17.5) - (17.5) (75.3) - (75.3)
Other income (expense), net 1.6 - 1.6 1.1 - 1.1 1.6 (0.1) 1.5 (5.3) 9.4 4.1 (1.0) 9.3 8.3
Income taxes (16.3) 0.2 (16.1) (13.8) (2.5) (16.3) (2.0) (8.2) (10.2) (16.2) 3.4 (12.8) (48.3) (7.1) (55.4)
Net income (loss) attributable to noncontrolling
interests
(0.4) - (0.4) (0.6) - (0.6) 0.3 - 0.3 0.9 - 0.9 0.2 - 0.2
Net income from continuing operations attributable
to Avient shareholders
$ 60.0 $ 2.6 $ 62.6 $ 49.6 $ 11.7 $ 61.3 $ 33.7 $ 11.7 $ 45.4 $ 12.1 $ 24.0 $ 36.1 $ 155.4 $ 50.0 $ 205.4
Net income / EPS $ 0.65 0.03 $ 0.68 $ 0.54 0.13 $ 0.66 $ 0.37 0.13 $ 0.49 $ 0.13 $ 0.26 $ 0.39 $ 1.69 0.54 $ 2.23
Weighted-average diluted shares 92.2 92.2 92.2 92.4 92.4 92.4 92.2 92.2 92.2 92.4 92.4 92.4 92.1 92.1 92.1
Three Months Ended
December 31, 2021
Year Ended
December 31, 2021
Three Months Ended
March 31, 2021
Three Months Ended
June 30, 2021
Three Months Ended
September 30, 2021
N O N - G A A P R E C O N C I L I AT I O N S F O R R E C A S T H I S T O R I C A L R E S U LT S
Avient Corporation 7
Special
Adjusted
Special
Adjusted
Special
Adjusted
Sales $ 892.2 $ - $ 892.2 $ 891.0 $ - $ 891.0 $ 1,783.2 $ - $ 1,783.2
Gross margin 254.4 5.8 260.2 260.9 (2.0) 258.9 515.3 3.8 519.1
Selling and administrative expense 152.2 (0.9) 151.3 160.8 (3.8) 157.0 313.0 (4.7) 308.3
Operating income 102.2 6.7 108.9 100.1 1.8 101.9 202.3 8.5 210.8
Interest expense, net (16.9) - (16.9) (16.2) - (16.2) (33.1) - (33.1)
Other (expense) income, net (0.6) (0.1) (0.7) 1.6 (0.9) 0.7 1.0 (1.0) 0.0
Income taxes (20.0) (0.2) (20.2) (22.7) 2.3 (20.4) (42.7) 2.1 (40.6)
Net income attributable to noncontrolling interests (0.3) - (0.3) - - - (0.3) - (0.3)
Net income from continuing operations attributable
to Avient shareholders
$ 64.4 $ 6.4 $ 70.8 $ 62.8 $ 3.2 $ 66.0 $ 127.2 $ 9.6 $ 136.8
Net income / EPS $ 0.70 0.07 $ 0.77 $ 0.68 0.03 $ 0.72 $ 1.38 0.10 1.48
Weighted-average diluted shares 92.3 92.3 92.3 92.1 92.1 92.1 92.2 92.2 92.2
Three Months Ended
March 31, 2022
Three Months Ended
June 30, 2022
Six Months Ended
June 30, 2022
N O N - G A A P R E C O N C I L I AT I O N S F O R R E C A S T A D J U S T E D E B I T D A
Avient Corporation 8
EBITDA Reconciliation Q1 2021 Q2 2021 Q3 2021 Q4 2021 YTD 2021 Q1 2022 Q2 2022 YTD 2022
Net income from continuing operations – GAAP 60.4$ 50.2$ 33.4$ 11.2$ 155.2$ 64.7$ 62.8$ 127.5$
Income tax expense 16.3 13.8 2.0 16.2 48.3 20.0 22.7 42.7
Interest expense, net 19.3 19.5 19.0 17.5 75.3 16.9 16.2 33.1
Depreciation and amortization from continuing operations 36.9 33.6 36.6 37.9 145.0 37.6 36.3 73.9
EBITDA 132.9 117.1 91.0 82.8 423.8 139.2 138.0 277.2
Special items, before tax 2.4 14.2 19.9 20.6 57.1 6.6 0.9 7.5
Depreciation and amortization included in special items (0.6) 1.4 (0.9) (1.6) (1.7) (2.1) (1.1) (3.2)
Adjusted EBITDA 134.7$ 132.7$ 110.0$ 101.8$ 479.2$ 143.7$ 137.8$ 281.5$
S U M M A R Y O F S P E C I A L I T E M S
Avient Corporation 9
Q1 2021 Q2 2021 Q3 2021 Q4 2021 2021 YTD Q1 2022 Q2 2022 2022 YTD
Cost of sales:
Restructuring costs, including accelerated depreciation (1.8)$ (1.5)$ (5.3)$ (6.0)$ (14.6)$ (4.4)$ (2.6)$ (7.0)$
Environmental remediation costs (0.5) (12.5) (9.4) (0.5) (22.9) (2.0) (3.0) (5.0)
Reimbursement of previously incurred environmental costs 4.5 - - - 4.5 0.6 7.6 8.2
Acquisition related adjustments - 1.4 (2.6) 0.6 (0.6) - - -
Impact on cost of sales 2.2 (12.6) (17.3) (5.9) (33.6) (5.8) 2.0 (3.8)
Selling and administrative expense:
Restructuring, legal and other (1.3) (1.4) - (4.2) (6.9) 2.0 (1.7) 0.3
Acquisition/divestiture related costs (3.3) (0.2) (2.7) (1.1) (7.3) (2.9) (2.1) (5.0)
Impact on selling and administrative expense (4.6) (1.6) (2.7) (5.3) (14.2) (0.9) (3.8) (4.7)
Impact on operating income (2.4) (14.2) (20.0) (11.2) (47.8) (6.7) (1.8) (8.5)
Other income, net - - 0.1 (9.4) (9.3) 0.1 0.9 1.0
Impact on income before income taxes (2.4) (14.2) (19.9) (20.6) (57.1) (6.6) (0.9) (7.5)
Income tax benefit on above special items 0.9 3.4 4.6 4.1 13.0 1.7 0.2 1.9
Tax adjustments (1.1) (0.9) 3.6 (7.5) (5.9) (1.5) (2.5) (4.0)
Impact of special items on net income (2.6)$ (11.7)$ (11.7)$ (24.0)$ (50.0)$ (6.4)$ (3.2)$ (9.6)$
https://www.avient.com/sites/default/files/resources/POL%2520Gabelli%2520IR%2520Presentation%2520w%2520Non-GAAP%252003%252020%25202014.pdf
Use of Non-GAAP Measures
Page 3
PolyOne Commodity to Specialty Transformation
Page 4
• Continue specialty
transformation
• Targeting $2.50
Adjusted EPS by
2015, nearly
double 2013 EPS
• Drive double digit
operating income
and adjusted EPS
growth
• 17 consecutive
quarters of double-
digit adjusted EPS
growth
• Shift to faster
growing, high
margin, less cyclical
end markets
• Key acquisitions
propel current and
future growth, as
well as margin
expansion
• Established
aggressive 2015
targets
• Steve Newlin
Appointed,
Chairman, President
and CEO
• New leadership
team appointed
• Implementation of
four pillar strategy
• Focus on value
based selling,
investment in
commercial
resources and
innovation to drive
transformation
• Volume driven,
commodity
producer
• Heavily tied to
cyclical end markets
• Performance largely
dependent on non-
controlling joint
ventures
2000-2005 2006 - 2009 2010 – 2013 2014 and beyond
-150.00%
-50.00%
50.00%
150.00%
250.00%
350.00%
PolyOne S&P 500 Russell 2000 Dow Jones Chemical
All time high of
$38.38
March 7th, 2014
• 17 consecutive quarters of
double digit EPS growth
• 49% CAGR adjusted EPS
expansion 2006-2013
• 2013 stock price increased
73% versus 30% growth in the
S&P
• More than seven fold increase in
market cap: $0.5b $3.6b
Strategy and Execution Drive Results
Page 5
Appliance
4%
Building &
Construction
13%
Wire & Cable
9%
Electrical &
Electronics
5%
Consumer
10%Packaging
16%
Industrial
12%
HealthCare
11%
Transportation
18%
Misc.
2%
United
States
66%
Europe
14%
Canada
7%
Asia
6%
Latin
America
7%
PP&S
Specialty
53%
Distribution
27%
0.12
0.27 0.21
0.13
0.68
0.82
1.00
1.31
2.50
$0.00
$0.25
$0.50
$0.75
$1.00
$1.25
$1.50
$1.75
$2.00
$2.25
$2.50
2006 2007 2008 2009 2010 2011 2012 2013 2015
Target
Ad
ju
st
ed
E
ar
ni
ng
s P
er
S
ha
re
2013 Revenues: $3.8 Billion
End Markets
2013 Revenues: $3.8 Billion
EPS
Page 6
PolyOne
At A Glance
Old
PolyOne Transformation
*Operating Income excludes corporate charges and special items
2%
34% 43%
62%
65-
75%
0%
20%
40%
60%
80%
100%
2005 2008 2010 2013 2015
%
o
f O
pe
ra
tin
g
In
co
m
e*
JV's Performance Products & Solutions Distribution Specialty
Specialty OI $5M $46M $87M $195M Target
Mix Shift Highlights Specialty Transformation
2015
Target
Page 7
2006 2013 2015
“Where we were” “Where we are” Target
1) Operating Income %
Specialty:
Global Color, Additives & Inks 1.7% 12.2% 12 – 16%
Global Specialty Engineered
Materials 1.1% 9.3% 12 – 16%
Designed Structures & Solutions -- 5.6% 8 – 10%
Performance Products &
Solutions 5.4% 7.2% 9 – 12%
Distribution 2.6% 5.9% 6 – 7.5%
2) Specialty Platform % of
Operating Income 6.0% 62% 65 – 75%
3) ROIC* (after-tax) 5.0% 9.1% 15%
4) Adjusted EPS Growth N/A 31% Double Digit
Expansion
Proof of Performance & 2015 Goals
*ROIC is defined as TTM adjusted OI divided by the sum of average debt and equity over a 5 quarter period
Page 8
Bridge To $2.50 Adjusted EPS By 2015
2015 EPS: $2.50
2013 EPS: $1.31
Mid single digit
revenue CAGR
Page 9
Mergers & Acquisitions
Spartech accretion
Incremental share buybacks
Ongoing LSS Programs
(50-100 bps/yr)
Accelerated Innovation &
Mix Improvement
Innovation Drives Earnings Growth
$20.3
$52.3
2006 2013
Research & Development
Spending
($ millions)
Specialty Platform
Vitality Index Progression*
*Percentage of Specialty Platform revenue from products introduced in last five years
Page 10
14.3%
30.7%
2006 2013
Specialty Platform
Gross Margin %
19.5%
43.0%
2006 2013
Healthcare
Consumer
Packaging and Additive Technology
Transportation
Page 11
Unique and Innovative Solutions that Help
Customers Win
https://www.dropbox.com/sh/dwe4t8aacvhb8ui/uD3p_bdglP/Presentation revise pics/GLS Beverage can closure XO 2.jpg
https://www.dropbox.com/sh/dwe4t8aacvhb8ui/-YgkycKypw/Anti-Counterfeiting release & images/GN1979.JPG
Net Debt / EBITDA* = 1.8x
$48
$317
$600
$0
$100
$200
$300
$400
$500
$600
$700
$800
2015 2020 2023
Significant Debt Maturities
As of December 31, 2013
($ millions)
Page 12
Coupon Rates: 7.500% 7.375% 5.250%
Debt Maturities & Pension Funding – 12/31/13
*TTM 12/31/2013 ** includes US-qualified plans only
60%
100%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2008 2013
Pension Funding**
As of December 31, 2013
Free Cash Flow and Strong Balance Sheet Fund Investment
•Targets that expand our:
• Specialty offerings
•End market presence
•Geographic footprint
•Operating Margin
• Synergy opportunities
•Adjacent material solutions
•Expanding our sales,
marketing, and technical
capabilities
• Investing in operational and
LSS initiatives (including
synergy capture)
•Manufacturing alignment Organic
Growth
Share
Repurchases
Dividends
Acquisitions
Page 13
$0.16
$0.20 $0.24
$0.32
$0.00
$0.10
$0.20
$0.30
$0.40
2011 2012 2013 2014
Annual Dividend
• Repurchased ~5 million
shares in 2013
• 15 million shares
are available for
repurchase under
the current
authorization
The New PolyOne: A Specialty Growth Company
2015 Target: $2.50 Adjusted EPS
Why Invest In PolyOne?
Platform operating income mix percentage 2005Y* 2006* 2008Y* 2010Y* 2013Y
Global Specialty Engineered Materials $ 0.4 $ 3.9 $ 17.6 $ 49.7 $ 57.2
Global Color, Additives and Inks 4.3 8.9 28.1 37.7 104.0
Designed Structures and Solutions - - - - 33.4
Specialty Platform $ 4.7 $ 12.8 $ 45.7 $ 87.4 $ 194.6
Performance Products and Solutions 75.7 64.2 31.3 54.0 56.0
Distribution 19.5 19.2 28.1 42.0 63.3
SunBelt Joint venture 91.9 102.9 28.6 18.9 -
Corporate (51.5) 34.5 (425.1) (27.7) (82.4)
Operating income (loss) GAAP $ 140.3 $ 233.6 $ (291.4) $ 174.6 $ 231.5
Less: Corporate operating expense 51.5 (34.5) 425.1 27.7 82.4
Operating income excluding Corporate $ 191.8 $ 199.1 $ 133.7 $ 202.3 $ 313.9
Specialty platform operating mix percentage 2% 6% 34% 43% 62%
* Historical results include the Resin and Specialty Coatings businesses within the Performance Products and Solutions segment.
Reconciliation to Condensed Consolidated Balance Sheets 2013
Short-term debt and current portion of long-term debt $ 12.7
Long-term debt 976.2
Less cash and cash equivalents (365.2)
Net debt $ 623.7
Adjusted EBITDA 2013
Income before income taxes $ 151.0
Interest expense, net 63.5
Depreciation and amortization 108.8
Special items in EBITDA 31.7
Adjusted EBITDA $ 355.0
2
Platform sales and operating income (OI) 2006Y* 2013Y
Global Specialty Engineered Materials sales $ 345.3 $ 615.5
Global Color, Additives and Inks sales 531.8 852.3
Designed Structures and Solutions sales - 597.4
Specialty Platform sales 877.1 2,065.2
Performance Products and Solutions sales 1,166.2 773.2
PolyOne Distribution sales 732.8 1,075.2
Corporate and eliminations (153.7) (142.4)
Total sales $ 2,622.4 $ 3,771.2
Global Specialty Engineered Materials OI $ 3.9 $ 57.2
Global Color, Additives and Inks OI 8.9 104.0
Designed Structures & Solutions OI - 33.4
Specialty Platform OI 12.8 194.6
Performance Products and Solutions OI 64.2 56.0
PolyOne Distribution OI 19.2 63.3
Sunbelt Joint Venture OI 102.9 -
Corporate and eliminations (4.6) (52.4)
Special items in OI 39.1 (30.0)
Operating income GAAP 233.6 231.5
Sunbelt equity income (107.0) -
Special items in OI (39.1) 30.0
Adjusted operating income $ 87.5 $ 261.5
Global Specialty Engineered Materials - OI % of sales 1.1% 9.3%
Global Color, Additives and Inks - OI % of sales 1.7% 12.2%
Designed Structures & Solutions - OI % of sales - 5.6%
Specialty platform OI - % of sales 1.5% 9.4%
PP&S operating OI - % of sales 5.5% 7.2%
Distribution OI - % of sales 2.6% 5.9%
PolyOne OI adjusted - % of sales 3.3% 6.9%
* Historical results include the Resin and Specialty Coatings businesses within the Performance Products and Solutions segment.
https://www.avient.com/sites/default/files/2023-11/AVNT Q3 2023 Earnings Press Release.pdf
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/2023-07/AVNT Q2 2023 Earnings Press Release%5B43%5D.pdf
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/2021-04/avient-q4-earnings-and-2021-outlook-website.pdf
Design times can be less than
three days for colorants.
A reconciliation of these measures to their most directly comparable GAAP measures is provided in the tables below.
1
Reconciliation of EBITDA by Segment
Year Ended
2020 2019 2020 2019
Sales:
Color, Additives and Inks $ 525.8 $ 226.7 $ 1,502.9 $ 1,003.8
Specialty Engineered Materials 190.6 177.5 708.8 745.7
Distribution 305.1 272.4 1,110.3 1,192.2
Corporate and eliminations (24.5) (18.0) (79.9) (79.0)
Sales $ 997.0 $ 658.6 $ 3,242.1 $ 2,862.7
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
Items Below Operating Income in Corporate:
Other income, net $ 11.7 $ 10.7 $ 24.3 $ 12.1
Depreciation & amortization:
Color, Additives and Inks $ 27.3 $ 10.7 $ 75.1 $ 42.7
Specialty Engineered Materials 7.4 7.0 30.0 29.5
Distribution 0.3 0.1 0.7 0.5
Corporate and eliminations 2.8 1.0 9.3 5.4
Depreciation & Amortization $ 37.8 $ 18.8 $ 115.1 $ 78.1
EBITDA:
Color, Additives and Inks $ 84.8 $ 37.9 $ 255.9 $ 190.1
Specialty Engineered Materials 37.8 25.8 124.4 113.2
Distribution 18.3 17.1 70.2 75.9
Corporate and eliminations (26.4) (30.8) (121.8) (132.2)
EBITDA $ 114.5 $ 50.0 $ 328.7 $ 247.0
EBITDA as a % of sales:
Color, Additives and Inks 16.1 % 16.7 % 17.0 % 18.9 %
Specialty Engineered Materials 19.8 % 14.5 % 17.6 % 15.2 %
Distribution 6.0 % 6.3 % 6.3 % 6.4 %
Corporate and eliminations nm nm nm nm
Total Company 11.5 % 7.6 % 10.1 % 8.6 %
nm - not meaningful
Three Months Ended
December 31,
Year Ended
December 31,
Reconciliation to Adjusted EBITDA: 2020 2019 2020 2019
Net income from continuing operations – GAAP $ 74.7 $ 6.4 $ 133.8 $ 75.7
Income tax expense (17.3) 12.9 5.2 33.7
Interest expense 19.3 11.9 74.6 59.5
Depreciation and amortization from continuing operations 37.8 18.8 115.1 78.1
EBITDA $ 114.5 $ 50.0 $ 328.7 $ 247.0
Special items, before tax 4.2 15.0 66.2 61.7
Interest expense included in special items — — (10.1) —
Accelerated depreciation included in special items (0.7) — (3.2) —
Adjusted EBITDA $ 118.0 $ 65.0 $ 381.6 $ 308.7
Three Months Ended
Reconciliation of Adjusted Earnings per Share: Avient
Special
Adjusted
Sales $ 997.0 $ — $ 997.0
Operating income $ 65.0 $ 14.6 $ 79.6
Interest expense, net (19.3) — (19.3)
Other income, net 11.7 (10.4) 1.3
Income taxes 17.3 (30.9) (13.6)
Net income from continuing operations attributable to Avient shareholders $ 74.2 $ (26.7) $ 47.5
Weighted average diluted shares 92.1
Adjusted EPS - excluding special items $ 0.52
Reconciliation of Adjusted EBITDA from continuing operations:
Operating income and other income, net $ 76.7 $ 4.2 $ 80.9
Depreciation and amortization 37.8 (0.7) 37.1
EBITDA from continuing operations $ 114.5 $ 3.5 $ 118.0
EBITDA as a % of sales 11.8 %
3
Three Months Ended
Reconciliation of Pro Forma Adjusted
Special
Adjusted
Clariant MB
Pro Forma
Pro Forma
Adjusted
Sales $ 658.6 $ — $ 658.6 $ 263.5 $ 922.1
Operating income $ 20.5 $ 24.6 $ 45.1 $ 13.2 $ 58.3
Interest expense, net (11.9) — (11.9) (11.1) (23.0)
Other income, net 10.7 (9.6) 1.1 — 1.1
Income taxes (12.9) 4.9 (8.0) (0.5) (8.5)
Net income from continuing operations
attributable to Avient shareholders $ 6.4 $ 19.9 $ 26.3 $ 1.6 $ 27.9
Weighted average diluted shares 77.5
Impact to diluted shares from January 2020 equity offering 15.3
Pro forma weighted average diluted shares 92.8
Pro forma adjusted EPS $ 0.30
Reconciliation of Pro Forma Adjusted
Operating income and other income, net $ 31.2 $ 15.0 $ 46.2 $ 13.2 $ 59.4
Depreciation and amortization 18.8 — 18.8 15.1 33.9
EBITDA from continuing operations $ 50.0 $ 15.0 $ 65.0 $ 28.3 $ 93.3
EBITDA as a % of sales 10.1 %
Reconciliation of Pro Forma Adjusted
Special
Adjusted
Clariant MB
Pro Forma
Pro Forma
Adjusted
Sales $ 3,242.1 $ — $ 3,242.1 $ 540.4 $ 3,782.5
Operating income $ 189.3 $ 73.7 $ 263.0 $ 45.0 $ 308.0
Interest expense, net (74.6) 10.1 (64.5) (18.1) (82.6)
Other income, net 24.3 (17.6) 6.7 — 6.7
Income taxes (5.2) (41.4) (46.6) (6.2) (52.8)
Net income attributable to noncontrolling
interests (1.8) — (1.8) — (1.8)
Net income from continuing operations
attributable to Avient shareholders $ 132.0 $ 24.8 $ 156.8 $ 20.7 $ 177.5
Weighted average diluted shares 90.6
Impact to diluted shares from January 2020 equity offering 1.5
Pro forma weighted average diluted shares 92.1
Pro forma adjusted EPS $ 1.93
Reconciliation of Pro Forma Adjusted
Operating income and other income, net $ 213.6 $ — $ 56.1 $ 269.7 $ 45.0 $ — $ 314.7
Depreciation and amortization 115.1 (3.2) 111.9 30.1 142.0
EBITDA from continuing operations $ 328.7 $ 52.9 $ 381.6 $ 75.1 $ 456.7
EBITDA as a % of sales 12.1 %
4
Reconciliation of Pro Forma Adjusted
Special
Adjusted
Clariant MB
Pro Forma
Pro Forma
Adjusted
Sales $ 2,862.7 $ — $ 2,862.7 $ 1,118.6 $ 3,981.3
Operating income $ 156.8 $ 71.7 $ 228.5 $ 72.9 $ 301.4
Interest expense, net (59.5) — (59.5) (33.4) (92.9)
Other income, net 12.1 (10.0) 2.1 — 2.1
Income taxes (33.7) (5.9) (39.6) (9.1) (48.7)
Net income attributable to noncontrolling
interests (0.2) — (0.2) — (0.2)
Net income from continuing operations
attributable to Avient shareholders $ 75.5 $ 55.8 $ 131.3 $ 30.4 $ 161.7
Weighted average diluted shares 77.7
Impact to diluted shares from January 2020 equity offering 15.3
Pro forma weighted average diluted shares 93.0
Pro forma adjusted EPS $ 1.74
Reconciliation of Pro Forma Adjusted
Operating income and other income, net $ 168.9 $ — $ 61.7 $ 230.6 $ 72.9 $ — $ 303.5
Depreciation and amortization 78.1 — 78.1 60.3 138.4
EBITDA from continuing operations $ 247.0 $ 61.7 $ 308.7 $ 133.2 $ 441.9
EBITDA as a % of sales 11.1 %
March 31, 2020
Reconciliation of Pro Forma Adjusted
Special
Adjusted
Clariant MB
Pro Forma
Pro Forma
Adjusted
Sales $ 711.5 $ — $ 711.5 $ 279.4 $ 990.9
Operating income 52.8 9.7 62.5 23.0 85.5
Interest expense, net (9.4) — (9.4) (12.8) (22.2)
Other income, net 1.6 (0.1) 1.5 — 1.5
Income taxes (11.9) (1.0) (12.9) (2.4) (15.3)
Net income from continuing operations
attributable to Avient shareholders $ 33.1 $ 8.6 $ 41.7 $ 7.8 $ 49.5
Weighted average diluted shares 86.7
Impact to diluted shares from January 2020 equity offering 6.1
Pro forma weighted average diluted shares 92.8
Pro forma adjusted EPS $ 0.53
5
Three Months Ended
December 31, 2019
Year Ended
Reconciliation of pro
forma sales, operating
income, and EBITDA: CAI
Clariant MB
Pro Forma
Pro Forma
CAI CAI
Clariant MB
Pro Forma
Pro Forma
Sales $ 226.7 $ 263.5 $ 490.2 $ 1,003.8 $ 1,118.6 $ 2,122.4
Operating income $ 27.2 $ 13.2 $ 40.4 $ 147.4 $ 72.9 $ 220.3
EBITDA $ 37.9 $ 28.3 $ 66.2 $ 190.1 $ 133.2 $ 323.3
EBITDA as a % of sales 13.5 % 15.2 %
Year Ended
December 31, 2020
Reconciliation of pro
forma sales, operating
income, and EBITDA: CAI
Clariant MB
Pro Forma
Pro Forma
Sales $ 1,502.9 $ 540.4 $ 2,043.3
Operating income $ 180.8 $ 45.0 $ 225.8
EBITDA $ 255.9 $ 75.1 $ 331.0
EBITDA as a % of sales 16.2 %
Free cash flow, defined as cash provided by operating activities excluding items associated with acquisitions and divestitures,
less capital expenditures, is considered a non-GAAP financial measure.
https://www.avient.com/sites/default/files/2021-04/avnt-fourth-quarter-2020-news-release.pdf
Adjusted EPS of $0.52 exceeded
the $0.48 projection included in the Company’s performance update provided in December and
was driven by better-than-expected sales in the Color, Additives and Inks segment.
Patterson added, “Our Color, Additives and Inks segment also delivered record operating
income of $58 million during the fourth quarter.
Three Months Ended
Year Ended
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
Reconciliation of Non-GAAP Financial Measures (Unaudited)
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/2024-05/AVNT Q1 2024 Earnings Press Release_0.pdf
Three Months Ended
March 31,
2024 2023
Sales:
Color, Additives and Inks $ 515.3 $ 537.0
Specialty Engineered Materials 314.4 309.7
Corporate (0.7) (1.0)
Sales $ 829.0 $ 845.7
Gross margin:
Color, Additives and Inks $ 171.2 $ 162.0
Specialty Engineered Materials 107.0 93.9
Corporate — (8.3)
Gross margin $ 278.2 $ 247.6
Selling and administrative expense:
Color, Additives and Inks $ 96.4 $ 96.4
Specialty Engineered Materials 53.6 50.8
Corporate 34.2 43.3
Selling and administrative expense $ 184.2 $ 190.5
Operating income:
Color, Additives and Inks $ 74.8 $ 65.6
Specialty Engineered Materials 53.4 43.1
Corporate (34.2) (51.6)
Operating income $ 94.0 $ 57.1
Depreciation & amortization:
Color, Additives and Inks $ 21.9 $ 25.8
Specialty Engineered Materials 19.6 21.2
Corporate 2.8 3.5
Depreciation & amortization $ 44.3 $ 50.5
Earnings before interest, taxes, depreciation and amortization (EBITDA):
Color, Additives and Inks $ 96.7 $ 91.4
Specialty Engineered Materials 73.0 64.3
Corporate (31.4) (48.1)
Other (expense) income, net (0.9) 0.7
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
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/resources/PolyOne%25202013%2520Annual%2520Report.pdf
BUSINESS
Business Overview
specialty polymer formulations, color and additive systems, plastic sheet and packaging solutions and
enhancing additives, liquid colorants and fluoropolymers and silicone colorants.
Color and additive solutions include an innovative
array of colors, special effects and performance-enhancing and eco-friendly solutions.
Our Business
specialty polymer formulations, color and additive systems, plastic sheet and packaging solutions and
enhancing additives, liquid colorants, and fluoropolymer and silicone colorants.
https://www.avient.com/sites/default/files/2021-04/trilliant-hc8900-medical-device-housing-case-study.pdf
DEVICE
MANUFACTURER
M E D I C A L D E V I C E H O U S I N G
• Improved chemical resistance compared to PC/ABS,
PC/PET & COPE
• Flame retardant (FR) rating of V-1 at 0.75 mm
• Zero BPA & non-halogenated FR material
• Available in standard hospital grade pre-colors
• Provided a cost-effective material with superior
chemical resistance to traditional materials
• Formulated a medical-grade, semi-crystalline
blend to support regulatory testing and
approvals
• Demonstrated superior property retention and
crack resistance after exposure to hospital-
grade disinfectants, including Virex® Tb,
helping to extend the device life
Trilliant™ HC8900 Thermoplastics
KEY REQUIREMENTS
WHY AVIENT?
https://www.avient.com/sites/default/files/2020-08/case-study-lightweight-garden-hose.pdf
GILMOUR®
A Q U A A R M O R T M L I G H T W E I G H T
H O S E
• Lightweight
• Improved kink resistance and flexibility
• Soft yet durable solution for consumer appeal
• Shelf differentiation
• Drinking water safe
• Met all requirements with a custom TPE
solution, enabling Gilmour to produce a more
compact hose about 50% lighter than standard
PVC hoses
• Incorporated custom colorants for brand
consistency, and specialty additives for
enhanced UV and abrasion resistance
• Delivered a single-material solution for easier
manufacturing, and supplied materials locally to
align with customer’s “Made in the USA” brand
• Provided regulatory and technical support to
product development
Customized Versaflex™ TPE
KEY REQUIREMENTS
WHY AVIENT?