https://www.avient.com/sites/default/files/2024-05/AVNT Q1 2024 Earnings Press Release_0.pdf
They are based on
management’s expectations that involve a number of business risks and uncertainties, any of
which could cause actual results to differ materially from those expressed in or implied by the
forward-looking statements.
Senior management believes these measures are useful to
investors because they allow for comparison to Avient's performance in prior periods without the effect of items that, by their
nature, tend to obscure Avient's operating results due to the potential variability across periods based on timing, frequency and
magnitude.
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/2020-10/antimicrobial-dental-case-study.pdf
THE IMPACT
Avient was able to reduce lead time on these newly
developed additives by a week versus the original
supplier, enabling this customer to better manage
and control inventory levels.
https://www.avient.com/news/avient-earns-2023-refocus-sustainable-innovation-design-award-pcr-color-prediction-service
The annual Re|focus Sustainability Innovation Awards recognize outstanding innovations in plastics manufacturing that further environmental advantages in design, material, and end-of-life management.
Avient’s Color Prediction Service (CPS) is the first digital tool of its kind that can illustrate the color possibilities or limitations of certain types of recycled resins (PCR) prior to laboratory trials.
As early adopters of our PCR Color Prediction Service, L’Oréal achieved consistent colors across various PCR grades in different countries, enabling them to launch with fewer color iterations and color trials, thereby reducing complexity and increasing speed.”
https://www.avient.com/sites/default/files/2021-04/avnt-first-quarter-2021-news-release.pdf
Management believes this provides better
comparability of the performance of the combined businesses.
They are based on management's
expectations that involve a number of business risks and uncertainties, any of which could cause
actual results to differ materially from those expressed in or implied by the forward-looking
statements.
Three Months Ended
March 31,
2021 2020
Sales:
Color, Additives and Inks $ 609.3 $ 256.5
Specialty Engineered Materials 216.5 185.3
Distribution 362.7 289.5
Corporate and eliminations (26.2) (19.8)
Sales $ 1,162.3 $ 711.5
Gross margin:
Color, Additives and Inks $ 197.5 $ 89.4
Specialty Engineered Materials 64.7 52.6
Distribution 39.3 33.6
Corporate and eliminations 0.9 (4.1)
Gross margin $ 302.4 $ 171.5
Selling and administrative expense:
Color, Additives and Inks $ 108.7 $ 48.9
Specialty Engineered Materials 30.5 30.3
Distribution 15.3 14.2
Corporate and eliminations 27.5 25.3
Selling and administrative expense $ 182.0 $ 118.7
Operating income:
Color, Additives and Inks $ 88.8 $ 40.5
Specialty Engineered Materials 34.2 22.3
Distribution 24.0 19.4
Corporate and eliminations (26.6) (29.4)
Operating income $ 120.4 $ 52.8
Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA):
Color, Additives and Inks $ 116.2 $ 51.4
Specialty Engineered Materials 42.0 29.8
Distribution 24.2 19.5
Corporate and eliminations (24.9) (28.0)
Other income, net 1.5 1.6
EBITDA $ 159.0 $ 74.3
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/news/avient-debuts-next-generation-solutions-facilitate-use-recycled-plastics-packaging-applications
Avient is fully committed to increasing opportunities to expand the use of recycled polymers, addressing any barriers that arise either during the recycling process or when customers want to incorporate PCR content into existing or new applications,” said Norbert Merklein, vice president and general manager for the Europe, Middle East and Africa regions of Color, Additives and Inks at Avient.
Calculating the Color Gamut
The PCR Color Prediction Service, helps brand owners understand what colors are achievable based on the amount of PCR used.
https://www.avient.com/industries/industrial/agriculture-construction/agriculture-construction-interiors
Custom colors available
Power Management
Color Cosmetics
https://www.avient.com/industries/consumer/consumer-discretionary
Our broad array of specialty polymer solutions can solve technical challenges, such as managing static electricity, transferring heat away from sensitive components or providing EMI/FRI shielding, and delivering the colors and haptic your consumers welcome.
We’ll bring ideas that are colorful, innovative, and memorable.
Talk to us to learn more about polymer solutions that support next-generation designs of dependable devices in the colors and soft-touch haptic your consumers want.
https://www.avient.com/news/avient-supports-resia-manufacturing-create-prefabricated-modular-components-multi-family-housing
We’re proud to work with an industry leader like Resia and to bring our thermoplastic composite materials to the modular construction market,” said Mike Mosley, General Manager of Advanced Composites at Avient.
Our expanding portfolio of offerings includes colorants, advanced composites, functional additives, engineered materials, and Dyneema®, the world’s strongest fiber™.
About Resia
Resia is an award-winning, vertically integrated real estate company that specializes in developing, building, and managing multifamily communities across the United States.
https://www.avient.com/industries/packaging/beverage-packaging/caps-and-closures
Power Management
Color Cosmetics
Making the Most of Color: Smart Colorants™
https://www.avient.com/industries/consumer/consumer-staples/everyday-essentials/apparel-footwear-accessories
Wilflex™ Epic Color System PC Colorants
Power Management
Color Cosmetics