https://www.avient.com/sites/default/files/2024-08/AVNT Second Quarter Earnings Press Release.pdf
A recording of the webcast and the slide presentation will be available at avient.com/investors/events-presentations immediately following the conference call and will be accessible for one year. https://www.avient.com/investors https://edge.media-server.com/mmc/p/pyh3w2ip/ https://www.avient.com/investors https://register.vevent.com/register/BId7a8a09515a442e9b13c4d5558d927fe https://www.avient.com/investors/events-presentations 4 Non-GAAP Financial Measures The Company uses both GAAP (generally accepted accounting principles) and non-GAAP financial measures.
Three Months Ended June 30, 2024 2023 Reconciliation to Condensed Consolidated Statements of Income $ EPS $ EPS Net income from continuing operations attributable to Avient shareholders $ 33.6 $ 0.36 $ 22.1 $ 0.24 Special items, after-tax (Attachment 3) 21.8 0.24 19.6 0.21 Amortization expense, after-tax 14.8 0.16 16.2 0.18 Adjusted net income / EPS $ 70.2 $ 0.76 $ 57.9 $ 0.63 Six Months Ended June 30, 2024 2023 Reconciliation to Condensed Consolidated Statements of Income $ EPS $ EPS Net income from continuing operations attributable to Avient shareholders $ 83.0 $ 0.90 $ 42.9 $ 0.47 Special items, after-tax (Attachment 3) 27.3 0.30 41.9 0.46 Amortization expense, after-tax 29.7 0.32 31.3 0.34 Adjusted net income / EPS $ 140.0 $ 1.52 $ 116.1 $ 1.27 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, 2024 2023 2024 2023 Sales $ 849.7 $ 824.4 $ 1,678.7 $ 1,670.1 Cost of sales 592.1 583.7 1,142.9 1,181.8 Gross margin 257.6 240.7 535.8 488.3 Selling and administrative expense 185.1 178.4 369.3 368.9 Operating income 72.5 62.3 166.5 119.4 Interest expense, net (26.6) (29.4) (53.2) (58.2) Other (expense) income, net (0.9) (0.2) (1.8) 0.5 Income from continuing operations before income taxes 45.0 32.7 111.5 61.7 Income tax expense (11.2) (10.4) (28.0) (18.1) Net income from continuing operations 33.8 22.3 83.5 43.6 Loss from discontinued operations, net of income taxes — — — (0.9) Net income $ 33.8 $ 22.3 $ 83.5 $ 42.7 Net income attributable to noncontrolling interests (0.2) (0.2) (0.5) (0.7) Net income attributable to Avient common shareholders $ 33.6 $ 22.1 $ 83.0 $ 42.0 Earnings (loss) per share attributable to Avient common shareholders - Basic: Continuing operations $ 0.37 $ 0.24 $ 0.91 $ 0.47 Discontinued operations — — — (0.01) Total $ 0.37 $ 0.24 $ 0.91 $ 0.46 Earnings (loss) per share attributable to Avient common shareholders - Diluted: Continuing operations $ 0.36 $ 0.24 $ 0.90 $ 0.47 Discontinued operations — — — (0.01) Total $ 0.36 $ 0.24 $ 0.90 $ 0.46 Cash dividends declared per share of common stock $ 0.2575 $ 0.2475 $ 0.5150 $ 0.4950 Weighted-average shares used to compute earnings per common share: Basic 91.3 91.1 91.3 91.1 Diluted 92.2 91.9 92.0 91.9 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, 2024 2023 2024 2023 Cost of sales: Restructuring costs, including accelerated depreciation $ 0.2 $ (1.2) $ 3.8 $ (7.8) Environmental remediation costs (21.8) (13.0) (25.8) (14.4) Impact on cost of sales (21.6) (14.2) (22.0) (22.2) Selling and administrative expense: Restructuring and employee separation costs (2.8) (0.5) (3.5) (11.9) Legal and other (2.3) (6.4) (5.8) (10.6) Acquisition related costs (0.5) (0.7) (2.1) (4.2) Impact on selling and administrative expense (5.6) (7.6) (11.4) (26.7) Impact on operating income (27.2) (21.8) (33.4) (48.9) Interest expense, net - financing costs (1.0) — (1.0) — Other income (loss) 0.1 0.1 0.1 (0.1) Impact on income from continuing operations before income taxes (28.1) (21.7) (34.3) (49.0) Income tax benefit on above special items 7.0 5.5 8.4 12.4 Tax adjustments(2) (0.7) (3.4) (1.4) (5.3) Impact of special items on net income from continuing operations $ (21.8) $ (19.6) $ (27.3) $ (41.9) Diluted earnings per common share impact $ (0.24) $ (0.21) $ (0.30) $ (0.46) Weighted average shares used to compute adjusted earnings per share: Diluted 92.2 91.9 92.0 91.9 (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, 2024 December 31, 2023 ASSETS Current assets: Cash and cash equivalents $ 489.4 $ 545.8 Accounts receivable, net 486.6 399.9 Inventories, net 365.9 347.0 Other current assets 117.2 114.9 Total current assets 1,459.1 1,407.6 Property, net 1,019.9 1,028.9 Goodwill 1,685.1 1,719.3 Intangible assets, net 1,515.7 1,590.8 Other non-current assets 228.0 221.9 Total assets $ 5,907.8 $ 5,968.5 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Short-term and current portion of long-term debt $ 657.7 $ 9.5 Accounts payable 435.2 432.3 Accrued expenses and other current liabilities 405.3 331.8 Total current liabilities 1,498.2 773.6 Non-current liabilities: Long-term debt 1,420.8 2,070.5 Pension and other post-retirement benefits 63.3 67.2 Deferred income taxes 276.3 281.6 Other non-current liabilities 315.0 437.6 Total non-current liabilities 2,075.4 2,856.9 SHAREHOLDERS' EQUITY Avient shareholders’ equity 2,317.5 2,319.2 Noncontrolling interest 16.7 18.8 Total equity 2,334.2 2,338.0 Total liabilities and equity $ 5,907.8 $ 5,968.5 11 Attachment 5 Avient Corporation Condensed Consolidated Statements of Cash Flows (Unaudited) (In millions) Six Months Ended June 30, 2024 2023 Operating Activities Net income $ 83.5 $ 42.7 Adjustments to reconcile net income to net cash provided (used) by operating activities: Depreciation and amortization 88.4 96.2 Accelerated depreciation 0.8 1.9 Share-based compensation expense 9.0 6.5 Changes in assets and liabilities: Increase in accounts receivable (97.0) (66.6) (Increase) decrease in inventories (27.3) 14.0 Increase (decrease) in accounts payable 11.9 (26.2) Taxes paid on gain on sale of business — (103.0) Accrued expenses and other assets and liabilities, net (6.2) 9.8 Net cash provided (used) by operating activities 63.1 (24.7) Investing activities Capital expenditures (55.8) (45.9) Net proceeds from divestiture — 7.3 Proceeds from plant closures 3.4 — Other investing activities (2.1) — Net cash used by investing activities (54.5) (38.6) Financing activities Cash dividends paid (47.0) (45.0) Repayment of long-term debt (4.5) (1.0) Other financing activities (3.3) (2.3) Net cash used by financing activities (54.8) (48.3) Effect of exchange rate changes on cash (10.2) (0.8) Decrease in cash and cash equivalents (56.4) (112.4) Cash and cash equivalents at beginning of year 545.8 641.1 Cash and cash equivalents at end of period $ 489.4 $ 528.7 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/2020-12/sem-tri-fold-selection-guide.pdf
NAME BASE RESIN(S) TARGET MARKETS AVAILABLE FEATURES1 Artisan™ Pre-Colored Thermoplastics PA Powersports, Lawn & Garden, Marine Customizable pre-color solutions Scratch & mar resistance Weatherability & UV resistance High impact resistance Chemical resistance Simplifies processing/replaces paint Tailored temperature performance range: -20°C to 105°C Global availability Complēt™ OnForce™ PA, PP, PPA, PPS, TPU Consumer, Transportation, Industrial Long fiber technology Elevated impact and mechanical properties at room temperature Increased performance at temperature extremes Excellent creep and fatigue resistance Glass and carbon fiber filled options Lubricated, fire retardant, and pre-colored options Edgetek™ Bergadur™ ABS, LCP, PA, PC, PC/ABS, PC/PBT, PC/PET, PC/PSU, PEEK, PES, PEI, POM, PPA, PPS, PSU Consumer, Transportation, Industrial Strength and durability Chemical resistance High impact resistance Weatherability Flame retardant grades: UL 94 V-0, V-1, V-2, and 5VA Pre-color solutions Lightweighting 5G properties - Dk/Df and 3D/LDS Gravi-Tech™ PA, TPU, TPE, PBT Consumer, Transportation, Industrial Customized density, from 1.5 to 11 gm/cm3 Broad modulus and strength: flexible to rigid Chemical and corrosion resistance Gravi-Tech™ LD light density grades available LubriOne™ PA, PBT, PC, PEEK, PEI, POM, PP, PPA, PPS, PS Transportation, Electrical & Electronics, Industrial Low coefficient of friction Self-lubricating Chemical, wear, and corrosion resistance Maxxam™ PP Consumer, Transportation, Electrical & Electronics, Industrial Homopolymer and copolymer grades Optional additives: UV, heat stabilizers Standard grades available in natural and black Maxxam™ FR PE, PP Consumer, Transportation, Electrical & Electronics, Industrial Flame retardant grades: UL 94 V-0, V-1, V-2, and 5VA Flame retardant masterbatches Elevated UL RTI ratings Halogen-free flame retardant grades available Nymax™ Nymax™ PIR Bergamid™ PA 6, 66, 612, 12, co-polymers Transportation, Building & Construction, Electrical & Electronics Toughened grades: medium and high impact Optional additives: heat stabilized, lubricated, impact modified, nucleated Standard grades available in natural and black Pre-colored solutions available PIR grades with 20%–100% recycled content, supporting the circular economy SPECIALTY ENGINEERED THERMOPLASTICS 1 See technical data sheets for complete product details 1 See technical data sheets for complete product details 2 From NEU™ Specialty Engineered Materials, LLC., a wholly-owned subsidiary of Avient Corporation NAME BASE RESIN(S) AVAILABLE FEATURES1 Trilliant™ ABS, LCP, PA, PC, ABS, PA 6, PA 66, PC/ABS, PC/PSU, PEBA, PEEK, PES, POM, PPA, PSU Certified to USP Class VI Formulations locked down Drug master file submissions by product stewardship Pre-colored, small lot production down to 50 lb–250 lb Sterilization, chemical resistance, and secondary process guidance Adherence to FDM-GMP manufacturing standards Antimicrobial technologies Materials for radiation shielding protection NEU™ Specialty Materials2 PEBA, TPU, PA 11, PA 12, PP, PE, TPE Radiopacifiers, stabilizers, and surface modifiers Antimicrobial technologies Pre-colored formulations Small lot capabilities Short lead times Versaflex™ HC TPE Overmolding Clear and heat resistant Ultra clear grades Ultra soft TPE gels, 30 shore OO FDA, USP Class VI, ISO 10993 approved grades Sterilizable under autoclave, radiation, and EtO gas Extrusion, injection, and blow moldable HEALTHCARE SPECIALTY THERMOPLASTICS NAME BASE RESIN(S) TARGET MARKETS AVAILABLE FEATURES1 reSound™ R Recycled Formulations PA6, PA66, PC Transportation, Consumer, Household Appliance, Electrical & Electronics, Industrial PA grades: Up to 100% recycled content PC grades: Up to 70% recycled content PIR and PCR grades available Support the circular economy Comparable performance to prime grades Customizable solution Surround™ ABS, PP, PBT, PC, PA 66 Transportation, Electrical & Electronics Integrated EMI/RFI shielding Long fiber technology Conductive properties Galvanic corrosion protection Lightweighting and ease of processing Stat-Tech™ ABS, PA, PC, PC/ABS, PC/PSU, PEEK, PEI, PES, PP, PPA Transportation, Electrical & Electronics Integrated EMI/RFI shielding Conductive properties Anti-static/dissipative properties Corrosion resistance Lightweighting and ease of processing Clean room materials for semiconductors available Therma-Tech™ LCP, PA, PEEK, PP, PPA, PPS Consumer, Transportation Thermally conductive Low coefficient of thermal expansion Corrosion resistance SPECIALTY ENGINEERED THERMOPLASTICS NAME BASE RESIN(S) TARGET MARKETS AVAILABLE FEATURES1 Barricade™ Elastomers with Fortrex™ Technology Barricade™ high-performance elastomers bring next genera- tion technology to market to bridge the gap between tradi- tional TPEs and silicone Healthcare, Industrial Aerospace, Appliances, Electronics High temperature compression set Processes on thermoplastic injection molding and extrusion equipment Customizable and colorable Process simplicity CROSSLINKABLE ELASTOMERS Barricade formulations leverage licensed Fortrex™ technology.
Consumer, Packaging, Healthcare, Electrical & Electronics, Appliance Overmolding Clear and heat resistant TPEs Ultra clear grades Ultra soft TPE gels, 30 shore OO FDA, USP Class VI, ISO 10993 approved grades NSF and UL listings Sterilizable under autoclave, radiation, and EtO gas Extrusion, injection, and blow moldable GLS™ THERMOPLASTIC ELASTOMERS * Commercially available in North America only 1 See technical data sheets for complete product details NAME BASE RESIN(S) AVAILABLE FEATURES1 ECCOH™ Polyolefin Flame retardant, low smoke and fume, zero halogen (LSFOH) Cross-linkable grades Chemical, oil, and gel resistant Flexible, low friction, easy-peel, and high speed processing Compatible with Avient additives and color masterbatches FireCon™ CPE, CPE Alloy Low and medium voltage cable jacketing Flame retardant and 90°C deformation resistance Oil resistance RoHS grades available Maxxam™ FR PE, PP UL Yellow Card for plenum applications Halogen-free flame retardant grades available Maxxam™ SY Foamable PP co-polymer Easy processing Variety of final densities available Corrosion resistance Syncure™ XLPE High performance moisture cure technology UL bulletinized XHHW2 and VW1 Temperature, abrasion, and oil resistant WIRE AND CABLE SPECIALTY THERMOPLASTICS To learn more, please visit avient.com or call +1.844.4AVIENT (+1.844.428.4368).