0000025445False00000254452024-11-062024-11-06

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549

 FORM 8-K

 CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): November 6, 2024
CRANE NXT, CO.
(Exact name of registrant as specified in its charter)
DELAWARE
(State or other jurisdiction of incorporation)
Delaware
1-1657
88-0706021
(State or other jurisdiction of incorporation or organization)
(Commission File Number)
(I.R.S. Employer Identification No.)
950 Winter Street 4th Floor North
Waltham
MA
02451
(Address of Principal Executive Offices)
(Zip Code)
Registrant’s telephone number, including area code: 781-755-6868
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common Stock, par value $1.00 CXTNew York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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SECTION 2 – FINANCIAL INFORMATION
Item 2.02Results of Operations and Financial Condition.
On November 6, 2024, Crane NXT, Co. (the “Company”) announced its results of operations for the quarter ended September 30, 2024. The related press release and quarterly financial data supplement is being furnished as Exhibit 99.1 to this Current Report on Form 8-K.

The information furnished under Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1, is not deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.


SECTION 9 – FINANCIAL STATEMENTS AND EXHIBITS
Item 9.01Financial Statements and Exhibits.
(d)  Exhibits
Exhibit No.Description of Exhibit
99.1  
104Cover Page Interactive Data File (embedded within the Inline XBRL document)
2

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 CRANE NXT, CO.
November 6, 2024  
 By: /s/ Christina Cristiano
  Christina Cristiano
Senior Vice President and
  Chief Financial Officer


3


image.jpg                                 Exhibit 99.1

Contact:
Investor Relations
ContactUs@cranenxt.com
Crane NXT, Co. Reports Third Quarter 2024 Results
Delivers sales growth of 14%; core sales growth increases 5%
Narrows full year Adjusted EPS guidance to $4.22 to $4.30

WALTHAM, MASS - November 6, 2024 - Crane NXT, Co. (NYSE: CXT) ("Crane NXT" or the "Company"), a premier industrial technology company, today announced its financial results for the third quarter ended September 30, 2024.

Third Quarter 2024 Highlights
•Signed agreement to acquire De La Rue Authentication Solutions, with anticipated closing in the first half of 2025.
•Acquired the Smart Packaging assets of Tru Tag Technologies.
•GAAP earnings per diluted share (EPS) of $0.81, and Adjusted EPS of $1.16.
•Sales of $403 million, up 14.3% year-over-year, with 4.7% core sales growth.
•GAAP operating profit margin of 18.6%, and Adjusted operating profit margin of 23.9%.
•Repaid approximately $65 million of outstanding debt.
Full Year 2024 Outlook
•Narrowing full year sales growth guidance to 6% to 8% and full year Adjusted EPS guidance to $4.22 to $4.30.
•Updating full-year guidance for Adjusted Free Cash Flow conversion to approximately 70%.


1

Aaron W. Saak, Crane NXT's President and Chief Executive Officer, stated: “This quarter we announced that we signed an agreement to acquire De La Rue Authentication Solutions and that we acquired the Smart Packaging assets of Tru Tag Technologies. These transactions, along with the acquisition of OpSec Security which we completed earlier this year, continue to expand and diversify the Company and accelerate our strategy as a market leader in providing trusted technology solutions that secure, detect, and authenticate our customers’ most valuable assets.”

Mr. Saak continued: "Our third quarter results were in line with our expectations, with core sales growth of nearly 5% and adjusted operating profit margin of approximately 24%. We repaid approximately $65 million of outstanding debt in the quarter and reduced our net leverage to approximately 1.7X. With our strong balance sheet and operational performance, we have ample liquidity for disciplined M&A to create further value for our shareholders."

Summary of Third Quarter 2024 Results
 Three Months Ended September 30, Change
(dollars in millions)20242023$%
Net sales$403.5 $352.9 $50.6 14.3 %
Core sales$16.7 4.7 %
Acquisitions$32.3 9.1 %
Foreign exchange$1.6 0.5 %
Operating profit$75.0 $79.7 $(4.7)(5.9)%
Adjusted operating profit*$96.5 $91.6 $4.9 5.3 %
Operating profit margin18.6 %22.6 %(400bps)
Adjusted operating profit margin*23.9 %26.0 %(210bps)
Totals may not sum due to rounding
*Please see the Non-GAAP Financial Measures tables in this release

Third Quarter 2024 Results
Third quarter 2024 sales were $403.5 million, an increase of $50.6 million, or 14.3%, compared with the third quarter of 2023, primarily driven by $32.3 million, or 9.1%, sales benefit from the acquired OpSec Security business, $16.7 million, or 4.7%, core sales growth, and $1.6 million, or 0.5%, favorable foreign exchange.
Third quarter 2024 operating profit was $75.0 million, compared with $79.7 million in the third quarter of 2023. Operating profit margin was 18.6%, compared with 22.6% last year, primarily reflecting an unfavorable product mix, and the impact of the OpSec Security acquisition, partially offset by productivity gains, and the impact of cost saving actions. Adjusted operating profit margin of 23.9% decreased 210bps, compared with 26.0% in the prior year.
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Third Quarter 2024 Segment Results
All comparisons detailed in this section refer to operating results for the third quarter 2024 versus the third quarter 2023.
Crane Payment Innovations
Three Months Ended September 30, Change
(dollars in millions)20242023$%
Net sales$224.9 $221.6 $3.3 1.5 %
Core sales$3.3 1.5 %
Foreign exchange$— — %
Operating profit$64.6 $59.7 $4.9 8.2 %
Adjusted operating profit*$70.0 $65.1 $4.9 7.5 %
Operating profit margin28.7 %26.9 %180bps
Adjusted operating profit margin*31.1 %29.4 %170bps
Totals may not sum due to rounding
*Please see the Non-GAAP Financial Measures tables in this release
Sales of $224.9 million increased $3.3 million, or 1.5%, compared with the third quarter of 2023, driven by core sales growth. Operating profit margin of 28.7% increased 180 basis points, compared with 26.9% last year, primarily reflecting favorable pricing, lower manufacturing costs, productivity gains, and cost saving actions, partially offset by unfavorable product mix. Adjusted operating profit margin was 31.1% compared with 29.4% in the prior year.
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Security and Authentication Technologies
 Three Months Ended September 30, Change
(dollars in millions)20242023$%
Net sales$178.6 $131.3 $47.3 36.0 %
Core sales$13.4 10.2 %
Acquisitions$32.3 24.6 %
Foreign exchange$1.6 1.2 %
Operating profit$29.3 $32.8 $(3.5)(10.7)%
Adjusted operating profit*$39.2 $36.3 $2.9 8.0 %
Operating profit margin16.4 %25.0 %(860bps)
Adjusted operating profit margin*21.9 %27.6 %(570bps)
Totals may not sum due to rounding
*Please see the Non-GAAP Financial Measures tables in this release
Sales of $178.6 million increased $47.3 million, or 36.0%, compared with the third quarter of 2023, primarily driven by 24.6% sales benefit from the acquired OpSec Security business, and 10.2% core sales growth. Operating profit margin was 16.4% compared with 25.0% last year, driven by the dilutive impact of the OpSec Security acquisition as well as changes in the Currency business, as favorable pricing, higher volumes and productivity gains were more than offset by higher manufacturing costs, and unfavorable mix. Adjusted operating profit margin was 21.9% compared with 27.6% in the prior year.
Cash Flow and Other Financial Metrics
For the third quarter of 2024, cash provided by operating activities was $66.7 million, compared with $102.8 million in the prior year. Adjusted free cash flow was $59.0 million, compared with $97.5 million in the prior year. The $38.5 million, or 39.5%, decrease in Adjusted free cash flow was primarily due to lower cash provided by operating activities driven by higher working capital requirements impacted by the timing of shipments. (Please see the Non-GAAP Financial Measures tables in this release for a detailed reconciliation of reported results to adjusted measures).
The Company held cash and cash equivalents of $165.1 million as of September 30, 2024, compared with $227.2 million as of December 31, 2023. Total debt was $793.2 million as of September 30, 2024, compared with $644.9 million as of December 31, 2023. The Company repaid $65.0 million on its revolving credit facility during the third quarter of 2024, with an outstanding balance of $150.0 million as of September 30, 2024. The decrease in cash and cash equivalents and the increase in total debt reflect the financing associated with the May 3, 2024 OpSec Security acquisition.

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Full Year 2024 Guidance
The Company is updating its full year guidance for Sales Growth, Adjusted EPS, and Adjusted Free Cash Flow Conversion.
Full Year 2024 Guidance Details
(dollars in millions, except per share data)Prior GuidanceUpdated Guidance
Crane NXT Sales Growth*+5% to +8%+6% to +8%
Adjusted EPS$4.10 to $4.35$4.22 to $4.30
Adjusted Segment Operating Margin26% to 28%26% to 28%
Corporate Expense~$53~$53
Non-Operating Expense, Net~$47~$47
Adjusted Tax Rate~21%~21%
Adjusted Free Cash Flow Conversion~100%~70%
Diluted Shares~57.6~57.6
*Includes FX impact of 0% to 1%
Please see the Non-GAAP Financial Measures definitions in this release

Declaring Fourth Quarter Dividend
Crane NXT announced its quarterly dividend of $0.16 per share for the fourth quarter of 2024. The dividend is payable on December 11, 2024, to shareholders of record as of November 29, 2024.
Conference Call
Crane NXT scheduled a conference call to discuss the third quarter financial results on Thursday, November 7, 2024, at 10:00 A.M. (Eastern). Interested parties may listen to a live webcast of the conference call by visiting the Events section of the Investor Relations section of the Company’s website. For those wishing to participate in the Q&A session of the call, please pre-register here. Pre-registration may be completed at any time up to the call start time. An accompanying slide presentation and a replay of the live event will also be available on the Company’s website.
About Crane NXT, Co.
Crane NXT is a premier industrial technology company that provides trusted technology solutions to secure, detect, and authenticate what matters most to its customers. Through its two industry-leading business segments, Security & Authentication Technologies and Crane Payment Innovations, Crane NXT provides customers with advanced technologies to secure high-value physical products, sophisticated detection equipment and systems, and proprietary products and services that protect brand identity and digital content. Crane NXT’s approximately 4,500 employees help our customers protect their most important assets and ensure secure, seamless transactions around the world every day. For more information, visit www.cranenxt.com.
On April 3, 2023, Crane NXT, Co. (formerly Crane Holdings, Co.) completed the separation of its wholly-owned subsidiary at that time, Crane Company, in a tax-free distribution of Crane Company shares to Crane NXT stockholders (the "Separation").
Historical financial measures in this release for Crane NXT are presented on a carve-out basis.
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Forward-Looking Statements Disclaimer
This press release contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements include all statements that are not historical statements of fact and those regarding the Company's intent, belief, or expectations.
Words such as “anticipate(s),” “expect(s),” “intend(s),” “believe(s),” “plan(s),” “may,” “will,” “would,” “could,” “should,” “seek(s),” and similar expressions, or the negative of these terms, are intended to identify such forward-looking statements. These statements are based on management’s current expectations and beliefs and are subject to a number of risks and uncertainties that could lead to actual results differing materially from those projected, forecasted or expected. The Company assumes no (and disclaims any) obligation to revise or update these statements to reflect future events or circumstances. Although the Company believes that the assumptions underlying the forward-looking statements are reasonable, it can give no assurance that its expectations will be attained. The Company cautions investors not to place undue reliance on any such forward-looking statements.
Risks and uncertainties that could cause actual results to differ materially from the Company's expectations include, but are not limited to: changes in global economic conditions (including inflationary pressures) and geopolitical risks, including macroeconomic fluctuations; demand for its products, which is variable and subject to factors beyond its control; fluctuation in the prices of, or disruption in its ability to source, components and raw materials, and delays in the distribution of its products; information systems and technology networks failures, breaches in data security, theft of personally identifiable and other information, and non-compliance with its contractual or other legal obligations regarding such information; risks associated with conducting a substantial portion of its business outside the U.S.; being unable to successfully develop and introduce new products, which would limit its ability to grow and maintain its competitive position; loss of personnel or being able to hire and retain additional personnel needed to sustain and grow its business as planned; being unable to identify or complete acquisitions, or to successfully integrate the businesses the Company acquires; governmental regulations and failure to comply with those regulations; risks from litigation, claims and investigations, including those related to product liability and warranties, and employee, commercial, intellectual property and environmental matters; risks related to its ability to improve productivity, reduce costs and align manufacturing capacity with customer demand; the ability to protect its intellectual property; significant competition in the Company's markets; adverse impacts from intangible asset impairment charges; additional tax expenses or exposures; inadequate or ineffective internal controls; and risks related to the Separation, including not obtaining the intended tax treatment of the Separation transaction, failure of Crane Company to perform under the various transaction agreements and actual or potential conflicts of interest with Crane Company.
Readers should carefully review Crane NXT, Co.’s financial statements and the notes thereto, as well as the section entitled “Risk Factors” in Item 1A of Crane NXT, Co.’s Annual Report on Form 10-K for the year ended December 31, 2023 and the other documents Crane NXT, Co. and its subsidiaries file from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements.

(Financial Tables Follow)

6

CRANE NXT, CO. AND SUBSIDIARIES
Consolidated and Combined Condensed Statements of Operations Data
(unaudited, in millions, except per share data)

Three Months Ended September 30,
Nine Months Ended September 30,
 2024202320242023
Net sales:
Crane Payment Innovations$224.9 $221.6 $658.3 $671.3 
Security and Authentication Technologies178.6 131.3 429.4 363.1 
Total net sales$403.5 $352.9 $1,087.7 $1,034.4 
Operating profit (loss):
Crane Payment Innovations$64.6 $59.7 $178.7 $186.3 
Security and Authentication Technologies29.3 32.8 73.5 85.1 
Corporate(18.9)(12.8)(54.2)(57.0)
Total operating profit$75.0 $79.7 $198.0 $214.4 
Interest income0.4 0.3 1.4 0.7 
Interest expense(13.4)(12.8)(35.7)(37.3)
Related party interest expense— — — (2.5)
Miscellaneous income, net1.3 0.7 1.7 3.1 
Income before income taxes63.3 67.9 165.4 178.4 
Provision for income taxes16.2 16.0 38.9 39.6 
Net income attributable to common shareholders$47.1 $51.9 $126.5 $138.8 
Earnings per diluted share1
$0.81 $0.90 $2.19 $2.42 
Average diluted shares outstanding1
57.8 57.5 57.857.4 
Average basic shares outstanding1
57.2 56.8 57.156.8 
Supplemental data:
Cost of sales$232.2 $187.4 $603.1 $545.8 
Selling, general and administrative96.3 85.8 283.9 274.2 
Restructuring charges, net— — 2.7 — 
1 The shares presented for the three months and nine months ended September 2023 are based on the average diluted and basic shares outstanding of Crane NXT, Co. after the Separation.
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CRANE NXT, CO. AND SUBSIDIARIES
Consolidated and Condensed Balance Sheets
(unaudited, in millions)

September 30,
2024		December 31,
2023
Assets
Current assets:
Cash and cash equivalents$165.1 $227.2 
Accounts receivable, net of allowance for credit losses of $9.5 as of September 30, 2024 and $11.8 as of December 31, 2023215.2 214.9 
U.S. and foreign taxes on income18.0 — 
Inventories, net169.8 157.1 
Other current assets62.5 45.2 
Total current assets630.6 644.4 
Property, plant and equipment, net278.0 261.2 
Long-term deferred tax assets0.9 2.7 
Intangible assets, net440.2 308.9 
Goodwill965.4 841.2 
Other assets95.5 71.0 
Total assets$2,410.6 $2,129.4 
Liabilities and equity
Current liabilities:
Short-term borrowings$155.0 $4.6 
Accounts payable108.4 106.5 
Accrued liabilities183.1 210.5 
U.S. and foreign taxes on income9.9 12.8 
Total current liabilities456.4 334.4 
Long-term debt638.2 640.3 
Accrued pension and postretirement benefits22.6 22.5 
Long-term deferred tax liability130.8 104.5 
Other liabilities91.9 63.7 
Total equity1,070.7 964.0 
Total liabilities and equity$2,410.6 $2,129.4 


8

CRANE NXT, CO. AND SUBSIDIARIES
Consolidated and Combined Condensed Statements of Cash Flows
(unaudited, in millions)

Three Months Ended September 30, Nine Months Ended September 30,
2024202320242023
Operating activities:
Net income attributable to common shareholders$47.1 $51.9 $126.5 $138.8 
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation and amortization24.7 20.5 63.4 59.0 
Stock-based compensation expense2.8 2.7 7.7 7.4 
Defined benefit plans and postretirement credit(1.6)(0.2)(1.9)(0.6)
Deferred income taxes(0.5)— (0.3)4.8 
Cash (used for) provided by operating working capital(13.4)24.5 (71.8)(12.2)
Other7.6 3.4 9.4 0.6 
Total provided by operating activities$66.7 $102.8 $133.0 $197.8 
Investing activities:
Payment for acquisitions, net of cash acquired(0.1)— (269.9)— 
Proceeds from settlement of forward contract— — 0.1 — 
Capital expenditures(13.2)(7.6)(34.6)(16.1)
Total used for investing activities$(13.3)$(7.6)$(304.4)$(16.1)
Financing activities:
Dividends paid(9.1)(7.9)(27.4)(15.8)
Proceeds from stock options exercised1.1 0.2 3.0 2.1 
Payment of tax withholding on equity awards vested (0.1)— (6.5)— 
Debt issuance costs— (0.1)— (5.3)
Repayment of long-term debt— — — (300.0)
Proceeds from revolving credit facility30.5 20.0 310.5 20.0 
Repayments of revolving credit facility(95.5)(20.0)(160.5)(20.0)
Proceeds from term loan— — — 350.0 
Repayment of term loan(1.3)(125.0)(3.3)(175.0)
Net transfers to Crane— — — (32.5)
Total (used for) provided by financing activities$(74.4)$(132.8)$115.8 $(176.5)
Effect of exchange rates on cash, cash equivalents and restricted cash11.9 (10.3)2.4 (6.9)
Decrease in cash, cash equivalents and restricted cash(9.1)(47.9)(53.2)(1.7)
Cash, cash equivalents and restricted cash at beginning of period183.1 276.9 227.2 230.7
Cash, cash equivalents and restricted cash at end of period$174.0 $229.0 $174.0 $229.0 
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CRANE NXT, CO. AND SUBSIDIARIES
Order Backlog
(unaudited, in millions)

September 30,
2024		June 30,
2024		March 31, 2024December 31, 2023September 30, 2023
Crane Payment Innovations$133.4 $166.5 $188.6 $216.8 $231.6 
Security and Authentication Technologies1
$351.4 $335.4 $233.4 $243.0 $223.3 
Total backlog$484.8 $501.9 $422.0 $459.8 $454.9 
1 Includes $31.0 million of backlog as of September 30, 2024, pertaining to the OpSec Security business acquired in May 2024.
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CRANE NXT, CO. AND SUBSIDIARIES
Non-GAAP Financial Measures
(unaudited, in millions, except per share data)
Three Months Ended September 30,
20242023
Adjusted Operating Profit and Adjusted Operating Profit Margin$Per Share$Per Share
Net sales (GAAP)$403.5 $352.9 
Operating profit (GAAP)$75.0 $79.7 
Operating profit margin (GAAP)18.6 %22.6 %
Special items impacting operating profit:
Acquired intangible asset amortization13.4 8.9 
Transaction related expenses6.2 3.0 
Impact of acquisition related fair value step-up1.9 — 
Adjusted operating profit (Non-GAAP)$96.5 $91.6 
Adjusted operating profit margin (Non-GAAP)23.9 %26.0 %
Adjusted Net Income and Adjusted Net Income per Share
Net income attributable to common shareholders (GAAP)$47.1 $0.81 $51.9 $0.90 
Acquired intangible asset amortization13.4 0.23 8.9 0.15 
Transaction related expenses6.2 0.11 3.0 0.06 
Impact of acquisition related fair value step-up1.9 0.03 — — 
Tax adjustments(1.9)(0.02)(1.2)(0.02)
Adjusted net income (Non-GAAP)$66.7 $1.16 $62.6 $1.09 
Adjusted EBITDA and Adjusted EBITDA margin
Net income attributable to common shareholders (GAAP)$47.1 $51.9 
Net income margin (GAAP)11.7 %14.7 %
Adjustments to net income attributable to common shareholders:
Income tax expense16.2 16.0 
Intangible asset amortization13.5 8.9 
Interest expense, net13.0 12.5 
Depreciation9.3 11.0 
Transaction related expenses6.2 3.0 
Impact of acquisition related fair value step-up1.9 — 
Adjusted EBITDA (Non-GAAP)$107.2 $103.3 
Adjusted EBITDA Margin (Non-GAAP)26.6 %29.3 %
Totals may not sum due to rounding
11

CRANE NXT, CO. AND SUBSIDIARIES
Non-GAAP Financial Measures
(unaudited, in millions, except per share data)

Nine Months Ended September 30,
20242023
Adjusted Operating Profit and Adjusted Operating Profit Margin$Per Share$Per Share
Net sales (GAAP)$1,087.7 $1,034.4 
Operating profit (GAAP)$198.0 $214.4 
Operating profit margin (GAAP)18.2 %20.7 %
Special items impacting operating profit:
Acquired intangible asset amortization33.6 27.0 
Transaction related expenses16.8 20.4 
Impact of acquisition related fair value step-up5.9 — 
Restructuring charges, net2.7 — 
Adjusted operating profit (Non-GAAP)$257.0 $261.8 
Adjusted operating profit margin (Non-GAAP)23.6 %25.3 %
Adjusted Net Income and Adjusted Net Income per Share
Net income attributable to common shareholders (GAAP)$126.5 $2.19 $138.8 $2.42 
Acquired intangible asset amortization33.6 0.58 27.0 0.47 
Transaction related expenses17.4 0.30 20.4 0.35 
Impact of acquisition related fair value step-up5.9 0.10 — — 
Restructuring charges, net2.7 0.05 — — 
Interest adjustment1
— — 2.5 0.04 
Tax adjustments(9.2)(0.16)(6.4)(0.10)
Adjusted net income (Non-GAAP)$176.9 $3.06 $182.3 $3.18 
Adjusted EBITDA and Adjusted EBITDA margin
Net income attributable to common shareholders (GAAP)$126.5 $138.8 
Net income margin (GAAP)11.6 %13.4 %
Adjustments to net income attributable to common shareholders:
Income tax expense38.9 39.6 
Interest expense, net34.3 39.1 
Intangible asset amortization33.7 27.0 
Depreciation27.8 30.6 
Transaction related expenses17.4 20.4 
Impact of acquisition related fair value step-up5.9 — 
Restructuring charges, net2.7 — 
Adjusted EBITDA (Non-GAAP)$287.2 $295.5 
Adjusted EBITDA Margin (Non-GAAP)26.4 %28.6 %
Totals may not sum due to rounding
1 Related party interest with Crane Company incurred prior to the Separation.
    

12

    
CRANE NXT, CO. AND SUBSIDIARIES
Non-GAAP Financial Measures by Segment
(unaudited, in millions)


Three Months Ended September 30, 2024Crane Payment InnovationsSecurity and Authentication TechnologiesCorporateTotal Company
Net sales$224.9 $178.6 $— $403.5 
Operating profit (loss) (GAAP)$64.6 $29.3 $(18.9)$75.0 
Operating profit margin (GAAP)28.7 %16.4 %18.6 %
Special items impacting operating profit:
Acquired intangible asset amortization5.4 8.0 — 13.4 
Impact of acquisition related fair value step-up— 1.9 — 1.9 
Transaction related expenses— — 6.2 6.2 
Adjusted operating profit (loss) (non-GAAP)$70.0 $39.2 $(12.7)$96.5 
Adjusted operating profit margin (non-GAAP)31.1 %21.9 %23.9 %

Three Months Ended September 30, 2023Crane Payment InnovationsSecurity and Authentication TechnologiesCorporateTotal Company
Net sales$221.6 $131.3 $— $352.9 
Operating profit (loss) (GAAP)$59.7 $32.8 $(12.8)$79.7 
Operating profit margin (GAAP)26.9 %25.0 %22.6 %
Special items impacting operating profit:
Acquired intangible asset amortization5.4 3.5 — 8.9 
Transaction related expenses— — 3.0 3.0 
Adjusted operating profit (loss) (non-GAAP)$65.1 $36.3 $(9.8)$91.6 
Adjusted operating profit margin (non-GAAP)29.4 %27.6 %26.0 %
Totals may not sum due to rounding














CRANE NXT, CO. AND SUBSIDIARIES
Non-GAAP Financial Measures by Segment
(unaudited, in millions)

Nine Months Ended September 30, 2024Crane Payment InnovationsSecurity and Authentication TechnologiesCorporateTotal Company
Net sales$658.3 $429.4 $— $1,087.7 
Operating profit (loss) (GAAP)$178.7 $73.5 $(54.2)$198.0 
Operating profit margin (GAAP)27.1 %17.1 %18.2 %
Special items impacting operating profit:
Acquired intangible asset amortization15.9 17.7 — 33.6 
Impact of acquisition related fair value step-up— 5.9 — 5.9 
Restructuring charges, net2.7 — — 2.7 
Transaction related expenses0.7 — 16.1 16.8 
Adjusted operating profit (loss) (non-GAAP)$198.0 $97.1 $(38.1)$257.0 
Adjusted operating profit margin (non-GAAP)30.1 %22.6 %23.6 %


Nine Months Ended September 30, 2023Crane Payment InnovationsSecurity and Authentication TechnologiesCorporateTotal Company
Net sales$671.3 $363.1 $— $1,034.4 
Operating profit (GAAP)$186.3 $85.1 $(57.0)$214.4 
Operating profit margin (GAAP)27.8 %23.4 %20.7 %
Special items impacting operating profit:
Acquired intangible asset amortization16.4 10.6 — 27.0 
Transaction related expenses— — 20.4 20.4 
Adjusted operating profit (non-GAAP)$202.7 $95.7 $(36.6)$261.8 
Adjusted operating profit margin (non-GAAP)30.2 %26.4 %25.3 %
Totals may not sum due to rounding
13

CRANE NXT, CO. AND SUBSIDIARIES
Free Cash Flow and Adjusted Free Cash Flow
(unaudited, in millions)

Three Months Ended September 30, Nine Months Ended September 30,
Cash Flow Items2024202320242023
Cash provided by operating activities (GAAP)$66.7 $102.8 $133.0 $197.8 
Less: Capital expenditures(13.2)(7.6)(34.6)(16.1)
Free cash flow $53.5 $95.2 $98.4 $181.7 
Transaction related expenses1
5.5 2.3 12.8 19.3 
Adjusted free cash flow (non-GAAP)$59.0 $97.5 $111.2 $201.0 
Adjusted net income (non-GAAP)*$66.7 $62.6 $176.9 $182.3 
Adjusted free cash flow conversion (non-GAAP)88.5 %155.8 %62.9 %110.3 %
1 Represents cash paid for transaction related expenses.
*Please see the Non-GAAP Financial Measures tables in this release.
Net Leverage Ratio
(unaudited, in millions, except net leverage ratio)

September 30, 2024
Total debt (excluding deferred financing costs of $8.5 million)$801.7 
Less: Cash and cash equivalents(165.1)
Net debt$636.6 
TTM Adjusted EBITDA (non-GAAP)*$380.0 
Net leverage ratio1.7 
*Please refer to the Non-GAAP Financial Measures tables in prior quarter releases and in this release.

Crane NXT reports its financial results in accordance with U.S. generally accepted accounting principles (“GAAP”). This press release includes certain non-GAAP financial measures, including Adjusted operating profit, Adjusted operating margin, Adjusted EPS, free cash flow, and Adjusted free cash flow, that are not prepared in accordance with GAAP. These non-GAAP measures are an addition, and not a substitute for or superior, to measures of financial performance prepared in accordance with GAAP and should not be considered as an alternative to operating income, net income or any other performance measures derived in accordance with GAAP. The Company's management believes that these non-GAAP measures of financial results (including on a forward-looking or projected basis) provide useful supplemental information to investors about Crane NXT. However, there are a number of limitations related to the use of these non-GAAP measures and their nearest GAAP equivalents. For example, other companies may calculate non-GAAP measures differently or may use other measures to calculate their financial performance, and therefore the Company's non-GAAP measures may not be directly comparable to similarly titled measures of other companies.

Reconciliations of certain forward-looking and projected non-GAAP measures, including Adjusted segment operating margin and Adjusted EPS, to the closest corresponding GAAP measure are not available without unreasonable efforts due to the high variability, complexity and low visibility with respect to the charges excluded from these non-GAAP measures, which could have a potentially significant impact on Crane NXT's future GAAP results. Crane NXT calculates Adjusted segment operating margin and Adjusted EPS as described below.

•"Adjusted segment operating margin" is calculated as Adjusted segment profit divided by sales. Adjusted segment profit is calculated as segment profit excluding acquired intangible asset amortization, restructuring charges, impact of acquisition related fair value step-up, and transaction related expenses. Impact of acquisition related fair value step-up includes acquisition related inventory step-up amortization and fixed asset step-up depreciation. Transaction related expenses include acquisition related expenses such as incremental professional fees associated with closing and integration of the acquisition, and expenses associated with the Separation.

14

•"Adjusted EPS" is calculated as Adjusted net income divided by diluted shares. Adjusted net income is calculated as net income excluding acquired intangible asset amortization, restructuring charges, impact of acquisition related fair value step-up, transaction related expenses, the tax effect of these adjustments and other discrete tax items. Impact of acquisition related fair value step-up includes acquisition related inventory step-up amortization and fixed asset step-up depreciation. Transaction related expenses include acquisition related expenses such as incremental professional fees associated with closing and integration of the acquisition, and expenses associated with the Separation.

The Company's management believes that each of the following non-GAAP measures provides useful information to investors regarding the Company’s financial conditions and operations:

•"Adjusted operating profit" and "Adjusted operating margin" add back to operating profit items which are outside of the Company's core performance, some of which may or may not be non-recurring, and which management believes may complicate the interpretation of the Company’s underlying earnings and operational performance. These items include income and expense such as: acquired intangible asset amortization, restructuring charges, impact of acquisition related fair value step-up, and transaction related expenses. Impact of acquisition related fair value step-up includes acquisition related inventory step-up amortization and fixed asset step-up depreciation. Transaction related expenses include acquisition related expenses such as incremental professional fees associated with closing and integration of the acquisition, and expenses associated with the Separation. These items are not incurred in all periods, the size of these items is difficult to predict, and none of these items are indicative of the operations of the underlying businesses. Management believes that non-GAAP financial measures that exclude these items provide investors with an alternative metric that can assist in predicting future earnings and profitability that are complementary to GAAP metrics.

•"Adjusted net income" and "Adjusted EPS" exclude items which are outside of the Company's core performance, some of which may or may not be non-recurring, and which management believes may complicate the presentation of the Company’s underlying earnings and operational performance. These measures include income and expense items that impacted operating profit such as: acquired intangible asset amortization, restructuring charges, impact of acquisition related fair value step-up, transaction related expenses, the tax effect of these adjustments and other discrete tax items. Impact of acquisition related fair value step-up includes acquisition related inventory step-up amortization and fixed asset step-up depreciation. Transaction related expenses include acquisition related expenses such as incremental professional fees associated with closing and integration of the acquisition, and expenses associated with the Separation. Additionally, these non-GAAP financial measures exclude income and expense items that impacted net income and earnings per diluted share such as related party interest with Crane Company incurred prior to the Separation. These items are not incurred in all periods, the size of these items is difficult to predict, and none of these items are indicative of the operations of the underlying businesses. Management believes that non-GAAP financial measures that exclude these items provide investors with an alternative metric that can assist in predicting future earnings and profitability that are complementary to GAAP metrics.

•“Free cash flow,” “Adjusted free cash flow” and "Adjusted free cash flow conversion” provide supplemental information to assist management and investors in analyzing the Company’s ability to generate liquidity from its operating activities. The measure of free cash flow does not take into consideration certain other non-discretionary cash requirements such as, for example, mandatory principal payments on the Company’s long-term debt. Free cash flow is calculated as cash provided by operating activities less capital expenditures. Adjusted free cash flow is calculated as free cash flow adjusted for certain cash items which management believes may complicate the interpretation of the Company’s underlying free cash flow performance such as certain transaction related cash flow items. Adjusted free cash flow conversion is calculated as Adjusted free cash flow divided by Adjusted net income. These items are not incurred in all periods, the size of these items is difficult to predict, and none of these items are indicative of the operations of the underlying businesses. Management believes that non-GAAP financial measures that exclude these items provide investors with an alternative metric that can assist in predicting future cash flows that are complementary to GAAP metrics.

•"Adjusted EBITDA" and "Adjusted EBITDA margin" exclude net interest expense, tax expense and depreciation and amortization expense from net income, as well as Special items such as restructuring charges, impact of acquisition related fair value step-up, and transaction related expenses. Impact of acquisition related fair value step-up includes acquisition related inventory step-up amortization and fixed asset step-up depreciation. Transaction related expenses include acquisition related expenses such as incremental professional fees associated with closing and integration of the acquisition, and expenses associated with the Separation. Management believes that non-GAAP financial measures that exclude these items provide investors with an alternative metric that can assist in predicting future earnings and profitability that are complementary to GAAP metrics.

15

•"Net leverage ratio" refers to Net debt divided by trailing twelve months (TTM) Adjusted EBITDA. "Net debt" represents total debt (excluding deferred financing costs) less cash and cash equivalents. Management believes that these non-GAAP financial measures provide useful information about our ability to satisfy our debt obligation with currently available funds.

•References to "core," such as "core sales," exclude currency effects and, where applicable, the first-year impacts of acquisitions and divestitures. Management believes that non-GAAP financial measures that exclude these items provide investors with an alternative metric that can assist in identifying underlying growth trends in our business and facilitate comparison of our sales performance, for example, with prior and future periods that are complementary to GAAP metrics.
16
v3.24.3
Cover Page
Nov. 06, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Nov. 06, 2024
Entity Registrant Name CRANE NXT, CO.
Entity Incorporation, State or Country Code DE
Entity File Number 1-1657
Entity Tax Identification Number 88-0706021
Entity Address, Address Line One 950 Winter Street 4th Floor North
Entity Address, City or Town Waltham
Entity Address, State or Province MA
Entity Address, Postal Zip Code 02451
City Area Code 781
Local Phone Number 755-6868
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Document Type false
Title of 12(b) Security Common Stock, par value $1.00
Trading Symbol CXT
Document Period End Date NYSE
Entity Emerging Growth Company false
Entity Central Index Key 0000025445
Amendment Flag false
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