Schweitzer-Mauduit International, Inc. ("SWM" or the "Company")
(NYSE: SWM) reported earnings results for the three months and year
ended December 31, 2021.
Adjusted measures are reconciled to GAAP at the
end of this release. Financial and operating comparisons are
versus the prior year period. Figures may not sum to total
due to rounding. Definitions: Advanced Materials &
Structures (AMS), Engineered Papers (EP), low ignition propensity
(LIP), "organic" - pro forma for Tekra acquisition that closed in
March 2020, and excludes benefit of Scapa acquisition in April
2021
Full Year 2021 Financial Results
Summary
- Strong AMS organic sales growth of 11% offset by inflationary
and supply chain pressures across the business
- Long-term growth outlook accelerated by Scapa acquisition
- Total sales were $1,440.0 million, up 34%, and up 4% on organic
basis
- GAAP operating profit was $83.3 million, or 5.8% of sales, down
$45.5 million, and included $38.9 million of transaction and
integration costs and incremental purchase accounting expenses from
the Scapa acquisition (closed April 15, 2021); Adjusted operating
profit was $158.8 million, or 11.0% of sales, down $12.8
million
- GAAP EPS was $2.80, up from $2.66, including gains from asset
sales and one-time favorable tax items during the fourth quarter;
Adjusted EPS was $3.10, down from $3.68
- Operating cash flow was $58.1 million and free cash flow was
$19.2 million
2022 Financial Outlook
- The Company expects a strong profit recovery in 2022 and issued
full year guidance of Adjusted EPS in the range of $3.50 to $3.95,
driven by 20% to 30% growth in adjusted EBITDA
Fourth Quarter 2021 Financial Results
Summary
- Fourth quarter results reflected 2% organic sales growth in AMS
and 3% growth in EP, offset by 2021 peak raw materials costs and
supply chain challenges
- Total sales were $390.4 million, up 40%, or up 3% on organic
basis
- GAAP operating profit was $10.9 million, or 2.8% of sales, down
$12.4 million; Adjusted operating profit was $28.9 million, or 7.4%
of sales, down $7.0 million
- GAAP EPS was $1.68, up from $0.48, and included $0.87 per share
gain on asset sale and one-time net favorable tax items of $0.92
per share; Adjusted EPS was $0.36, down from $0.77
Management Commentary
Dr. Jeff Kramer, Chief Executive Officer,
commented, "We enter 2022 confident that we will deliver strong
growth in sales and profitability. 2021 top line performance met
our growth expectations, but profits were impacted by sharp input
cost increases and supply chain challenges, which we expect to
moderate as this year progresses. Early signs show more positive
fundamentals on several fronts. We have successfully increased
prices across the business and see moderation on some key input
costs while we continue to progress against other supply chain
hurdles. Our Scapa integration is moving well and meeting our
strategic expectations. It was an extremely demanding year, and I
commend our global teams for their dedication and perseverance as
we delivered for our customers on a day-to-day basis while still
executing on many longer-term strategic growth
initiatives."
"For AMS, we were encouraged by double-digit
organic sales growth in 2021, with filtration, transportation, and
construction products leading the way. Sales growth could have been
even higher if not for pockets of raw material scarcity and labor
shortages, which constrained our ability to meet surging demand for
our paint protection films and certain filtration products. Scapa
joined SWM in April and we have been pleased with overall sales
performance and the teamwork demonstrated as we explored a
compelling set of commercial synergy opportunities. We have
identified several actionable projects to take advantage of our
combined manufacturing capabilities, which we believe will further
enhance the strategic value creation of this combination. EP
performed as we had anticipated in 2021, notwithstanding the
unexpected steep rise in wood pulp costs and other inflationary
factors. We improved our cost structure, pioneered hemp fiber
engineering innovations and launched new products, and advanced the
groundwork for a variety of sustainable fiber-based packaging
solutions. These investments in innovation outside of our
traditional product line have the potential to meaningfully expand
the portfolio and improve the multi-year profit outlook for
EP."
Dr. Kramer concluded, "In 2022, we expect
continued consolidated top-line growth, improved cost/price
dynamics, and a gradual easing of supply chain constraints to drive
20% to 30% adjusted EBITDA growth. This improved profitability is
embedded in our 2022 Adjusted EPS guidance of $3.50 to $3.95,
implying up to 27% growth over 2021, with substantial
year-over-year profit increases in the second half of the year. We
also expect free cash flow to return towards historical levels,
likely in the $100 million range, which supports our dividend and
planned debt reduction. Though our 2021 results were clouded by
many factors, we are more optimistic than ever before about our
longer-term outlook and strength of our diversified portfolio. With
the addition of Scapa's $400-plus million of annualized sales, SWM
is now heavily weighted towards growing industries with very
favorable long term fundamental trends, and we possess an expanded
suite of technologies and innovative solutions to offer our
customers. We believe we are well positioned for top line growth,
expanding margins and strong financial performance in 2022 and
beyond."
Fourth Quarter 2021 Financial
Results
Advanced Materials &
Structures segment sales were $255.6 million, up 72%,
including the benefit from the Scapa acquisition, while organic
sales increased 2%. Organic sales were driven by 20% growth in
filtration, led by water and other process filtration products.
Industrial sales increased double digits with the largest gains in
digital printing products. Transportation sales declined as the
year-ago quarter had elevated sales when customers began
re-ordering paint protection films to fill their pipeline after
significant mid-2020 order flow disruptions related to COVID-19.
Since the pandemic began, transportation sales have fluctuated the
most (both positively and negatively) within the AMS portfolio;
excluding transportation sales, AMS organic growth would have been
approximately 8% during the quarter. Healthcare sales (excluding
Scapa) declined as certain products that saw short-term COVID-19
related demand spikes in 2020, such as facemask materials, faced
difficult comparisons.
GAAP operating profit was $5.5 million, or 2.2%
of sales, down 72%, and included $4.7 million of incremental
purchase accounting expenses related to the Scapa acquisition.
Adjusted operating profit was $18.6 million, down 29%, with margin
of 7.3%, down from 17.5%. Both GAAP and adjusted operating profit
results reflected organic sales growth and the incremental benefit
of the acquired Scapa business; however consistent with the third
quarter, these factors were offset by higher raw material costs,
other inflationary pressures, and supply chain challenges. Costs
for polypropylene resin, a key input, reached peak 2021 levels
during the third quarter, which impacted fourth quarter profits
given the timing lag of materials purchasing, production, and
sales. The Company also continued to experience inflationary
pressures from energy, freight, and labor challenges which have
constrained sales in some product areas. The margin percentage
decline was primarily attributable to these cost increases and
other supply chain challenges, including limited supplies of
specialty resins used in the transportation films business. The
Company expects selling price increase actions and lower
polypropylene costs to result in improved price versus cost
variances in 2022. Of note, $2.2 million of operating costs related
to shared services in Scapa have been classified into the Company's
Unallocated expenses.
Engineered Papers segment sales
were $134.8 million, up 3%, driven by a 5% volume increase,
unfavorable price/mix of 1% and 1% of negative currency related to
the Euro. Volumes benefited from gains in tobacco papers, continued
rapid growth in Heat-not-Burn products, and an increase in
non-tobacco papers.
GAAP operating profit was $22.4 million, or
16.6% of sales, down 5%. Adjusted operating profit was $24.9
million, down 16%, with adjusted operating margin contracting 410
basis points to 18.5%. Margin reduction resulted primarily from
significant wood pulp cost increases and other inflationary and
supply chain pressures, such as energy costs and freight. A
significant portion of segment sales are derived from contracts
with annual price adjusters, several of which recently reset, which
should result in improved price versus cost variances in 2022. The
2021 wood pulp cost increases offset other manufacturing
efficiencies and cost reduction projects. Currency movements
resulted in a $1.6 million benefit to operating profit.
Unallocated GAAP expenses were
$17.0 million, versus $19.7 million in 4Q:20, and included $2.4
million of integration and acquisition expenses related to Scapa.
Adjusted unallocated expenses (which exclude the Scapa acquisition
related costs) were $14.6 million, versus $19.7 million. The
decrease was primarily a function of lower incentive compensation
as the Company did not meet its 2021 financial targets, and lower
corporate development and acquisition-related consulting fees for
Scapa which were incurred in 4Q:20. As noted above, unallocated
expenses included $2.2 million of costs incurred within Scapa as
shared services for corporate functions such as legal, finance, HR,
and IT, however these costs are reported in the Company's segment
financials as unallocated. Adjusted unallocated costs were 3.7% of
consolidated sales, down from 7.1% in the prior year quarter.
Consolidated sales were $390.4
million, up 40%, and up 3% on an organic basis. Currency had an
immaterial impact on consolidated sales during the quarter. GAAP
operating profit was $10.9 million, down 53%, or $12.4 million, and
GAAP operating profit margin was 2.8%. These figures were impacted
by $4.7 million of higher purchase accounting expenses related to
the Scapa acquisition. Adjusted operating profit was $28.9 million,
down 19%, and adjusted operating profit margin was 7.4%, down 540
basis points.
GAAP income was $53.3 million, up $38.0 million;
GAAP EPS was $1.68. GAAP EPS reflected an $0.87 per share gain from
the previously disclosed sale of the Spotswood, New Jersey site and
$0.92 per share of favorable one-time tax items.
Adjusted income was $12.7 million, down 49%;
Adjusted EPS was $0.36. Adjusted EBITDA was $43.8 million, down 7%,
and adjusted EBITDA margin was 11.2%, down 560 basis
points.
Interest expense was $14.8 million, up from $7.7
million due to higher average debt balances as a result of the
Scapa acquisition which closed in April 2021. Other income was
$35.1 million, and included a $35.2 million gain from the sale of
the Spotswood, New Jersey facility, versus other expense of $0.3
million in the prior year quarter.
The Company reported a negative tax rate of
69.9%, versus 19.0% in the prior year period, which included
one-time net benefits of $29.0 million, or $0.92 per share, related
to favorable tax valuation items. These positive valuation changes
are the result of a more favorable long-term profit outlook that
resulted in increases to net tax assets on the balance sheet.
Excluding the impact of non-GAAP adjustments, the fourth quarter
2021 tax rate was 11.0% (the implied rate reflected in the
Company's Adjusted EPS), versus 21.7% in the prior year quarter.
The low fourth quarter rate was recorded to reflect the company's
full year tax rate.
The Company's Chinese JVs contributed $0.01 to
both GAAP and Adjusted EPS, versus $0.09 in the prior year quarter,
due to timing of sales (full year 2021 EPS contribution increased
as noted below).
Net currency movements had a $1.7 million
favorable impact on operating profits and the translation impact of
net currency movements was negative $0.01 to both GAAP EPS and
Adjusted EPS.
Non-GAAP Adjustments reflect
items included in GAAP operating profit, income, and EPS, but
excluded from adjusted operating profit, income, and EPS (see
non-GAAP reconciliation tables for additional details). The most
significant adjustments to fourth quarter 2021 results were the
one-time gain of $0.87 per share on the Spotswood facility sale,
the one-time gain of $0.92 per share related to the tax valuations,
and purchase accounting expenses of $0.28 per share, up $0.12 per
share due to the Scapa acquisition (purchase accounting expenses
reflect the ongoing non-cash intangible asset amortization, as well
as non-cash one-time inventory step-up charges, associated with AMS
acquisitions).
2021 Year-to-Date Financial
Results
Advanced Materials &
Structures segment sales were $930.7 million, up 71%,
including the benefit from the Scapa acquisition, while organic
sales increased 11% (pro forma to assume the Tekra acquisition was
owned for the full prior year period). Year-to-date organic sales
growth was driven by 20%-plus gains in filtration and
transportation sales. Filtration sales increased across all key
product lines, and were led by water and process filtration
products. Demand for transportation sales rebounded sharply
following COVID-19 related disruptions in 2020, particularly for
paint protection films. Construction sales also increased double
digits with broad strength across the portfolio, while healthcare
products declined due mostly to lower sales of facemask materials
compared to COVID-19 related 2020 demand surges.
GAAP operating profit was $61.6 million, or 6.6%
of sales, down 5%, and included $17.5 million of incremental
purchase accounting expenses related to the Scapa acquisition.
Adjusted operating profit was $106.8 million, up 17%, while margin
contracted 530 basis points to 11.5%. Both GAAP and adjusted
operating profit results reflected the 11% organic sales growth and
the incremental benefit of the acquired Scapa business; however,
these positive factors were offset by higher raw material costs,
particularly for polypropylene resin, other inflationary pressures
such as energy, freight and labor, and supply chain challenges. As
noted above, the Company expects selling price increase actions
taken and lower polypropylene costs to result in improved price
versus cost variances in 2022. Of note, $6.0 million of operating
costs related to shared services in Scapa have been classified into
the Company's Unallocated expenses.
Engineered Papers segment sales
were $509.3 million down 4%, driven by a 2% volume decline and
unfavorable price/mix of 4%, which were partially offset by a 3%
currency benefit related to the Euro. The volume decline was
primarily attributable to lower tobacco papers, particularly LIP,
as customers adjusted inventories lower after building significant
safety stocks in mid-2020. The lower LIP volume was also a
significant contributor to the negative mix effect. Rapid growth
throughout the year in reduced risk Heat-not-Burn sales was a
positive offset within the tobacco business, while non-tobacco
paper volumes also increased.
GAAP operating profit was $100.5 million, down
14%. Adjusted operating profit was $109.4 million, down 18%, with
adjusted operating margin declining 360 basis point to 21.5%.
Margin reduction reflected the LIP volume decline and associated
negative mix impact noted above, as well as significantly higher
wood pulp costs and increases in energy and freight. Wood pulp
price adjusters in several large customer contracts have recently
reset and are expected to result in improved price versus cost
variances in 2022. Year-to-date profits were also impacted by
inefficiencies in the first half of 2021 related to the Spotswood,
NJ closure and transition of production to other facilities.
Currency movements resulted in a $5.7 million benefit to operating
profits.
Unallocated GAAP expenses were
$78.8 million, up $26.0 million versus $52.8 million in the prior
year period. $21.4 million of the 2021 expenses related to the
Scapa acquisition, including associated third-party advisory and
diligence costs, transaction fees, and integration expenses
incurred mostly during the first half of the year. Adjusted
unallocated expenses, which excluded the Scapa acquisition related
costs, were $57.4 million versus $52.7 million, up $4.7 million.
The increase was more than accounted for by the $6.0 million of
costs incurred within Scapa as shared services for corporate
functions such as legal, finance, HR, and IT, that are reported in
the Company's segment financials as unallocated expenses. Adjusted
unallocated expenses were 4.0% of total sales, down 90 basis
points.
Consolidated sales were
$1,440.0 million, up 34%, and excluding the Scapa acquisition were
up 4% on an organic basis (pro forma to assume the Tekra
acquisition was owned for the full prior year period).
Favorable currency movements benefited sales, excluding Scapa, by
2%. GAAP operating profit was $83.3 million, down 35%, or $45.5
million, and GAAP operating profit margin was 5.8%. These figures
were significantly impacted by the Scapa acquisition and
integration related costs of $21.4 million and $17.5 million of
higher purchase accounting expenses related to the Scapa
acquisition. Adjusted operating profit was $158.8 million, down 7%,
and adjusted operating profit margin was 11.0%, down 500
points.
GAAP income was $88.9 million, up 6%; GAAP EPS
was $2.80. GAAP EPS reflected a $0.87 per share gain from the sale
of the Spotswood, New Jersey site and $0.92 per share of favorable
one-time tax items. GAAP EPS also reflects $0.75 per share of
acquisition and integration related costs, and foreign currency
exchange impacts from Scapa acquisition, as well as $1.09 per share
of purchase accounting adjustments.
Adjusted income was $99.3 million, down 14%;
Adjusted EPS was $3.10. Adjusted EBITDA was $209.1 million, down
2%, and adjusted EBITDA margin was 14.5%, down 530 basis
points.
Interest expense was $46.1 million, up from
$30.5 million, due to incremental debt related to the Scapa
acquisition. This increase included a $4.5 million favorable
adjustment to interest expenses related to the settlement of Brazil
tax assessments. Other income was $35.9 million, due to the
Spotswood sale gain, versus other expense of $1.0 million in the
prior year period.
The Company reported a negative tax rate of 12.9%, versus 18.9%
in the prior year period due to the favorable tax valuation items
referenced above. Excluding the impact of non-GAAP adjustments, the
year-to-date tax rate was 18.6% (the implied rate reflected in the
Company's Adjusted EPS), versus 21.0% in the prior year period. The
tax rate benefited from favorable one-time items, partially offset
by an unfavorable mix of earnings.
The Company's Chinese JVs contributed $0.20 to
both GAAP and Adjusted EPS, versus $0.16 per share in the prior
year period.
Net currency movements were a $6.9 million
benefit to operating profits and the translation impact of net
currency movements was positive $0.06 to both GAAP EPS and Adjusted
EPS.
Non-GAAP Adjustments reflect
items included in GAAP operating profit, income, and EPS, but
excluded from adjusted operating profit, income, and EPS (see
non-GAAP reconciliation tables for additional details). The most
significant adjustments to full year 2021 results were related to
the Scapa acquisition, purchase accounting expenses, the tax
valuation items, and the gain from the Spotswood site sale. The
Company incurred $0.75 per share of costs associated with third
party advisory, transactions fees, and integration costs which
affected GAAP operating profits, and an unfavorable mark-to-market
impact of British pound forward contracts which affected other
expense, related to the Scapa acquisition. Purchase accounting
expenses increased $0.46 per share to $1.09 per share, mostly due
to the Scapa acquisition (purchase accounting expenses reflect the
ongoing non-cash intangible asset amortization, as well as non-cash
one-time inventory step-up charges, associated with AMS
acquisitions). The Company recorded a one-time gain of $0.87 per
share on the sale of the Spotswood site and a one-time gain of
$0.92 per share related to the tax valuations.
Cash Flow, Debt, & Dividend
2021 cash provided by operating activities was
$58.1 million, down from $161.6 million. The Company's working
capital-related cash outflows were $61.4 million, compared to $5.7
million in the prior year period. The higher working capital
outflows are associated with the 2021 sales increase in AMS, and
the related growth in receivables and inventories (higher cost
inventories due to rising input costs). In addition, approximately
$19.0 million of cash costs were incurred during the year in
connection with the closing and integration of the Scapa
acquisition.
Capital spending and capitalized software
totaled $38.9 million, up $5.6 million, as 2020 capital spending
was lower than originally expected in response to COVID-19 related
uncertainties. Year-to-date free cash flow was $19.2 million down
from $128.3 million due to the operating cash flow trends discussed
above.
Total debt was $1,270.3 million as of
December 31, 2021, up $677.0 million from year end 2020, and
total cash was $74.7 million; net debt was $1,195.6 million on
December 31, 2021, up $657.0 million from year-end 2020. The
Company's total debt is comprised primarily of $393 million of
borrowings under the revolving credit facility, which is due in
2023 and represents the Company's nearest material debt maturity,
$194 million of an outstanding term loan due in 2025, $350 million
of senior notes due in 2026, and $348 million of an outstanding
term loan due in 2028 (these amounts may not sum to total debt due
mainly to unamortized discount and issuance costs). The Company's
liquidity position is $177 million, consisting of approximately $75
million of cash and $102 million of net revolver availability.
Management believes this liquidity and free cash flow are
sufficient to fund the Company's operating needs and financial
obligations, including dividend payments.
Pursuant to the terms of the Company's credit
agreement, net debt to adjusted EBITDA was 4.8x as of
December 31, 2021, up from 2.3x from year end 2020. The
increase in debt and leverage levels is primarily related to the
acquisition of Scapa.
The Company announced a quarterly cash dividend
of $0.44 per share. The dividend will be payable on March 25,
2022 to stockholders of record as of March 11, 2022. During
2021, the Company paid dividends to stockholders totaling $55.3
million.
2022 Financial Outlook
The Company issued 2022 Adjusted EPS guidance of
$3.50 to $3.95, driven by 20% to 30% adjusted EBITDA growth. This
equates to $2.32 to $2.77 of GAAP EPS based on estimates of $1.18
per share of non-cash purchase accounting expenses (see non-GAAP
reconciliation table). Management anticipates that adjusted EBITDA
growth may exceed Adjusted EPS growth based on the likelihood of a
higher tax rate in 2022.
The Company expects 2022 capital expenditures and capitalized
software spending of approximately $45 million to $55 million.
Environmental, Social, and Governance
(ESG)
On January 12, 2022, the Company released its
2021 Environmental, Social, and Governance (ESG) report as part of
its ongoing efforts to increase transparency around its ESG
strategy and initiatives. The report shares stories of how SWM is
working toward more sustainable solutions, including those that
impact the environments where the Company operates, where its
products are used, and the planet in general. Among the highlights
in the report are the following areas important to the Company’s
strategy:
- SWM employees and their health, safety, and development
- SWM’s culture that allows for honest conversations, diversity
of thought, teamwork, creativity, and innovation
- Customer relationships and SWM products
- Governance oversight and policies to support integrity and
ethical behavior throughout the four continents where SWM
operates
- Commitment to excellence in everything, including supporting
local communities
- SWM’s responsibility to further integrating environmental
practices into its strategies
Conference Call
SWM will hold a conference call to review fourth
quarter 2021 and full year results with investors and analysts at
8:30 a.m. Eastern time on Thursday, February 24, 2022. The earnings
conference call will be simultaneously broadcast over the Internet
at www.swmintl.com. To listen to the call, please go to the
Company’s website at least 15 minutes prior to the call to register
and to download and install any necessary audio software. For those
unable to listen to the live broadcast, a replay will be available
on the Company’s website shortly after the call.
SWM will use a presentation in conjunction with
its conference call. The presentation can be found on the
Company's website under the Investor Relations section in advance
of the earnings conference call. The presentation can also be
accessed via the earnings conference call webcast.
About SWM
Schweitzer-Mauduit International, Inc.,
operating as SWM International, is a leading global performance
materials company, focused on finding ways to improve everyday life
by bringing best-in-class innovation, design, and manufacturing
solutions to our customers. Our highly engineered films, adhesive
tapes, foams, nets, nonwovens, and papers are designed and
manufactured using resins, polymers, and natural fibers for a
variety of industries and specialty applications. SWM and its
subsidiaries manufacture on four continents, conduct business in
over 90 countries and employ approximately 5,000 people worldwide.
For further information, please visit SWM’s website at
www.swmintl.com.
Forward-Looking Statements
This press release contains forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995 that are subject to the safe harbor created by
that Act and other legal protections. Forward-looking
statements include, without limitation, those regarding EPS and
other financial guidance, acquisition integration and performance,
growth prospects, future end-market trends, the future effects of
supply chain challenges and price increases, future cash flows, net
leverage, purchase accounting impacts, effective tax rates,
planned investments, impacts of the COVID-19 pandemic on our
operations, profitability, and cash flow, and other statements
generally identified by words such as "believe," "expect,"
"intend," "guidance," "plan," "forecast," "potential,"
"anticipate," "confident," "project," "appear," "future," "should,"
"likely," "could," "may,", "will", "typically," and similar
words.
These forward-looking statements are prospective
in nature and not based on historical facts, but rather on current
expectations and on numerous assumptions regarding the business
strategies and the environment in which our business shall operate
in the future and are subject to risks and uncertainties that could
cause actual results to differ materially from those expressed or
implied by those statements. No assurance can be given that such
expectations will prove to have been correct and persons reading
this presentation are therefore cautioned not to place undue
reliance on these forward-looking statements which speak only as at
the date of this press release. These statements are not guarantees
of future performance and involve certain risks and uncertainties,
and assumptions that may cause actual results to differ materially
from our expectations as of the date of this release. These
risks include, among other things, the following factors:
- Risks associated with pandemics and other public health
emergencies, including the continued impact of, and the
governmental and third party response to, the COVID-19 pandemic and
its variant strains (including any proposed new regulation
concerning mandatory COVID-19 vaccination of employees);
- Changes in sales or production volumes, pricing and/or
manufacturing costs of reconstituted tobacco products, cigarette
paper (including for LIP cigarettes), including any change by our
customers in their tobacco and tobacco-related blends for their
cigarettes, their target inventory levels and/or the overall demand
for their products, new technologies such as e-cigarettes,
inventory adjustments and rebalancings in our EP segment.
Additionally, competition and changes in AMS end-market products
due to changing customer demands;
- Changes in the Chinese economy, including relating to the
demand for reconstituted tobacco, premium cigarettes and netting
and due to impact of tariffs;
- Risks associated with the implementation of our strategic
growth initiatives, including diversification, and the Company's
understanding of, and entry into, new industries and
technologies;
- Changes in the source and intensity of competition in our
commercial segments;
- Our ability to attract and retain key personnel;
- Weather conditions, including potential impacts, if any, from
climate change, known and unknown, seasonality factors that affect
the demand for virgin tobacco leaf and natural disasters or unusual
weather events;
- Seasonal or cyclical market and industry fluctuations which may
result in reduced net sales and operating profits during certain
periods;
- Increases in commodity prices and lack of availability of such
commodities, including energy, wood pulp and resins, which could
impact the sales and profitability of our products;
- Adverse changes in the oil, gas, automotive, construction and
infrastructure, and mining sectors impacting key AMS segment
customers;
- Increases in operating costs due to inflation or otherwise,
such as labor expense, compensation and benefits costs;
- Employee retention and labor shortages;
- Changes in employment, wage and hour laws and regulations in
the U.S., France and elsewhere, including the loi de Securisation
de l'emploi in France, unionization rule and regulations by the
National Labor Relations Board in the U.S., equal pay initiatives,
additional anti-discrimination rules or tests and different
interpretations of exemptions from overtime laws;
- Labor strikes, stoppages, disruptions or other disruptions at
our facilities;
- The impact of tariffs, and the imposition of any future
additional tariffs and other trade barriers, and the effects of
retaliatory trade measures;
- Existing and future governmental regulation and the enforcement
thereof, for example relating to the tobacco industry, taxation and
the environment (including the impact thereof on our Chinese joint
ventures);
- New reports as to the effect of smoking on human health or the
environment;
- Changes in general economic, financial and credit conditions in
the U.S., Europe, China and elsewhere, including the impact thereof
on currency exchange rates (including any weakening of the Euro and
Real) and on interest rates and the effects of the ongoing
discussions between the U.K. and European Union to determine the
terms of the U.K.'s withdrawal from the European Union;
- The phasing out of USD LIBOR after 2023;
- Changes in the manner in which we finance our debt and future
capital needs, including potential acquisitions;
- The success of, and costs associated with, our current or
future restructuring initiatives, including the granting of any
needed governmental approvals and the occurrence of work stoppages
or other labor disruptions;
- Changes in the discount rates, revenue growth, cash flow growth
rates or other assumptions used by the Company in its assessment
for impairment of assets and adverse economic conditions or other
factors that would result in significant impairment charges;
- Supply chain disruptions, including the failure of one or more
material suppliers, including energy, resin and pulp suppliers, to
supply materials as needed to maintain our product plans and cost
structure;
- International conflicts and disputes, which restrict our
ability to supply products into affected regions, due to the
corresponding effects on demand, the application of international
sanctions, or practical consequences on transportation, banking
transactions, and other commercial activities in troubled
regions;
- Compliance with the FCPA and other anti-corruption laws or
trade control laws, as well as other laws governing our
operations;
- The pace and extent of further international adoption of LIP
cigarette standards and the nature of standards so adopted;
- Risks associated with our 50%-owned, non-U.S. joint ventures
relating to control and decision-making, compliance, accounting
standards, transparency and customer relations, among others;
- A failure in our risk management and/or currency or interest
rate swaps and hedging programs, including the failures of any
insurance company or counterparty;
- The number, type, outcomes (by judgment or settlement) and
costs of legal, tax, regulatory or administrative proceedings,
litigation and/or amnesty programs, including those in Brazil,
France and Germany;
- The outcome and cost of the LIP-related intellectual property
litigation against Glatz in Europe;
- Risks associated with our technological advantages in our
intellectual property and the likelihood that our current
technological advantages are unable to continue indefinitely;
- Risks associated with acquisitions or other strategic
transactions, including acquired liabilities and restrictions,
retaining customers from businesses acquired, achieving any
expected results or synergies from acquired businesses, complying
with new regulatory frameworks, difficulties in integrating
acquired businesses or implementing strategic transactions
generally and risks associated with international acquisition
transactions, including in countries where we do not currently have
a material presence;
- Risks associated with dispositions, including post-closing
claims being made against us, disruption to our other businesses
during a sale process or thereafter, credit risks associated with
any buyer of such disposed assets and our ability to collect funds
due from any such buyer;
- Risks associated with our global asset realignment initiatives,
including: changes in tax law, treaties, interpretations, or
regulatory determinations; audits made by applicable regulatory
authorities and/or our auditor; and our ability to operate our
business in a manner consistent with the regulatory requirements
for such realignment;
- Increased taxation on tobacco-related products;
- Costs and timing of implementation of any upgrades or changes
to our information technology systems;
- Failure by us to comply with any privacy or data security laws
or to protect against theft of customer, employee and corporate
sensitive information;
- Changes in tax rates, the adoption of new U.S. or international
tax legislation or exposure to additional tax liabilities;
- Changes in construction and infrastructure spending and its
impact on demand for certain products;
- Potential loss of consumer awareness and demand for acquired
companies’ products if it is decided to rebrand those products
under the Company’s legacy brand names; and
- Other factors described elsewhere in this document and from
time to time in documents that we file with the SEC.
All forward-looking statements made in this
document are qualified by these cautionary statements.
Forward-looking statements herein are made only as of the date of
this document, and we do not undertake any obligation, other than
as may be required by law, to update or revise any forward-looking
or cautionary statements to reflect changes in assumptions, the
occurrence of events, unanticipated or otherwise, or changes in
future operating results over time or otherwise.
Comparisons of results for current and any prior
periods are not intended to express any future trends or
indications of future performance unless expressed as such and
should only be viewed as historical data. The financial
results reported in this release are unaudited.
For additional factors and further discussion of
these factors, please see SWM's most recently filed Annual Report
on Form 10-K and other reports we file with the SEC from time to
time, which can be found at the SEC’s website www.sec.gov. The
discussion of these risks is specifically incorporated by reference
into this release. The financial results reported in this release
are unaudited.
Non-GAAP Financial Measures
Certain financial measures and comments
contained in this press release exclude restructuring and
impairment expenses, plant closure expenses, certain purchase
accounting adjustments related to AMS segment acquisitions,
acquisition and integration related costs, interest expense, the
effect of income tax provisions and other tax impacts, capital
spending, capitalized software costs, and depreciation and
amortization. This press release also provides certain
information regarding the Company's financial results excluding
currency impacts. This information estimates the impact of
changes in foreign currency rates on the translation of the
Company's current financial results as compared to the applicable
comparable period and is derived by translating the current local
currency results into U.S. Dollars based upon the foreign currency
exchange rates for the applicable comparable period.
Financial measures which exclude or include these items have not
been determined in accordance with accounting principles generally
accepted in the United States (GAAP) and are therefore "non-GAAP"
financial measures. Reconciliations of these non-GAAP financial
measures to the most closely analogous measure determined in
accordance with GAAP are included in the financial schedules
attached to this release.
The Company believes that the presentation of
non-GAAP financial measures in addition to the related GAAP
measures provides investors with greater transparency on the
information used by the Company’s management in its financial and
operational decision-making. Management also believes that
the non-GAAP financial measures provide additional insight for
analysts and investors in evaluating the Company’s financial and
operational performance in the same way that management evaluates
the Company's financial performance. Management believes that
providing this information enables investors to better understand
the Company’s operating performance and financial condition.
These non-GAAP financial measures are not calculated or presented
in accordance with, and are not intended to be considered in
isolation or as alternatives or substitutes for, or superior to,
financial measures prepared and presented in accordance with GAAP,
and should be read only in conjunction with the Company's financial
measures prepared and presented in accordance with GAAP. The
non-GAAP financial measures used in this release may be different
from the measures used by other companies.
SOURCE SWM:
CONTACT
Andrew WamserChief Financial
Officer+1-770-569-4271
Or
Mark ChekanowDirector of Investor
Relations+1-770-569-4229
Website: http://www.swmintl.com
SCHWEITZER-MAUDUIT INTERNATIONAL, INC. AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF
INCOME(Dollars in millions, except per share
amounts)(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
|
|
2021 |
|
2020 |
|
% Change |
Net sales |
$ |
390.4 |
|
|
$ |
279.4 |
|
|
39.7 |
% |
Cost of products sold |
314.2 |
|
|
199.9 |
|
|
57.2 |
|
Gross profit |
76.2 |
|
|
79.5 |
|
|
(4.2) |
|
|
|
|
|
|
|
Selling expense |
12.5 |
|
|
9.6 |
|
|
30.2 |
|
Research and development expense |
5.4 |
|
|
3.4 |
|
|
58.8 |
|
General expense |
43.2 |
|
|
39.0 |
|
|
10.8 |
|
Total nonmanufacturing expenses |
61.1 |
|
|
52.0 |
|
|
17.5 |
|
|
|
|
|
|
|
Restructuring and
impairment expense |
4.2 |
|
|
4.2 |
|
|
— |
|
Operating
profit |
10.9 |
|
|
23.3 |
|
|
(53.2) |
|
Interest expense |
14.8 |
|
|
7.7 |
|
|
92.2 |
|
Other (expense) income, net |
35.1 |
|
|
(0.3) |
|
|
N.M. |
Income before
income taxes and income from equity affiliates |
31.2 |
|
|
15.3 |
|
|
N.M. |
|
|
|
|
|
|
(Benefit) provision for income taxes |
(21.8) |
|
|
2.9 |
|
|
N.M. |
Income from equity affiliates, net of income taxes |
0.3 |
|
|
2.9 |
|
|
(89.7) |
|
Net income |
$ |
53.3 |
|
|
$ |
15.3 |
|
|
N.M. |
|
|
|
|
|
|
Net income per
share - basic: |
|
|
|
|
|
Net income per share – basic |
$ |
1.70 |
|
|
$ |
0.49 |
|
|
N.M. |
|
|
|
|
|
|
Net income per
share – diluted: |
|
|
|
|
|
Net income per share – diluted |
$ |
1.68 |
|
|
$ |
0.48 |
|
|
N.M. |
|
|
|
|
|
|
Cash dividends
declared per share |
$ |
0.44 |
|
|
$ |
0.44 |
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
31,055,200 |
|
|
31,914,300 |
|
|
|
|
|
|
|
|
|
Diluted |
31,454,300 |
|
|
31,355,900 |
|
|
|
N.M. - Not MeaningfulSCHWEITZER-MAUDUIT INTERNATIONAL,
INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF
INCOME(Dollars in millions, except per share
amounts)(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
|
2021 |
|
2020 |
|
% Change |
Net sales |
$ |
1,440.0 |
|
|
$ |
1,074.4 |
|
|
34.0 |
% |
Cost of products sold |
1,109.7 |
|
|
766.1 |
|
|
44.9 |
|
Gross profit |
330.3 |
|
|
308.3 |
|
|
7.1 |
|
|
|
|
|
|
|
Selling expense |
46.7 |
|
|
36.9 |
|
|
26.6 |
|
Research and development expense |
20.3 |
|
|
13.8 |
|
|
47.1 |
|
General expense |
169.9 |
|
|
116.9 |
|
|
45.3 |
|
Total nonmanufacturing expenses |
236.9 |
|
|
167.6 |
|
|
41.3 |
|
|
|
|
|
|
|
Restructuring and
impairment expense |
10.1 |
|
|
11.9 |
|
|
(15.1) |
|
Operating
profit |
83.3 |
|
|
128.8 |
|
|
(35.3) |
|
Interest expense |
46.1 |
|
|
30.5 |
|
|
51.1 |
|
Other income (expense), net |
35.9 |
|
|
(1.0) |
|
|
N.M. |
Income before income taxes and income from equity affiliates |
73.1 |
|
|
97.3 |
|
|
(24.9) |
|
|
|
|
|
|
|
(Benefit) provision for income taxes |
(9.4) |
|
|
18.4 |
|
|
N.M. |
Income from equity affiliates, net of income taxes |
6.4 |
|
|
4.9 |
|
|
30.6 |
|
Net income |
$ |
88.9 |
|
|
$ |
83.8 |
|
|
6.1 |
% |
|
|
|
|
|
|
Net income per
share - basic: |
|
|
|
|
|
Net income per share – basic |
$ |
2.83 |
|
|
$ |
2.68 |
|
|
5.6 |
% |
|
|
|
|
|
|
Net income per
share – diluted: |
|
|
|
|
|
Net income per share – diluted |
$ |
2.80 |
|
|
$ |
2.66 |
|
|
5.3 |
% |
|
|
|
|
|
|
Cash dividends
declared per share |
$ |
1.76 |
|
|
$ |
1.76 |
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
31,030,400 |
|
|
30,832,700 |
|
|
|
|
|
|
|
|
|
Diluted |
31,400,300 |
|
|
31,104,200 |
|
|
|
N.M. - Not MeaningfulSCHWEITZER-MAUDUIT INTERNATIONAL,
INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED
BALANCE SHEETS(Dollars in
millions)(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,2021 |
|
December 31,2020 |
ASSETS |
|
|
|
Cash and cash
equivalents |
$ |
74.7 |
|
|
$ |
54.7 |
|
Accounts
receivable, net |
238.0 |
|
|
148.5 |
|
Inventories |
259.5 |
|
|
179.7 |
|
Other current
assets |
22.4 |
|
|
13.5 |
|
Property, plant
and equipment, net |
463.9 |
|
|
339.0 |
|
Goodwill |
640.8 |
|
|
403.7 |
|
Other noncurrent
assets |
713.5 |
|
|
445.8 |
|
Total Assets |
$ |
2,412.8 |
|
|
$ |
1,584.9 |
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
Current debt |
$ |
3.2 |
|
|
$ |
2.8 |
|
Other current
liabilities |
227.9 |
|
|
164.1 |
|
Long-term
debt |
1,267.1 |
|
|
590.5 |
|
Pension and other
postretirement benefits |
39.0 |
|
|
36.5 |
|
Deferred income
tax liabilities |
87.6 |
|
|
45.1 |
|
Long-term income
tax payable |
16.6 |
|
|
17.7 |
|
Other noncurrent
liabilities |
89.2 |
|
|
78.6 |
|
Stockholders’
equity |
682.2 |
|
|
649.6 |
|
Total Liabilities and Stockholders’ Equity |
$ |
2,412.8 |
|
|
$ |
1,584.9 |
|
SCHWEITZER-MAUDUIT INTERNATIONAL, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOW(Dollars in
millions)(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
2021 |
|
2020 |
Operating |
|
|
|
Net income |
$ |
88.9 |
|
|
$ |
83.8 |
|
Non-cash items included in net income: |
|
|
|
Depreciation and amortization |
92.7 |
|
|
72.2 |
|
Impairments |
1.6 |
|
|
— |
|
Deferred income tax |
(27.0) |
|
|
(5.2) |
|
Pension and other postretirement benefits |
0.7 |
|
|
3.7 |
|
Stock-based compensation |
8.5 |
|
|
8.8 |
|
Income from equity affiliates |
(6.4) |
|
|
(4.9) |
|
Brazil tax assessment accruals, net |
(6.1) |
|
|
— |
|
Gain on sale of assets |
(35.3) |
|
|
— |
|
Long-term income tax payable |
— |
|
|
(0.5) |
|
Cash dividends received from equity affiliates |
3.3 |
|
|
2.7 |
|
Other items |
(1.4) |
|
|
6.7 |
|
Changes in operating working capital |
(61.4) |
|
|
(5.7) |
|
Cash provided by operations |
58.1 |
|
|
161.6 |
|
|
|
|
|
Investing |
|
|
|
Capital spending |
(35.9) |
|
|
(30.1) |
|
Capitalized software costs |
(3.0) |
|
|
(3.2) |
|
Acquisitions, net of cash acquired |
(630.6) |
|
|
(169.3) |
|
Proceeds from sale of assets |
35.3 |
|
|
0.5 |
|
Other investing |
(2.3) |
|
|
(1.0) |
|
Cash used in investing |
(636.5) |
|
|
(203.1) |
|
|
|
|
|
Financing |
|
|
|
Cash dividends paid to SWM stockholders |
(55.3) |
|
|
(55.0) |
|
Changes in short-term debt |
— |
|
|
— |
|
Proceeds from issuances of long-term debt |
744.5 |
|
|
212.7 |
|
Payments on long-term debt |
(55.9) |
|
|
(165.3) |
|
Payments for debt issuance costs |
(14.6) |
|
|
— |
|
Payments on financing lease obligations |
(15.4) |
|
|
— |
|
Purchases of common stock |
(3.4) |
|
|
(1.0) |
|
Cash used in financing |
599.9 |
|
|
(8.6) |
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents |
(1.5) |
|
|
1.8 |
|
|
|
|
|
Increase
(decrease) in cash and cash equivalents |
$ |
20.0 |
|
|
$ |
(48.3) |
|
SCHWEITZER-MAUDUIT INTERNATIONAL, INC. AND
SUBSIDIARIESBUSINESS SEGMENT
REPORTING(Dollars in
millions)(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
2021 |
|
2020 |
|
% Change |
|
2021 |
|
2020 |
|
% Change |
AMS |
$ |
255.6 |
|
|
$ |
148.9 |
|
|
71.7 |
% |
|
$ |
930.7 |
|
|
$ |
543.5 |
|
|
71.2 |
% |
EP |
134.8 |
|
|
130.5 |
|
|
3.3 |
% |
|
509.3 |
|
|
530.9 |
|
|
(4.1) |
% |
Total Consolidated |
$ |
390.4 |
|
|
$ |
279.4 |
|
|
39.7 |
% |
|
$ |
1,440.0 |
|
|
$ |
1,074.4 |
|
|
34.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit |
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
|
|
|
Return on Net Sales |
|
|
|
|
|
Return on Net Sales |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
AMS |
$ |
5.5 |
|
|
$ |
19.5 |
|
|
2.2 |
% |
|
13.1 |
% |
|
$ |
61.6 |
|
|
$ |
64.8 |
|
|
6.6 |
% |
|
11.9 |
% |
EP |
22.4 |
|
|
23.5 |
|
|
16.6 |
% |
|
18.0 |
% |
|
100.5 |
|
|
116.8 |
|
|
19.7 |
% |
|
22.0 |
% |
Unallocated |
(17.0) |
|
|
(19.7) |
|
|
|
|
|
|
(78.8) |
|
|
(52.8) |
|
|
|
|
|
Total Consolidated |
$ |
10.9 |
|
|
$ |
23.3 |
|
|
2.8 |
% |
|
8.3 |
% |
|
$ |
83.3 |
|
|
$ |
128.8 |
|
|
5.8 |
% |
|
12.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Adjustments to Operating Profit |
|
|
|
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
AMS - Restructuring & Impairment Expenses |
$ |
1.9 |
|
|
$ |
0.1 |
|
|
$ |
1.9 |
|
|
$ |
0.6 |
|
AMS - Purchase Accounting Adjustments |
11.2 |
|
|
6.5 |
|
|
43.3 |
|
|
25.8 |
|
EP - Restructuring & Impairment Expenses, plant closure
expenses, and Tax Assessment |
2.5 |
|
|
6.0 |
|
|
8.9 |
|
|
16.3 |
|
Unallocated |
2.4 |
|
|
— |
|
|
21.4 |
|
|
0.1 |
|
Total Consolidated |
$ |
18.0 |
|
|
$ |
12.6 |
|
|
$ |
75.5 |
|
|
$ |
42.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating Profit * |
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
|
|
|
Return on Net Sales |
|
|
|
|
|
Return on Net Sales |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
AMS |
$ |
18.6 |
|
|
$ |
26.1 |
|
|
7.3 |
% |
|
17.5 |
% |
|
$ |
106.8 |
|
|
$ |
91.2 |
|
|
11.5 |
% |
|
16.8 |
% |
EP |
24.9 |
|
|
29.5 |
|
|
18.5 |
% |
|
22.6 |
% |
|
109.4 |
|
|
133.1 |
|
|
21.5 |
% |
|
25.1 |
% |
Unallocated |
(14.6) |
|
|
(19.7) |
|
|
|
|
|
|
(57.4) |
|
|
(52.7) |
|
|
|
|
|
Total Consolidated |
$ |
28.9 |
|
|
$ |
35.9 |
|
|
7.4 |
% |
|
12.8 |
% |
|
$ |
158.8 |
|
|
$ |
171.6 |
|
|
11.0 |
% |
|
16.0 |
% |
* Adjusted Operating Profit, a non-GAAP financial measure, is
calculated by adding Restructuring & Impairment Expenses and
Purchase Accounting Adjustments to Operating
Profit.SCHWEITZER-MAUDUIT INTERNATIONAL, INC. AND
SUBSIDIARIESRECONCILIATION OF NON-GAAP FINANCIAL
MEASURES AND SUPPLEMENTAL DATA(Dollars in
millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Operating profit |
$ |
10.9 |
|
|
$ |
23.3 |
|
|
$ |
83.3 |
|
|
$ |
128.8 |
|
Plus: Restructuring and impairment, and plant closure expenses |
4.4 |
|
|
6.0 |
|
|
10.8 |
|
|
16.9 |
|
Plus: Purchase accounting adjustments |
11.2 |
|
|
6.5 |
|
|
43.3 |
|
|
25.8 |
|
Plus: Acquisition and integration related costs |
2.4 |
|
|
— |
|
|
21.4 |
|
|
— |
|
Adjusted Operating Profit |
$ |
28.9 |
|
|
$ |
35.8 |
|
|
$ |
158.8 |
|
|
$ |
171.5 |
|
|
|
|
|
|
|
|
|
Income |
$ |
53.3 |
|
|
$ |
15.3 |
|
|
$ |
88.9 |
|
|
$ |
83.8 |
|
Plus: Restructuring and impairment expense |
4.2 |
|
|
4.2 |
|
|
10.1 |
|
|
11.9 |
|
Less: Tax impact of restructuring and impairment expense |
(0.9) |
|
|
(1.1) |
|
|
(2.4) |
|
|
(3.1) |
|
Less: Gain on Sale of Spotswood |
(35.2) |
|
|
— |
|
|
(35.2) |
|
|
— |
|
Plus: Tax impact on gain on sale of Spotswood |
8.0 |
|
|
— |
|
|
8.0 |
|
|
— |
|
Plus: Plant closure |
0.2 |
|
|
1.7 |
|
|
0.7 |
|
|
4.9 |
|
Less: Tax impact of plant closure |
(0.1) |
|
|
(0.4) |
|
|
(0.2) |
|
|
(1.1) |
|
Plus: Purchase accounting adjustments |
11.2 |
|
|
6.5 |
|
|
43.3 |
|
|
25.8 |
|
Less: Tax impact of purchase accounting adjustments |
(2.3) |
|
|
(1.6) |
|
|
(8.7) |
|
|
(6.3) |
|
Plus (less): Brazil tax assessments |
— |
|
|
0.1 |
|
|
(6.1) |
|
|
0.1 |
|
Plus: Tax impact of Brazil tax assessments |
— |
|
|
— |
|
|
2.8 |
|
|
— |
|
Plus: Acquisition and integration related costs |
2.4 |
|
|
— |
|
|
21.4 |
|
|
— |
|
Less: Tax impact on acquisition and integration related costs |
(0.5) |
|
|
— |
|
|
(4.7) |
|
|
— |
|
Plus: Acquisition related foreign currency exchange impacts |
— |
|
|
— |
|
|
6.9 |
|
|
— |
|
Less: Luxembourg valuation allowance release |
(33.6) |
|
|
— |
|
|
(33.6) |
|
|
— |
|
Plus: Reversal of valuation allowance on prior year tax
credits |
4.6 |
|
|
— |
|
|
4.6 |
|
|
— |
|
Plus (less): Tax legislative changes, net of other discrete
items |
1.4 |
|
|
— |
|
|
3.5 |
|
|
(0.4) |
|
Adjusted Income |
$ |
12.7 |
|
|
$ |
24.7 |
|
|
$ |
99.3 |
|
|
$ |
115.6 |
|
|
|
|
|
|
|
|
|
Earnings per share - diluted |
$ |
1.68 |
|
|
$ |
0.48 |
|
|
$ |
2.80 |
|
|
$ |
2.66 |
|
Plus: Restructuring and impairment expense |
0.13 |
|
|
0.13 |
|
|
0.32 |
|
|
0.38 |
|
Less: Tax impact of restructuring and impairment expense |
(0.03) |
|
|
(0.04) |
|
|
(0.08) |
|
|
(0.10) |
|
Less: Gain on Sale of Spotswood |
(1.12) |
|
|
— |
|
|
(1.12) |
|
|
— |
|
Plus: Tax impact on gain on sale of Spotswood |
0.25 |
|
|
— |
|
|
0.25 |
|
|
— |
|
Plus: Plant closure |
— |
|
|
0.06 |
|
|
0.02 |
|
|
0.16 |
|
Less: Tax impact of plant closure |
(0.01) |
|
|
(0.02) |
|
|
(0.01) |
|
|
(0.04) |
|
Plus: Purchase accounting adjustments |
0.35 |
|
|
0.21 |
|
|
1.37 |
|
|
0.83 |
|
Less: Tax impact of purchase accounting adjustment |
(0.07) |
|
|
(0.05) |
|
|
(0.28) |
|
|
(0.20) |
|
Less: Brazil tax assessments |
— |
|
|
— |
|
|
(0.20) |
|
|
— |
|
Plus: Tax impact of Brazil tax assessments |
— |
|
|
— |
|
|
0.09 |
|
|
— |
|
Plus: Acquisition and integration related costs |
0.08 |
|
|
— |
|
|
0.68 |
|
|
— |
|
Less: Tax impact on acquisition and integration related costs |
(0.02) |
|
|
— |
|
|
(0.15) |
|
|
— |
|
Plus: Acquisition related foreign currency exchange impacts |
— |
|
|
— |
|
|
0.22 |
|
|
— |
|
Less: Luxembourg valuation allowance release |
(1.07) |
|
|
— |
|
|
(1.07) |
|
|
— |
|
Plus: Reversal of valuation allowance on prior year tax
credits |
0.15 |
|
|
— |
|
|
0.15 |
|
|
— |
|
Plus (less): Tax legislative changes, net of other discrete
items |
0.04 |
|
|
— |
|
|
0.11 |
|
|
(0.01) |
|
Adjusted Earnings Per Share - Diluted |
$ |
0.36 |
|
|
$ |
0.77 |
|
|
$ |
3.10 |
|
|
$ |
3.68 |
|
SCHWEITZER-MAUDUIT INTERNATIONAL, INC. AND
SUBSIDIARIESRECONCILIATION OF NON-GAAP FINANCIAL
MEASURES AND SUPPLEMENTAL DATA(Dollars in
millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Net income |
$ |
53.3 |
|
|
$ |
15.3 |
|
|
$ |
88.9 |
|
|
$ |
83.8 |
|
Plus: Interest expense on debt |
14.8 |
|
|
7.7 |
|
|
50.6 |
|
|
30.5 |
|
Plus: Interest expense on Brazil tax assessments |
— |
|
|
0.1 |
|
|
(4.5) |
|
|
0.1 |
|
Plus: Provision for income taxes |
(21.8) |
|
|
2.9 |
|
|
(9.4) |
|
|
18.4 |
|
Plus: Depreciation and amortization |
26.5 |
|
|
19.3 |
|
|
94.0 |
|
|
70.1 |
|
Plus: Restructuring and impairment expense |
4.2 |
|
|
4.2 |
|
|
10.1 |
|
|
11.9 |
|
Plus: Inventory write-down expense related to plant closure |
(0.2) |
|
|
— |
|
|
0.3 |
|
|
2.0 |
|
Plus: Acquisition and integration related costs |
2.4 |
|
|
— |
|
|
21.4 |
|
|
— |
|
Plus: Income from equity affiliates |
(0.3) |
|
|
(2.9) |
|
|
(6.4) |
|
|
(4.9) |
|
Plus: Other (income) expense, net |
(35.1) |
|
|
0.3 |
|
|
(41.2) |
|
|
1.0 |
|
Plus: Acquisition related foreign currency exchange impacts |
— |
|
|
— |
|
|
6.9 |
|
|
— |
|
Plus: Reversal of other expenses related to Brazil tax
assessments |
— |
|
|
— |
|
|
(1.6) |
|
|
— |
|
Adjusted EBITDA from continuing operations |
$ |
43.8 |
|
|
$ |
46.9 |
|
|
$ |
209.1 |
|
|
$ |
212.9 |
|
|
|
|
|
|
|
|
|
AMS adjusted EBITDA |
$ |
28.1 |
|
|
$ |
30.1 |
|
|
$ |
134.7 |
|
|
$ |
106.7 |
|
EP adjusted EBITDA |
30.2 |
|
|
36.3 |
|
|
131.1 |
|
|
158.0 |
|
Unallocated adjusted EBITDA |
(14.5) |
|
|
(19.5) |
|
|
(56.7) |
|
|
(51.8) |
|
Adjusted EBITDA from continuing operations |
$ |
43.8 |
|
|
$ |
46.9 |
|
|
$ |
209.1 |
|
|
$ |
212.9 |
|
|
|
|
|
|
|
|
|
Cash provided by operating activities |
$ |
30.6 |
|
|
$ |
54.1 |
|
|
$ |
58.1 |
|
|
$ |
161.6 |
|
Less: Capital spending |
(12.1) |
|
|
(9.4) |
|
|
(35.9) |
|
|
(30.1) |
|
Less: Capitalized software costs |
(1.1) |
|
|
(0.4) |
|
|
(3.0) |
|
|
(3.2) |
|
Free Cash Flow |
$ |
17.4 |
|
|
$ |
44.3 |
|
|
$ |
19.2 |
|
|
$ |
128.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2021 |
|
December 31, 2020 |
|
|
|
|
|
|
|
|
Total Debt |
|
|
|
|
$ |
1,270.3 |
|
|
$ |
593.3 |
|
Less: Cash |
|
|
|
|
74.7 |
|
|
54.7 |
|
Net Debt |
|
|
|
|
$ |
1,195.6 |
|
|
$ |
538.6 |
|
|
|
|
|
|
|
|
|
2022 Earnings Per Share Guidance -
Diluted
|
|
|
|
|
|
|
|
|
|
|
2022E |
2022E GAAP
EPS |
|
$2.32 to $2.77 |
Plus: Purchase
accounting expense |
|
1.44 |
Less: Tax impact
of purchase accounting expense |
|
(0.26) |
2022E Adjusted
EPS |
|
$3.50 to $3.95 |
Note: Other non-GAAP adjustments including integration and
restructuring expenses and asset sale gains are expected to be
immaterial.
Schweitzer Mauduit (NYSE:SWM)
Gráfica de Acción Histórica
De Ago 2024 a Sep 2024
Schweitzer Mauduit (NYSE:SWM)
Gráfica de Acción Histórica
De Sep 2023 a Sep 2024