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媒體聯繫人： 克莉絲汀 尼德爾斯 全球公司通信 Christine.Needles@interface.com +1 404-491-4660 | 投資者聯繫人： 布魯斯 霍斯曼 首席財務官 Bruce.Hausmann@interface.com +1 770-437-6802 | ||||
接口報告 第三 2024年第四季度結果
強有力的策略執行推動了顯著的盈利擴張和兩位數訂單增長
亞特蘭大-2024年11月1日-Interface, Inc.（納斯達克: TILE），一家全球商業地板公司和全球可持續發展領袖，今天宣佈截至2024年9月29日的第三季度業績。
第三季度要點：
•淨銷售額爲34430萬美元，同比增長10.7%。
•毛利潤率增至37.1%，同比提高162個點子。
•每股普通股盈利爲0.48美元；調整後每股盈利爲0.48美元.
•貨幣中立訂單同比增長10%。
「我們取得了又一季度強勁的業績，因爲我們的One Interface策略繼續帶來實質性的成果，包括兩位數的銷售增長和顯著的盈利擴張。教育業務賬單同比增長18%。在企業辦公板塊，我們的全球業務賬單同比增長2%，超過整體行業趨勢，表明我們正在贏得市場份額。正如預期的那樣，零售業務在第三季度的賬單金額較前一年的低迷活動有所增加，」Interface的CEO Laurel Hurd評論道。
「有效的商業執行推動了第三季度貨幣中立訂單的兩位數增長。美洲地區的貨幣中立訂單增長了17%，所有產品類別均有增長，突顯了我們整合的nora和Interface銷售團隊在美國的有效性。EAAA地區的貨幣中立訂單持平，亞洲活動增加，澳洲的疲軟情況有所抵消。我們在動態市場上的全球適應能力使我們能夠持續交付強勁業績，獲得市場份額，並擴大業務。」Hurd總結道。
「我們在第三季度從業務活動中產生了7620萬美元的現金，第三季度償還了5130萬美元的債務，年初至今償還了8090萬美元。我們將繼續專注於通過償還債務並利用現金重新投資於業務增長機會，以加強資產負債表，」 Interface的財務總監Bruce Hausmann補充道。
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2024年第三季度財務摘要
銷售額： 第三季度淨銷售額爲34430萬美元，比去年同期的31100萬美元增長了10.7%。
第三季度毛利率爲37.1%，比上一年同期增加了162個點子。調整後的毛利率爲37.5%，比上一年同期增加了158個點子，主要原因是原材料成本通縮以及單位固定成本降低導致的成本下降。
第三季度銷售和管理費用爲8550萬美元，佔淨銷售額的24.8%，而去年同期爲7930萬美元，佔淨銷售額的25.5%。2024年第三季度調整後的銷售和管理費用爲8550萬美元，佔淨銷售額的24.8%，而去年同期爲7920萬美元，佔淨銷售額的25.5%。
營業收入： 第三季度營業收入爲4220萬美元，而去年同期的營業收入爲3100萬美元。2024年第三季度調整後營業收入（AOI）爲4350萬美元，而2023年第三季度的AOI爲3240萬美元。
淨利潤和每股收益: 根據通用會計準則，2024年第三季度公司淨利潤爲2840萬美元，每股攤薄收益爲0.48美元，相比於2023年第三季度的GAAP淨利潤990萬美元，每股攤薄收益爲0.17美元。2024年第三季度調整後淨利潤爲2830萬美元，每股攤薄收益爲0.48美元，而2023年第三季度調整後淨利潤爲1640萬美元，每股攤薄收益爲0.28美元。
調整後的EBITDA： 2024年第三季度，調整後的EBITDA爲5370萬美元。相比之下，2023年第三季度調整後的EBITDA爲4370萬美元。
2024年前9個月摘要
銷售額： 2024年前9個月淨銷售額爲98060萬美元，比去年同期的93640萬美元增長了4.7%。
2024年前九個月的毛利潤率爲36.8%，比去年同期提高了282個點子。調整後的毛利潤率爲37.2%，較去年同期提高了281個點子，主要是由於原材料成本下降和平均銷售價格上漲。
2024年前九個月的銷售及管理費用爲25590萬美元，佔淨銷售額的26.1%，而去年同期爲25100萬美元，佔淨銷售額的26.8%。經調整的銷售及管理費用爲2024年前九個月的2.559 億美元，佔淨銷售額的26.1%，而去年同期爲24630萬美元，佔淨銷售額的26.3%。
營業收入： 2024年前九個月的營業利潤爲10480萬美元，而上年同期的營業利潤爲6940萬美元。AOI爲2024年前九個月的10860萬美元，而去年同期爲7540萬美元。
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淨利潤和每股收益：根據通用會計準則，公司2024年頭9個月錄得淨利潤爲$6520萬，每股攤薄收益爲$1.11，而2023年頭9個月的淨利潤爲$2500萬，每股攤薄收益爲$0.43。2024年頭9個月調整後的淨利潤爲$6610萬，每股攤薄收益爲$1.13，相較於2023年頭9個月調整後的淨利潤$3480萬，每股攤薄收益爲$0.60。
調整後的EBITDA： 2024年前九個月，調整後的EBITDA爲14290萬美元。而去年同期調整後的EBITDA爲10980萬美元。
現金和債務： 公司在2024年第三季末手頭現金11560萬美元，總債務33790萬美元，相比於2023財年末的現金11050萬美元和總債務41720萬美元。
第三季度分段結果
AMS 結果:
•2024年第三季度淨銷售額爲21020萬元，比上一年同期的17820萬元增長了17.9%。
•2024年第三季度訂單以貨幣中立基礎相比上一年同期增長了17.1%。
•2024年第三季度營業收入爲3190萬美元，而上一年同期爲2350萬美元。
•2024年第三季度，aoi爲3220萬美元，而上一年同期的aoi爲2330萬美元。
EAAA成績：
•2024年第三季度淨銷售額爲13410萬美元，較去年同期的13280萬美元增長了1.0%。
•貨幣波動對EAAA淨銷售額產生了約160萬美元（1.2%）的積極影響，與去年同期相比，歐元、澳幣和英鎊兌美元均有所升值。
•2024年第三季度訂單按貨幣中立基礎上升了0.4％，亞洲上升了8.0％，部分抵消了澳洲下降了1.8％和歐洲、中東、非洲下降了0.3％。
•2024年第三季度營業收入爲1030萬美元，而上年同期爲750萬美元。
•2024年第三季度的aoi爲1130萬美元，而上一年同期的aoi爲900萬美元。
First Nine Months Segment Results
AMS Results:
•Net sales for the first nine months of 2024 were $595.1 million, up 8.4% versus $548.7 million in the prior year period.
•Operating income for the first nine months of 2024 was $76.9 million compared to $57.0 million in the prior year period.
•AOI for the first nine months of 2024 was $77.2 million versus AOI of $58.6 million in the prior year period.
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EAAA Results:
•Net sales for the first nine months of 2024 were $385.6 million, down 0.5% versus $387.7 million in the prior year period.
•Currency fluctuations had no material impact on EAAA net sales for the first nine months of 2024 compared to the prior year period.
•Operating income for the first nine months of 2024 was $27.9 million compared to $12.4 million in the prior year period.
•AOI for the first nine months of 2024 was $31.4 million versus AOI of $16.8 million in the prior year period.
Outlook
Interface delivered impressive results in the third quarter of 2024 and enters the fourth quarter of 2024 with strong orders and a healthy backlog. As a reminder, the Company's fourth quarter of 2023 adjusted gross profit margin benefited 160 basis points from non-recurring items that reduced the Company's cost of sales in that quarter. Separately, Interface continues to anticipate strong Retail billings in the fourth quarter of 2024, which have slightly lower gross profit margins. With that backdrop in mind, the Company is raising its full year outlook and is now anticipating the following:
For the full fiscal year 2024:
•Net sales of $1.315 billion to $1.325 billion.
•Adjusted gross profit margin of approximately 36.6%.
•Adjusted SG&A expenses of approximately $345 million.
•Adjusted Interest & Other expenses of approximately $27 million.
•An adjusted effective tax rate for the full year of approximately 25.0%.
•Fully diluted weighted average share count of approximately 58.8 million shares.
•Capital expenditures of approximately $37 million.
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Webcast and Conference Call Information
Interface will host a conference call on November 1, 2024, at 8:00 a.m. Eastern Time, to discuss its third quarter 2024 results. The conference call will be simultaneously broadcast live over the Internet.
Listeners may access the conference call live over the Internet at:
https://events.q4inc.com/attendee/509768283, or through the Company's website
at: https://investors.interface.com.
The archived version of the webcast will be available at these sites for one year beginning approximately one hour after the call ends.
Non-GAAP Financial Measures
Interface provides adjusted earnings per share, adjusted net income, adjusted operating income ("AOI"), adjusted gross profit, adjusted gross profit margin, adjusted SG&A expenses, currency- neutral sales and currency-neutral sales growth, net debt, and adjusted EBITDA as additional information regarding its operating results in this press release. These non-GAAP measures are not in accordance with – or alternatives to – GAAP measures, and may be different from non-GAAP measures used by other companies. Adjusted EPS, adjusted net income, and AOI exclude nora purchase accounting amortization, the cyber event impact, and restructuring, asset impairment, severance, and other, net. Adjusted EPS and adjusted net income also exclude the property casualty loss impact, the loss on foreign subsidiary liquidation, and the loss on discontinuance of interest rate swaps. Adjusted gross profit and adjusted gross profit margin exclude nora purchase accounting amortization. Adjusted SG&A expenses exclude the cyber event impact and restructuring, asset impairment, severance, and other, net. Currency-neutral sales and currency-neutral sales growth exclude the impact of foreign currency fluctuations.
Net debt is total debt less cash on hand. Adjusted EBITDA is GAAP net income excluding interest expense, income tax expense, depreciation and amortization, share-based compensation expense, cyber event impact, property casualty loss impact, restructuring, asset impairment, severance, and other, net, nora purchase accounting amortization, and the loss on foreign subsidiary liquidation. This news release should be read in conjunction with the Company's Current Report on Form 8-K furnished today to the U.S. Securities & Exchange Commission, which explains why Interface believes presentation of these non-GAAP measures provides useful information to investors, as well as any additional material purposes for which Interface uses these non-GAAP measures.
About Interface
Interface, Inc. (NASDAQ: TILE) is a global flooring solutions company and sustainability leader, offering an integrated portfolio of carpet tile and resilient flooring products that includes Interface® carpet tile and LVT, nora® rubber flooring, and FLOR® premium area rugs for commercial and residential spaces. Made with purpose and without compromise, Interface flooring brings more sophisticated design, more performance, more innovation, and more climate progress to interior spaces. A decades-long pioneer in sustainability, Interface remains “all in” on becoming a restorative business. Today, the company is focusing on carbon reductions, not offsets, as it works toward achieving its verified science-based targets by 2030 and its goal to become a carbon negative enterprise by 2040.
Learn more about Interface at interface.com and blog.interface.com, nora by Interface at nora.com, FLOR at FLOR.com, and our sustainability journey at interface.com/sustainability.
Follow us on Facebook, Instagram, LinkedIn, X, and Pinterest.
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Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:
Except for historical information contained herein, the other matters set forth in this news release are forward-looking statements. Forward-looking statements may be identified by words such as “may,” “expect,” “forecast,” “anticipate,” “intend,” “plan,” “believe,” “could,” “should,” “goal,” “aim," “objective,” “seek,” “project,” “estimate,” “target,” “will” and similar expressions. Forward-looking statements in this press release include, without limitation, any projections we make regarding the Company’s full year 2024 under “Outlook” above. The forward-looking statements set forth above involve a number of risks and uncertainties that could cause actual results to differ materially from any such statement, including but not limited to the risks under the following subheadings in “Risk Factors” in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023: "We compete with a large number of manufacturers in the highly competitive floorcovering products market, and some of these competitors have greater financial resources than we do. We may face challenges competing on price, making investments in our business, or competing on product design or sustainability", "Our earnings could be adversely affected by non-cash adjustments to goodwill, when a test of goodwill assets indicates a material impairment of those assets", "Our success depends significantly upon the efforts, abilities and continued service of our senior management executives, our principal design consultant and other key personnel (including experienced sales and manufacturing personnel), and our loss of any of them could affect us adversely", "Large increases in the cost of our raw materials, shipping costs, duties or tariffs could adversely affect us if we are unable to pass these cost increases through to our customers", "Unanticipated termination or interruption of any of our arrangements with our primary third-party suppliers of synthetic fiber or our primary third-party supplier for luxury vinyl tile (“LVT”) or other key raw materials could have a material adverse effect on us", "The market price of our common stock has been volatile and the value of your investment may decline", "Changes to our facilities, manufacturing processes, product construction, and product composition could disrupt our operations, increase our manufacturing costs, increase customer complaints, increase warranty claims, negatively affect our reputation, and have a material adverse effect on our financial condition and results of operations", "Our business operations could suffer significant losses from natural disasters, acts of war, terrorism, catastrophes, fire, adverse weather conditions, pandemics, endemics, unstable geopolitical situations or other unexpected events", "Disruptions to or failures of information technology systems we use could adversely affect our business", "The impact of potential changes to environmental laws and regulations and industry standards regarding climate change and other sustainability matters could lead to unforeseen disruptions to our business operations", "Sales of our principal products have been and may continue to be affected by adverse economic cycles, and effects in the new construction market and renovation market", "Health crisis events, such as epidemics or pandemics, have adversely impacted, and may continue to impact, the economy and disrupt our operations and supply chains, which may have an adverse effect on our results of operations", "Our substantial international operations are subject to various political, economic and other uncertainties that could adversely affect our business results, including foreign currency fluctuations, restrictive taxation, custom duties, border closings or other adverse government regulations", "The conflict between Russia and Ukraine and the Israel-Hamas war could adversely affect our business, results of operations and financial position", "Fluctuations in foreign currency exchange rates have had, and could continue to have, an adverse impact on our financial condition and results of operations", "The uncertainty surrounding the ongoing implementation and effect of the U.K.’s exit from the European Union, and related negative developments in the European Union, could adversely affect our business, results of operations or financial condition", "We have a substantial amount of debt, which could adversely affect our business, financial condition and results of operations and our ability to meet our payment obligations under our debt", "Servicing our debt requires a significant amount of cash, and we may not have sufficient cash flow from our operations to pay our indebtedness", "We may incur substantial additional indebtedness, which could further exacerbate the risks associated with our substantial indebtedness", and "We face risks associated with litigation and claims".
You should consider any additional or updated information we include under the heading “Risk Factors” in our subsequent quarterly and annual reports.
Any forward-looking statements are made pursuant to the Private Securities Litigation Reform Act of 1995 and, as such, speak only as of the date made. The Company assumes no responsibility to update or revise forward-looking statements made in this press release and cautions readers not to place undue reliance on any such forward-looking statements.
- TABLES FOLLOW -
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| Consolidated Condensed Statements of Operations (Unaudited) | Three Months Ended | Nine Months Ended | |||||||||||||||||||||
| (In thousands, except per share data) | 9/29/2024 | 10/1/2023 | 9/29/2024 | 10/1/2023 | |||||||||||||||||||
| Net Sales | $ | 344,270 | $ | 311,006 | $ | 980,648 | $ | 936,380 | |||||||||||||||
| Cost of Sales | 216,645 | 200,748 | 620,005 | 618,463 | |||||||||||||||||||
| Gross Profit | 127,625 | 110,258 | 360,643 | 317,917 | |||||||||||||||||||
| Selling, General & Administrative Expenses | 85,450 | 79,273 | 255,871 | 251,049 | |||||||||||||||||||
| Restructuring, asset impairment and other gains, net | — | — | — | (2,502) | |||||||||||||||||||
| Operating Income | 42,175 | 30,985 | 104,772 | 69,370 | |||||||||||||||||||
| Interest Expense | 5,721 | 8,163 | 18,317 | 24,986 | |||||||||||||||||||
| Other Expense, net | 381 | 6,702 | 237 | 7,674 | |||||||||||||||||||
| Income Before Income Tax Expense | 36,073 | 16,120 | 86,218 | 36,710 | |||||||||||||||||||
| Income Tax Expense | 7,630 | 6,241 | 21,038 | 11,748 | |||||||||||||||||||
| Net Income | $ | 28,443 | $ | 9,879 | $ | 65,180 | $ | 24,962 | |||||||||||||||
| Earnings Per Share – Basic | $ | 0.49 | $ | 0.17 | $ | 1.12 | $ | 0.43 | |||||||||||||||
| Earnings Per Share – Diluted | $ | 0.48 | $ | 0.17 | $ | 1.11 | $ | 0.43 | |||||||||||||||
Common Shares Outstanding – Basic | 58,305 | 58,107 | 58,275 | 58,087 | |||||||||||||||||||
Common Shares Outstanding – Diluted | 58,871 | 58,342 | 58,754 | 58,233 | |||||||||||||||||||
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| Consolidated Condensed Balance Sheets | |||||||||||
| (In thousands) | 9/29/2024 | 12/31/2023 | |||||||||
| (UNAUDITED) | |||||||||||
| Assets | |||||||||||
| Cash and Cash Equivalents | $ | 115,601 | $ | 110,498 | |||||||
| Accounts Receivable, net | 173,859 | 163,386 | |||||||||
| Inventories, net | 283,096 | 279,079 | |||||||||
| Prepaid Expenses and Other Current Assets | 35,605 | 30,895 | |||||||||
Total Current Assets | 608,161 | 583,858 | |||||||||
| Property, Plant & Equipment, net | 284,845 | 291,140 | |||||||||
| Operating Lease Right-of-Use Assets | 81,716 | 87,519 | |||||||||
| Goodwill and Intangible Assets, net | 159,428 | 161,703 | |||||||||
Other Assets | 109,114 | 105,875 | |||||||||
Total Assets | $ | 1,243,264 | $ | 1,230,095 | |||||||
| Liabilities | |||||||||||
Accounts Payable | $ | 78,279 | $ | 62,912 | |||||||
| Accrued Expenses | 136,626 | 130,890 | |||||||||
Current Portion of Operating Lease Liabilities | 12,888 | 12,347 | |||||||||
Current Portion of Long-Term Debt | 8,593 | 8,572 | |||||||||
Total Current Liabilities | 236,386 | 214,721 | |||||||||
Long-Term Debt | 329,347 | 408,641 | |||||||||
Operating Lease Liabilities | 72,861 | 78,269 | |||||||||
Other Long-Term Liabilities | 103,107 | 102,517 | |||||||||
Total Liabilities | 741,701 | 804,148 | |||||||||
| Total Shareholders’ Equity | 501,563 | 425,947 | |||||||||
Total Liabilities and Shareholders’ Equity | $ | 1,243,264 | $ | 1,230,095 | |||||||
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| Consolidated Condensed Statements of Cash Flows (Unaudited) | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
| (In thousands) | 9/29/2024 | 10/1/2023 | 9/29/2024 | 10/1/2023 | ||||||||||||||||||||||
| OPERATING ACTIVITIES | ||||||||||||||||||||||||||
| Net Income | $ | 28,443 | $ | 9,879 | $ | 65,180 | $ | 24,962 | ||||||||||||||||||
| Adjustments to Reconcile Net Income to Cash Provided by Operating Activities: | ||||||||||||||||||||||||||
| Depreciation and Amortization | 9,902 | 10,445 | 29,246 | 30,591 | ||||||||||||||||||||||
| Share-Based Compensation Expense | 2,629 | 2,209 | 9,160 | 7,334 | ||||||||||||||||||||||
| Loss (Gain) on Disposal of Property, Plant and Equipment, net | 139 | 10 | 139 | (2,531) | ||||||||||||||||||||||
| Loss on Foreign Subsidiary Liquidation | — | 6,221 | — | 6,221 | ||||||||||||||||||||||
| Amortization of Acquired Intangible Assets | 1,311 | 1,302 | 3,895 | 3,886 | ||||||||||||||||||||||
| Deferred Income Taxes | (121) | 2,936 | (1,160) | 438 | ||||||||||||||||||||||
| Other | 1,448 | (2,989) | (2,318) | (1,109) | ||||||||||||||||||||||
| Change in Working Capital | ||||||||||||||||||||||||||
| Accounts Receivable | 8,251 | 19,626 | (10,656) | 37,396 | ||||||||||||||||||||||
| Inventories | 3,266 | (5,808) | (2,395) | 14,135 | ||||||||||||||||||||||
| Prepaid Expenses and Other Current Assets | 1,749 | 769 | (4,583) | (2,842) | ||||||||||||||||||||||
| Accounts Payable and Accrued Expenses | 19,212 | 21,693 | 23,879 | (4,264) | ||||||||||||||||||||||
| Cash Provided by Operating Activities | 76,229 | 66,293 | 110,387 | 114,217 | ||||||||||||||||||||||
| INVESTING ACTIVITIES | ||||||||||||||||||||||||||
| Capital Expenditures | (6,501) | (5,907) | (20,108) | (17,238) | ||||||||||||||||||||||
| Proceeds from Sale of Property, Plant and Equipment | — | — | 1,040 | 6,593 | ||||||||||||||||||||||
| Insurance Proceeds from Property Casualty Loss | 1,374 | — | 2,374 | — | ||||||||||||||||||||||
| Cash Used in Investing Activities | (5,127) | (5,907) | (16,694) | (10,645) | ||||||||||||||||||||||
| FINANCING ACTIVITIES | ||||||||||||||||||||||||||
| Repayments of Long-term Debt | (67,311) | (37,631) | (114,241) | (149,738) | ||||||||||||||||||||||
| Borrowing of Long-term Debt | 16,047 | 7,000 | 33,381 | 74,000 | ||||||||||||||||||||||
| Tax Withholding Payments for Share-Based Compensation | (16) | (27) | (4,770) | (1,514) | ||||||||||||||||||||||
| Dividends Paid | (582) | (581) | (1,755) | (1,742) | ||||||||||||||||||||||
| Finance Lease Payments | (723) | (545) | (2,160) | (1,853) | ||||||||||||||||||||||
| Cash Used in Financing Activities | (52,585) | (31,784) | (89,545) | (80,847) | ||||||||||||||||||||||
| Net Cash Provided by (Used in) Operating, Investing and Financing Activities | 18,517 | 28,602 | 4,148 | 22,725 | ||||||||||||||||||||||
| Effect of Exchange Rate Changes on Cash | 2,897 | (1,904) | 955 | (656) | ||||||||||||||||||||||
| CASH AND CASH EQUIVALENTS | ||||||||||||||||||||||||||
| Net Change During the Period | 21,414 | 26,698 | 5,103 | 22,069 | ||||||||||||||||||||||
| Balance at Beginning of Period | 94,187 | 92,935 | 110,498 | 97,564 | ||||||||||||||||||||||
| Balance at End of Period | $ | 115,601 | $ | 119,633 | $ | 115,601 | $ | 119,633 | ||||||||||||||||||
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Segment Results (Unaudited)
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| (in thousands) | 9/29/2024 | 10/1/2023 | 9/29/2024 | 10/1/2023 | |||||||||||||||||||
| Net Sales | |||||||||||||||||||||||
| AMS | $ | 210,155 | $ | 178,194 | $ | 595,082 | $ | 548,716 | |||||||||||||||
| EAAA | 134,115 | 132,812 | 385,566 | 387,664 | |||||||||||||||||||
| Consolidated Net Sales | $ | 344,270 | $ | 311,006 | $ | 980,648 | $ | 936,380 | |||||||||||||||
| Segment AOI* | |||||||||||||||||||||||
| AMS | $ | 32,187 | $ | 23,318 | $ | 77,214 | $ | 58,621 | |||||||||||||||
| EAAA | 11,299 | 9,049 | 31,402 | 16,805 | |||||||||||||||||||
| Consolidated AOI | $ | 43,486 | $ | 32,367 | $ | 108,616 | $ | 75,426 | |||||||||||||||
| * Note: Segment AOI includes allocation of corporate and global support SG&A expenses | |||||||||||||||||||||||
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Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures (Unaudited)
(In millions, except per share amounts)
| Third Quarter 2024 | Third Quarter 2023 | ||||||||||||||||||||||||||||||||||||||||||||||
| Adjustments | Adjustments | ||||||||||||||||||||||||||||||||||||||||||||||
| Gross Profit | SG&A | Operating Income | Pre-tax | Tax Effect | Net Income | Diluted EPS | Gross Profit | SG&A | Operating Income | Pre-tax | Tax Effect | Net Income | Diluted EPS | ||||||||||||||||||||||||||||||||||
| GAAP As Reported | $ | 127.6 | $ | 85.5 | $ | 42.2 | $ | 28.4 | $ | 0.48 | $ | 110.3 | $ | 79.3 | $ | 31.0 | $ | 9.9 | $ | 0.17 | |||||||||||||||||||||||||||
| Non-GAAP Adjustments: | |||||||||||||||||||||||||||||||||||||||||||||||
| Purchase Accounting Amortization | 1.3 | — | 1.3 | 1.3 | (0.4) | 0.9 | 0.02 | 1.3 | — | 1.3 | 1.3 | (0.4) | 0.9 | 0.02 | |||||||||||||||||||||||||||||||||
| Restructuring, Asset Impairment, Severance and Other, net | — | — | — | — | 0.0 | — | — | — | — | — | — | 0.2 | 0.2 | — | |||||||||||||||||||||||||||||||||
Property Casualty Loss(1) | — | — | — | (1.4) | 0.3 | (1.0) | (0.02) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
| Cyber Event | — | — | — | — | — | — | — | — | (0.1) | 0.1 | 0.1 | — | 0.1 | — | |||||||||||||||||||||||||||||||||
Loss on Foreign Subsidiary Liquidation (2) | — | — | — | — | — | — | — | — | — | — | 6.2 | (1.1) | 5.1 | 0.09 | |||||||||||||||||||||||||||||||||
| Loss on Discontinuance of Interest Rate Swaps | — | — | — | — | — | — | — | — | — | — | 0.2 | — | 0.1 | — | |||||||||||||||||||||||||||||||||
| Adjustments Subtotal * | 1.3 | — | 1.3 | (0.1) | — | (0.1) | — | 1.3 | (0.1) | 1.4 | 7.8 | (1.3) | 6.5 | 0.11 | |||||||||||||||||||||||||||||||||
| Adjusted (non-GAAP) * | $ | 128.9 | $ | 85.5 | $ | 43.5 | $ | 28.3 | $ | 0.48 | $ | 111.6 | $ | 79.2 | $ | 32.4 | $ | 16.4 | $ | 0.28 | |||||||||||||||||||||||||||
| (1) Represents insurance recovery of loss recognized in the first quarter of 2023. | |||||||||||||||||||||||||||||||||||||||||||||||
| (2) Russia and Brazil foreign subsidiaries were substantially liquidated during the prior period. The related cumulative translation adjustment was recognized in other expense. | |||||||||||||||||||||||||||||||||||||||||||||||
| * Note: Sum of reconciling items may differ from total due to rounding of individual components | |||||||||||||||||||||||||||||||||||||||||||||||
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| First Nine Months 2024 | First Nine Months 2023 | ||||||||||||||||||||||||||||||||||||||||||||||
| Adjustments | Adjustments | ||||||||||||||||||||||||||||||||||||||||||||||
| Gross Profit | SG&A | Operating Income | Pre-tax | Tax Effect | Net Income | Diluted EPS | Gross Profit | SG&A | Operating Income | Pre-tax | Tax Effect | Net Income | Diluted EPS | ||||||||||||||||||||||||||||||||||
| GAAP As Reported | $ | 360.6 | $ | 255.9 | $ | 104.8 | $ | 65.2 | $ | 1.11 | $ | 317.9 | $ | 251.0 | $ | 69.4 | $ | 25.0 | $ | 0.43 | |||||||||||||||||||||||||||
| Non-GAAP Adjustments: | |||||||||||||||||||||||||||||||||||||||||||||||
| Purchase Accounting Amortization | 3.9 | — | 3.9 | 3.9 | (1.1) | 2.8 | 0.05 | 3.9 | — | 3.9 | 3.9 | (1.1) | 2.8 | 0.05 | |||||||||||||||||||||||||||||||||
| Restructuring, Asset Impairment, Severance and Other, net | — | (0.3) | 0.3 | 0.3 | — | 0.3 | — | — | (3.7) | 1.2 | 1.2 | (0.4) | 0.8 | 0.01 | |||||||||||||||||||||||||||||||||
Property Casualty Loss(1) | — | — | — | (2.3) | 0.6 | (1.8) | (0.03) | — | — | — | (0.5) | 0.1 | (0.4) | (0.01) | |||||||||||||||||||||||||||||||||
| Cyber Event | — | 0.4 | (0.4) | (0.4) | 0.1 | (0.3) | — | — | (1.0) | 1.0 | 1.0 | (0.2) | 0.7 | 0.01 | |||||||||||||||||||||||||||||||||
Loss on Foreign Subsidiary Liquidation (2) | — | — | — | — | — | — | — | — | — | — | 6.2 | (1.1) | 5.1 | 0.09 | |||||||||||||||||||||||||||||||||
| Loss on Discontinuance of Interest Rate Swaps | — | — | — | — | — | — | — | — | — | — | 1.0 | (0.2) | 0.7 | 0.01 | |||||||||||||||||||||||||||||||||
| Adjustments Subtotal * | 3.9 | 0.1 | 3.8 | 1.5 | (0.5) | 1.0 | 0.02 | 3.8 | (4.7) | 6.1 | 12.8 | (2.9) | 9.8 | 0.17 | |||||||||||||||||||||||||||||||||
| Adjusted (non-GAAP) * | $ | 364.5 | $ | 255.9 | $ | 108.6 | $ | 66.1 | $ | 1.13 | $ | 321.8 | $ | 246.3 | $ | 75.4 | $ | 34.8 | $ | 0.60 | |||||||||||||||||||||||||||
| (1) Represents insurance recovery of loss recognized in the first quarter of 2023. | |||||||||||||||||||||||||||||||||||||||||||||||
| (2) Russia and Brazil foreign subsidiaries were substantially liquidated during the prior period. The related cumulative translation adjustment was recognized in other expense. | |||||||||||||||||||||||||||||||||||||||||||||||
| * Note: Sum of reconciling items may differ from total due to rounding of individual components | |||||||||||||||||||||||||||||||||||||||||||||||
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Reconciliation of Segment GAAP Financial Measures to Non-GAAP Financial Measures ("Currency-Neutral Net Sales") (Unaudited)
(In millions)
| Third Quarter 2024 | Third Quarter 2023 | ||||||||||||||||||||||
| AMS Segment | EAAA Segment | Consolidated * | AMS Segment | EAAA Segment | Consolidated * | ||||||||||||||||||
| Net Sales as Reported (GAAP) | $ | 210.2 | $ | 134.1 | $ | 344.3 | $ | 178.2 | $ | 132.8 | $ | 311.0 | |||||||||||
| Impact of Changes in Currency | 0.2 | (1.6) | (1.4) | — | — | — | |||||||||||||||||
| Currency-Neutral Net Sales * | $ | 210.4 | $ | 132.5 | $ | 342.9 | $ | 178.2 | $ | 132.8 | $ | 311.0 | |||||||||||
| * Note: Sum of reconciling items may differ from total due to rounding of individual components | |||||||||||||||||||||||
| First Nine Months 2024 | First Nine Months 2023 | ||||||||||||||||||||||
| AMS Segment | EAAA Segment | Consolidated * | AMS Segment | EAAA Segment | Consolidated * | ||||||||||||||||||
| Net Sales as Reported (GAAP) | $ | 595.1 | $ | 385.6 | $ | 980.6 | $ | 548.7 | $ | 387.7 | $ | 936.4 | |||||||||||
| Impact of Changes in Currency | 0.4 | 0.3 | 0.7 | — | — | — | |||||||||||||||||
| Currency-Neutral Net Sales * | $ | 595.5 | $ | 385.9 | $ | 981.4 | $ | 548.7 | $ | 387.7 | $ | 936.4 | |||||||||||
| * Note: Sum of reconciling items may differ from total due to rounding of individual components | |||||||||||||||||||||||
13
Reconciliation of GAAP Operating Income to Adjusted Operating Income ("AOI") (Unaudited)
(In millions)
| Third Quarter 2024 | Third Quarter 2023 | |||||||||||||||||||||||||
| AMS Segment | EAAA Segment | Consolidated * | AMS Segment | EAAA Segment | Consolidated * | |||||||||||||||||||||
| GAAP Operating Income | $ | 31.9 | $ | 10.3 | $ | 42.2 | $ | 23.5 | $ | 7.5 | $ | 31.0 | ||||||||||||||
| Non-GAAP Adjustments: | ||||||||||||||||||||||||||
| Purchase Accounting Amortization | — | 1.3 | 1.3 | — | 1.3 | 1.3 | ||||||||||||||||||||
| Restructuring, Asset Impairment, Severance and Other, net | 0.3 | (0.3) | — | (0.3) | 0.3 | — | ||||||||||||||||||||
| Cyber Event | — | — | — | 0.1 | — | 0.1 | ||||||||||||||||||||
| Adjustments Subtotal * | 0.3 | 1.0 | 1.3 | (0.2) | 1.6 | 1.4 | ||||||||||||||||||||
| AOI * | $ | 32.2 | $ | 11.3 | $ | 43.5 | $ | 23.3 | $ | 9.0 | $ | 32.4 | ||||||||||||||
| * Note: Sum of reconciling items may differ from total due to rounding of individual components | ||||||||||||||||||||||||||
| First Nine Months 2024 | First Nine Months 2023 | ||||||||||||||||||||||
| AMS Segment | EAAA Segment | Consolidated * | AMS Segment | EAAA Segment | Consolidated * | ||||||||||||||||||
| GAAP Operating Income | $ | 76.9 | $ | 27.9 | $ | 104.8 | $ | 57.0 | $ | 12.4 | $ | 69.4 | |||||||||||
| Non-GAAP Adjustments: | |||||||||||||||||||||||
| Purchase Accounting Amortization | — | 3.9 | 3.9 | — | 3.9 | 3.9 | |||||||||||||||||
| Restructuring, Asset Impairment, Severance and Other, net | 0.6 | (0.2) | 0.3 | 1.1 | 0.1 | 1.2 | |||||||||||||||||
| Cyber Event | (0.2) | (0.2) | (0.4) | 0.6 | 0.4 | 1.0 | |||||||||||||||||
| Adjustments Subtotal * | 0.3 | 3.5 | 3.8 | 1.6 | 4.4 | 6.1 | |||||||||||||||||
| AOI * | $ | 77.2 | $ | 31.4 | $ | 108.6 | $ | 58.6 | $ | 16.8 | $ | 75.4 | |||||||||||
| * Note: Sum of reconciling items may differ from total due to rounding of individual components | |||||||||||||||||||||||
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| Third Quarter 2024 | Third Quarter 2023 | First Nine Months 2024 | First Nine Months 2023 | Last Twelve Months (LTM) Ended 9/29/2024 | Fiscal Year 2023 | |||||||||||||||||||||||||||||||||
| Net Income as Reported (GAAP) | $ | 28.4 | $ | 9.9 | $ | 65.2 | $ | 25.0 | $ | 84.7 | $ | 44.5 | ||||||||||||||||||||||||||
| Income Tax Expense | 7.6 | 6.2 | 21.0 | 11.7 | 28.4 | 19.1 | ||||||||||||||||||||||||||||||||
Interest Expense (including debt issuance cost amortization) | 5.7 | 8.2 | 18.3 | 25.0 | 25.1 | 31.8 | ||||||||||||||||||||||||||||||||
Depreciation and Amortization (excluding debt issuance cost amortization) | 9.3 | 9.6 | 27.7 | 29.0 | 37.4 | 38.7 | ||||||||||||||||||||||||||||||||
| Share-Based Compensation Expense | 2.6 | 2.2 | 9.2 | 7.3 | 12.1 | 10.3 | ||||||||||||||||||||||||||||||||
| Purchase Accounting Amortization | 1.3 | 1.3 | 3.9 | 3.9 | 5.2 | 5.2 | ||||||||||||||||||||||||||||||||
| Restructuring, Asset Impairment, Severance and Other, net | — | — | 0.3 | 1.2 | 4.8 | 5.6 | ||||||||||||||||||||||||||||||||
Property Casualty Loss(1) | (1.4) | — | (2.3) | (0.5) | (2.3) | (0.5) | ||||||||||||||||||||||||||||||||
| Cyber Event | — | 0.1 | (0.4) | 1.0 | (0.3) | 1.1 | ||||||||||||||||||||||||||||||||
Loss on Foreign Subsidiary Liquidation (2) | — | 6.2 | — | 6.2 | — | 6.2 | ||||||||||||||||||||||||||||||||
| Adjusted Earnings before Interest, Taxes, Depreciation and Amortization (AEBITDA)* | $ | 53.7 | $ | 43.7 | $ | 142.9 | $ | 109.8 | $ | 195.1 | $ | 162.0 | ||||||||||||||||||||||||||
| (1) Represents insurance recovery of loss recognized in the first quarter of 2023. | ||||||||||||||||||||||||||||||||||||||
| (2) Russia and Brazil foreign subsidiaries were substantially liquidated. The related cumulative translation adjustment was recognized in other expense. | ||||||||||||||||||||||||||||||||||||||
| * Note: Sum of reconciling items may differ from total due to rounding of individual components | ||||||||||||||||||||||||||||||||||||||
| As of 9/29/24 | ||||||||||||||||||||||||||||||||||||||
| Total Debt | $ | 337.9 | ||||||||||||||||||||||||||||||||||||
| Total Cash on Hand | (115.6) | |||||||||||||||||||||||||||||||||||||
| Total Debt, Net of Cash on Hand (Net Debt)* | $ | 222.3 | ||||||||||||||||||||||||||||||||||||
| 9/29/2024 | ||||||||||||||||||||||||||||||||||||||
| Total Debt / LTM Net Income | 4.0x | |||||||||||||||||||||||||||||||||||||
| Net Debt / LTM AEBITDA | 1.1x | |||||||||||||||||||||||||||||||||||||
| * Note: Sum of reconciling items may differ from total due to rounding of individual components | ||||||||||||||||||||||||||||||||||||||
The impacts of changes in foreign currency presented in the tables are calculated based on applying the prior year period's average foreign currency exchange rates to the current year period.
The Company believes that the above non-GAAP performance measures, which management uses in managing and evaluating the Company’s business, may provide users of the Company’s financial information with additional meaningful basis for comparing the Company’s current results and results in a prior period, as these
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measures reflect factors that are unique to one period relative to the comparable period. However, these non‑GAAP performance measures should be viewed in addition to, and not as an alternative for, the Company’s reported results under accounting principles generally accepted in the United States. Tax effects identified above (when applicable) are calculated using the statutory tax rate for the jurisdictions in which the charge or income occurred.
# # #
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