https://www.avient.com/sites/default/files/2022-02/Q4 2021 Avient Earnings Release_0.pdf
Three Months Ended
December 31,
2021 2020
Reconciliation to Condensed Consolidated Statements of Income $ EPS(1) $ EPS(1)
Net income from continuing operations attributable to Avient shareholders $ 29.8 $ 0.32 $ 74.2 $ 0.81
Special items, after tax (Attachment 3) 24.0 0.26 (26.7) (0.29)
Adjusted net income / EPS - excluding special items $ 53.8 $ 0.58 $ 47.5 $ 0.52
(1) Per share amounts may not recalculate from figures presented herein due to rounding
Year Ended
December 31,
2021 2020
Reconciliation to Condensed Consolidated Statements of Income $ EPS(1) $ EPS(1)
Net income from continuing operations attributable to Avient shareholders $ 230.8 $ 2.51 $ 132.0 $ 1.46
Special items, after tax (Attachment 3) 50.0 0.54 24.8 0.27
Adjusted net income / EPS - excluding special items $ 280.8 3.05 $ 156.8 1.73
(1) Per share amounts may not recalculate from figures presented herein due to rounding
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Attachment 2
Avient Corporation
Condensed Consolidated Statements of Income (Unaudited)
(In millions, except per share data)
Three Months Ended
December 31,
Year Ended
December 31,
2021 2020 2021 2020
Sales $ 1,201.5 $ 997.0 $ 4,818.8 $ 3,242.1
Cost of sales 948.4 744.1 3,719.2 2,457.8
Gross margin 253.1 252.9 1,099.6 784.3
Selling and administrative expense 179.1 187.9 718.4 595.0
Operating income 74.0 65.0 381.2 189.3
Interest expense, net (17.5) (19.3) (75.3) (74.6)
Other (expense) income, net (5.4) 11.7 (1.3) 24.3
Income from continuing operations before income taxes 51.1 57.4 304.6 139.0
Income tax (expense) benefit (22.2) 17.3 (74.0) (5.2)
Net income from continuing operations 28.9 74.7 230.6 133.8
Income (loss) from discontinued operations, net of income taxes — 0.1 — (0.4)
Net income 28.9 74.8 230.6 133.4
Net loss (income) attributable to noncontrolling interests 0.9 (0.5) 0.2 (1.8)
Net income attributable to Avient common shareholders $ 29.8 $ 74.3 $ 230.8 $ 131.6
Earnings per share attributable to Avient common shareholders - Basic:
Continuing operations $ 0.33 $ 0.81 $ 2.53 $ 1.47
Discontinued operations — — — (0.01)
Total $ 0.33 $ 0.81 $ 2.53 $ 1.46
Earnings per share attributable to Avient common shareholders - Diluted:
Continuing operations $ 0.32 $ 0.81 $ 2.51 $ 1.46
Discontinued operations — — — (0.01)
Total $ 0.32 $ 0.81 $ 2.51 $ 1.45
Cash dividends declared per share of common stock $ 0.2375 $ 0.2125 $ 0.8750 $ 0.8200
Weighted-average shares used to compute earnings per common share:
Basic 91.5 91.4 91.4 90.1
Diluted 92.4 92.1 92.1 90.6
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Attachment 3
Avient Corporation
Summary of Special Items (Unaudited)
(In millions, except per share data)
Special items (1)
Three Months Ended
December 31,
Year Ended
December 31,
2021 2020 2021 2020
Cost of sales:
Restructuring costs, including accelerated depreciation $ (6.0) $ (1.8) $ (14.6) $ (4.3)
Environmental remediation costs (0.5) (1.1) (22.9) (20.4)
Reimbursement of previously incurred environmental costs — — 4.5 8.7
Acquisition related costs 0.6 1.2 (0.6) (9.3)
Impact on cost of sales (5.9) (1.7) (33.6) (25.3)
Selling and administrative expense:
Restructuring, legal and other (4.2) (13.0) (5.9) (22.5)
Acquisition earn-out adjustments — 1.5 — (1.0)
Acquisition related costs (1.1) (1.4) (8.3) (24.9)
Impact on selling and administrative expense (5.3) (12.9) (14.2) (48.4)
Impact on operating income (11.2) (14.6) (47.8) (73.7)
Costs related to committed financing in interest expense, net — — — (10.1)
Other income, net — 0.1 0.1 0.4
Pension settlement/curtailment and mark-to-market adjustment (loss) gain (9.4) 10.3 (9.4) 17.2
Impact on income from continuing operations before income taxes (20.6) (4.2) (57.1) (66.2)
Income tax benefit (expense) on above special items 4.1 (1.3) 13.0 14.1
Tax adjustments(2) (7.5) 32.2 (5.9) 27.3
Impact of special items on net income from continuing operations
attributable to Avient Shareholders $ (24.0) $ 26.7 $ (50.0) $ (24.8)
Diluted earnings per common share impact of special items on net income
from continuing operations attributable to Avient shareholders $ (0.26) $ 0.29 $ (0.54) $ (0.27)
Weighted average shares used to compute adjusted earnings per share:
Diluted 92.4 92.1 92.1 90.6
(1) Special items include charges related to specific strategic initiatives or financial restructuring such as: consolidation of operations; debt
extinguishment costs; costs incurred directly in relation to acquisitions or divestitures; employee separation costs resulting from personnel
reduction programs, plant realignment costs, executive separation agreements; asset impairments; settlement gains or losses and mark-to-
market adjustments associated with actuarial gains and losses on pension and other post-retirement benefit plans; environmental remediation
costs, fines, penalties and related insurance recoveries related to facilities no longer owned or closed in prior years; gains and losses on the
divestiture of operating businesses, joint ventures and equity investments; gains and losses on facility or property sales or disposals; results
of litigation, fines or penalties, where such litigation (or action relating to the fines or penalties) arose prior to the commencement of the
performance period; one-time, non-recurring items; and the effect of changes in accounting principles or other such laws or provisions affecting
reported results
Three Months Ended
December 31,
Year Ended
December 31,
2021 2020 2021 2020
Sales:
Color, Additives and Inks $ 581.3 $ 525.8 $ 2,401.6 $ 1,502.9
Specialty Engineered Materials 228.2 190.6 918.9 708.8
Distribution 425.0 305.1 1,630.9 1,110.3
Corporate and eliminations (33.0) (24.5) (132.6) (79.9)
Sales $ 1,201.5 $ 997.0 $ 4,818.8 $ 3,242.1
Gross margin:
Color, Additives and Inks $ 164.5 $ 164.3 $ 727.5 $ 484.4
Specialty Engineered Materials 60.0 59.1 257.4 207.6
Distribution 36.5 32.4 155.8 124.0
Corporate and eliminations (7.9) (2.9) (41.1) (31.7)
Gross margin $ 253.1 $ 252.9 $ 1,099.6 $ 784.3
Selling and administrative expense:
Color, Additives and Inks $ 103.3 $ 106.8 $ 424.4 $ 303.6
Specialty Engineered Materials 31.2 28.7 125.4 113.2
Distribution 14.8 14.4 62.6 54.5
Corporate and eliminations 29.8 38.0 106.0 123.7
Selling and administrative expense $ 179.1 $ 187.9 $ 718.4 $ 595.0
Operating income:
Color, Additives and Inks $ 61.2 $ 57.5 $ 303.1 $ 180.8
Specialty Engineered Materials 28.8 30.4 132.0 94.4
Distribution 21.7 18.0 93.2 69.5
Corporate and eliminations (37.7) (40.9) (147.1) (155.4)
Operating income $ 74.0 $ 65.0 $ 381.2 $ 189.3
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Attachment 7
Avient Corporation
Reconciliation of Non-GAAP Financial Measures (Unaudited)
(In millions, except per share data)
Senior management uses gross margin before special items and operating income before special items to assess performance
and allocate resources because senior management believes that these measures are useful in understanding current profitability
levels and how it may serve as a basis for future performance.
Reconciliation of Pro Forma Adjusted Earnings per Share:
Year Ended
December 31, 2020
Net income from continuing operations attributable to Avient shareholders $ 132.0
Special items, after tax 24.8
Adjusted net income from continuing operations excluding special items 156.8
Clariant Color pro forma adjustments to net income from continuing operations(2) 20.7
Pro forma adjusted net income from continuing operations attributable to Avient
shareholders $ 177.5
Weighted average diluted shares 90.6
Pro forma impact to diluted shares from January 2020 equity offering(2) 1.5
Pro forma weighted average diluted shares 92.1
Adjusted EPS - excluding special items pro forma for Clariant Color acquisition $ 1.93
Year Ended
December 31, 2020
Sales $ 3,242.1
Clariant Color pro forma adjustment to sales(2) 540.4
Pro forma sales $ 3,782.5
(2) Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020) and to give effects to the financing for the acquisition
15
Reconciliation of Earnings Before Interest, Taxes, Depreciation
and Amortization (EBITDA) by Segment
Three Months Ended
December 31,
Year Ended
December 31,
2021 2020 2021 2020
Operating income:
Color, Additives and Inks $ 61.2 $ 57.5 $ 303.1 $ 180.8
Specialty Engineered Materials 28.8 30.4 132.0 94.4
Distribution 21.7 18.0 93.2 69.5
Corporate and eliminations (37.7) (40.9) (147.1) (155.4)
Operating income $ 74.0 $ 65.0 $ 381.2 $ 189.3
Items below OI in Corporate:
Other income, net $ (5.4) $ 11.7 $ (1.3) $ 24.3
Depreciation & amortization:
Color, Additives and Inks $ 26.4 $ 27.3 $ 105.7 $ 75.1
Specialty Engineered Materials 8.0 7.4 31.7 30.0
Distribution 0.2 0.3 0.8 0.7
Corporate and eliminations 3.6 2.8 7.7 9.3
Depreciation & Amortization $ 38.2 $ 37.8 $ 145.9 $ 115.1
EBITDA:
Color, Additives and Inks $ 87.6 $ 84.8 $ 408.8 $ 255.9
Specialty Engineered Materials 36.8 37.8 163.7 124.4
Distribution 21.9 18.3 94.0 70.2
Corporate and eliminations (39.5) (26.4) (140.7) (121.8)
EBITDA $ 106.8 $ 114.5 $ 525.8 $ 328.7
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Reconciliation of Pro Forma Sales, Operating Income and EBITDA - Color, Additives and Inks
Year Ended
December 31, 2020
Sales:
Color, Additives and Inks $ 1,502.9
Clariant Color pro forma adjustments(2) 540.4
Pro forma sales $ 2,043.3
Operating income:
Color, Additives and Inks $ 180.8
Clariant Color pro forma adjustments(2) 45.0
Pro forma operating income $ 225.8
Depreciation & amortization:
Color, Additives and Inks $ 75.1
Clariant Color pro forma adjustments(2) 30.1
Pro forma depreciation & amortization $ 105.2
EBITDA:
Color, Additives and Inks $ 255.9
Clariant Color pro forma adjustments(2) 75.1
Pro forma EBITDA $ 331.0
(2) Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020) and to give effects to the financing for the acquisition
Three Months Ended
December 31,
Year Ended
December 31,
Reconciliation to EBITDA and Pro Forma Adjusted EBITDA: 2021 2020 2021 2020
Net income from continuing operations – GAAP $ 28.9 $ 74.7 $ 230.6 $ 133.8
Income tax expense (benefit) 22.2 (17.3) 74.0 5.2
Interest expense 17.5 19.3 75.3 74.6
Depreciation and amortization from continuing operations 38.2 37.8 145.9 115.1
EBITDA $ 106.8 $ 114.5 $ 525.8 $ 328.7
Special items, before tax 20.6 4.2 57.1 66.2
Interest expense included in special items — — (10.1)
Depreciation and amortization included in special items (1.6) (0.7) (1.7) (3.2)
Adjusted EBITDA $ 125.8 $ 118.0 $ 581.2 $ 381.6
Clariant Color pro forma adjustments(2) — — — 75.1
Pro forma adjusted EBITDA $ 125.8 $ 118.0 $ 581.2 $ 456.7
(2) Pro forma adjustments for the periods prior to the acquisition date (July 1, 2020) and to give effects to the financing for the acquisition
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Net Debt Calculation December 31, 2021
Total long-term debt, net $ 1,850.3
Unamortized discount and debt issuance cost 14.4
Short-term and current portion of long term debt 8.6
Total debt $ 1,873.3
Cash (601.2)
Net debt $ 1,272.1
NEWS RELEASE
Attachment 1
