Second Quarter 2020 Summary (based on year-over-year
comparisons unless otherwise noted)
- Net sales of $89.5 million decreased 23.2%, including a 1.3%
unfavorable impact from currency and a 2.7% decrease due to the
divestiture of the Czech recycling operation 1
- GAAP net income of $4.1 million, including $0.8 million in
restructuring expenses, improved from a net income of $3.5 million;
adjusted net income of $4.7 million decreased 62.1%
- GAAP EPS of $0.15, improved from $0.13; adjusted EPS of $0.17
decreased 61.4%
- Adjusted EBITDA of $10.4 million decreased 48.5%; adjusted
EBITDA margin of 11.6% decreased 570 basis points
- Free cash flow of $12.1 million increased from negative ($11.7)
million in the prior year, with a net debt to EBITDA ratio of 1.5x
and no debt maturity until September 2021
- Achieved $0.7 million in incremental net cost savings and
remain on track to reach total transformation plan savings of $24
million by year end 2021
Luxfer Holdings PLC (NYSE: LXFR), a global
manufacturer of highly-engineered industrial materials, today
announced financial results for the second quarter of 2020, ending
June 28, 2020.
Second Quarter 2020 Results (based on year-over-year
comparisons unless otherwise noted)
Consolidated net sales decreased 23.2% to $89.5 million from
$116.5 million. Excluding a $3.1 million decrease in sales due to
the divestiture of the Czech recycling operation, core `sales
decreased 21.1%, including an unfavorable foreign currency exchange
impact of $1.5 million, or 1.3%. The sales decline was broad-based
and driven by the impact of the COVID-19 pandemic, particularly
pronounced in the industrial and transportation end-markets.
GAAP net income was $4.1 million, or $0.15 per diluted share,
compared to a net income of $3.5 million, or $0.13 per diluted
share. These results include $0.8 million in restructuring
expenses, compared to restructuring expenses of $12.7 million in
2019.
Adjusted net income decreased 62.1% to $4.7 million from $12.4
million. Adjusted diluted earnings per share decreased 61.4% to
$0.17 from $0.44. Adjusted EBITDA was $10.4 million, compared to
$20.2 million. Adjusted EBITDA margin of 11.6% decreased 570 basis
points from 17.3%.
“I am very proud of the Luxfer team who together adapted and
overcame disruptions brought on by COVID-19. I am grateful for
their efforts to ensure business continuity while prioritizing the
health and safety of our team members and communities,” stated
Luxfer’s Chief Executive Officer, Alok Maskara. “Luxfer’s second
quarter results reflect the global macro environment of the
COVID-19 pandemic, with broad-based market weakness that was
especially evident in our industrial and transportation
end-markets. While the environment remains challenging, we made
excellent progress on our transformation plan and executed
substantial additional actions to partially mitigate the volume
declines. In addition to reducing costs, our relentless focus on
working capital initiatives resulted in strong free cash flow of
$12.1 million in the quarter.”
Second Quarter 2020 Segment Results (based on
year-over-year comparisons unless otherwise noted)
Elektron Segment
- Net sales of $39.1 million decreased 33.0% from $58.4 million.
Foreign currency exchange negatively impacted sales by $0.6
million, or 1.0%. The divestiture of the Czech recycling operation
reduced sales by $3.1 million, or 5.3%.
- Adjusted EBITDA decreased 59.5% to $5.3 million (13.6% of
sales) from $13.1 million (22.4% of sales).
Gas Cylinders Segment
- Net sales of $50.4 million decreased 13.3% from $58.1 million.
Foreign currency exchange negatively impacted sales by $0.9
million, or 1.5%.
- Adjusted EBITDA decreased 28.2% to $5.1 million (10.1% of
sales) from $7.1 million (12.2% of sales).
Capital Resources and Liquidity
Free Cash Flow was $12.1 million in the second quarter of 2020,
compared to negative ($11.7) million a year ago. Quarterly cash
usage included approximately $1.6 million for restructuring as part
of the Company’s transformation plan, compared to approximately
$12.3 million in the prior year. During the quarter, the Company
paid $3.4 million in dividends, or $0.125 per share.
At quarter end, the Company had net debt of $82.4 million, with
a net debt to EBITDA ratio of 1.5x. The Company believes that it
has ample liquidity to withstand current market conditions, with
approximately $130 million in an undrawn revolving credit
facility.
Impact of COVID-19 on Operations
We continue to operate all of our locations, as permitted by
local authorities, with numerous protocols and procedures to
protect the health and well-being of our employees, our supply
chain, and the communities in which we operate. We are closely
monitoring the evolving situation and are maintaining enhanced
safeguards while ensuring business continuity.
As part of our COVID-19 response, we took decisive actions early
in Q2 to effectively manage capacity given rapid changes in
customer demand patterns by implementing extensive furloughs,
reduced work weeks, and permanent layoffs. We worked closely with
our suppliers and were able to avoid any significant disruption in
our supply chain.
Our demand level remains below normal, although we noticed
sequential month-over- month improvement in June after some of the
COVID-19 restrictions eased. Currently, most of our locations are
operating at reduced capacity and many of our employees remain on
furlough.
2020 Guidance
“Given the continued market uncertainty and volatility, Luxfer
is not providing financial guidance for the remainder of the year.
We will continue to focus on controllable business measures, such
as cost reductions and cash generation,” stated Maskara. “We expect
the current global economic conditions to continue to have a
significant near-term impact on our business and have implemented
various measures to position Luxfer for success when markets
improve. We have a strong balance sheet and existing credit
facilities, which provide financial flexibility that will enable us
to emerge from the economic downturn as a stronger company.”
Conference Call Information
Luxfer has scheduled a conference call at 8:30 a.m. U.S. Eastern
Time on Tuesday, July 28, 2020, during which management will
provide a review of the Company’s financial results for the second
quarter of 2020. U.S. participants may access the conference call
by telephoning +1-877-341-8545. Participants from other countries
may call +1-908-982-4601. The participant conference ID code is
4111829. The following link provides access to a webcast for the
conference call: https://event.on24.com/wcc/r/2453528/
B543C56B619CBBC4C3EBAC52E77CB78C
A recording of the conference call will be available for replay
two hours after the completion of the call and will remain
accessible until the next quarterly report is released. To hear the
recording, call +1-855-859-2056 in the U.S. and +1-404-537-3406 in
other countries. Enter conference ID code 4111829 when prompted.
Slides used in the presentation and a recording of the call will
also be available in the investor relations section of the Luxfer
website at www.luxfer.com.
Non-GAAP Financial Measures
Luxfer Holdings PLC prepares its financial statements using U.S.
Generally Accepted Accounting Principles (GAAP). When a company
discloses material information containing non-GAAP financial
measures, SEC regulations require that the disclosure include a
presentation of the most directly comparable GAAP measure and a
reconciliation of the GAAP and non-GAAP financial measures.
Management’s inclusion of non-GAAP financial measures in this
release is intended to supplement, not replace, the presentation of
the financial results in accordance with GAAP. Luxfer management
believes that these non-GAAP financial measures, when considered
together with the GAAP financial measures, provide information that
is useful to investors in understanding period-over-period
operating results separate and apart from items that may, or could,
have a disproportionately positive or negative impact on results in
any period. Management also believes that these non-GAAP financial
measures enhance the ability of investors to analyze the Company’s
business trends and to understand the Company’s performance. In
addition, management may utilize non-GAAP financial measures as a
guide in the Company’s forecasting, budgeting and long-term
planning process. Non-GAAP financial measures should be considered
in addition to, and not as a substitute for, or superior to,
financial measures presented in accordance with GAAP.
1 The divestiture of the Czech recycling operation occurred in
the second quarter of 2019.
Forward-Looking Statements
This release contains certain forward-looking statements that
involve risks and uncertainties that could cause actual results to
differ materially from those projected in the forward-looking
statements. Examples of such forward-looking statements include,
but are not limited to: (i) statements regarding the Company’s
results of operations and financial condition; (ii) statements of
plans, objectives or goals of the Company or its management,
including those related to financing, products or services; (iii)
statements of future economic performance; and (iv) statements of
assumptions underlying such statements. Words such as “believes,”
“anticipates,” “expects,” “intends,” “forecasts” and “plans,” and
similar expressions, are intended to identify forward-looking
statements but are not the exclusive means of identifying such
statements. By their very nature, forward-looking statements
involve inherent risks and uncertainties, both general and
specific, and risks exist that the predictions, forecasts,
projections and other forward-looking statements will not be
achieved. The Company cautions that several important factors could
cause actual results to differ materially from the plans,
objectives, expectations, estimates and intentions expressed in
such forward-looking statements. These factors include, but are not
limited to: (i) lower than expected future sales; (ii) increasing
competitive industry pressures; (iii) general economic conditions
or conditions affecting demand for the products and services we
offer, both domestically and internationally, including as a result
of the Brexit referendum, being less favorable than expected; (iv)
worldwide economic and business conditions and conditions in the
industries in which we operate; (v) fluctuations in the cost of raw
materials, utilities and other inputs; (vi) currency fluctuations
and hedging risks; (vii) our ability to protect our intellectual
property; (viii) the significant amount of indebtedness we have
incurred and may incur and the obligations to service such
indebtedness and to comply with the covenants contained therein;
(ix) our ability to remediate the material weakness in our internal
controls over financial reporting; and (x) risks related to the
impact of the global COVID-19 pandemic, such as the scope and
duration of the outbreak, government actions and restrictive
measures implemented in response, supply chain disruptions and
other impacts to the business, and the Company’s ability to execute
business continuity plans, as a result of the COVID-19 pandemic.
The Company cautions that the foregoing list of important factors
is not exhaustive. These factors are more fully discussed in the
sections entitled “Forward-Looking Statements” and “Risk Factors”
in our Annual Report on Form 10-K for the year ended December 31,
2019, which was filed with the U.S. Securities and Exchange
Commission on March 10, 2020. When relying on forward-looking
statements to make decisions with respect to the Company, investors
and others should carefully consider the foregoing factors and
other uncertainties and events. Such forward-looking statements
speak only as of the date on which they are made, and the Company
does not undertake any obligation to update or revise any of them,
whether because of new information, future events or otherwise.
About Luxfer Holdings PLC (“Luxfer”)
Luxfer is a global manufacturer of highly-engineered industrial
materials, which focuses on value creation by using its broad array
of technical know-how and proprietary technologies. Luxfer’s
high-performance materials, components and high-pressure gas
containment devices are used in defense and emergency response,
healthcare, transportation and general industrial applications. For
more information, visit www.luxfer.com.
Luxfer is listed on the New York Stock Exchange and its ordinary
shares trade under the symbol LXFR.
LUXFER HOLDINGS PLC
CONDENSED CONSOLIDATED
STATEMENTS OF INCOME (UNAUDITED)
Second Quarter
Year-to-date
In millions, except share and per-share
data
2020
2019
2020
2019
Net sales
$
89.5
$
116.5
$
193.3
$
236.9
Cost of goods sold
(70.7
)
(85.5
)
(150.0
)
(175.8
)
Gross profit
18.8
31.0
43.3
61.1
Selling, general and administrative
expenses
(11.8
)
(14.4
)
(24.6
)
(30.8
)
Research and development
(0.9
)
(1.6
)
(1.6
)
(3.0
)
Restructuring charges
(0.8
)
(12.7
)
(3.6
)
(21.7
)
Impairment charges
—
—
—
0.2
Acquisition and disposal related gains /
(costs)
—
2.9
(0.2
)
(1.7
)
Operating income
5.3
5.2
13.3
4.1
Interest expense
(1.1
)
(1.1
)
(2.3
)
(2.2
)
Interest income
—
—
—
—
Defined benefit pension credit
1.1
0.5
2.2
1.1
Income before income taxes and equity
in net income of affiliates
5.3
4.6
13.2
3.0
Provision for income taxes
(1.1
)
(1.4
)
(2.8
)
(3.5
)
Income / (loss) before equity in net
(loss) / income of affiliates
4.2
3.2
10.4
(0.5
)
Equity in net (loss) / income of
affiliates (net of tax)
(0.1
)
0.3
(0.1
)
0.2
Net income / (loss)
$
4.1
$
3.5
$
10.3
$
(0.3
)
Earnings / (loss) per share
Basic
$
0.15
$
0.13
$
0.37
$
(0.01
)
Diluted
$
0.15
$
0.13
$
0.37
$
(0.01
)
Weighted average ordinary shares
outstanding
Basic
27,540,377
27,302,174
27,490,955
27,168,170
Diluted
27,968,825
27,889,909
27,933,119
27,168,170
LUXFER HOLDINGS PLC
CONDENSED CONSOLIDATED BALANCE
SHEETS (UNAUDITED)
June 28,
December 31,
In millions, except share and per-share
data
2020
2019
Current assets
Cash and cash equivalents
$
8.1
$
10.2
Restricted cash
0.1
0.1
Accounts and other receivables, net of
allowances of $1.9 and $1.3, respectively
62.9
66.3
Inventories
93.2
94.5
Other current assets
4.0
5.0
Total current assets
$
168.3
$
176.1
Non-current assets
Property, plant and equipment, net
$
93.0
$
98.9
Right-of-use assets from operating
leases
12.9
14.8
Goodwill
66.4
68.8
Intangibles, net
12.8
13.6
Deferred tax assets
14.4
15.8
Investments and loans to joint ventures
and other affiliates
2.1
2.3
Total assets
$
369.9
$
390.3
Current liabilities
Accounts payable
$
26.4
$
36.4
Accrued liabilities
23.6
25.2
Taxes on income
1.3
0.1
Other current liabilities
12.6
12.3
Total current liabilities
$
63.9
$
74.0
Non-current liabilities
Long-term debt
$
90.5
$
91.4
Pensions and other retirement benefits
28.4
35.2
Deferred tax liabilities
2.7
2.5
Other non-current liabilities
11.1
12.8
Total liabilities
$
196.6
$
215.9
Shareholders' equity
Ordinary shares of £0.50 par value;
authorized 40,000,000 shares for 2020 and 2019; issued and
outstanding 29,000,000 shares for 2020 and 2019
$
26.6
$
26.6
Deferred shares of £0.0001 par value;
authorized issued and outstanding 761,835,338,444 shares for 2020
and 2019
149.9
149.9
Additional paid-in capital
69.4
68.4
Treasury shares
(4.0
)
(4.0
)
Own shares held by ESOP
(1.5
)
(1.7
)
Retained earnings
88.3
84.8
Accumulated other comprehensive loss
(155.4
)
(149.6
)
Total shareholders' equity
$
173.3
$
174.4
Total liabilities and shareholders'
equity
$
369.9
$
390.3
LUXFER HOLDINGS PLC
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (UNAUDITED)
Year-to-date
In millions
2020
2019
Operating activities
Net income / (loss)
$
10.3
$
(0.3
)
Adjustments to reconcile net income /
(loss) to net cash provided by / (used for) operating
activities
Equity in net loss / (income) of
affiliates
0.1
(0.2
)
Depreciation
6.8
7.1
Amortization of purchased intangible
assets
0.4
0.6
Amortization of debt issuance costs
0.3
0.2
Share-based compensation charges
1.3
3.4
Deferred income taxes
0.5
1.2
Gain on disposal of property, plant and
equipment
—
(2.9
)
Asset impairment charges
—
4.8
Defined benefit pension credit
(2.2
)
(1.1
)
Defined benefit pension contributions
(1.8
)
(3.3
)
Changes in assets and liabilities
Accounts and other receivables
2.8
(4.8
)
Inventories
(1.4
)
(5.9
)
Other current assets
1.0
(1.4
)
Accounts payable
(9.9
)
(1.0
)
Accrued liabilities
(0.6
)
(10.8
)
Other current liabilities
2.0
0.7
Other non-current assets and
liabilities
(0.1
)
(1.9
)
Net cash provided by / (used for)
operating activities
$
9.5
$
(15.6
)
Investing activities
Capital expenditures
$
(4.4
)
$
(7.1
)
Proceeds from sale of property, plant and
equipment
—
1.2
Proceeds from sale of businesses and
other
—
4.6
Net cash used for investing
activities
$
(4.4
)
$
(1.3
)
Financing activities
Net drawdown of short-term borrowings
$
—
$
3.8
Net drawdown of long-term borrowings
0.4
28.2
Deferred consideration paid
(0.4
)
(0.5
)
Proceeds from sale of shares
1.1
3.3
Share-based compensation cash paid
(1.2
)
(4.5
)
Dividends paid
(6.8
)
(6.8
)
Net cash (used for) / from financing
activities
$
(6.9
)
$
23.5
Effect of exchange rate changes on cash
and cash equivalents
(0.3
)
(0.1
)
Net (decrease) / increase
$
(2.1
)
$
6.5
Cash, cash equivalents and restricted
cash; beginning of year
10.3
14.1
Cash, cash equivalents and restricted
cash; end of the Second Quarter
8.2
20.6
Supplemental cash flow
information:
Interest payments
$
2.5
$
2.3
Income tax payments
0.2
5.0
LUXFER HOLDINGS PLC
SUPPLEMENTAL
INFORMATION
SEGMENT INFORMATION
(UNAUDITED)
Net sales
Adjusted EBITDA
Second Quarter
Year-to-date
Second Quarter
Year-to-date
In millions
2020
2019
2020
2019
2020
2019
2020
2019
Gas Cylinders segment
$
50.4
$
58.1
$
103.0
$
116.5
$
5.1
$
7.1
$
8.6
$
11.6
Elektron segment
39.1
58.4
90.3
120.4
5.3
13.1
16.9
27.1
Consolidated
$
89.5
$
116.5
$
193.3
$
236.9
$
10.4
$
20.2
$
25.5
$
38.7
Depreciation and
amortization
Restructuring charges
Second Quarter
Year-to-date
Second Quarter
Year-to-date
In millions
2020
2019
2020
2019
2020
2019
2020
2019
Gas Cylinders segment
$
1.2
$
1.4
$
2.4
$
2.8
$
0.8
$
8.3
$
3.4
$
17.2
Elektron segment
2.4
2.6
4.8
4.9
0.1
4.4
0.1
4.5
Other
—
—
—
—
(0.1
)
—
0.1
—
Consolidated
$
3.6
$
4.0
$
7.2
$
7.7
$
0.8
$
12.7
$
3.6
$
21.7
Second Quarter
Year-to-date
In millions
2020
2019
2020
2019
Adjusted EBITDA
10.4
20.2
25.5
38.7
Other share-based compensation charges
(0.8
)
(0.8
)
(1.3
)
(3.4
)
Depreciation and amortization
(3.6
)
(4.0
)
(7.2
)
(7.7
)
Unwind discount on deferred
consideration
—
(0.1
)
—
(0.1
)
Restructuring charges
(0.8
)
(12.7
)
(3.6
)
(21.7
)
Impairment charges
—
—
—
0.2
Acquisition and disposal related gains /
(costs)
—
2.9
(0.2
)
(1.7
)
Defined benefits pension credit
1.1
0.5
2.2
1.1
Interest expense, net
(1.1
)
(1.1
)
(2.3
)
(2.2
)
Provision for income taxes
(1.1
)
(1.4
)
(2.8
)
(3.5
)
Net income / (loss)
4.1
3.5
10.3
(0.3
)
LUXFER HOLDINGS PLC
ADJUSTED NET INCOME AND
ADJUSTED EARNINGS PER SHARE (UNAUDITED)
Second Quarter
Year-to-date
In millions except per share data
2020
2019
2020
2019
Net income / (loss)
$
4.1
$
3.5
$
10.3
$
(0.3
)
Accounting charges relating to
acquisitions and disposals of businesses:
Unwind of discount on deferred
consideration
—
0.1
—
0.1
Amortization on acquired intangibles
0.2
0.3
0.4
0.6
Acquisition and disposal related (gains) /
costs
—
(2.9
)
0.2
1.7
Defined benefit pension credit
(1.1
)
(0.5
)
(2.2
)
(1.1
)
Restructuring charges
0.8
12.7
3.6
21.7
Impairment charges
—
—
—
(0.2
)
Share-based compensation charges
0.8
0.8
1.3
3.4
Income tax on adjusted items
(0.1
)
(1.6
)
(0.5
)
(2.3
)
Adjusted net income
$
4.7
$
12.4
$
13.1
$
23.6
Adjusted earnings per ordinary
share
Diluted earnings / (loss) per ordinary
share
$
0.15
$
0.13
$
0.37
$
(0.01
)
Impact of adjusted items
0.02
0.31
0.10
0.86
Adjusted diluted earnings per ordinary
share(1)
$
0.17
$
0.44
$
0.47
$
0.85
ADJUSTED EBITDA
(UNAUDITED)
Second Quarter
Year-to-date
In millions
2020
2019
2020
2019
Adjusted net income
$
4.7
12.4
$
13.1
23.6
Add back:
Income tax on adjusted items
0.1
1.6
0.5
2.3
Provision for income taxes
1.1
1.4
2.8
3.5
Net finance costs
1.1
1.1
2.3
2.2
Adjusted EBITA
$
7.0
16.5
$
18.7
31.6
Loss on disposal of PPE
—
—
—
—
Depreciation
3.4
3.7
6.8
7.1
Adjusted EBITDA
$
10.4
20.2
$
25.5
38.7
ADJUSTED EFFECTIVE TAX RATE
(UNAUDITED)
Second Quarter
Year-to-date
In millions
2020
2019
2020
2019
Adjusted net income
$
4.7
12.4
$
13.1
23.6
Add back:
Income tax on adjusted items
0.1
1.6
0.5
2.3
Provision for income taxes
1.1
1.4
2.8
3.5
Adjusted income before income taxes
$
5.9
15.4
$
16.4
29.4
Adjusted provision for income taxes
1.2
3.0
3.3
5.8
Adjusted effective tax rate
20.8
%
19.5
%
20.1
%
19.7
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200727005746/en/
Investor Contact: Heather Harding Chief Financial Officer
+1-414-269-2419 Investor.Relations@luxfer.com
Luxfer (NYSE:LXFR)
過去 株価チャート
から 6 2024 まで 7 2024
Luxfer (NYSE:LXFR)
過去 株価チャート
から 7 2023 まで 7 2024