Third Quarter 2020 Summary (based on year-over-year
comparisons unless otherwise noted)
- Net sales of $90.4 million decreased 15.6%, including a 1.4%
benefit from currency
- GAAP net income of $2.6 million, which includes $4.3 million in
restructuring expenses, decreased from a net income of $5.8
million; adjusted net income of $6.9 million decreased 31%
- GAAP EPS of $0.09 decreased from $0.21; adjusted EPS of $0.25
decreased 30.6%
- Adjusted EBITDA of $14.2 million decreased 15.0%; adjusted
EBITDA margin of 15.7% increased 10 basis points
- Free cash flow of $25.6 million increased from an outflow of
$1.2 million in the prior year
- Net debt to EBITDA ratio of 1.1x and $150 million in an undrawn
revolving credit facility
- Achieved $2.8 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 third quarter of 2020, ending
September 27, 2020.
Third Quarter 2020 Results (based on year-over-year
comparisons unless otherwise noted)
Consolidated net sales decreased 15.6% to $90.4 million from
$107.1 million, including a favorable foreign currency exchange
benefit of $1.5 million, or 1.4%. 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 with a
relatively smaller decline in the defense end-market.
GAAP net income was $2.6 million, or $0.09 per diluted share,
compared to a net income of $5.8 million, or $0.21 per diluted
share. These results include $4.3 million in restructuring
expenses, compared to restructuring and other expenses of $5.3
million in 2019.
Adjusted net income decreased 31% to $6.9 million from $10.0
million. Adjusted diluted earnings per share decreased 30.6% to
$0.25 from $0.36. Adjusted EBITDA decreased 15.0% to $14.2 million,
compared to $16.7 million. Adjusted EBITDA margin of 15.7%
increased 10 basis points from 15.6%.
“Despite the softer demand due to the disruption of COVID-19, we
are pleased with Luxfer’s third quarter results, as they
demonstrate the benefit of decisive management action and
successful cost savings initiatives. I am proud of our employees
who worked around the clock to deliver strong cash and margin
performance, while continuing to prioritize the health and safety
of our team members and business partners,” stated Luxfer’s Chief
Executive Officer, Alok Maskara. “While the environment remains
challenging, we made significant progress on our transformation
plan and executed additional actions to mitigate the volume
declines. In addition to reducing costs, our working capital
initiatives resulted in exceptionally strong free cash flow of over
$25 million in the quarter. With the strength of our free cash flow
and low debt levels, our balance sheet is strong, and we continue
to strategically invest in opportunities to capture growth as our
markets continue to recover.”
Third Quarter 2020 Segment Results (based on
year-over-year comparisons unless otherwise noted)
Elektron Segment
- Net sales of $45.4 million decreased 14.2% from $52.9 million
primarily due to decline in Industrial and Transportation
end-markets. Foreign currency exchange favorably impacted sales by
$0.6 million, or 1.1%.
- Adjusted EBITDA decreased 36.5% to $6.6 million (14.5% of
sales) from $10.4 million (19.7% of sales) as cost actions
partially offset the impact of volume decline.
Gas Cylinders Segment
- Net sales of $45.0 million decreased 17.0% from $54.2 million
with decline in Transportation and First Response end-markets.
Foreign currency exchange favorably impacted sales by $0.9 million,
or 1.7%.
- Adjusted EBITDA increased 20.6% to $7.6 million (16.9% of
sales) from $6.3 million (11.6% of sales) as cost actions and
volume related contractual customer payments more than offset the
impact of volume decline.
Capital Resources and Liquidity
Free cash flow was $25.6 million in the third quarter of 2020,
compared to an outflow of $1.2 million a year ago. Quarterly cash
usage included approximately $1.4 million for restructuring as part
of the Company’s transformation plan, compared to approximately
$8.2 million in the prior year. During the quarter, the Company
paid $3.4 million in ordinary dividends, or $0.125 per share. Given
strong cash flow, the Company maintained a normal level of funding
for growth and productivity although certain projects were delayed
due to COVID-19.
At quarter end, the Company had approximately $164 million in
liquidity, including $150 million in an undrawn revolving credit
facility and $14.2 million in cash. Net debt totaled $59.3 million,
with a net debt to EBITDA ratio of 1.1x.
Impact of COVID-19
While demand levels remain below normal, the Company is
experiencing sequential improvement in order rates following the
sharp volume decline in the second quarter as a result of COVID-19.
Decisive actions were taken early in the second quarter to
effectively manage capacity given the changes in customer demand by
implementing extensive furloughs, a reduced work week, and
permanent layoffs. Currently, most locations are operating at
reduced capacity, but order rates are recovering. The Company is
closely monitoring trends and will bring back personnel as demand
warrants, while providing an enhanced level of health and safety
protocols to ensure the continued health and well-being of
employees, its supply chain, and the communities in which it
operates.
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 conversion while investing in future
growth,” stated Maskara. “We expect the current economic conditions
to continue to have a near-term impact on our business and are
implementing measures to position Luxfer for success as markets
improve. We have a strong balance sheet and undrawn credit
facility, which provides financial flexibility 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
Daylight Time on Tuesday, October 27, 2020, during which management
will provide a review of the Company’s financial results for the
third quarter of 2020. U.S. participants may access the conference
call by telephoning +1-877-341-8545. Participants from other
countries may access the conference call by telephoning
+1-908-982-4601. The participant conference ID code is 5749478. The
following link provides access to a webcast for the conference
call:
https://event.on24.com/wcc/r/2654068/AE02B6A0DDD2E696C60B8AC9FD986AB5.
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, please call +1-855-859-2056 in the U.S. and
+1-404-537-3406 in other countries. Enter conference ID code
5749478 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 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.
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 it
offers, 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 it operates; (v) fluctuations
in the cost of raw materials, utilities and other inputs; (vi)
currency fluctuations and hedging risks; (vii) its ability to
protect its intellectual property; (viii) the significant amount of
indebtedness it has incurred and may incur and the obligations to
service such indebtedness and to comply with the covenants
contained therein; (ix) its ability to remediate the material
weakness in its 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 its 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, please 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)
Third Quarter
Year-to-date
In millions, except share and per-share
data
2020
2019
2020
2019
Net sales
$
90.4
$
107.1
$
283.7
$
344.0
Cost of goods sold
(72.1
)
(81.9
)
(222.1
)
(257.7
)
Gross profit
$
18.3
$
25.2
$
61.6
$
86.3
Selling, general and administrative
expenses
(9.8
)
(11.8
)
(34.4
)
(42.6
)
Research and development
(1.0
)
(1.5
)
(2.6
)
(4.5
)
Restructuring charges
(4.3
)
(2.6
)
(7.9
)
(24.3
)
Impairment charges
—
—
—
0.2
Acquisition and disposal related costs
—
—
(0.2
)
(1.7
)
Other income
2.3
—
2.3
—
Other charges
—
(2.7
)
—
(2.7
)
Operating income
$
5.5
$
6.6
$
18.8
$
10.7
Interest expense
(1.2
)
(1.3
)
(3.5
)
(3.5
)
Defined benefit pension credit
1.1
0.6
3.3
1.7
Income before income taxes and equity
in net income / (loss) of affiliates
$
5.4
$
5.9
$
18.6
$
8.9
Provision for income taxes
(2.8
)
(0.6
)
(5.6
)
(4.1
)
Income before equity in net income /
(loss) of affiliates
$
2.6
$
5.3
$
13.0
$
4.8
Equity in net income / (loss) of
affiliates (net of tax)
—
0.5
(0.1
)
0.7
Net income
$
2.6
$
5.8
$
12.9
$
5.5
Earnings per share
Basic
$
0.09
$
0.21
$
0.47
$
0.20
Diluted
$
0.09
$
0.21
$
0.46
$
0.20
Weighted average ordinary shares
outstanding
Basic
27,619,298
27,393,743
27,532,823
27,243,638
Diluted
28,013,706
27,869,416
27,958,942
27,843,525
LUXFER HOLDINGS PLC
CONDENSED CONSOLIDATED BALANCE
SHEETS (UNAUDITED)
September 27,
December 31,
In millions, except share and per-share
data
2020
2019
Current assets
Cash and cash equivalents
$
14.2
$
10.2
Restricted cash
0.7
0.1
Accounts and other receivables, net of
allowances of $0.6 and $1.3, respectively
55.9
66.3
Inventories
84.7
94.5
Other current assets
4.3
5.0
Total current assets
$
159.8
$
176.1
Non-current assets
Property, plant and equipment, net
$
92.3
$
98.9
Right-of-use assets from operating
leases
12.3
14.8
Goodwill
67.5
68.8
Intangibles, net
12.7
13.6
Deferred tax assets
14.6
15.8
Investments and loans to joint ventures
and other affiliates
0.4
2.3
Total assets
$
359.6
$
390.3
Current liabilities
Current maturities of long-term debt and
short-term borrowings
$
25.0
$
—
Accounts payable
23.6
36.4
Accrued liabilities
27.9
25.2
Taxes on income
2.3
0.1
Other current liabilities
14.3
12.3
Total current liabilities
$
93.1
$
74.0
Non-current liabilities
Long-term debt
$
49.7
$
91.4
Pensions and other retirement benefits
26.7
35.2
Deferred tax liabilities
2.8
2.5
Other non-current liabilities
10.6
12.8
Total liabilities
$
182.9
$
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
70.1
68.4
Treasury shares
(4.0
)
(4.0
)
Own shares held by ESOP
(1.5
)
(1.7
)
Retained earnings
87.5
84.8
Accumulated other comprehensive loss
(151.9
)
(149.6
)
Total shareholders' equity
$
176.7
$
174.4
Total liabilities and shareholders'
equity
$
359.6
$
390.3
LUXFER HOLDINGS PLC
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (UNAUDITED)
Year-to-date
In millions
2020
2019
Operating activities
Net income
$
12.9
$
5.5
Adjustments to reconcile net income to net
cash provided by / (used for) operating activities
Equity in net loss / (income) of
affiliates
0.1
(0.7
)
Depreciation
10.2
10.4
Amortization of purchased intangible
assets
0.6
0.9
Amortization of debt issuance costs
0.4
0.3
Share-based compensation charges
2.1
4.0
Deferred income taxes
0.7
1.5
Gain on disposal of property, plant and
equipment
—
(2.9
)
Asset impairment charges
—
4.8
Defined benefit pension credit
(3.3
)
(1.7
)
Defined benefit pension contributions
(2.7
)
(5.4
)
Changes in assets and liabilities
Accounts and other receivables
9.9
(7.2
)
Inventories
8.2
(3.8
)
Other current assets
0.7
(1.8
)
Accounts payable
(11.9
)
(4.8
)
Accrued liabilities
3.5
(8.2
)
Other current liabilities
4.9
(2.2
)
Other non-current assets and
liabilities
0.4
(2.3
)
Net cash provided by / (used for)
operating activities
$
36.7
$
(13.6
)
Investing activities
Capital expenditures
$
(6.0
)
$
(10.3
)
Proceeds from sale of property, plant and
equipment
—
1.2
Proceeds from sale of businesses and
other
1.3
4.6
Net cash used for investing
activities
$
(4.7
)
$
(4.5
)
Financing activities
Net drawdown of short-term borrowings
$
—
$
(3.5
)
Net (repayment) / drawdown of long-term
borrowings
(16.5
)
31.7
Deferred consideration paid
(0.4
)
(0.5
)
Proceeds from sale of shares
1.1
3.3
Share-based compensation cash paid
(1.3
)
(4.3
)
Dividends paid
(10.2
)
(10.2
)
Net cash (used for) / from financing
activities
$
(27.3
)
$
16.5
Effect of exchange rate changes on cash
and cash equivalents
(0.1
)
(0.4
)
Net increase / (decrease)
$
4.6
$
(2.0
)
Cash, cash equivalents and restricted
cash; beginning of year
10.3
14.1
Cash, cash equivalents and restricted
cash; end of the Third Quarter
14.9
12.1
Supplemental cash flow
information:
Interest payments
$
3.5
$
3.5
Income tax payments
1.6
6.6
LUXFER HOLDINGS PLC
SUPPLEMENTAL
INFORMATION
SEGMENT INFORMATION
(UNAUDITED)
Net sales
Adjusted EBITDA
Third Quarter
Year-to-date
Third Quarter
Year-to-date
In millions
2020
2019
2020
2019
2020
2019
2020
2019
Gas Cylinders segment
$
45.0
$
54.2
$
148.0
$
170.7
$
7.6
$
6.3
$
16.2
$
17.9
Elektron segment
45.4
52.9
135.7
173.3
6.6
10.4
23.5
37.5
Consolidated
$
90.4
$
107.1
$
283.7
$
344.0
$
14.2
$
16.7
$
39.7
$
55.4
Depreciation and
amortization
Restructuring charges
Third Quarter
Year-to-date
Third Quarter
Year-to-date
In millions
2020
2019
2020
2019
2020
2019
2020
2019
Gas Cylinders segment
$
1.2
$
1.3
$
3.6
$
4.1
$
3.4
$
2.3
$
6.8
$
19.5
Elektron segment
2.4
2.3
7.2
7.2
0.9
0.3
1.0
4.8
Other
—
—
—
—
—
—
0.1
—
Consolidated
$
3.6
$
3.6
$
10.8
$
11.3
$
4.3
$
2.6
$
7.9
$
24.3
Third Quarter
Year-to-date
In millions
2020
2019
2020
2019
Adjusted EBITDA
$
14.2
$
16.7
$
39.7
$
55.4
Other share-based compensation charges
(0.8
)
(0.6
)
(2.1
)
(4.0
)
Depreciation and amortization
(3.6
)
(3.6
)
(10.8
)
(11.3
)
Unwind discount on deferred
consideration
—
(0.1
)
—
(0.2
)
Restructuring charges
(4.3
)
(2.6
)
(7.9
)
(24.3
)
Impairment charges
—
—
—
0.2
Acquisition and disposal related gains /
(costs)
—
—
(0.2
)
(1.7
)
Other charges (2)
—
(2.7
)
—
(2.7
)
Defined benefits pension credit
1.1
0.6
3.3
1.7
Interest expense, net
(1.2
)
(1.3
)
(3.5
)
(3.5
)
Provision for income taxes
(2.8
)
(0.6
)
(5.6
)
(4.1
)
Net income
$
2.6
$
5.8
$
12.9
$
5.5
LUXFER HOLDINGS PLC
ADJUSTED NET INCOME AND
ADJUSTED EARNINGS PER SHARE (UNAUDITED)
Third Quarter
Year-to-date
In millions except per share data
2020
2019
2020
2019
Net income
$
2.6
$
5.8
$
12.9
$
5.5
Accounting charges relating to
acquisitions and disposals of businesses:
Unwind of discount on deferred
consideration
—
0.1
—
0.2
Amortization on acquired intangibles
0.2
0.3
0.6
0.9
Acquisition and disposal related (gains) /
costs
—
—
0.2
1.7
Defined benefit pension credit
(1.1
)
(0.6
)
(3.3
)
(1.7
)
Restructuring charges
4.3
2.6
7.9
24.3
Impairment charges
—
—
—
(0.2
)
Other charges
—
2.7
—
2.7
Share-based compensation charges
0.8
0.6
2.1
4.0
Income tax on adjusted items
0.1
(1.5
)
(0.4
)
(3.8
)
Adjusted net income
$
6.9
$
10.0
$
20.0
$
33.6
Adjusted earnings per ordinary
share
Diluted earnings per ordinary share
$
0.09
$
0.21
$
0.46
$
0.20
Impact of adjusted items
0.16
0.15
0.26
1.01
Adjusted diluted earnings per ordinary
share
$
0.25
$
0.36
$
0.72
$
1.21
ADJUSTED EBITDA
(UNAUDITED)
Third Quarter
Year-to-date
In millions
2020
2019
2020
2019
Adjusted net income
$
6.9
$
10.0
$
20.0
$
33.6
Add back:
Income tax on adjusted items
(0.1
)
1.5
0.4
3.8
Provision for income taxes
2.8
0.6
5.6
4.1
Net finance costs
1.2
1.3
3.5
3.5
Adjusted EBITA
$
10.8
$
13.4
$
29.5
$
45.0
Depreciation
3.4
3.3
10.2
10.4
Adjusted EBITDA
$
14.2
$
16.7
$
39.7
$
55.4
ADJUSTED EFFECTIVE TAX RATE
(UNAUDITED)
Third Quarter
Year-to-date
In millions
2020
2019
2020
2019
Adjusted net income
$
6.9
$
10.0
$
20.0
$
33.6
Add back:
Income tax on adjusted items
(0.1
)
1.5
0.4
3.8
Provision for income taxes
2.8
0.6
5.6
4.1
Adjusted income before income taxes
$
9.6
$
12.1
$
26.0
$
41.5
Adjusted provision for income taxes
2.7
2.1
6.0
7.9
Adjusted effective tax rate
28.1
%
17.4
%
23.1
%
19.0
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20201026005809/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 7 2024 まで 8 2024
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過去 株価チャート
から 8 2023 まで 8 2024