Third Quarter 2023 Highlights (all historical comparisons
year-over-year; results exclude discontinued operations)
- Net sales of $97.4 million decreased $2.8 million or 2.8%
- GAAP diluted EPS from continuing operations of $0.06 loss
compared to profit of $0.31
- Adjusted diluted EPS of $0.04 decreased $0.31
- Net loss from continuing operations of $1.5 million compared to
Net income of $8.5 million
- Adjusted EBITDA of $6.0 million decreased $10.1 million
- Free cash flow of $8.9 million increased $7.6 million
- Launched accelerated and expanded strategic review
- Lowering full-year guidance
Luxfer Holdings PLC (NYSE: LXFR) (“Luxfer” or the
“Company”), a global industrial company innovating niche
applications in materials engineering, today announced financial
results for the third quarter 2023, ended October 1, 2023.
Third Quarter 2023 Consolidated Results
Net sales of $97.4 million decreased $2.8 million from $100.2
million in the prior year period, including a negative $4.9 million
impact from volume/mix, partially offset by a $2.0 million benefit
from higher pricing.
GAAP net loss from continuing operations was $1.5 million, or
$0.06 loss per diluted share, compared to $8.5 million income, or
$0.31 earning per diluted share, in the prior year period.
Adjusted net income was $1.1 million, or $0.04 per diluted
share, compared to $9.6 million, or $0.35 per diluted share, in the
prior year period. Adjusted EBITDA of $6.0 million decreased $10.1
million, from $16.1 million. Foreign exchange reduced Adjusted
EBITDA by $0.9 million.
“Third quarter performance is in line with the preliminary
results we published on October 11, and reflects the challenging
macro environment and related weakening demand, as well as
continued supply chain issues,” said Andy Butcher, Chief Executive
Officer. “By end market, Defense, First Response & Healthcare,
along with Transportation, grew revenues compared to last year,
while General Industrial faced meaningful headwinds. We generated
strong free cash flow in the quarter and reduced debt, further
strengthening our balance sheet. We continue to take significant
proactive actions to reduce costs and drive profitability as we
navigate the broader circumstances associated with higher material
costs, especially related to the disruption in our U.S. domestic
magnesium supply, as well as an increasingly unhelpful
macroeconomic environment. Importantly, our efforts to address
these factors are beginning to gain traction. I want to thank all
our employees for their continued dedication and hard work as we
address the current landscape and deliver on our customers’
needs.”
Strategic Review
As was also announced on October 11, Luxfer is accelerating and
expanding its annual strategic review process, with the goal of
driving improved financial performance and identifying
opportunities to maximize value. To support its efforts and to
ensure a rigorous, independent review, the Board of Directors has
engaged a leading global investment bank to assist the Company in
conducting a comprehensive process to thoroughly evaluate all of
Luxfer’s businesses, its capital structure, and available
alternatives to unlock and maximize value.
Butcher added, “Luxfer’s Board and management team are fully
aligned and committed to delivering long-term stakeholder value. As
secular growth trends emerge and the global economy shifts, we want
to ensure we are in the right markets and businesses to best
leverage our unique value proposition and deliver strong financial
performance and returns.”
The comprehensive strategic review is ongoing, and the Company
plans to provide an update on or before its fourth quarter and full
year 2023 earnings call to be held in February 2024.
Third Quarter 2023 Segment Results (all historical
comparisons year-over-year; results exclude discontinued
operations)
Elektron Segment
- Net sales of $52.7 million decreased $4.1 million, or 7.2%,
from $56.8 million, due to unfavorable volume/mix and price
partially offset by favorable foreign exchange
- Adjusted EBITDA of $3.2 million decreased $9.5 million, or
74.8%, from $12.7 million, due to competitive pressures in Graphic
Arts, unfavorable year-on-year price/cost comparisons and increased
legal fees
Gas Cylinders Segment
- Net sales of $44.7 million increased $1.3 million, or 3.0%,
from $43.4 million, due to favorable cost pass-through offset by
volume/mix and adverse foreign exchange
- Adjusted EBITDA of $2.8 million decreased $0.6 million, or
17.6%, from $3.4 million as cost pass-through and fixed-cost
savings were offset by the impact from lower volume/mix and
productivity, and adverse foreign exchange
Capital Resources and Liquidity
The Company generated free cash flow of $8.9 million in the
third quarter, compared to $1.3 million in the prior year period.
During the quarter, the Company paid $3.5 million in dividends, or
$0.13 per ordinary share, and paid down $12.6 million of debt. At
the end of the quarter, net debt totaled $78.7 million, resulting
in a net debt to EBITDA ratio of 1.7x and available headroom on the
revolving credit facility of $70.6 million.
2023 Guidance
Based on performance in the first nine months of 2023 as well as
the current outlook for customers and end markets, Luxfer expects
fourth quarter 2023 adjusted earnings per share of $0.00 to $0.05.
This implies full-year adjusted earnings per share of $0.51 to
$0.56 compared to $0.88 to $1.00 previously stated.
Given the strategic review process underway, the Company is
withdrawing its previously communicated goal of $2.00 adjusted EPS
in 2025.
Conference Call Information
Luxfer management will host a conference call at 8:30 a.m. U.S.
Eastern Daylight Time (EDT) on Thursday, October 26, 2023, to
review the Company’s quarterly results. The conference call can be
accessed by dialing (800) 343-4136 or (203) 518-9814 for
participants outside the U.S., using the conference ID code
LXFRQ323. Please dial in at least 15 minutes prior to the start of
the call to register. Please use the following link to access the
webcast of the conference call: LXFR 3Q 2023 Webcast.
A replay of the webcast and slides used in the presentation will
be available in the Investor Relations section of the Luxfer
website under Quarterly Reports and Presentations within two hours
of call completion. A recording of the conference call will be
available for replay two hours after the completion of the call and
will remain accessible through November 9, 2023 at midnight Eastern
Standard Time (EST). To access the recording, please dial (800)
695-2533 or (402) 530-9029 for participants outside the U.S.
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.
With respect to the Company’s 2023 adjusted earnings per share
guidance, the Company is not able to provide a reconciliation of
the non-GAAP financial measure to GAAP because it does not provide
specific guidance for the various extraordinary, nonrecurring, or
unusual charges and other certain items. These items have not yet
occurred, are out of the Company’s control, and/or cannot be
reasonably predicted. As a result, reconciliation of the non-GAAP
guidance measure to GAAP is not available without unreasonable
effort, and the Company is unable to address the probable
significance of the unavailable information.
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, services, and strategic
planning; (iii) statements of future economic performance; and (iv)
statements of assumptions underlying such statements. Words such as
“believes,” “anticipates,” “expects,” “intends,” “forecasts,”
“goals,” “outlook,” 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: (a) lower than expected future sales,
including as a result of decreasing demand and customer inventory
management; (b) increasing competitive industry pressures; (c)
general economic conditions or conditions affecting demand for the
products and services it offers, both domestically and
internationally, including as a result of post-Brexit regulation,
being less favorable than expected; (d) worldwide economic and
business conditions and conditions in the industries in which the
Company operates, including impacts on its supply chain; (e) our
ability to execute a turnaround plan in our Graphic Arts business
to safeguard revenues and reduce costs; (f) fluctuations in the
cost of raw materials, utilities, and other inputs; (g) currency
fluctuations and hedging risks; (h) the Company’s ability to
protect its intellectual property; (i) the significant amount of
indebtedness the Company has incurred and may incur and the
obligations to service such indebtedness and to comply with the
covenants contained therein; and (j) continuing 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 thereto, 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 or otherwise. 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, 2022, which was filed with the U.S.
Securities and Exchange Commission on March 1, 2023. 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.
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 such statement, whether because of new
information, future events, or otherwise.
About Luxfer Holdings PLC
Luxfer is a global industrial company innovating niche
applications in materials engineering. Using its broad array of
proprietary technologies, Luxfer focuses on value creation,
customer satisfaction, and demanding applications where technical
know-how and manufacturing expertise combine to deliver a superior
product. Luxfer’s high-performance materials, components, and
high-pressure gas containment devices are used in defense and
emergency response, clean energy, 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
2023
2022
2023
2022
Net sales
$
97.4
$
100.2
$
309.1
$
306.7
Cost of goods sold
(82.8
)
(77.0
)
(249.2
)
(233.6
)
Gross profit
14.6
23.2
59.9
73.1
Selling, general and administrative
expenses
(11.3
)
(10.3
)
(36.6
)
(32.5
)
Research and development
(1.2
)
(1.0
)
(3.4
)
(3.5
)
Restructuring charges
(1.6
)
(0.3
)
(4.4
)
(2.0
)
Acquisition and disposal related costs
—
—
—
(0.3
)
Operating income
0.5
11.6
15.5
34.8
Net interest expense
(1.6
)
(1.0
)
(4.7
)
(2.7
)
Defined benefit pension credit /
(charge)
0.3
0.2
(8.0
)
0.9
(Loss) / income before income
taxes
(0.8
)
10.8
2.8
33.0
(Provision) / credit for income taxes
(0.7
)
(2.3
)
1.1
(7.2
)
Net (loss) / income from continuing
operations
(1.5
)
8.5
3.9
25.8
Net income / (loss) from discontinued
operations
0.2
(0.5
)
—
(0.9
)
Net (loss) / income
$
(1.3
)
$
8.0
$
3.9
$
24.9
(Loss) / earnings per share1
Basic from continuing operations2
$
(0.06
)
$
0.31
$
0.14
$
0.94
Basic from discontinued operations2
$
0.01
$
(0.02
)
$
—
$
(0.03
)
Basic
$
(0.05
)
$
0.29
$
0.14
$
0.91
Diluted from continuing operations2
$
(0.06
)
$
0.31
$
0.14
$
0.93
Diluted from discontinued operations2
$
0.01
$
(0.02
)
$
—
$
(0.03
)
Diluted
$
(0.05
)
$
0.29
$
0.14
$
0.90
Weighted average ordinary shares
outstanding
Basic
26,895,968
27,295,862
26,913,771
27,403,844
Diluted
27,016,373
27,525,314
27,072,425
27,652,886
_______________
1 The calculation of earnings per share is
performed separately for continuing and discontinued operations. As
a result, the sum of the two in any particular period may not equal
the earnings-per-share amount in total.
2 The loss per share for the third quarter
of 2023 for continuing operations and the third quarter of 2022 and
2022 year-to-date for discontinued operations has not been diluted,
since the incremental shares included in the weighted-average
number of shares outstanding would have been anti-dilutive.
LUXFER HOLDINGS PLC
CONDENSED CONSOLIDATED BALANCE
SHEETS (UNAUDITED)
October 1,
December 31,
In millions, except share and per-share
data
2023
2022
Current assets
Cash and cash equivalents
$
1.2
$
12.6
Restricted cash
0.3
0.3
Accounts and other receivables, net of
allowances of $0.6 and $0.4, respectively
69.9
67.8
Inventories
109.8
111.1
Current assets held-for-sale
9.1
9.3
Total current assets
190.3
201.1
Non-current assets
Property, plant and equipment, net
74.6
77.7
Right-of-use assets from operating
leases
17.5
19.8
Goodwill
66.0
65.6
Intangibles, net
12.0
12.5
Deferred tax assets
2.9
3.0
Investments and loans to joint ventures
and other affiliates
0.3
0.4
Pensions and other retirement benefits
29.3
27.0
Total assets
$
392.9
$
407.1
Current liabilities
Short-term debt
$
1.1
$
25.0
Accounts payable
39.3
37.8
Accrued liabilities
21.1
29.4
Taxes on income
1.3
1.8
Current liabilities held-for-sale
4.2
5.0
Other current liabilities
13.3
11.2
Total current liabilities
80.3
110.2
Non-current liabilities
Long-term debt
78.8
56.2
Pensions and other retirement benefits
—
4.5
Deferred tax liabilities
11.4
9.9
Other non-current liabilities
17.0
19.0
Total liabilities
187.5
199.8
Shareholders' equity
Ordinary shares of £0.50 par value;
authorized 40,000,000 shares for 2023 and 2022; issued and
outstanding 28,944,000 for 2023 and 2022
26.5
26.5
Additional paid-in capital
222.8
221.4
Treasury shares
(22.4
)
(20.4
)
Company shares held by ESOP
(0.9
)
(1.0
)
Retained earnings
110.1
120.2
Accumulated other comprehensive loss
(130.7
)
(139.4
)
Total shareholders' equity
205.4
207.3
Total liabilities and shareholders'
equity
$
392.9
$
407.1
LUXFER HOLDINGS PLC
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (UNAUDITED)
Year-to-date
In millions
2023
2022
Operating activities
Net income
$
3.9
$
24.9
Net loss from discontinued operations
—
0.9
Net income from continuing operations
3.9
25.8
Adjustments to reconcile net income to net
cash provided / (used) by operating activities
Depreciation
9.2
9.8
Amortization of purchased intangible
assets
0.6
0.6
Amortization of debt issuance costs
0.3
0.4
Share-based compensation charges
2.0
1.8
Deferred income taxes
1.6
0.5
Gain on disposal of property, plant and
equipment
—
(0.2
)
Asset impairment charges
2.7
—
Defined benefit pension charge /
(credit)
8.0
(0.9
)
Defined benefit pension contributions
(2.1
)
—
Changes in assets and liabilities
Accounts and other receivables
(0.6
)
(13.6
)
Inventories
1.2
(29.6
)
Current assets held-for-sale
0.4
(3.8
)
Accounts payable
(0.9
)
3.5
Accrued liabilities
(8.7
)
5.5
Current liabilities held-for-sale
(0.7
)
3.5
Other current liabilities
(7.0
)
(1.9
)
Other non-current assets and
liabilities
0.3
(4.6
)
Net cash provided / (used) by operating
activities - continuing
10.2
(3.2
)
Net cash provided by operating activities
- discontinued
0.1
—
Net cash provided / (used) by operating
activities
10.3
(3.2
)
Investing activities
Capital expenditures
(7.5
)
(5.2
)
Proceeds from sale of property, plant and
equipment
—
3.7
Net cash used by investing activities -
continuing
(7.5
)
(1.5
)
Net cash used by investing activities -
discontinued
(0.1
)
—
Net cash used by investing
activities
(7.6
)
(1.5
)
Financing activities
Repayment of short-term borrowings
(25.0
)
—
Net drawdown of long-term borrowings
22.5
31.7
Repurchase of deferred shares
—
(0.1
)
Repurchase of own shares
(2.2
)
(6.9
)
Share-based compensation cash paid
(0.3
)
(1.4
)
Dividends paid
(10.5
)
(10.6
)
Net cash (used) / provided by financing
activities
(15.5
)
12.7
Effect of exchange rate changes on cash
and cash equivalents
0.3
(2.9
)
Net (decrease) / increase
$
(12.5
)
$
5.1
Cash, cash equivalents and restricted
cash; beginning of year
12.9
6.4
Cash, cash equivalents and restricted
cash; end of the third quarter
0.4
11.5
Supplemental cash flow
information:
Interest payments
$
4.8
$
2.8
Income tax payments, net
2.8
2.2
LUXFER HOLDINGS PLC
SUPPLEMENTAL
INFORMATION
SEGMENT INFORMATION
(UNAUDITED)
Net sales
Adjusted EBITDA
Third Quarter
Year-to-date
Third Quarter
Year-to-date
In millions
2023
2022
2023
2022
2023
2022
2023
2022
Gas Cylinders segment
$
44.7
$
43.4
$
134.7
$
131.9
$
2.8
$
3.4
$
10.2
$
9.8
Elektron segment
52.7
56.8
174.4
174.8
3.2
12.7
21.5
39.3
Consolidated
$
97.4
$
100.2
$
309.1
$
306.7
$
6.0
$
16.1
$
31.7
$
49.1
Depreciation and
amortization
Restructuring charges
Third Quarter
Year-to-date
Third Quarter
Year-to-date
In millions
2023
2022
2023
2022
2023
2022
2023
2022
Gas Cylinders segment
$
1.1
$
1.2
$
3.2
$
3.8
$
1.4
$
0.3
$
4.1
$
1.8
Elektron segment
2.1
2.1
6.6
6.6
0.2
—
0.3
0.2
Consolidated
$
3.2
$
3.3
$
9.8
$
10.4
$
1.6
$
0.3
$
4.4
$
2.0
ADJUSTED NET INCOME AND
ADJUSTED EARNINGS PER SHARE
(UNAUDITED)
Third Quarter
Year-to-date
In millions except per share data
2023
2022
2023
2022
Net (loss) / income from continuing
operations
$
(1.5
)
$
8.5
$
3.9
$
25.8
Accounting charges relating to
acquisitions and disposals of businesses:
Amortization on acquired intangibles
0.2
0.2
0.6
0.6
Acquisition and disposal related costs
—
—
—
0.3
Defined benefit pension (credit) /
charge
(0.3
)
(0.2
)
8.0
(0.9
)
Restructuring charges
1.6
0.3
4.4
2.0
Share-based compensation charges
0.7
0.9
2.0
1.8
Tax impact of defined benefit pension
settlement
—
—
(4.9
)
—
Income tax on adjusted items
0.4
(0.1
)
(0.1
)
(0.7
)
Adjusted net income
$
1.1
$
9.6
$
13.9
$
28.9
Adjusted (loss) / earnings per ordinary
share
Diluted (loss) / earnings per ordinary
share
$
(0.06
)
$
0.31
$
0.14
$
0.93
Impact of adjusted items
0.10
0.04
0.37
0.12
Adjusted diluted earnings per ordinary
share(1)
$
0.04
$
0.35
$
0.51
$
1.05
(1) For the purpose of calculating diluted
earnings per share, the weighted average number of ordinary shares
outstanding during the financial year has been adjusted for the
dilutive effects of all potential ordinary shares and share options
granted to employees, except where there is a loss in the period,
then no adjustment is made.
LUXFER HOLDINGS PLC
ADJUSTED EBITDA
(UNAUDITED)
Third Quarter
Year-to-date
In millions
2023
2022
2023
2022
Adjusted net income
$
1.1
$
9.6
$
13.9
$
28.9
Add back:
Tax impact of defined benefit pension
settlement
—
—
4.9
—
Income tax on adjusted items
(0.4
)
0.1
0.1
0.7
Provision / (credit) for income taxes
0.7
2.3
(1.1
)
7.2
Interest expense
1.6
1.0
4.7
2.7
Adjusted EBITA
$
3.0
$
13.0
$
22.5
$
39.5
Gain on disposal of PPE
—
—
—
(0.2
)
Depreciation
3.0
3.1
9.2
9.8
Adjusted EBITDA
$
6.0
$
16.1
$
31.7
$
49.1
ADJUSTED EFFECTIVE TAX
RATE
(UNAUDITED)
Third Quarter
Year-to-date
In millions
2023
2022
2023
2022
Adjusted net income
$
1.1
$
9.6
$
13.9
$
28.9
Add back:
Tax impact of defined benefit pension
settlement
—
—
4.9
—
Income tax on adjusted items
(0.4
)
0.1
0.1
0.7
Provision for income taxes
0.7
2.3
(1.1
)
7.2
Adjusted income before income taxes
$
1.4
$
12.0
$
17.8
$
36.8
Adjusted provision for income taxes
0.3
2.4
3.9
7.9
Adjusted effective tax rate
21.4
%
20.0
%
21.9
%
21.5
%
NET DEBT RATIO
(UNAUDITED)
Third Quarter
In millions
2023
Cash and cash equivalents
$
1.2
Total debt
(79.9
)
Net debt
(78.7
)
Adjusted EBITDA previous twelve months
45.7
Net debt to EBITDA ratio
1.7
FREE CASH FLOW
(UNAUDITED)
Third Quarter
Year-to-date
In millions
2023
2022
2023
2022
Net cash provided by continuing operating
activities
$
11.5
$
3.6
$
10.2
$
(3.2
)
Capital expenditures
(2.6
)
(2.3
)
(7.5
)
(5.2
)
Free cash flow
8.9
1.3
2.7
(8.4
)
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version on businesswire.com: https://www.businesswire.com/news/home/20231025537833/en/
Kevin Grant Vice President of Investor Relations and Business
Development 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