Barnes Reports Third Quarter 2024 Financial Results
Strong Aerospace Aftermarket Drives Top-line Growth
Comparisons are year-over-year unless noted otherwise
Third Quarter 2024:
-
Sales of
$388 million , up 7%; Organic Sales up 4% - Operating Margin of 10.8%; Adjusted Operating Margin of 12.3%, up 150 bps
- Adjusted EBITDA Margin of 19.8%, up 140 bps
-
GAAP EPS of -
$0.04 ; Adjusted EPS of$0.09 , down 52%
“In the third quarter, despite ongoing production delays from aircraft manufacturers, our Aerospace OEM business generated extraordinarily strong orders in anticipation of a future industry re-ramp. Meanwhile, our Aerospace aftermarket business continues to deliver robust performance on strong top-line growth. With the
Barnes to be Acquired by Apollo Funds
As announced on
Third Quarter 2024 Highlights
Sales of
Adjusted operating income of
Interest expense was
The Company's effective tax rate for the third quarter of 2024 was 110% driven by a
Net loss was
Year-to-date cash provided by operating activities was
Segment Performance
Aerospace
Third quarter sales in the Aerospace segment were
Aerospace OEM backlog ended the third quarter at
Industrial
Third quarter sales in the Industrial segment were
Leverage
Barnes’ “Net Debt to EBITDA” ratio, as defined in our credit agreements, was 3.35 times on
Canceled Third Quarter 2024 Earnings Call and Suspension of Guidance
Given the pending acquisition of Barnes by Apollo Funds, the Company will not be conducting a third quarter 2024 conference call and webcast. In addition, Barnes is suspending its financial guidance for the full year 2024.
Non-GAAP Financial Measures
The financial statements included within this press release are prepared in accordance with accounting principles generally accepted in
- Organic sales growth represents the total reported sales increase within the Company’s ongoing businesses less the impact of foreign currency translation and acquisitions/divestitures completed in the preceding twelve months. Management believes that organic sales growth provides an indication of baseline revenue performance and growth.
- Adjusted operating profit, adjusted operating margin and adjusted EPS provide an indication of our baseline profit performance. Management believes that these metrics are useful to investors as they exclude items that do not reflect our ongoing results.
- Adjusted EBITDA and Adjusted EBITDA margin provide adjusted earnings before interest, income tax, depreciation and amortization. Through acquisitions, the Company has incurred significant amortization expense (acquired intangible assets) and additional interest expense from debt-funded acquisitions. Management believes these financial metrics are useful to investors as they exclude the impact of these items.
- Free Cash Flow is defined by the Company as net cash provided by operating activities less capital expenditures. The Company believes that the free cash flow metric represents a measure of cash generated by business operations that can be used to invest in future growth, pay dividends, repurchase stock and reduce debt. This metric can also be used to evaluate the Company's ability to generate cash flow from business operations and the impact that this cash flow has on the Company's liquidity.
About Barnes
Forward-Looking Statements
Certain statements in this press release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended and the Private Securities Litigation Reform Act of 1995. Forward-looking statements often address our expected future operating and financial performance and financial condition, and often contain words such as “anticipate,” “believe,” “expect,” “plan,” “estimate,” “project,” “continue,” “will,” “should,” “may,” and similar terms. These forward-looking statements do not constitute guarantees of future performance and are subject to a variety of risks and uncertainties that may cause actual results to differ materially from those expressed in the forward-looking statements. These risks and uncertainties include, among others: the occurrence of any event, change or other circumstances that could give rise to the termination of the Agreement and Plan of Merger (the “Merger Agreement”) pursuant to which the Company has agreed to be acquired by funds managed by affiliates of
Category: Earnings
|
|||||||||||||||||||||
CONSOLIDATED STATEMENTS OF (LOSS) INCOME | |||||||||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
Three months ended |
|
Nine months ended |
|||||||||||||||||||
2024 |
|
2023 |
|
%
|
|
2024 |
|
2023 |
|
%
|
|||||||||||
Net sales |
$ |
387,794 |
|
$ |
360,988 |
|
7.4 |
|
$ |
1,200,664 |
|
$ |
1,035,329 |
|
16.0 |
|
|||||
Cost of sales |
|
259,402 |
|
|
253,490 |
|
2.3 |
|
|
817,686 |
|
|
704,358 |
|
16.1 |
|
|||||
Selling and administrative expenses |
|
84,920 |
|
|
97,508 |
|
(12.9 |
) |
|
255,314 |
|
|
271,688 |
|
(6.0 |
) |
|||||
|
|
- |
|
|
- |
|
- |
|
|
53,694 |
|
|
- |
|
100.0 |
|
|||||
Costs (gain) related to the sale of businesses |
|
1,651 |
|
|
- |
|
100.0 |
|
|
(5,420 |
) |
|
- |
|
NM |
|
|||||
|
345,973 |
|
|
350,998 |
|
(1.4 |
) |
|
1,121,274 |
|
|
976,046 |
|
14.9 |
|
||||||
Operating income |
|
41,821 |
|
|
9,990 |
|
318.6 |
|
|
79,390 |
|
|
59,283 |
|
33.9 |
|
|||||
Operating margin |
|
10.8 |
% |
|
2.8 |
% |
|
6.6 |
% |
|
5.7 |
% |
|||||||||
Interest expense |
|
19,573 |
|
|
22,792 |
|
(14.1 |
) |
|
65,216 |
|
|
34,612 |
|
88.4 |
|
|||||
Other expense (income), net |
|
517 |
|
|
(874 |
) |
NM |
|
|
1,367 |
|
|
(2,427 |
) |
NM |
|
|||||
Income (loss) before income taxes |
|
21,731 |
|
|
(11,928 |
) |
NM |
|
|
12,807 |
|
|
27,098 |
|
(52.7 |
) |
|||||
Income taxes |
|
23,875 |
|
|
9,802 |
|
143.6 |
|
|
59,824 |
|
|
18,318 |
|
226.6 |
|
|||||
Net (loss) income |
$ |
(2,144 |
) |
$ |
(21,730 |
) |
(90.1 |
) |
$ |
(47,017 |
) |
$ |
8,780 |
|
(635.5 |
) |
|||||
Common dividends |
$ |
8,132 |
|
$ |
8,107 |
|
0.3 |
|
$ |
24,361 |
|
$ |
24,302 |
|
0.2 |
|
|||||
Per common share: | |||||||||||||||||||||
Net (loss) income: | |||||||||||||||||||||
Basic |
$ |
(0.04 |
) |
$ |
(0.43 |
) |
(90.7 |
) |
$ |
(0.92 |
) |
$ |
0.17 |
|
(641.2 |
) |
|||||
Diluted |
|
(0.04 |
) |
|
(0.43 |
) |
(90.7 |
) |
|
(0.92 |
) |
|
0.17 |
|
(641.2 |
) |
|||||
Dividends |
|
0.16 |
|
|
0.16 |
|
- |
|
|
0.48 |
|
|
0.48 |
|
- |
|
|||||
Weighted average common shares outstanding: | |||||||||||||||||||||
Basic |
|
51,302,818 |
|
|
51,057,979 |
|
0.5 |
|
|
51,276,280 |
|
|
51,033,181 |
|
0.5 |
|
|||||
Diluted |
|
51,302,818 |
|
|
51,057,979 |
|
0.5 |
|
|
51,276,280 |
|
|
51,223,978 |
|
0.1 |
|
|||||
NM - Not meaningful | |||||||||||||||||||||
|
||||||||||||||||||||||
OPERATIONS BY REPORTABLE BUSINESS SEGMENT | ||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||
Three months ended |
|
Nine months ended |
||||||||||||||||||||
2024 |
|
2023 |
|
%
|
|
2024 |
|
2023 |
|
%
|
||||||||||||
Net sales | ||||||||||||||||||||||
Aerospace |
$ |
231,934 |
|
$ |
156,090 |
|
48.6 |
|
$ |
671,262 |
|
$ |
395,362 |
|
69.8 |
|
||||||
Industrial |
|
155,864 |
|
|
204,898 |
|
(23.9 |
) |
|
529,406 |
|
|
639,977 |
|
(17.3 |
) |
||||||
Intersegment sales |
|
(4 |
) |
|
- |
|
|
(4 |
) |
|
(10 |
) |
||||||||||
Total net sales |
$ |
387,794 |
|
$ |
360,988 |
|
7.4 |
|
$ |
1,200,664 |
|
$ |
1,035,329 |
|
16.0 |
|
||||||
Operating profit (loss) | ||||||||||||||||||||||
Aerospace |
$ |
35,319 |
|
$ |
3,622 |
|
875.1 |
|
$ |
95,749 |
|
$ |
38,953 |
|
145.8 |
|
||||||
Industrial |
|
6,502 |
|
|
6,368 |
|
2.1 |
|
|
(16,359 |
) |
|
20,330 |
|
(180.5 |
) |
||||||
Total operating profit (loss) |
$ |
41,821 |
|
$ |
9,990 |
|
318.6 |
|
$ |
79,390 |
|
$ |
59,283 |
|
33.9 |
|
||||||
Operating margin | Change | Change | ||||||||||||||||||||
Aerospace |
|
15.2 |
% |
|
2.3 |
% |
1,290 |
|
bps. |
|
14.3 |
% |
|
9.9 |
% |
440 |
|
bps. | ||||
Industrial |
|
4.2 |
% |
|
3.1 |
% |
110 |
|
bps. |
|
-3.1 |
% |
|
3.2 |
% |
(630 |
) |
bps. | ||||
Total operating margin |
|
10.8 |
% |
|
2.8 |
% |
800 |
|
bps. |
|
6.6 |
% |
|
5.7 |
% |
90 |
|
bps. | ||||
|
||||||
CONSOLIDATED BALANCE SHEETS | ||||||
(Dollars in thousands) | ||||||
(Unaudited) | ||||||
2024 |
2023 |
|||||
Assets | ||||||
Current assets | ||||||
Cash and cash equivalents |
$ |
80,675 |
$ |
89,827 |
||
Accounts receivable |
|
327,063 |
|
353,923 |
||
Inventories |
|
353,230 |
|
365,221 |
||
Prepaid expenses and other current assets |
|
105,763 |
|
97,749 |
||
Total current assets |
|
866,731 |
|
906,720 |
||
Deferred income taxes |
|
8,289 |
|
10,295 |
||
Property, plant and equipment, net |
|
351,735 |
|
402,697 |
||
|
|
1,081,960 |
|
1,183,624 |
||
Other intangible assets, net |
|
655,927 |
|
706,471 |
||
Other assets |
|
110,390 |
|
98,207 |
||
Total assets |
$ |
3,075,032 |
$ |
3,308,014 |
||
Liabilities and Stockholders' Equity | ||||||
Current liabilities | ||||||
Notes and overdrafts payable |
$ |
506 |
$ |
16 |
||
Accounts payable |
|
142,571 |
|
164,264 |
||
Accrued liabilities |
|
226,637 |
|
221,462 |
||
Long-term debt - current |
|
9,765 |
|
10,868 |
||
Total current liabilities |
|
379,479 |
|
396,610 |
||
Long-term debt |
|
1,135,162 |
|
1,279,962 |
||
Accrued retirement benefits |
|
36,540 |
|
45,992 |
||
Deferred income taxes |
|
117,010 |
|
120,608 |
||
Long-term tax liability |
|
7,400 |
|
21,714 |
||
Other liabilities |
|
94,955 |
|
80,865 |
||
Total stockholders' equity |
|
1,304,486 |
|
1,362,263 |
||
Total liabilities and stockholders' equity |
$ |
3,075,032 |
$ |
3,308,014 |
||
|
||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Dollars in thousands) | ||||||||
(Unaudited) | ||||||||
Nine months ended |
||||||||
|
2024 |
|
|
2023 |
|
|||
Operating activities: | ||||||||
Net (loss) income |
$ |
(47,017 |
) |
$ |
8,780 |
|
||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||||||||
Depreciation and amortization |
|
89,837 |
|
|
79,196 |
|||
Gain on disposition of property, plant and equipment |
|
(9 |
) |
|
(202 |
) |
||
Stock compensation expense |
|
10,530 |
|
|
8,121 |
|||
Non-cash goodwill impairment charge |
|
53,694 |
|
|
- |
|||
Gain on sale of businesses |
|
(3,894 |
) |
|
- |
|
||
Changes in assets and liabilities, net of the effects of acquisition and divestiture: | ||||||||
Accounts receivable |
|
(4,587 |
) |
|
(5,273 |
) |
||
Inventories |
|
(21,481 |
) |
|
(8,699 |
) |
||
Prepaid expenses and other current assets |
|
(11,629 |
) |
|
5,367 |
|
||
Accounts payable |
|
(4,641 |
) |
|
(11,629 |
) |
||
Accrued liabilities |
|
5,510 |
|
|
22,437 |
|
||
Deferred income taxes |
|
683 |
|
|
(3,541 |
) |
||
Long-term retirement benefits |
|
(12,364 |
) |
|
(13,096 |
) |
||
Long-term tax liability |
|
(9,972 |
) |
|
(13,029 |
) |
||
Other |
|
5,090 |
|
|
2,541 |
|
||
Net cash provided by operating activities |
|
49,750 |
|
|
70,973 |
|
||
Investing activities: | ||||||||
Proceeds from disposition of property, plant and equipment |
|
223 |
|
|
6,990 |
|
||
Proceeds from the sale of businesses |
|
160,869 |
|
|
- |
|
||
Capital expenditures |
|
(41,822 |
) |
|
(37,405 |
) |
||
Business acquisitions, net of cash acquired |
|
159 |
|
|
(718,782 |
) |
||
Other |
|
- |
|
|
(921 |
) |
||
Net cash provided (used) by investing activities |
|
119,429 |
|
|
(750,118 |
) |
||
Financing activities: | ||||||||
Net change in other borrowings |
|
242 |
|
|
(167 |
) |
||
Payments on long-term debt |
|
(321,318 |
) |
|
(268,580 |
) |
||
Proceeds from the issuance of long-term debt |
|
170,000 |
|
|
1,006,333 |
|
||
Payments of debt issuance costs |
|
- |
|
|
(11,341 |
) |
||
Proceeds from the issuance of common stock |
|
176 |
|
|
277 |
|
||
Dividends paid |
|
(24,361 |
) |
|
(24,302 |
) |
||
Withholding taxes paid on stock issuances |
|
(1,391 |
) |
|
(857 |
) |
||
Cash settlement of foreign currency hedges related to intercompany financing |
|
(1,070 |
) |
|
(6,346 |
) |
||
Other |
|
(232 |
) |
|
(2,625 |
) |
||
Net cash (used) provided by financing activities |
|
(177,954 |
) |
|
692,392 |
|
||
Effect of exchange rate changes on cash flows |
|
(2,590 |
) |
|
(2,190 |
) |
||
(Decrease) increase in cash, cash equivalents and restricted cash |
|
(11,365 |
) |
|
11,057 |
|
||
Cash, cash equivalents and restricted cash at beginning of the period |
|
92,040 |
|
|
81,128 |
|
||
Cash, cash equivalents and restricted cash at end of period |
|
80,675 |
|
|
92,185 |
|
||
Less: Restricted cash, included in Prepaid expenses and other current assets |
|
- |
|
|
(2,145 |
) |
||
Cash and cash equivalents at end of period |
$ |
80,675 |
|
$ |
90,040 |
|
||
|
||||||||
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW | ||||||||
(Dollars in thousands) | ||||||||
(Unaudited) | ||||||||
Nine months ended |
||||||||
2024 |
|
2023 |
||||||
Free cash flow: | ||||||||
Net cash provided by operating activities |
$ |
49,750 |
|
$ |
70,973 |
|
||
Capital expenditures |
|
(41,822 |
) |
|
(37,405 |
) |
||
Free cash flow(1) |
$ |
7,928 |
|
$ |
33,568 |
|
||
Free cash flow (as adjusted): | ||||||||
Free cash flow (from above) |
$ |
7,928 |
|
$ |
33,568 |
|
||
Income tax payments related to the sale of the businesses |
|
12,472 |
|
|
- |
|
||
Free cash flow (as adjusted) (1) |
$ |
20,400 |
|
$ |
33,568 |
|
||
Notes: | ||||||||
(1) The Company defines free cash flow as net cash provided by operating activities less capital expenditures. In 2024, net cash provided by operating activities was negatively impacted by |
||||||||
|
||||||||||||||||||||||
NON-GAAP FINANCIAL MEASURE RECONCILIATION | ||||||||||||||||||||||
ADJUSTED OPERATING PROFIT AND ADJUSTED DILUTED EARNINGS PER SHARE | ||||||||||||||||||||||
(Dollars in thousands, except per share data) | ||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||
Three months ended |
|
Nine months ended |
||||||||||||||||||||
2024 |
|
2023 |
|
% Change |
|
2024 |
|
2023 |
|
% Change |
||||||||||||
SEGMENT RESULTS | ||||||||||||||||||||||
Operating Profit - Aerospace Segment (GAAP) |
$ |
35,319 |
|
$ |
3,622 |
|
875.1 |
|
$ |
95,749 |
|
$ |
38,953 |
|
145.8 |
|
||||||
Restructuring/reduction in force and transformation related charges |
|
355 |
|
|
3,922 |
|
|
2,993 |
|
|
6,263 |
|
||||||||||
Shareholder advisory costs |
|
- |
|
|
- |
|
|
1,078 |
|
|
- |
|
||||||||||
Acquisition related costs |
|
- |
|
|
7,817 |
|
|
- |
|
|
11,376 |
|
||||||||||
MB Short-term purchase accounting adjustments |
|
643 |
|
|
8,019 |
|
|
3,469 |
|
|
8,019 |
|
||||||||||
Operating Profit - Aerospace Segment as adjusted (Non-GAAP) (1) |
$ |
36,317 |
|
$ |
23,380 |
|
55.3 |
|
$ |
103,289 |
|
$ |
64,611 |
|
59.9 |
|
||||||
Operating Margin - Aerospace Segment (GAAP) |
|
15.2 |
% |
|
2.3 |
% |
1,290 |
|
bps. |
|
14.3 |
% |
|
9.9 |
% |
440 |
|
bps. | ||||
Operating Margin - Aerospace Segment as adjusted (Non-GAAP) (1) |
|
15.7 |
% |
|
15.0 |
% |
70 |
|
bps. |
|
15.4 |
% |
|
16.3 |
% |
(90 |
) |
bps. | ||||
Operating Profit (Loss) - Industrial Segment (GAAP) |
$ |
6,502 |
|
$ |
6,368 |
|
2.1 |
|
$ |
(16,359 |
) |
$ |
20,330 |
|
(180.5 |
) |
||||||
Restructuring/reduction in force and transformation related charges |
|
3,398 |
|
|
9,277 |
|
|
10,286 |
|
|
34,711 |
|
||||||||||
Shareholder advisory costs |
|
- |
|
|
- |
|
|
1,022 |
|
|
- |
|
||||||||||
Costs (gain) related to the sale of businesses |
|
1,651 |
|
|
- |
|
|
(5,420 |
) |
|
- |
|
||||||||||
|
|
- |
|
|
- |
|
|
53,694 |
|
|
- |
|
||||||||||
Operating Profit - Industrial Segment as adjusted (Non-GAAP) (1) |
$ |
11,551 |
|
$ |
15,645 |
|
(26.2 |
) |
$ |
43,223 |
|
$ |
55,041 |
|
(21.5 |
) |
||||||
Operating Margin - Industrial Segment (GAAP) |
|
4.2 |
% |
|
3.1 |
% |
110 |
|
bps. |
|
-3.1 |
% |
|
3.2 |
% |
(630 |
) |
bps. | ||||
Operating Margin - Industrial Segment as adjusted (Non-GAAP) (1) |
|
7.4 |
% |
|
7.6 |
% |
(20 |
) |
bps. |
|
8.2 |
% |
|
8.6 |
% |
(40 |
) |
bps. | ||||
CONSOLIDATED RESULTS | ||||||||||||||||||||||
Operating Income (GAAP) |
$ |
41,821 |
|
$ |
9,990 |
|
318.6 |
|
$ |
79,390 |
|
$ |
59,283 |
|
33.9 |
|
||||||
Restructuring/reduction in force and transformation related charges |
|
3,753 |
|
|
13,199 |
|
|
13,279 |
|
|
40,974 |
|
||||||||||
Shareholder advisory costs |
|
- |
|
|
- |
|
|
2,100 |
|
|
- |
|
||||||||||
Costs (gain) related to the sale of businesses |
|
1,651 |
|
|
- |
|
|
(5,420 |
) |
|
- |
|
||||||||||
Acquisition related costs |
|
- |
|
|
7,817 |
|
|
- |
|
|
11,376 |
|
||||||||||
MB Short-term purchase accounting adjustments |
|
643 |
|
|
8,019 |
|
|
3,469 |
|
|
8,019 |
|
||||||||||
|
|
- |
|
|
- |
|
|
53,694 |
|
|
- |
|
||||||||||
Operating Income as adjusted (Non-GAAP) (1) |
$ |
47,868 |
|
$ |
39,025 |
|
22.7 |
|
$ |
146,512 |
|
$ |
119,652 |
|
22.4 |
|
||||||
Operating Margin (GAAP) |
|
10.8 |
% |
|
2.8 |
% |
800 |
|
bps. |
|
6.6 |
% |
|
5.7 |
% |
90 |
|
bps. | ||||
Operating Margin as adjusted (Non-GAAP) (1) |
|
12.3 |
% |
|
10.8 |
% |
150 |
|
bps. |
|
12.2 |
% |
|
11.6 |
% |
60 |
|
bps. | ||||
Diluted Net (Loss) Income per Share (GAAP) |
$ |
(0.04 |
) |
$ |
(0.43 |
) |
(90.7 |
) |
$ |
(0.92 |
) |
$ |
0.17 |
|
(641.2 |
) |
||||||
Restructuring/reduction in force and transformation related charges |
|
0.06 |
|
|
0.19 |
|
|
0.20 |
|
|
0.58 |
|
||||||||||
Shareholder advisory costs |
|
- |
|
|
- |
|
|
0.03 |
|
|
- |
|
||||||||||
Loss related to sale of businesses, net of tax |
|
0.03 |
|
|
- |
|
|
0.38 |
|
|
- |
|
||||||||||
MB Short-term purchase accounting adjustments |
|
0.01 |
|
|
0.12 |
|
|
0.05 |
|
|
0.12 |
|
||||||||||
Acquisition related costs |
|
- |
|
|
0.31 |
|
|
0.02 |
|
|
0.36 |
|
||||||||||
Income tax effects of non-deductible merger costs |
|
0.03 |
|
|
- |
|
|
0.03 |
|
|
- |
|
||||||||||
|
|
- |
|
|
- |
|
|
1.05 |
|
|
- |
|
||||||||||
Diluted Net Income per Share as adjusted (Non-GAAP) (1) |
$ |
0.09 |
|
$ |
0.19 |
|
(52.6 |
) |
$ |
0.84 |
|
$ |
1.23 |
|
(31.7 |
) |
||||||
Full-Year 2023 | ||||||||||||||||||||||
Operating Margin (GAAP) |
|
6.1 |
% |
|||||||||||||||||||
Restructuring/reduction in force and transformation related charges |
|
3.2 |
% |
|||||||||||||||||||
Divestiture transaction costs |
|
0.1 |
% |
|||||||||||||||||||
MB Short-term purchase accounting adjustments |
|
1.3 |
% |
|||||||||||||||||||
Acquisition related costs |
|
0.8 |
% |
|||||||||||||||||||
Operating Margin as adjusted (Non-GAAP) (1) |
|
11.5 |
% |
|||||||||||||||||||
Diluted Net Income (Loss) per Share (GAAP) |
$ |
0.31 |
|
|||||||||||||||||||
Restructuring/reduction in force and transformation related charges |
|
0.66 |
|
|||||||||||||||||||
Divestiture transaction costs |
|
0.02 |
|
|||||||||||||||||||
MB Short-term purchase accounting adjustments |
|
0.29 |
|
|||||||||||||||||||
Acquisition related costs |
|
0.37 |
|
|||||||||||||||||||
Diluted Net Income per Share as adjusted (Non-GAAP) (1) |
$ |
1.65 |
|
|||||||||||||||||||
Notes: | ||||||||||||||||||||||
(1) The Company has excluded the following from its "as adjusted" financial measurements for 2024: 1) charges related to restructuring/reduction in force actions at certain businesses and transformation related costs (consulting/professional fees related to business and portfolio transformation initiatives), 2) a pre-tax gain related to the divestiture of the Businesses, including |
|
|||||||||||||||||||||||||||||||
NON-GAAP FINANCIAL MEASURE RECONCILIATION | |||||||||||||||||||||||||||||||
EBITDA, EBITDA MARGIN, ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN | |||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||||
Three months ended |
|||||||||||||||||||||||||||||||
2024 |
|
2023 |
|||||||||||||||||||||||||||||
Aerospace | Industrial | Other (1) | Total | Aerospace | Industrial | Other (1) | Total | ||||||||||||||||||||||||
|
$ |
231,934 |
|
|
155,864 |
|
|
(4 |
) |
$ |
387,794 |
|
$ |
156,090 |
|
|
204,898 |
|
|
- |
|
$ |
360,988 |
|
|||||||
Net Loss |
$ |
(2,144 |
) |
$ |
(21,730 |
) |
|||||||||||||||||||||||||
Interest expense |
|
19,573 |
|
|
22,792 |
|
|||||||||||||||||||||||||
Other expense (income), net |
|
517 |
|
|
(874 |
) |
|||||||||||||||||||||||||
Income taxes |
|
23,875 |
|
|
9,802 |
|
|||||||||||||||||||||||||
Operating Profit (GAAP) |
$ |
35,319 |
|
$ |
6,502 |
|
$ |
- |
|
$ |
41,821 |
|
$ |
3,622 |
|
$ |
6,368 |
|
$ |
- |
|
$ |
9,990 |
|
|||||||
Operating Margin (GAAP) |
|
15.2 |
% |
|
4.2 |
% |
|
10.8 |
% |
|
2.3 |
% |
|
3.1 |
% |
|
2.8 |
% |
|||||||||||||
Other expense (income), net |
|
- |
|
|
- |
|
|
(517 |
) |
|
(517 |
) |
|
- |
|
|
- |
|
|
874 |
|
|
874 |
|
|||||||
Depreciation (2) |
|
9,317 |
|
|
4,222 |
|
|
- |
|
|
13,539 |
|
|
5,863 |
|
|
7,560 |
|
|
- |
|
|
13,423 |
|
|||||||
Amortization (3) |
|
10,864 |
|
|
5,871 |
|
|
- |
|
|
16,735 |
|
|
12,460 |
|
|
6,400 |
|
|
- |
|
|
18,860 |
|
|||||||
EBITDA (Non-GAAP) (4) |
$ |
55,500 |
|
$ |
16,595 |
|
$ |
(517 |
) |
$ |
71,578 |
|
$ |
21,945 |
|
$ |
20,328 |
|
$ |
874 |
|
$ |
43,147 |
|
|||||||
EBITDA Margin (Non-GAAP) (4) |
|
23.9 |
% |
|
10.6 |
% |
|
18.5 |
% |
|
14.1 |
% |
|
9.9 |
% |
|
12.0 |
% |
|||||||||||||
Restructuring/reduction in force and transformation related charges |
|
355 |
|
|
3,351 |
|
|
- |
|
|
3,706 |
|
|
3,922 |
|
|
8,481 |
|
|
- |
|
|
12,403 |
|
|||||||
Shareholder advisory costs |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|||||||
Acquisition transaction costs |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
7,817 |
|
|
- |
|
|
- |
|
|
7,817 |
|
|||||||
MB Short-term purchase accounting adjustments |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
3,019 |
|
|
- |
|
|
- |
|
|
3,019 |
|
|||||||
Costs (gain) related to the sale of businesses |
|
- |
|
|
1,651 |
|
|
- |
|
|
1,651 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|||||||
Adjusted EBITDA (Non-GAAP) (4) |
$ |
55,855 |
|
$ |
21,597 |
|
$ |
(517 |
) |
$ |
76,935 |
|
$ |
36,703 |
|
$ |
28,809 |
|
$ |
874 |
|
$ |
66,386 |
|
|||||||
Adjusted EBITDA Margin (Non-GAAP) (4) |
|
24.1 |
% |
|
13.9 |
% |
|
19.8 |
% |
|
23.5 |
% |
|
14.1 |
% |
|
18.4 |
% |
|||||||||||||
Nine months ended |
|||||||||||||||||||||||||||||||
2024 |
|
2023 |
|||||||||||||||||||||||||||||
Aerospace | Industrial | Other (1) | Total | Aerospace | Industrial | Other (1) | Total | ||||||||||||||||||||||||
|
$ |
671,262 |
|
|
529,406 |
|
|
(4 |
) |
$ |
1,200,664 |
|
$ |
395,362 |
|
|
639,977 |
|
|
(10 |
) |
$ |
1,035,329 |
|
|||||||
Net (Loss) Income |
$ |
(47,017 |
) |
$ |
8,780 |
|
|||||||||||||||||||||||||
Interest expense |
|
65,216 |
|
|
34,612 |
|
|||||||||||||||||||||||||
Other expense (income), net |
|
1,367 |
|
|
(2,427 |
) |
|||||||||||||||||||||||||
Income taxes |
|
59,824 |
|
|
18,318 |
|
|||||||||||||||||||||||||
Operating Profit (Loss) (GAAP) |
$ |
95,749 |
|
$ |
(16,359 |
) |
$ |
- |
|
$ |
79,390 |
|
$ |
38,953 |
|
$ |
20,330 |
|
$ |
- |
|
$ |
59,283 |
|
|||||||
Operating Margin (GAAP) |
|
14.3 |
% |
|
-3.1 |
% |
|
6.6 |
% |
|
9.9 |
% |
|
3.2 |
% |
|
5.7 |
% |
|||||||||||||
Other expense (income), net |
|
- |
|
|
- |
|
|
(1,367 |
) |
|
(1,367 |
) |
|
- |
|
|
- |
|
|
2,427 |
|
|
2,427 |
|
|||||||
Depreciation (2) |
|
24,636 |
|
|
13,803 |
|
|
- |
|
|
38,439 |
|
|
15,683 |
|
|
21,429 |
|
|
- |
|
|
37,112 |
|
|||||||
Amortization (3) |
|
33,714 |
|
|
17,684 |
|
|
- |
|
|
51,398 |
|
|
22,757 |
|
|
19,327 |
|
|
- |
|
|
42,084 |
|
|||||||
EBITDA (Non-GAAP) (4) |
$ |
154,099 |
|
$ |
15,128 |
|
$ |
(1,367 |
) |
$ |
167,860 |
|
$ |
77,393 |
|
$ |
61,086 |
|
$ |
2,427 |
|
$ |
140,906 |
|
|||||||
EBITDA Margin (Non-GAAP) (4) |
|
23.0 |
% |
|
2.9 |
% |
|
14.0 |
% |
|
19.6 |
% |
|
9.5 |
% |
|
13.6 |
% |
|||||||||||||
Restructuring/reduction in force and transformation related charges |
|
2,993 |
|
|
9,515 |
|
|
- |
|
|
12,508 |
|
|
6,263 |
|
|
31,526 |
|
|
- |
|
|
37,789 |
|
|||||||
Shareholder advisory costs |
|
1,078 |
|
|
1,022 |
|
|
- |
|
|
2,100 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|||||||
Acquisition transaction costs |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
11,376 |
|
|
- |
|
|
- |
|
|
11,376 |
|
|||||||
MB Short-term purchase accounting adjustments |
|
1,540 |
|
|
- |
|
|
- |
|
|
1,540 |
|
|
3,019 |
|
|
- |
|
|
- |
|
|
3,019 |
|
|||||||
Gain related to the sale of businesses |
|
- |
|
|
(5,420 |
) |
|
- |
|
|
(5,420 |
) |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|||||||
Pension related loss (gain) |
|
- |
|
|
- |
|
|
1,526 |
|
|
1,526 |
|
|
- |
|
|
- |
|
|
(1,144 |
) |
|
(1,144 |
) |
|||||||
|
|
- |
|
|
53,694 |
|
|
- |
|
|
53,694 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|||||||
Adjusted EBITDA (Non-GAAP) (4) |
$ |
159,710 |
|
$ |
73,939 |
|
$ |
159 |
|
$ |
233,808 |
|
$ |
98,051 |
|
$ |
92,612 |
|
$ |
1,283 |
|
$ |
191,946 |
|
|||||||
Adjusted EBITDA Margin (Non-GAAP) (4) |
|
23.8 |
% |
|
14.0 |
% |
|
19.5 |
% |
|
24.8 |
% |
|
14.5 |
% |
|
18.5 |
% |
|||||||||||||
Notes: | |||||||||||||||||||||||||||||||
(1) "Other" includes intersegment sales and items that are included within Other expense (income), net that are not allocated to the Company's reportable business segments. (2) Depreciation expense in 2024 includes (3) Amortization expense in 2024 includes (4) The Company defines EBITDA as net income plus interest expense, income taxes, and depreciation and amortization which the Company incurs in the normal course of business; in addition to these adjustments, the Company also excludes the impact of its "as adjusted items" above ("Adjusted EBITDA"). The Company does not intend EBITDA nor Adjusted EBITDA to represent cash flows from operations as defined by GAAP, and the reader should not consider it as an alternative to net income, net cash provided by operating activities or any other items calculated in accordance with GAAP, or as an indicator of the Company's operating performance. Accordingly, the measurements have limitations depending on their use. |
|||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||
NON-GAAP FINANCIAL MEASURE RECONCILIATION | ||||||||||||||||||||||||||||
Organic Sales and Organic Sales Growth (Decrease) (1) | ||||||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||
Three months ended |
|
|
Nine months ended |
|||||||||||||||||||||||||
2024 |
|
2023 |
|
Organic Sales
|
|
|
2024 |
|
2023 |
|
Organic Sales
|
|||||||||||||||||
Aerospace | ||||||||||||||||||||||||||||
Net sales (GAAP) |
$ |
231.9 |
|
$ |
156.1 |
|
48.6 |
% |
$ |
671.3 |
|
$ |
395.4 |
|
69.8 |
% |
||||||||||||
Acquisition sales (2) |
|
(61.1 |
) |
|
- |
|
(39.1 |
%) |
|
(229.4 |
) |
|
- |
|
(58.0 |
%) |
||||||||||||
Foreign currency translation |
|
(0.6 |
) |
|
- |
|
(0.4 |
%) |
|
(0.6 |
) |
|
- |
|
(0.2 |
%) |
||||||||||||
Organic sales (Non-GAAP) |
$ |
170.2 |
|
$ |
156.1 |
|
$ |
14.1 |
|
9.0 |
% |
$ |
441.3 |
|
$ |
395.4 |
|
$ |
45.9 |
|
11.6 |
% |
||||||
OEM | ||||||||||||||||||||||||||||
Net sales (GAAP) |
$ |
137.8 |
|
$ |
99.9 |
|
37.9 |
% |
$ |
405.0 |
|
$ |
248.0 |
|
63.3 |
% |
||||||||||||
Acquisition sales (2) |
|
(38.2 |
) |
|
- |
|
(38.2 |
%) |
|
(144.8 |
) |
|
- |
|
(58.4 |
%) |
||||||||||||
Foreign currency translation |
|
(0.6 |
) |
|
- |
|
(0.6 |
%) |
|
(0.6 |
) |
|
- |
|
(0.2 |
%) |
||||||||||||
Organic sales (Non-GAAP) |
$ |
99.0 |
|
$ |
99.9 |
|
$ |
(0.9 |
) |
(0.9 |
%) |
$ |
259.6 |
|
$ |
248.0 |
|
$ |
11.6 |
|
4.7 |
% |
||||||
Aftermarket | ||||||||||||||||||||||||||||
Net sales (GAAP) |
$ |
94.1 |
|
$ |
56.2 |
|
67.4 |
% |
$ |
266.2 |
|
$ |
147.4 |
|
80.6 |
% |
||||||||||||
Acquisition sales (2) |
|
(22.9 |
) |
|
- |
|
(40.7 |
%) |
|
(84.6 |
) |
|
- |
|
(57.4 |
%) |
||||||||||||
Foreign currency translation |
|
- |
|
|
- |
|
0.0 |
% |
|
- |
|
|
- |
|
0.0 |
% |
||||||||||||
Organic sales (Non-GAAP) |
$ |
71.2 |
|
$ |
56.2 |
|
$ |
15.0 |
|
26.7 |
% |
$ |
181.6 |
|
$ |
147.4 |
|
$ |
34.2 |
|
23.2 |
% |
||||||
Industrial | ||||||||||||||||||||||||||||
Net sales (GAAP) |
$ |
155.9 |
|
$ |
204.9 |
|
(23.9 |
%) |
$ |
529.4 |
|
$ |
640.0 |
|
(17.3 |
%) |
||||||||||||
Divestiture sales (3) |
|
- |
|
|
(51.8 |
) |
25.3 |
% |
|
- |
|
|
(109.4 |
) |
17.1 |
% |
||||||||||||
Foreign currency translation |
|
(1.5 |
) |
|
- |
|
(0.7 |
%) |
|
0.2 |
|
|
- |
|
0.0 |
% |
||||||||||||
Organic sales (Non-GAAP) |
$ |
154.4 |
|
$ |
153.1 |
|
$ |
1.3 |
|
0.6 |
% |
$ |
529.6 |
|
$ |
530.6 |
|
$ |
(1.0 |
) |
(0.2 |
%) |
||||||
Total Company | ||||||||||||||||||||||||||||
Net sales (GAAP) |
|
387.8 |
|
|
361.0 |
|
7.4 |
% |
$ |
1,200.7 |
|
$ |
1,035.4 |
|
16.0 |
% |
||||||||||||
Acquisition sales (2) |
|
(61.1 |
) |
|
- |
|
(16.9 |
%) |
|
(229.4 |
) |
|
- |
|
(22.2 |
%) |
||||||||||||
Divestiture sales (3) |
|
- |
|
|
(51.8 |
) |
14.3 |
% |
|
- |
|
|
(109.4 |
) |
10.6 |
% |
||||||||||||
Foreign currency translation |
|
(2.1 |
) |
|
- |
|
(0.6 |
%) |
|
(0.4 |
) |
|
- |
|
(0.0 |
%) |
||||||||||||
Organic sales (Non-GAAP) |
$ |
324.6 |
|
$ |
309.2 |
|
$ |
15.4 |
|
4.3 |
% |
$ |
970.9 |
|
$ |
926.0 |
|
$ |
44.9 |
|
4.3 |
% |
||||||
Notes: | ||||||||||||||||||||||||||||
(1) Organic sales and Organic sales growth (decrease) represent the total reported net sales and total reported net sales increase (decrease), respectively, within the Company’s ongoing businesses, less the impacts of foreign currency translation and the sales related to any acquisitions or divestitures that were completed within the preceding twelve months. (2) "Acquisition sales" includes the net sales contributed by MB Aerospace from July 1, 2024 through August 31, 2024 and from January 1, 2024 through August 31, 2024, during the three and nine month periods ended September 30, 2024, respectively. The acquisition of MB Aerospace was completed on August 31, 2023. (3) "Divestiture sales" includes the net sales contributed by the divested businesses from July 1, 2023 through September 30, 2023 and from April 4, 2023 through September 30, 2023, during the three and nine month periods ended September 30, 2023, respectively. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241025629370/en/
Investors:
Vice President, Investor Relations
ir@onebarnes.com
860.583.7070
Source: