Barnes Reports Second Quarter 2024 Financial Results
Significant Progress Made on Transforming to an
Comparisons are year-over-year unless noted otherwise
Second Quarter 2024:
-
Sales of
$382 million , up 13%; Organic Sales up 5% - Operating Margin of -0.6%; Adjusted Operating Margin of 12.4%, down 40 bps
- Adjusted EBITDA Margin of 20.0%, up 20 bps
-
GAAP EPS of -
$0.91 ; Adjusted EPS of$0.37 , down 36% - Records Automation goodwill impairment
2024 Outlook:
- Sales Growth of 10% to 12%; Organic Sales Growth of 4% to 6%
- Adjusted EBITDA Margin of 20% to 22%
-
GAAP EPS of -
$0.36 to-$0.16 ; Adjusted EPS of$1.55 to$1.75
“For the second quarter, strong Aerospace aftermarket and Molding Solutions revenue growth partially offset lower than expected Aerospace OEM sales, as industry supply chain and productivity constraints continue to temper our Aerospace OEM results," said
Second Quarter 2024 Highlights
Sales of
In the quarter, the sales and cash flow expectations for the Automation business unit within the Industrial segment were reduced, which among other factors, resulted in a non-cash impairment charge of
Adjusted operating income of
In early April, Barnes closed the divestiture of the Associated Spring and Hänggi businesses, materially reducing its exposure to automotive component manufacturing. The headline price of the transaction was
Interest expense was
The effective tax rate for the quarter was -112% compared with 23% last year primarily driven by the non-deductible goodwill impairment charge and taxes tied to the sale of Associated Spring and Hanggi. On an adjusted basis, the second quarter’s effective tax rate was 31%.
Net loss was
Year-to-date cash provided by operating activities was
Segment Performance
Aerospace
Second quarter sales in the Aerospace segment were
Aerospace OEM backlog ended the second quarter at
Industrial
Second quarter sales in the Industrial segment were
Balance Sheet and Liquidity
As of
Updated 2024 Full Year Outlook
The Company is updating its full year 2024 guidance to the following:
|
|
2024 Guidance |
Organic sales growth |
|
4% to 6% |
Adjusted operating margin |
|
12% to 14% |
Adjusted EBITDA margin |
|
20% to 22% |
Adjusted earnings per share |
|
|
Capital expenditures |
|
|
Free cash flow |
|
|
Adjusted effective tax rate |
|
33% to 34% |
The Company’s 2024 Adjusted EPS guidance excludes a
Conference Call Information
Barnes will conduct a conference call with investors to discuss the second quarter 2024 results at
The conference is also available by direct dial at (888) 510-2379 in the
In addition, the call will be recorded and available for playback from
Notes:
(1) Organic sales growth represents the total reported sales increase within the Company’s ongoing business less the impact of foreign currency translation and acquisitions and divestitures completed in the preceding twelve months.
(2) While Barnes reports financial results in accordance with
About Barnes
Forward-Looking Statements
This press release contains forward-looking statements as defined in 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 Company’s ability to manage economic, business and geopolitical conditions, including rising interest rates, global price inflation and shortages impacting the availability of materials; the duration and severity of unforeseen events such as an epidemic or a pandemic, including their impacts across our business on demand, supply chains, operations and liquidity; failure to successfully negotiate collective bargaining agreements or potential strikes, work stoppages or other similar events; changes in market demand for our products and services; rapid technological and market change; the ability to protect and avoid infringing upon intellectual property rights; challenges associated with the introduction or development of new products or transfer of work; higher risks in global operations and markets; the impact of intense competition; the physical and operational risks from natural disasters, severe weather events, and climate change which may limit accessibility to sufficient water resources, outbreaks of contagious diseases and other adverse public health developments; acts of war, terrorism and other international conflicts; the failure to achieve anticipated cost savings and benefits associated with workforce reductions and restructuring actions; currency fluctuations and foreign currency exposure; impacts from goodwill impairment and related charges; our dependence upon revenues and earnings from a small number of significant customers; a major loss of customers; inability to realize expected sales or profits from existing backlog due to a range of factors, including changes in customer sourcing decisions, material changes, production schedules and volumes of specific programs; the impact of government budget and funding decisions; our ability to successfully integrate and achieve anticipated synergies associated with recently announced and future acquisitions, including the acquisition of
Category: Earnings
|
|||||||||||||||||||||
CONSOLIDATED STATEMENTS OF (LOSS) INCOME | |||||||||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
Three months ended |
Six months ended |
||||||||||||||||||||
2024 |
2023 |
% Change |
2024 |
2023 |
% Change | ||||||||||||||||
Net sales |
$ |
382,232 |
|
$ |
338,984 |
|
12.8 |
|
$ |
812,870 |
|
$ |
674,341 |
|
20.5 |
|
|||||
Cost of sales |
|
258,188 |
|
|
224,625 |
|
14.9 |
|
|
558,284 |
|
|
450,868 |
|
23.8 |
|
|||||
Selling and administrative expenses |
|
82,667 |
|
|
88,350 |
|
(6.4 |
) |
|
170,394 |
|
|
174,180 |
|
(2.2 |
) |
|||||
|
|
53,694 |
|
|
- |
|
100.0 |
|
|
53,694 |
|
|
- |
|
100.0 |
|
|||||
Gain on the sale of businesses |
|
(10,204 |
) |
|
- |
|
NM |
|
|
(7,071 |
) |
|
- |
|
NM |
|
|||||
|
384,345 |
|
|
312,975 |
|
22.8 |
|
|
775,301 |
|
|
625,048 |
|
24.0 |
|
||||||
Operating (loss) income |
|
(2,113 |
) |
|
26,009 |
|
(108.1 |
) |
|
37,569 |
|
|
49,293 |
|
(23.8 |
) |
|||||
Operating margin |
|
-0.6 |
% |
|
7.7 |
% |
|
4.6 |
% |
|
7.3 |
% |
|||||||||
Interest expense |
|
20,812 |
|
|
6,512 |
|
219.6 |
|
|
45,643 |
|
|
11,819 |
|
286.2 |
|
|||||
Other expense (income), net |
|
(845 |
) |
|
(2,894 |
) |
(70.8 |
) |
|
850 |
|
|
(1,553 |
) |
NM |
|
|||||
(Loss) income before income taxes |
|
(22,080 |
) |
|
22,391 |
|
(198.6 |
) |
|
(8,924 |
) |
|
39,027 |
|
(122.9 |
) |
|||||
Income taxes |
|
24,741 |
|
|
5,039 |
|
391.0 |
|
|
35,949 |
|
|
8,516 |
|
322.1 |
|
|||||
Net (loss) income |
$ |
(46,821 |
) |
$ |
17,352 |
|
(369.8 |
) |
$ |
(44,873 |
) |
$ |
30,511 |
|
(247.1 |
) |
|||||
Common dividends |
$ |
8,118 |
|
$ |
8,099 |
|
0.2 |
|
$ |
16,229 |
|
$ |
16,195 |
|
0.2 |
|
|||||
Per common share: | |||||||||||||||||||||
Net (loss) income: | |||||||||||||||||||||
Basic |
$ |
(0.91 |
) |
$ |
0.34 |
|
(367.6 |
) |
$ |
(0.88 |
) |
$ |
0.60 |
|
(246.7 |
) |
|||||
Diluted |
|
(0.91 |
) |
|
0.34 |
|
(367.6 |
) |
|
(0.88 |
) |
|
0.60 |
|
(246.7 |
) |
|||||
Dividends |
|
0.16 |
|
|
0.16 |
|
- |
|
|
0.32 |
|
|
0.32 |
|
- |
|
|||||
Weighted average common shares outstanding: | |||||||||||||||||||||
Basic |
|
51,302,547 |
|
|
51,051,780 |
|
0.5 |
|
|
51,263,503 |
|
|
51,020,648 |
|
0.5 |
|
|||||
Diluted |
|
51,302,547 |
|
|
51,225,545 |
|
0.2 |
|
|
51,263,503 |
|
|
51,245,163 |
|
0.0 |
|
|||||
NM - Not meaningful |
|
||||||||||||||||||||||
OPERATIONS BY REPORTABLE BUSINESS SEGMENT | ||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||
Three months ended |
Six months ended |
|||||||||||||||||||||
2024 |
2023 |
% Change |
2024 |
2023 |
% Change | |||||||||||||||||
Net sales | ||||||||||||||||||||||
Aerospace |
$ |
217,958 |
|
$ |
122,015 |
|
78.6 |
|
$ |
439,328 |
|
$ |
239,272 |
|
83.6 |
|
||||||
Industrial |
|
164,274 |
|
|
216,971 |
|
(24.3 |
) |
|
373,542 |
|
|
435,079 |
|
(14.1 |
) |
||||||
Intersegment sales |
|
- |
|
|
(2 |
) |
|
- |
|
|
(10 |
) |
||||||||||
Total net sales |
$ |
382,232 |
|
$ |
338,984 |
|
12.8 |
|
$ |
812,870 |
|
$ |
674,341 |
|
20.5 |
|
||||||
Operating (loss) profit | ||||||||||||||||||||||
Aerospace |
$ |
29,344 |
|
$ |
16,580 |
|
77.0 |
|
$ |
60,430 |
|
$ |
35,331 |
|
71.0 |
|
||||||
Industrial |
|
(31,457 |
) |
|
9,429 |
|
(433.6 |
) |
|
(22,861 |
) |
|
13,962 |
|
(263.7 |
) |
||||||
Total operating (loss) profit |
$ |
(2,113 |
) |
$ |
26,009 |
|
(108.1 |
) |
$ |
37,569 |
|
$ |
49,293 |
|
(23.8 |
) |
||||||
Operating margin | Change | Change | ||||||||||||||||||||
Aerospace |
|
13.5 |
% |
|
13.6 |
% |
(10 |
) |
bps. |
|
13.8 |
% |
|
14.8 |
% |
(100 |
) |
bps. | ||||
Industrial |
|
-19.1 |
% |
|
4.3 |
% |
(2,340 |
) |
bps. |
|
-6.1 |
% |
|
3.2 |
% |
(930 |
) |
bps. | ||||
Total operating margin |
|
-0.6 |
% |
|
7.7 |
% |
(830 |
) |
bps. |
|
4.6 |
% |
|
7.3 |
% |
(270 |
) |
bps. |
|
|||||||
CONSOLIDATED BALANCE SHEETS | |||||||
(Dollars in thousands) | |||||||
(Unaudited) | |||||||
|
|
||||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents |
$ |
65,909 |
$ |
89,827 |
|||
Accounts receivable |
|
345,482 |
|
353,923 |
|||
Inventories |
|
350,292 |
|
365,221 |
|||
Prepaid expenses and other current assets |
|
104,689 |
|
97,749 |
|||
Total current assets |
|
866,372 |
|
906,720 |
|||
Deferred income taxes |
|
- |
|
10,295 |
|||
Property, plant and equipment, net |
|
351,879 |
|
402,697 |
|||
|
|
1,046,822 |
|
1,183,624 |
|||
Other intangible assets, net |
|
662,666 |
|
706,471 |
|||
Other assets |
|
109,348 |
|
98,207 |
|||
Total assets |
$ |
3,037,087 |
$ |
3,308,014 |
|||
Liabilities and Stockholders' Equity | |||||||
Current liabilities | |||||||
Notes and overdrafts payable |
$ |
6,547 |
$ |
16 |
|||
Accounts payable |
|
152,271 |
|
164,264 |
|||
Accrued liabilities |
|
217,793 |
|
221,462 |
|||
Long-term debt - current |
|
10,518 |
|
10,868 |
|||
Total current liabilities |
|
387,129 |
|
396,610 |
|||
Long-term debt |
|
1,149,386 |
|
1,279,962 |
|||
Accrued retirement benefits |
|
36,825 |
|
45,992 |
|||
Deferred income taxes |
|
115,950 |
|
120,608 |
|||
Long-term tax liability |
|
- |
|
21,714 |
|||
Other liabilities |
|
71,299 |
|
80,865 |
|||
Total stockholders' equity |
|
1,276,498 |
|
1,362,263 |
|||
Total liabilities and stockholders' equity |
$ |
3,037,087 |
$ |
3,308,014 |
|
|||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||
(Dollars in thousands) | |||||||||
(Unaudited) | |||||||||
Six months ended |
|||||||||
|
2024 |
|
|
2023 |
|
||||
Operating activities: | |||||||||
Net (loss) income |
$ |
(44,873 |
) |
$ |
30,511 |
|
|||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||||||||
Depreciation and amortization |
|
59,563 |
|
|
46,913 |
|
|||
Gain on disposition of property, plant and equipment |
|
(50 |
) |
|
(180 |
) |
|||
Stock compensation expense |
|
6,464 |
|
|
4,832 |
|
|||
Non-cash goodwill impairment charge |
|
53,694 |
|
|
- |
|
|||
Gain on sale of businesses |
|
(5,545 |
) |
|
- |
|
|||
Changes in assets and liabilities, net of the effects of divestiture: | |||||||||
Accounts receivable |
|
(12,173 |
) |
|
(18,102 |
) |
|||
Inventories |
|
(23,011 |
) |
|
(9,743 |
) |
|||
Prepaid expenses and other current assets |
|
(12,532 |
) |
|
(5,183 |
) |
|||
Accounts payable |
|
2,862 |
|
|
(2,300 |
) |
|||
Accrued liabilities |
|
(645 |
) |
|
16,745 |
|
|||
Deferred income taxes |
|
3,454 |
|
|
779 |
|
|||
Long-term retirement benefits |
|
(10,336 |
) |
|
(10,636 |
) |
|||
Long-term tax liability |
|
(17,372 |
) |
|
(13,029 |
) |
|||
Other |
|
3,550 |
|
|
1,860 |
|
|||
Net cash provided by operating activities |
|
3,050 |
|
|
42,467 |
|
|||
Investing activities: | |||||||||
Proceeds from disposition of property, plant and equipment |
|
344 |
|
|
149 |
|
|||
Proceeds from the sale of businesses |
|
146,041 |
|
|
- |
|
|||
Capital expenditures |
|
(29,854 |
) |
|
(21,617 |
) |
|||
Business acquisitions, net of cash acquired |
|
159 |
|
|
- |
|
|||
Other |
|
- |
|
|
(722 |
) |
|||
Net cash provided (used) by investing activities |
|
116,690 |
|
|
(22,190 |
) |
|||
Financing activities: | |||||||||
Net change in other borrowings |
|
6,568 |
|
|
7,775 |
|
|||
Payments on long-term debt |
|
(233,207 |
) |
|
(112,927 |
) |
|||
Proceeds from the issuance of long-term debt |
|
110,000 |
|
|
101,208 |
|
|||
Proceeds from the issuance of common stock |
|
122 |
|
|
189 |
|
|||
Dividends paid |
|
(16,229 |
) |
|
(16,195 |
) |
|||
Withholding taxes paid on stock issuances |
|
(141 |
) |
|
(376 |
) |
|||
Cash settlement of foreign currency hedges related to intercompany financing |
|
(9,967 |
) |
|
(1,176 |
) |
|||
Other |
|
(232 |
) |
|
(2,588 |
) |
|||
Net cash used by financing activities |
|
(143,086 |
) |
|
(24,090 |
) |
|||
Effect of exchange rate changes on cash flows |
|
(2,784 |
) |
|
(466 |
) |
|||
Decrease in cash, cash equivalents and restricted cash |
|
(26,130 |
) |
|
(4,279 |
) |
|||
Cash, cash equivalents and restricted cash at beginning of the period |
|
92,039 |
|
|
81,128 |
|
|||
Cash, cash equivalents and restricted cash at end of period |
|
65,909 |
|
|
76,849 |
|
|||
Less: Restricted cash, included in Prepaid expenses and other current assets |
|
- |
|
|
(2,176 |
) |
|||
Cash and cash equivalents at end of period |
$ |
65,909 |
|
$ |
74,673 |
|
|||
|
|||||||
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW | |||||||
(Dollars in thousands) | |||||||
(Unaudited) | |||||||
Six months ended |
|||||||
2024 |
|
2023 |
|||||
Free cash flow: | |||||||
Net cash provided by operating activities |
$ |
3,050 |
|
$ |
42,467 |
|
|
Capital expenditures |
|
(29,854 |
) |
|
(21,617 |
) |
|
Free cash flow(1) |
$ |
(26,804 |
) |
$ |
20,850 |
|
|
Free cash flow (as adjusted): | |||||||
Free cash flow (from above) |
$ |
(26,804 |
) |
$ |
20,850 |
|
|
Income tax payments related to the sale of the businesses |
|
12,280 |
|
|
- |
|
|
Free cash flow (as adjusted) (1) |
$ |
(14,524 |
) |
$ |
20,850 |
|
|
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 |
Six months ended |
|||||||||||||||||||||||
2024 |
2023 |
% Change |
2024 |
2023 |
% Change | |||||||||||||||||||
SEGMENT RESULTS | ||||||||||||||||||||||||
Operating Profit - Aerospace Segment (GAAP) |
$ |
29,344 |
|
$ |
16,580 |
|
|
77.0 |
|
$ |
60,430 |
|
$ |
35,331 |
|
71.0 |
|
|||||||
Restructuring/reduction in force and transformation related charges |
|
2,247 |
|
|
545 |
|
|
2,638 |
|
|
2,314 |
|
||||||||||||
Shareholder advisory costs |
|
50 |
|
|
- |
|
|
1,078 |
|
|
- |
|
||||||||||||
Acquisition related costs |
|
- |
|
|
3,559 |
|
|
- |
|
|
3,559 |
|
||||||||||||
MB Short-term purchase accounting adjustments |
|
685 |
|
|
- |
|
|
2,826 |
|
|
- |
|
||||||||||||
Operating Profit - Aerospace Segment as adjusted (Non-GAAP) (1) |
$ |
32,326 |
|
$ |
20,684 |
|
|
56.3 |
|
$ |
66,972 |
|
$ |
41,204 |
|
62.5 |
|
|||||||
Operating Margin - Aerospace Segment (GAAP) |
|
13.5 |
% |
|
13.6 |
% |
|
(10 |
) |
bps. |
|
13.8 |
% |
|
14.8 |
% |
(100 |
) |
bps. | |||||
Operating Margin - Aerospace Segment as adjusted (Non-GAAP) (1) |
|
14.8 |
% |
|
17.0 |
% |
|
(220 |
) |
bps. |
|
15.2 |
% |
|
17.2 |
% |
(200 |
) |
bps. | |||||
Operating (Loss) Profit - Industrial Segment (GAAP) |
$ |
(31,457 |
) |
$ |
9,429 |
|
|
(433.6 |
) |
$ |
(22,861 |
) |
$ |
13,962 |
|
(263.7 |
) |
|||||||
Restructuring/reduction in force and transformation related charges |
|
3,167 |
|
|
13,351 |
|
|
6,888 |
|
|
25,461 |
|
||||||||||||
Shareholder advisory costs |
|
50 |
|
|
- |
|
|
1,022 |
|
|
- |
|
||||||||||||
Gain on the sale of businesses |
|
(10,204 |
) |
|
- |
|
|
(7,071 |
) |
|
- |
|
||||||||||||
|
|
53,694 |
|
|
- |
|
|
53,694 |
|
|
- |
|
||||||||||||
Operating Profit - Industrial Segment as adjusted (Non-GAAP) (1) |
$ |
15,250 |
|
$ |
22,780 |
|
|
(33.1 |
) |
$ |
31,672 |
|
$ |
39,423 |
|
(19.7 |
) |
|||||||
Operating Margin - Industrial Segment (GAAP) |
|
-19.1 |
% |
|
4.3 |
% |
|
(2,340 |
) |
bps. |
|
-6.1 |
% |
|
3.2 |
% |
(930 |
) |
bps. | |||||
Operating Margin - Industrial Segment as adjusted (Non-GAAP) (1) |
|
9.3 |
% |
|
10.5 |
% |
|
(120 |
) |
bps. |
|
8.5 |
% |
|
9.1 |
% |
(60 |
) |
bps. | |||||
CONSOLIDATED RESULTS | ||||||||||||||||||||||||
Operating (Loss) Income (GAAP) |
$ |
(2,113 |
) |
$ |
26,009 |
|
|
(108.1 |
) |
$ |
37,569 |
|
$ |
49,293 |
|
(23.8 |
) |
|||||||
Restructuring/reduction in force and transformation related charges |
|
5,414 |
|
|
13,896 |
|
|
9,526 |
|
|
27,775 |
|
||||||||||||
Shareholder advisory costs |
|
100 |
|
|
- |
|
|
2,100 |
|
|
- |
|
||||||||||||
Gain on the sale of businesses |
|
(10,204 |
) |
|
- |
|
|
(7,071 |
) |
|
- |
|
||||||||||||
Acquisition related costs |
|
- |
|
|
3,559 |
|
|
- |
|
|
3,559 |
|
||||||||||||
MB Short-term purchase accounting adjustments |
|
685 |
|
|
- |
|
|
2,826 |
|
|
- |
|
||||||||||||
|
|
53,694 |
|
|
- |
|
|
53,694 |
|
|
- |
|
||||||||||||
Operating Income as adjusted (Non-GAAP) (1) |
$ |
47,576 |
|
$ |
43,464 |
|
|
9.5 |
|
$ |
98,644 |
|
$ |
80,627 |
|
22.3 |
|
|||||||
Operating Margin (GAAP) |
|
-0.6 |
% |
|
7.7 |
% |
|
(830 |
) |
bps. |
|
4.6 |
% |
|
7.3 |
% |
(270 |
) |
bps. | |||||
Operating Margin as adjusted (Non-GAAP) (1) |
|
12.4 |
% |
|
12.8 |
% |
|
(40 |
) |
bps. |
|
12.1 |
% |
|
12.0 |
% |
10 |
|
bps. | |||||
Diluted Net (Loss) Income per Share (GAAP) |
$ |
(0.91 |
) |
$ |
0.34 |
|
|
(367.6 |
) |
$ |
(0.88 |
) |
$ |
0.60 |
|
(246.7 |
) |
|||||||
Restructuring/reduction in force and transformation related charges |
|
0.08 |
|
|
0.19 |
|
|
0.14 |
|
|
0.39 |
|
||||||||||||
Shareholder advisory costs |
|
- |
|
|
- |
|
|
0.03 |
|
|
- |
|
||||||||||||
Loss related to sale of businesses, net of tax |
|
0.14 |
|
|
- |
|
|
0.35 |
|
|
- |
|
||||||||||||
MB Short-term purchase accounting adjustments |
|
0.01 |
|
|
- |
|
|
0.04 |
|
|
- |
|
||||||||||||
Acquisition related costs |
|
- |
|
|
0.05 |
|
|
0.02 |
|
|
0.05 |
|
||||||||||||
|
|
1.05 |
|
|
- |
|
|
1.05 |
|
|
- |
|
||||||||||||
Diluted Net Income per Share as adjusted (Non-GAAP) (1) |
$ |
0.37 |
|
$ |
0.58 |
|
|
(36.2 |
) |
$ |
0.75 |
|
$ |
1.04 |
|
(27.9 |
) |
|||||||
Full-Year 2023 | Full-Year 2024 Outlook | |||||||||||||||||||||||
Operating Margin (GAAP) |
|
6.1 |
% |
|
7.1 |
% |
to |
|
9.1 |
% |
||||||||||||||
Restructuring/reduction in force and transformation related charges |
|
3.2 |
% |
1.6 |
% |
|||||||||||||||||||
Divestiture transaction costs/loss related to sale of businesses, net of tax |
|
0.1 |
% |
-0.4 |
% |
|||||||||||||||||||
MB Short-term purchase accounting adjustments |
|
1.3 |
% |
0.3 |
% |
|||||||||||||||||||
Shareholder advisory costs |
|
- |
|
0.1 |
% |
|||||||||||||||||||
Acquisition related costs |
|
0.8 |
% |
- |
|
|||||||||||||||||||
|
|
- |
|
3.3 |
% |
|||||||||||||||||||
Operating Margin as adjusted (Non-GAAP) (1) |
|
11.5 |
% |
|
12.0 |
% |
to |
|
14.0 |
% |
||||||||||||||
Diluted Net Income (Loss) per Share (GAAP) |
$ |
0.31 |
|
$ |
(0.36 |
) |
to |
$ |
(0.16 |
) |
||||||||||||||
Restructuring/reduction in force and transformation related charges |
|
0.66 |
|
0.40 |
|
|||||||||||||||||||
Divestiture transaction costs/loss related to sale of businesses, net of tax |
|
0.02 |
|
0.35 |
|
|||||||||||||||||||
MB Short-term purchase accounting adjustments |
|
0.29 |
|
0.06 |
|
|||||||||||||||||||
Shareholder advisory costs |
|
- |
|
0.03 |
|
|||||||||||||||||||
Acquisition related costs |
|
0.37 |
|
0.02 |
|
|||||||||||||||||||
|
|
- |
|
1.05 |
|
|||||||||||||||||||
Diluted Net Income per Share as adjusted (Non-GAAP) (1) |
$ |
1.65 |
|
$ |
1.55 |
|
to |
$ |
1.75 |
|
||||||||||||||
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 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 | ||||||||||||||||||||||||
|
$ |
217,958 |
|
|
164,274 |
|
|
- |
|
$ |
382,232 |
|
$ |
122,015 |
|
|
216,971 |
|
|
(2 |
) |
$ |
338,984 |
|
|||||||
Net (Loss) Income |
$ |
(46,821 |
) |
$ |
17,352 |
|
|||||||||||||||||||||||||
Interest expense |
|
20,812 |
|
|
6,512 |
|
|||||||||||||||||||||||||
Other expense (income), net |
|
(845 |
) |
|
(2,894 |
) |
|||||||||||||||||||||||||
Income taxes |
|
24,741 |
|
|
5,039 |
|
|||||||||||||||||||||||||
Operating Profit (Loss) (GAAP) |
$ |
29,344 |
|
$ |
(31,457 |
) |
$ |
- |
|
$ |
(2,113 |
) |
$ |
16,580 |
|
$ |
9,429 |
|
$ |
- |
|
$ |
26,009 |
|
|||||||
Operating Margin (GAAP) |
|
13.5 |
% |
|
-19.1 |
% |
|
-0.6 |
% |
|
13.6 |
% |
|
4.3 |
% |
|
7.7 |
% |
|||||||||||||
Other expense (income), net |
|
- |
|
|
- |
|
|
845 |
|
|
845 |
|
|
- |
|
|
- |
|
|
2,894 |
|
|
2,894 |
|
|||||||
Depreciation (2) |
|
7,463 |
|
|
3,990 |
|
|
- |
|
|
11,453 |
|
|
4,867 |
|
|
6,393 |
|
|
- |
|
|
11,260 |
|
|||||||
Amortization (3) |
|
11,214 |
|
|
5,887 |
|
|
- |
|
|
17,101 |
|
|
5,191 |
|
|
6,413 |
|
|
- |
|
|
11,604 |
|
|||||||
EBITDA (Non-GAAP) (4) |
$ |
48,021 |
|
$ |
(21,580 |
) |
$ |
845 |
|
$ |
27,286 |
|
$ |
26,638 |
|
$ |
22,235 |
|
$ |
2,894 |
|
$ |
51,767 |
|
|||||||
EBITDA Margin (Non-GAAP) (4) |
|
22.0 |
% |
|
-13.1 |
% |
|
7.1 |
% |
|
21.8 |
% |
|
10.2 |
% |
|
15.3 |
% |
|||||||||||||
Restructuring/reduction in force and transformation related charges |
|
2,247 |
|
|
3,167 |
|
|
- |
|
|
5,414 |
|
|
545 |
|
|
12,555 |
|
|
- |
|
|
13,100 |
|
|||||||
Shareholder advisory costs |
|
50 |
|
|
50 |
|
|
- |
|
|
100 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|||||||
Acquisition transaction costs |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
3,559 |
|
|
- |
|
|
- |
|
|
3,559 |
|
|||||||
MB Short-term purchase accounting adjustments |
|
42 |
|
|
- |
|
|
- |
|
|
42 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|||||||
Pension related loss |
|
- |
|
|
- |
|
|
156 |
|
|
156 |
|
|
- |
|
|
- |
|
|
(1,144 |
) |
|
(1,144 |
) |
|||||||
Gain on the sale of businesses |
|
- |
|
|
(10,204 |
) |
|
- |
|
|
(10,204 |
) |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|||||||
|
|
- |
|
|
53,694 |
|
|
- |
|
|
53,694 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|||||||
Adjusted EBITDA (Non-GAAP) (4) |
$ |
50,360 |
|
$ |
25,127 |
|
$ |
1,001 |
|
$ |
76,488 |
|
$ |
30,742 |
|
$ |
34,790 |
|
$ |
1,750 |
|
$ |
67,282 |
|
|||||||
Adjusted EBITDA Margin (Non-GAAP) (4) |
|
23.1 |
% |
|
15.3 |
% |
|
20.0 |
% |
|
25.2 |
% |
|
16.0 |
% |
|
19.8 |
% |
|||||||||||||
Six months ended |
|||||||||||||||||||||||||||||||
2024 |
2023 |
||||||||||||||||||||||||||||||
Aerospace | Industrial | Other (1) | Total | Aerospace | Industrial | Other (1) | Total | ||||||||||||||||||||||||
|
$ |
439,328 |
|
|
373,542 |
|
|
- |
|
$ |
812,870 |
|
$ |
239,272 |
|
|
435,079 |
|
|
(10 |
) |
$ |
674,341 |
|
|||||||
Net (Loss) Income |
$ |
(44,873 |
) |
$ |
30,511 |
|
|||||||||||||||||||||||||
Interest expense |
|
45,643 |
|
|
11,819 |
|
|||||||||||||||||||||||||
Other expense (income), net |
|
850 |
|
|
(1,553 |
) |
|||||||||||||||||||||||||
Income taxes |
|
35,949 |
|
|
8,516 |
|
|||||||||||||||||||||||||
Operating Profit (Loss) (GAAP) |
$ |
60,430 |
|
$ |
(22,861 |
) |
$ |
- |
|
$ |
37,569 |
|
$ |
35,331 |
|
$ |
13,962 |
|
$ |
- |
|
$ |
49,293 |
|
|||||||
Operating Margin (GAAP) |
|
13.8 |
% |
|
-6.1 |
% |
|
4.6 |
% |
|
14.8 |
% |
|
3.2 |
% |
|
7.3 |
% |
|||||||||||||
Other expense (income), net |
|
- |
|
|
- |
|
|
(850 |
) |
|
(850 |
) |
|
- |
|
|
- |
|
|
1,553 |
|
|
1,553 |
|
|||||||
Depreciation (2) |
|
15,319 |
|
|
9,581 |
|
|
- |
|
|
24,900 |
|
|
9,820 |
|
|
13,869 |
|
|
- |
|
|
23,689 |
|
|||||||
Amortization (3) |
|
22,850 |
|
|
11,813 |
|
|
- |
|
|
34,663 |
|
|
10,297 |
|
|
12,927 |
|
|
- |
|
|
23,224 |
|
|||||||
EBITDA (Non-GAAP) (4) |
$ |
98,599 |
|
$ |
(1,467 |
) |
$ |
(850 |
) |
$ |
96,282 |
|
$ |
55,448 |
|
$ |
40,758 |
|
$ |
1,553 |
|
$ |
97,759 |
|
|||||||
EBITDA Margin (Non-GAAP) (4) |
|
22.4 |
% |
|
-0.4 |
% |
|
11.8 |
% |
|
23.2 |
% |
|
9.4 |
% |
|
14.5 |
% |
|||||||||||||
Restructuring/reduction in force and transformation related charges |
|
2,638 |
|
|
6,164 |
|
|
- |
|
|
8,802 |
|
|
2,314 |
|
|
23,072 |
|
|
- |
|
|
25,386 |
|
|||||||
Shareholder advisory costs |
|
1,078 |
|
|
1,022 |
|
|
- |
|
|
2,100 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|||||||
Acquisition transaction costs |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
3,559 |
|
|
- |
|
|
- |
|
|
3,559 |
|
|||||||
MB Short-term purchase accounting adjustments |
|
1,540 |
|
|
- |
|
|
- |
|
|
1,540 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|||||||
Gain on the sale of businesses |
|
- |
|
|
(7,071 |
) |
|
- |
|
|
(7,071 |
) |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|||||||
Pension related loss (gain) |
|
- |
|
|
- |
|
|
1,526 |
|
|
1,526 |
|
|
- |
|
|
- |
|
|
(1,144 |
) |
|
(1,144 |
) |
|||||||
|
|
- |
|
|
53,694 |
|
|
- |
|
|
53,694 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|||||||
Adjusted EBITDA (Non-GAAP) (4) |
$ |
103,855 |
|
$ |
52,342 |
|
$ |
676 |
|
$ |
156,873 |
|
$ |
61,321 |
|
$ |
63,830 |
|
$ |
409 |
|
$ |
125,560 |
|
|||||||
Adjusted EBITDA Margin (Non-GAAP) (4) |
|
23.6 |
% |
|
14.0 |
% |
|
19.3 |
% |
|
25.6 |
% |
|
14.7 |
% |
|
18.6 |
% |
|||||||||||||
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. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240726914672/en/
Investors:
Vice President, Investor Relations
ir@onebarnes.com
860.583.7070
Source: