Atotech (NYSE: ATC), a leading specialty chemicals technology
company and a market leader in advanced electroplating solutions,
today reported unaudited financial results for the fourth quarter
and full year ended December 31, 2021. Chemistry organic revenue
growth, a key performance indicator for the Company, increased 11%
compared to the full year of 2020. Chemistry organic revenue growth
reflects chemistry revenue growth excluding the impact of foreign
exchange translation (“FX”) and palladium pass-through
(“palladium”).
Management Commentary
Geoff Wild, Atotech’s Chief Executive Officer,
said, “Thanks to the tremendous efforts of our teams across
Atotech, we had a strong close to 2021, delivering a fourth quarter
that was ahead of guidance on all measures. As expected, fourth
quarter growth rates normalized compared to the previous quarters
of 2021 due to the higher comparison base in the fourth quarter of
2020.
“Over the course of 2021, Atotech experienced
strong demand for its advanced electronics chemistry and equipment
solutions,” continued Mr. Wild. “Underlying factors driving this
demand include pandemic-related demand for computers and servers,
5G proliferation in the smartphone space, and the recovery of the
automotive industry. In our GMF segment, the impact of chip
shortages on the automotive industry was partially offset by
stronger demand from other industrial production, including
construction, sanitary, and heavy machinery. The introduction of
our sustainability-related products, such as Covertron, DynaSmart,
and Fumalock, has also been a highlight this year.”
Fourth-quarter 2021 Results
Total revenue was $387 million for the fourth
quarter of 2021, an increase of 6% over the prior-year period.
Total organic revenue, which reflects total revenue excluding the
impact of FX and palladium, increased 7%. These results were
supported by organic growth in chemistry revenue of 2%, impacted by
lower-than-expected automotive market growth rates.
Adjusted EBITDA was $118 million for the fourth
quarter of 2021, an 11% increase over the prior-year period,
reflecting chemistry organic volume growth and a strong equipment
business with many deliveries before year-end.
Diluted earnings per share was $0.15 for the
fourth quarter ended December 31, 2021, and Adjusted EPS was
$1.33.
Adjusted EBITDA margin was 30% for the fourth
quarter of 2021, up 100 basis points over the prior-year period.
The increase reflects a strong chemistry product mix, positive
scale effects, and a successful start of the Company’s
price-increase initiatives to offset inflationary conditions.
Fourth-quarter 2021 Segment
Highlights
Electronics: Revenue for the
fourth quarter of 2021 in the Company’s Electronics segment was
$254 million, an increase of 9% over the prior-year period. Total
organic revenue grew 11%, consisting of 6% chemistry organic growth
and a 32% increase in equipment organic revenue. End-market demand
for computing applications and high-end smartphones continued to
gain momentum, but the overall slowdown in the Automobile sector
for Electronics was also noticeable. As in prior quarters for 2021,
the global build-out of production capacity for high-end
applications translated into strong demand for our equipment.
Adjusted EBITDA for our Electronics segment was
$86 million for the fourth quarter of 2021, a 22% increase over the
prior-year period, primarily driven by chemistry volume growth.
Adjusted EBITDA margin was 34%, at prior-year level, driven by a
strong chemistry product mix and successful equipment projects.
General Metal Finishing:
Revenue for the fourth quarter of 2021 in our GMF segment was $133
million, a decrease of 0.3% over the prior-year period. Total
organic GMF revenue increased 1%, consisting of a 3% decline in
chemistry organic revenue and 146% growth in organic revenue for
equipment. The decline in chemistry organic revenue was primarily
due to a high comparison base in Q4 2020 after a strong recovery
from the pandemic-depressed markets at the end of 2020, and
continued impact of the chip shortage to automotive production
worldwide.
Adjusted EBITDA for the Company’s GMF segment
was $32 million, a 12% decline compared to the prior-year quarter,
primarily reflecting a high comparison base.
MKS Transaction
Atotech is disclosing its fourth quarter and
full-year 2021 financial results on a preliminary, unaudited basis
as the Company on July 1, 2021 announced that it had entered into a
definitive agreement with MKS Instruments, Inc. (“MKS”), a global
provider of technologies that enable advanced processes and improve
productivity. Under the agreement, MKS will acquire Atotech for
$16.20 in cash and 0.0552 of a share of MKS common stock for each
Atotech common share (the “MKS Transaction”). The MKS Transaction
is to be effected by means of a scheme of arrangement under Article
125 of the Companies (Jersey) Law 1991 (as amended).
The MKS Transaction has been unanimously
approved by the MKS and Atotech boards of directors, and each of
the resolutions put to the Company’s shareholders at the court
meeting and the general meeting convened in connection with the MKS
Transaction, which were each held on November 3, 2021, were passed
by the requisite majority of votes.
Atotech previously announced that it has agreed
to extend the date for completing MKS Instruments, Inc.’s (“MKS”)
pending acquisition of Atotech to September 30, 2022 from March 31,
2022. The extension is intended to allow additional time for
receipt of regulatory approval from China’s State Administration
for Market Regulation (“SAMR”). In addition to receiving approval
from SAMR, the acquisition, which is to be effected by means of a
scheme of arrangement under the laws of the Bailiwick of Jersey, is
subject to obtaining the required sanction by the Royal Court of
Jersey and the satisfaction of customary closing conditions.
Update Regarding Geopolitical Events and
Palladium Sourcing
Atotech noted that its direct exposure to
Ukraine and Russia is immaterial to operations and financial
results, and is expected to be immaterial on a combined company
basis as well. The Group does not source palladium directly from
Russia or Ukraine, and the majority of its palladium is from South
Africa and recycling sources. Additionally, the Group is continuing
to pass the cost of palladium on to customers in order to mitigate
the impact of price volatility on the Group’s results from
operations.
Conference Call
In light of the pending transaction with MKS,
the Company will not host a conference call in connection with this
release.
Cautionary Statement Regarding
Forward-Looking Statements
This communication contains “forward-looking
statements” within the meaning of the federal securities laws,
including Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
In this context, forward-looking statements often address expected
future business and financial performance and financial condition,
and often contain words such as “expect,” “anticipate,” “intend,”
“plan,” “believe,” “seek,” “see,” “will,” “would,” “target,” and
similar expressions and variations or negatives of these words.
These forward-looking statements, which are
subject to risks, uncertainties, and assumptions about us, may
include projections of our future financial performance, our
anticipated growth strategies, and anticipated trends in our
business. These statements are only predictions based on our
current expectations and projections about future events. There are
important factors that could cause our actual results, level of
activity, performance or achievements to differ materially from the
results, level of activity, performance or achievements expressed
or implied by the forward-looking statements, and such differences
could be material. We undertake no obligation to publicly update or
revise any forward-looking statements to reflect subsequent events
or circumstances.
More information on potential factors that could
affect Atotech’s financial results is available in “Forward-Looking
Statements”, the “Risk Factors” and “Management’s Discussion and
Analysis of Financial Condition and Results of Operations” within
Atotech’s most recent Annual Report on Form 20-F, and in other
documents that we have filed with, will file with, have furnished
to, or will furnish to the U.S. Securities and Exchange Commission
(the “SEC”), and such factors include, but are not limited to: the
uncertainty of the magnitude, duration, geographic reach, impact on
the global economy of the COVID-19 pandemic, as well as the current
and potential travel restrictions, stay-at-home orders, and other
economic restrictions implemented to address it; uncertainty,
downturns, and changes in our target markets; foreign currency
exchange rate fluctuations; reduced market acceptance and inability
to keep pace with evolving technology and trends; loss of
customers; increases in costs or reductions in the supplies of raw
materials that may materially adversely affect our business,
financial condition, and results of operations; our ability to
provide products and services in light of changing environmental,
health and safety, product liability, financial, and other
legislation and regulation; our failure to compete successfully in
product development; our ability to successfully execute our growth
initiatives, business strategies, and operating plans; whether the
secular trends we expect to drive growth in our business
materialize to the degree we expect them to, or at all; material
costs relating to environmental and health-and-safety requirements
or liabilities; underfunded defined benefit pension plans; risk
that the insurance we maintain may not fully cover all potential
exposures; failure to comply with the anti-corruption laws of the
United States and various international jurisdictions; tariffs,
border adjustment taxes, or other adverse trade restrictions and
impacts on our customers’ value chains; political, economic, and
legal uncertainties in China, the Chinese government’s control of
currency conversion and expatriation of funds, and the Chinese
government’s policy on foreign investment in China; regulations
around the production and use of chemical substances that affect
our products; the United Kingdom’s withdrawal from the European
Union; weak intellectual property rights in jurisdictions outside
the United States; intellectual property infringement and product
liability claims; our substantial indebtedness; our ability to
obtain additional capital on commercially reasonable terms may be
limited; risks related to our derivative instruments; our ability
to attract, motivate, and retain senior management and qualified
employees; increased risks to our global operations including, but
not limited to, political instability, acts of terrorism, taxation,
and unexpected regulatory and economic sanctions changes,
including, for example, the recent Russia/Ukraine crisis and
resulting sanctions against Russia and its economy and other
impacts on the global economy, among other things; natural
disasters that may materially adversely affect our business,
financial condition, and results of operations; the inherently
hazardous nature of chemical manufacturing that could result in
accidents that disrupt our operations and expose us to losses or
liabilities; damage to our brand reputation; Carlyle’s ability to
control our common shares; risks relating to the pending MKS
Transaction, including that such transaction may not be
consummated; any statements of belief and any statements of
assumptions underlying any of the foregoing; and other factors
beyond our control.
Additional Information and Where to Find
It
Shareholders may obtain a free copy of the
scheme document published by Atotech on September 28, 2021 in
relation to the MKS Transaction (the “Scheme
Document”) and other documents Atotech files with the SEC
(when available) through the website maintained by the SEC at
www.sec.gov. The Scheme Document is also available free of charge
on Atotech’s investor relations website at investors.atotech.com
together with copies of materials it files with, or furnishes to,
the SEC.
No Offer or Solicitation
This communication is for information purposes
only and is not intended to and does not constitute, or form part
of, an offer, invitation or the solicitation of an offer or
invitation to purchase, otherwise acquire, subscribe for, sell or
otherwise dispose of any securities, or the solicitation of any
vote or approval in any jurisdiction, pursuant to the proposed MKS
Transaction or otherwise, nor shall there be any sale, issuance or
transfer of securities in any jurisdiction in contravention of
applicable law.
The proposed MKS Transaction will be implemented
solely pursuant to the scheme of arrangement, subject to the terms
and conditions of the definitive agreement between MKS and Atotech,
dated July 1, 2021, which contains the full terms and conditions of
the proposed MKS Transaction.
Unaudited Financial
Information
The information included in this release reflect
our preliminary unaudited financial results for the year or quarter
ended December 31, 2021. Our independent registered public
accounting firm, KPMG AG Wirtschaftsprüfungsgesellschaft (Germany),
has not audited, reviewed, compiled, or performed any procedures on
this information. KPMG AG Wirtschaftsprüfungsgesellschaft (Germany)
does not express an opinion or any other form of assurance with
respect to the financial information included in this release.
During the course of the preparation and review of our consolidated
financial statements and related notes for the year ended December
31, 2021, we and our auditors may identify items that would require
us to make material adjustments to the preliminary unaudited
information presented above. Accordingly, you should not place
undue reliance upon this information and should not draw any
inferences from this information regarding financial or operating
data not presented.
Non-IFRS Financial Measures
This communication contains certain non-IFRS
financial measures designed to complement the financial information
presented in accordance with IFRS because management believes such
measures are useful to investors. However, our use of these
non-IFRS financial measures may vary from that of others in our
industry. Our non-IFRS metrics have limitations as analytical
tools, and you should not consider them in isolation or as
alternatives to consolidated net income (loss) or other performance
measures derived in accordance with IFRS as measures of operating
performance, operating cash flows or liquidity. The Company
believes that these measures are important and supplement
discussions and analysis of its results of operations and enhances
an understanding of its operating performance. See the Appendix for
a reconciliation of the non-IFRS financial measures.
About Atotech
Atotech is a leading specialty chemicals
technology company and a market leader in advanced electroplating
solutions. Atotech delivers chemistry, equipment, software, and
services for innovative technology applications through an
integrated systems-and-solutions approach. Atotech solutions are
used in a wide variety of end-markets, including smartphones and
other consumer electronics, communications infrastructure, and
computing, as well as in numerous industrial and consumer
applications such as automotive, heavy machinery, and household
appliances.
Atotech’s team of 4,000 experts in over 40
countries generated revenues of $1.5 billion in 2021. Atotech,
headquartered in Berlin, Germany, has manufacturing operations
across Europe, the Americas, and Asia. With its well-established
innovative strength and industry-leading global TechCenter network,
Atotech delivers pioneering solutions combined with unparalleled
on-site support for over 8,000 customers worldwide. For more
information about Atotech, please visit us at atotech.com.
1 The financial information for the fourth quarter and full-year
2021 included herein is preliminary unaudited financial
information. See “Unaudited Financial Information” below.
2 Adjusted EBITDA is a non-IFRS financial measure. Adjusted
EBITDA should be considered in addition to, but not as a substitute
for, the information provided in accordance with IFRS. A
reconciliation for adjusted EBITDA to the most directly comparable
IFRS financial measure is provided in the Reconciliation of
Adjusted EBITDA to Consolidated Net Income (Loss) table. We are not
able to forecast Consolidated net income (loss) on a
forward-looking basis without unreasonable efforts due to the high
variability and difficulty in predicting certain items that affect
Consolidated net income (loss), including, but not limited to,
Income taxes, Interest expense, net, and Foreign exchange income
(loss).
Financial Statement Tables
ATOTECH LIMITED Consolidated
Statements of Comprehensive Income/(Loss)
|
Three months
ended(unaudited) |
($ in millions), except earnings per share |
Dec 31, 2021 |
Dec 31, 2020 |
Revenue |
$ |
386.5 |
|
$ |
365.4 |
|
Cost of
sales, excluding depreciation and amortization |
|
(185.7 |
) |
|
(173.8 |
) |
Depreciation and amortization |
|
(49.0 |
) |
|
(45.4 |
) |
Selling,
general and administrative expenses |
|
(82.5 |
) |
|
(72.1 |
) |
Research
and development expenses |
|
(13.3 |
) |
|
(17.6 |
) |
Restructuring benefit (expenses) |
|
0.2 |
|
|
(0.7 |
) |
Operating profit (loss) |
|
56.2 |
|
|
55.8 |
|
Interest
expense |
|
(14.1 |
) |
|
(36.4 |
) |
Other
income (expense), net |
|
6.8 |
|
|
23.4 |
|
Income (loss) before income taxes |
|
48.8 |
|
|
42.8 |
|
Income
tax expense |
|
(18.7 |
) |
|
(20.4 |
) |
Consolidated net income (loss) |
$ |
30.1 |
|
$ |
22.4 |
|
Earnings
per share |
|
|
Basic
earnings (loss) per share |
|
0.15 |
|
|
(0.12 |
) |
Diluted earnings (loss) per share |
|
0.15 |
|
|
(0.12 |
) |
|
Three months
ended(unaudited) |
($ in millions) |
Dec 31, 2021 |
Dec 31, 2020 |
Consolidated net income (loss) |
$ |
30.1 |
|
$ |
22.4 |
|
Other comprehensive income (loss) |
|
|
Actuarial gains and losses |
|
8.2 |
|
|
10.0 |
|
Tax
effect |
|
(2.4 |
) |
|
(3.0 |
) |
Items not potentially reclassifiable to statement of
income |
|
5.8 |
|
|
7.0 |
|
Currency
translation adjustment |
|
(6.0 |
) |
|
92.1 |
|
Hedge
reserve |
|
— |
|
|
(10.5 |
) |
Thereof:
Income (cost) of Hedging (OCI II) |
|
— |
|
|
0.5 |
|
Other |
|
0.5 |
|
|
1.5 |
|
Items potentially reclassifiable to statement of income
(loss), net of tax |
|
(5.5 |
) |
|
83.1 |
|
Total other comprehensive income (loss), net
amount |
$ |
0.3 |
|
$ |
90.1 |
|
Comprehensive income (loss) |
$ |
30.4 |
|
$ |
112.5 |
|
ATOTECH LIMITED Consolidated
Statements of Comprehensive Income/(Loss)
|
Twelve months ended |
($ in millions), except earnings per share |
Dec 31, 2021(unaudited) |
Dec 31, 2020(audited) |
Revenue |
1,499.2 |
|
1,234.3 |
|
Cost of
sales, excluding depreciation and amortization |
(731.8 |
) |
(558.0 |
) |
Depreciation and amortization |
(181.4 |
) |
(450.3 |
) |
Selling,
general and administrative expenses |
(289.5 |
) |
(270.2 |
) |
Research
and development expenses |
(53.3 |
) |
(54.4 |
) |
Restructuring benefit (expenses) |
0.6 |
|
(2.5 |
) |
Operating profit (loss) |
243.8 |
|
(101.2 |
) |
Interest
expense |
(107.2 |
) |
(144.5 |
) |
Other
income (expense), net |
(52.4 |
) |
20.6 |
|
Income (loss) before income taxes |
84.1 |
|
(225.1 |
) |
Income
tax expense |
(76.6 |
) |
(64.3 |
) |
Consolidated net income (loss) |
7.5 |
|
(289.4 |
) |
Earnings
per share |
(0.04 |
) |
(4.64 |
) |
Basic
earnings (loss) per share |
(0.04 |
) |
(4.64 |
) |
Diluted earnings (loss) per share |
(0.04 |
) |
(4.64 |
) |
|
Twelve months ended |
($ in millions) |
Dec 31, 2021(unaudited) |
Dec 31, 2020 (audited) |
Consolidated net income (loss) |
7.5 |
|
(289.4 |
) |
Other comprehensive income (loss) |
|
|
Actuarial gains and losses |
20.2 |
|
(3.8 |
) |
Tax
effect |
(5.9 |
) |
1.1 |
|
Items not potentially reclassifiable to statement of
income |
14.3 |
|
(2.8 |
) |
Currency
translation adjustment |
(77.1 |
) |
114.9 |
|
Hedge
reserve |
(0.4 |
) |
(13.4 |
) |
Thereof:
Income (cost) of Hedging (OCI II) |
2.2 |
|
2.0 |
|
Other |
0.5 |
|
1.5 |
|
Items potentially reclassifiable to statement of income
(loss), net of tax |
(77.0 |
) |
103.0 |
|
Total other comprehensive income (loss), net
amount |
(62.7 |
) |
100.2 |
|
Comprehensive income (loss) |
(55.2 |
) |
(189.2 |
) |
ATOTECH LIMITED Consolidated
Statements of Financial Position
|
As of |
($ in millions) |
Dec. 31, 2021(unaudited) |
Dec. 31, 2020(audited) |
Assets |
|
|
Non-current assets |
|
|
Property, plant and equipment |
$ |
328.9 |
$ |
359.4 |
Intangible assets |
|
1,343.0 |
|
1,471.0 |
Goodwill |
|
786.9 |
|
804.1 |
Right-of-use assets |
|
83.4 |
|
104.1 |
Other
financial assets |
|
8.9 |
|
70.3 |
Other
non-financial assets |
|
3.5 |
|
2.7 |
Total non-current assets |
|
2,554.7 |
|
2,811.6 |
Current assets |
|
|
Inventories |
|
185.8 |
|
145.4 |
Trade
receivables |
|
290.4 |
|
262.0 |
Other
financial assets |
|
18.9 |
|
24.9 |
Other
non-financial assets |
|
24.4 |
|
24.1 |
Tax
assets |
|
51.2 |
|
46.4 |
Cash and
cash equivalents |
|
371.6 |
|
320.1 |
Total current assets |
|
942.3 |
|
822.9 |
Total assets |
$ |
3,496.9 |
$ |
3,634.5 |
Liabilities & shareholders’ equity |
|
|
Shareholders’ equity |
|
|
Common
shares and preferred shares |
|
19.5 |
|
102.1 |
Paid-in
surplus and retained earnings |
|
819.5 |
|
261.6 |
Currency
translation adjustment and other reserves |
|
57.3 |
|
120.0 |
Total shareholders’ equity |
|
896.3 |
|
483.7 |
Non-current liabilities |
|
|
Borrowings |
$ |
1,540.9 |
$ |
2,065.7 |
Deferred
tax liabilities |
|
306.1 |
|
340.8 |
Employee
benefits |
|
143.4 |
|
176.2 |
Provisions |
|
9.3 |
|
13.2 |
Lease
liabilities |
|
52.1 |
|
67.7 |
Other
financial liabilities |
|
0.1 |
|
1.5 |
Total non-current liabilities |
|
2,052.0 |
|
2,665.1 |
Current
liabilities |
|
|
Borrowings |
|
10.7 |
|
0.5 |
Trade
payables |
|
259.2 |
|
221.0 |
Tax
liabilities |
|
93.0 |
|
99.2 |
Lease
liabilities |
|
12.1 |
|
13.8 |
Other
financial liabilities |
|
11.5 |
|
38.5 |
Other
non-financial liabilities |
|
146.2 |
|
89.7 |
Provisions |
|
16.1 |
|
23.0 |
Total current liabilities |
|
548.7 |
|
485.8 |
Total liabilities & shareholders’ equity |
$ |
3,496.9 |
$ |
3,634.5 |
ATOTECH LIMITEDConsolidated
Statement of Cash Flows
|
Twelve months ended |
($ in millions) |
Dec 31, 2021(unaudited) |
Dec 31, 2020(audited) |
Operating
activities |
|
|
Consolidated net income (loss) |
$ |
7.5 |
|
$ |
(289.4 |
) |
Adjustments to reconcile net
income (loss) to cash provided by operating activities: |
|
|
Depreciation and
amortization |
|
181.4 |
|
|
450.3 |
|
Income taxes and changes in
non-current provisions |
|
67.0 |
|
|
55.1 |
|
(Gains)/losses on disposals of
assets |
|
1.0 |
|
|
1.5 |
|
Net (gain)/loss on financial
instruments at fair value |
|
54.1 |
|
|
(36.8 |
) |
Accrued financial interest
costs |
|
70.5 |
|
|
128.9 |
|
Amortization of deferred
financing cost, including original issuance discounts |
|
35.3 |
|
|
15.6 |
|
Interest paid |
|
(68.2 |
) |
|
(126.9 |
) |
Taxes paid |
|
(118.0 |
) |
|
(70.6 |
) |
Other |
|
(18.3 |
) |
|
(0.1 |
) |
(Increase)/decrease in
inventories |
|
(46.4 |
) |
|
(10.8 |
) |
(Increase)/decrease in trade
receivables |
|
(0.2 |
) |
|
(9.1 |
) |
Increase/(decrease) in trade
payables |
|
49.5 |
|
|
40.7 |
|
Changes in other assets and
liabilities |
|
(1.5 |
) |
|
12.5 |
|
Cash flow provided by
operating activities |
|
213.7 |
|
|
160.6 |
|
Investing
activities |
|
|
Acquisition of subsidiaries,
net of cash acquired |
|
— |
|
|
(2.7 |
) |
Intangible assets and
property, plant and equipment additions |
|
(56.5 |
) |
|
(52.8 |
) |
Other investments and increase
in non-current loans |
|
— |
|
|
(0.1 |
) |
Proceeds from disposals of
intangible assets and property, plant and equipment |
|
5.5 |
|
|
0.2 |
|
Repayments of non-current
loans |
|
0.1 |
|
|
0.3 |
|
Cash flow used in
investing activities |
|
(51.0 |
) |
|
(55.0 |
) |
Financing
activities |
|
|
Issuance of shares |
|
473.4 |
|
|
— |
|
Issuance of non-current
debt |
|
130.0 |
|
|
175.1 |
|
Repayment of non-current
debt |
|
(685.7 |
) |
|
(255.2 |
) |
Changes in current borrowings
and bank debt |
|
0.7 |
|
|
(17.4 |
) |
Changes in current financial
assets and liabilities |
|
(1.5 |
) |
|
0.0 |
|
Payment of lease
liabilities |
|
(15.3 |
) |
|
(15.3 |
) |
Payment of deferred finance
costs |
|
— |
|
|
(9.2 |
) |
Cash flow used in
financing activities |
|
(98.4 |
) |
|
(122.0 |
) |
Net
(decrease)/increase in cash and cash equivalents |
|
64.3 |
|
|
(16.4 |
) |
Effect of exchange rates |
|
(12.8 |
) |
|
33.7 |
|
Cash and cash equivalents at
the beginning of the period |
|
320.1 |
|
|
302.7 |
|
Cash and cash
equivalents at the end of the period |
$ |
371.6 |
|
$ |
320.1 |
|
ATOTECH LIMITED Revenue Data
|
Three months
ended(unaudited) |
($ in millions) |
Dec 31, 2021 |
Dec 31, 2020 |
Type of goods or
service |
|
|
Chemistry revenue |
$ |
322.3 |
$ |
318.1 |
Equipment revenue |
|
64.2 |
|
47.3 |
Total revenue from
contracts with customers |
|
386.5 |
|
365.4 |
Geographical
market |
|
|
Asia |
|
317.8 |
|
272.6 |
Europe |
|
36.8 |
|
63.8 |
Americas |
|
31.9 |
|
29.0 |
Total revenue from
contracts with customers |
$ |
386.5 |
$ |
365.4 |
ATOTECH LIMITED Segment Data
|
Three months
ended(unaudited) |
|
Dec 31, 2021 |
Dec 31, 2020 |
($ in
millions) |
EL |
GMF |
Total |
EL |
GMF |
Total |
Revenue |
253.9 |
132.6 |
$ |
386.5 |
232.4 |
133.0 |
$ |
365.4 |
thereof Chemistry revenue |
198.9 |
123.3 |
|
322.3 |
188.8 |
129.3 |
|
318.1 |
thereof Equipment revenue |
54.9 |
9.3 |
|
64.2 |
43.6 |
3.7 |
|
47.3 |
Segment Adjusted EBITDA |
85.9 |
31.6 |
|
117.6 |
70.3 |
36.0 |
|
106.3 |
ATOTECH LIMITED Reconciliation
of Adjusted EBITDA to Consolidated Net Income (Loss)
|
Three months
ended(unaudited) |
($ in
millions) |
Dec 31, 2021 |
Dec 31, 2020 |
Consolidated net income (loss) |
$ |
30.1 |
|
$ |
22.4 |
|
Interest expense, net |
|
9.9 |
|
|
36.4 |
|
Income taxes |
|
18.7 |
|
|
20.4 |
|
Depreciation and amortization
(excluding impairment charges) |
|
45.0 |
|
|
43.4 |
|
EBITDA |
$ |
103.8 |
|
$ |
122.5 |
|
Non-cash adjustments(a) |
|
4.9 |
|
|
(32.2 |
) |
Foreign exchange loss(b) |
|
1.8 |
|
|
11.6 |
|
Restructuring(c) |
|
(0.2 |
) |
|
0.7 |
|
Transaction related
costs(d) |
|
5.7 |
|
|
2.8 |
|
Management fee(e) |
|
1.2 |
|
|
0.4 |
|
COVID-19 adjustment(f) |
|
0.3 |
|
|
0.4 |
|
Adjusted EBITDA |
$ |
117.6 |
|
$ |
106.3 |
|
thereof EL Segment Adjusted
EBITDA |
$ |
85.9 |
|
$ |
70.3 |
|
thereof GMF Segment Adjusted
EBITDA |
$ |
31.6 |
|
$ |
36.0 |
|
(a) Eliminates the impact of (1) share-based
compensation expenses, (2) losses on the sale of fixed assets, (3)
impairment charges, (4) mark to market adjustments related to our
foreign currency derivatives entered into in connection with
certain redenomination transactions not linked to underlying
individual transactions and bifurcated embedded derivatives related
to certain redemption features of the Opco Notes and Holdco Notes,
and (5) valuation adjustments from the revaluation of the earn-out
liability initially recognized in 2019. The dollar value of these
non-cash adjustments for each period presented above is set forth
below:
|
Three months
ended(unaudited) |
($ in millions) |
Dec 31, 2021 |
Dec 31, 2020 |
Share-based compensation |
$ |
3.9 |
|
$ |
0.1 |
|
Losses on the sale of fixed
assets |
|
1.6 |
|
|
0.6 |
|
Impairment charges |
|
4.0 |
|
|
2.0 |
|
Mark-to-market
adjustments |
|
(3.4 |
) |
|
(34.8 |
) |
Valuation adjustments |
|
(1.2 |
) |
|
0.0 |
|
Non-cash
adjustments |
$ |
4.9 |
|
$ |
(32.2 |
) |
(b) Eliminates net foreign currency
transactional gains and losses on balance sheet items. (c)
Eliminates charges resulting from restructuring activities
principally from the Company’s cost reduction efforts. (d) Reflects
an adjustment to eliminate (1) IPO-related costs linked to the
existing equity, (2) professional fees paid to third-party advisors
in connection with the implementation of strategic initiatives, and
(3) for the three months ended December 31, 2021 the increased
expenses of the D&O insurance in connection with the IPO.(e)
Reflects an adjustment to eliminate fees paid to Carlyle. The
consulting agreement pursuant to which management fees are paid to
Carlyle will terminate on the earlier of (i) the Third anniversary
of the IPO and (ii) the date upon which Carlyle ceases to own more
than ten percent of the outstanding voting securities of the
Company. Management does not view these fees as indicative of the
Company’s operational performance and the removal of these fees
from Adjusted EBITDA is consistent with the calculation of similar
measures under our old senior secured credit facilities and our new
credit agreement as well as the indentures that previously governed
the Holdco Notes and Opco Notes. (f) Eliminates charges in
connection with masks, sanitizers, and other COVID-19 related
expenses at certain plant and office locations.
ATOTECH LIMITED Chemistry
Revenue Growth Reconciliation
|
Three months ended Dec 31,
2021(unaudited) |
|
ReportedRevenueGrowth |
Impact ofCurrency |
PalladiumPass-Through |
OrganicGrowth |
|
|
|
|
|
Electronics |
5% |
0% |
1% |
6% |
General Metal Finishing |
-5% |
1% |
0% |
-3% |
Total |
1% |
1% |
1% |
2% |
ATOTECH LIMITED Reconciliation
of Consolidated Net Income (Loss) to Adjusted EPS
|
Twelve months
ended(unaudited) |
($ in
millions) |
Dec 31, 2021 |
Dec 31, 2020 |
Consolidated net income (loss) |
$ |
7.5 |
|
$ |
(289.4 |
) |
Reversal of amortization
expenses(a) |
|
113.8 |
|
|
108.1 |
|
One-off interest due to
refinancing(b) |
|
54.7 |
|
|
- |
|
Non-cash adjustments(c) |
|
89.7 |
|
|
250.7 |
|
Foreign exchange loss(c) |
|
(13.0 |
) |
|
14.8 |
|
Restructuring(c) |
|
(0.6 |
) |
|
2.5 |
|
Transaction related
costs(c) |
|
19.9 |
|
|
7.6 |
|
Management fee(c) |
|
2.6 |
|
|
2.7 |
|
COVID-19 adjustment(c) |
|
0.9 |
|
|
2.2 |
|
Tax impact of pre-tax non GAAP
adjustments |
|
(28.9 |
) |
|
(28.6 |
) |
Adjusted Net Income
from continuing operations |
$ |
246.7 |
|
$ |
70.7 |
|
Weighted average number of
shares outstanding |
|
184,962,274 |
|
|
91,152,556 |
|
Number of shares as of latest
balance sheet date |
|
194,695,832 |
|
|
194,695,832 |
|
Adjusted
EPS(d) |
|
1.33 |
|
|
0.78 |
|
ProForma Adjusted
EPS(e) |
|
1.27 |
|
|
0.36 |
|
(a) Eliminates the impact of amortization expenses.(b)
Eliminates the one-off derecognition of capitalized financing costs
resulting from the refinancing.(c) Please refer to Adjusted EBITDA
reconciliation for definition of adjustments items.(d) Adjusted Net
Income from continuing operations divided by weighted average
number of shares outstanding.(e) Adjusted Net Income from
continuing operations divided by number of shares as of latest
balance sheet date.
Contacts:
Media relations:
Susanne Richter
+49 30 349 85 418
press@atotech.com
Investor relations:
Lex Suvanto / Patrick Ryan / Ruediger Assion
Edelman
Emails: lex.suvanto@edelman.com / Patrick.ryan@edelman.com / Ruediger.assion@edelman.com
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