Exhibit 99 | |||||||||||
News Release | |||||||||||
Axalta Coating Systems 50 Applied Bank Blvd Suite 300 Glen Mills, PA 19342 USA | Investor Contact Christopher Evans D +1 484 724 4099 Christopher.Evans@axalta.com | Media Contact Robert Donohoe D +1 267-756-3803 Robert.Donohoe@axalta.com |
($ in millions) | Q2 2023 | Q2 2022 | % Change vs Q2 2022 | % Change Due To: | ||||||||||||||||||||||||||||||||||||||||
Volume | Price/Mix | FX | One-Time | |||||||||||||||||||||||||||||||||||||||||
Performance Coatings Net Sales | $856.0 | $855.8 | —% | (11.1%) | 8.5% | 0.2% | 2.4% | |||||||||||||||||||||||||||||||||||||
Mobility Coatings Net Sales | $437.9 | $379.1 | 15.5% | 12.8% | 2.7% | —% | —% | |||||||||||||||||||||||||||||||||||||
Total Axalta Net Sales | $1,293.9 | $1,234.9 | 4.8% | (3.7%) | 6.8% | 0.1% | 1.6% | |||||||||||||||||||||||||||||||||||||
Income from operations | $137.6 | $103.6 | 32.8% | |||||||||||||||||||||||||||||||||||||||||
Adjusted EBIT | $154.5 | $150.6 | 2.6% | |||||||||||||||||||||||||||||||||||||||||
% margin | 11.9% | 12.2% |
($ in millions) | Q2 2023 | Q2 2022 | % Change vs Q2 2022 | % Change Due To: | ||||||||||||||||||||||||||||||||||||||||
Volume | Price/Mix | FX | One-Time | |||||||||||||||||||||||||||||||||||||||||
Refinish Net Sales | $520.7 | $491.1 | 6.0% | (8.4)% | 10.0% | 0.3% | 4.1% | |||||||||||||||||||||||||||||||||||||
Industrial Net Sales | $335.3 | $364.7 | (8.1%) | (14.6%) | 6.5% | —% | —% | |||||||||||||||||||||||||||||||||||||
Performance Coatings Net Sales | $856.0 | $855.8 | —% | (11.1%) | 8.5% | 0.2% | 2.4% | |||||||||||||||||||||||||||||||||||||
Adjusted EBIT | $117.8 | $125.2 | (5.9%) | |||||||||||||||||||||||||||||||||||||||||
% margin | 13.8% | 14.6% |
($ in millions) | Q2 2023 | Q2 2022 | % Change vs Q2 2022 | % Change Due To: | ||||||||||||||||||||||||||||||||||
Volume | Price/Mix | FX | ||||||||||||||||||||||||||||||||||||
Light Vehicle Net Sales | $330.2 | $282.9 | 16.7% | 14.9% | 2.4% | (0.6%) | ||||||||||||||||||||||||||||||||
Commercial Vehicle Net Sales | $107.7 | $96.2 | 12.0% | 6.7% | 3.6% | 1.7% | ||||||||||||||||||||||||||||||||
Mobility Coatings Net Sales | $437.9 | $379.1 | 15.5% | 12.8% | 2.7% | —% | ||||||||||||||||||||||||||||||||
Adjusted EBIT | $23.7 | $2.3 | 930.4% | |||||||||||||||||||||||||||||||||||
% margin | 5.4% | 0.6% |
(in millions, except per share data & %s) | Projection | ||||
Net Sales growth versus Q3 2022 (FX benefit) | 3-5% (~3%) | ||||
Adjusted EBIT (Adjusted EBITDA) | $160 - $175 ($230-$245) | ||||
Adjusted Diluted EPS | $0.35 - $0.40 | ||||
(in millions, except per share data & %s) | Projection | ||||
Net Sales growth versus 2022 (FX benefit) | 6-8% (~1%) | ||||
Adjusted EBIT (Adjusted EBITDA) | $630 - $650 ($910-$930) | ||||
Adjusted Diluted EPS | $1.40 - $1.45 | ||||
D&A (step-up D&A) | ~$280 ($55) | ||||
Tax Rate, As Adjusted | ~24% | ||||
Diluted Shares Outstanding | ~ 223 | ||||
Interest Expense | ~$215 | ||||
Capex | ~$175 | ||||
Free Cash Flow | ~$385 - $425 | ||||
Financial Statement Tables | ||||||||||||||||||||||||||
AXALTA COATING SYSTEMS LTD. | ||||||||||||||||||||||||||
Condensed Consolidated Statements of Operations (Unaudited) | ||||||||||||||||||||||||||
(In millions, except per share data) | ||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Net sales | $ | 1,293.9 | $ | 1,234.9 | $ | 2,577.8 | $ | 2,409.0 | ||||||||||||||||||
Cost of goods sold | 904.4 | 886.4 | 1,806.3 | 1,723.8 | ||||||||||||||||||||||
Selling, general and administrative expenses | 210.2 | 191.7 | 416.2 | 385.2 | ||||||||||||||||||||||
Other operating charges | 2.1 | 4.8 | 9.2 | 12.5 | ||||||||||||||||||||||
Research and development expenses | 18.6 | 16.7 | 37.7 | 33.1 | ||||||||||||||||||||||
Amortization of acquired intangibles | 21.0 | 31.7 | 45.5 | 64.5 | ||||||||||||||||||||||
Income from operations | 137.6 | 103.6 | 262.9 | 189.9 | ||||||||||||||||||||||
Interest expense, net | 54.6 | 33.5 | 102.8 | 66.1 | ||||||||||||||||||||||
Other expense, net | 8.5 | 7.2 | 9.8 | 9.0 | ||||||||||||||||||||||
Income before income taxes | 74.5 | 62.9 | 150.3 | 114.8 | ||||||||||||||||||||||
Provision for income taxes | 13.4 | 18.8 | 28.7 | 29.8 | ||||||||||||||||||||||
Net income | 61.1 | 44.1 | 121.6 | 85.0 | ||||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interests | 0.2 | — | 0.2 | (0.6) | ||||||||||||||||||||||
Net income attributable to controlling interests | $ | 60.9 | $ | 44.1 | $ | 121.4 | $ | 85.6 | ||||||||||||||||||
Basic net income per share | $ | 0.27 | $ | 0.20 | $ | 0.55 | $ | 0.38 | ||||||||||||||||||
Diluted net income per share | $ | 0.27 | $ | 0.20 | $ | 0.55 | $ | 0.38 | ||||||||||||||||||
Basic weighted average shares outstanding | 221.6 | 221.0 | 221.4 | 222.8 | ||||||||||||||||||||||
Diluted weighted average shares outstanding | 222.5 | 221.4 | 222.3 | 223.3 |
AXALTA COATING SYSTEMS LTD. | ||||||||||||||
Condensed Consolidated Balance Sheets (Unaudited) | ||||||||||||||
(In millions, except per share data) | ||||||||||||||
June 30, 2023 | December 31, 2022 | |||||||||||||
Assets | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | 517.6 | $ | 645.2 | ||||||||||
Restricted cash | 2.4 | 9.7 | ||||||||||||
Accounts and notes receivable, net | 1,271.1 | 1,067.4 | ||||||||||||
Inventories | 766.7 | 829.6 | ||||||||||||
Prepaid expenses and other current assets | 131.8 | 140.8 | ||||||||||||
Total current assets | 2,689.6 | 2,692.7 | ||||||||||||
Property, plant and equipment, net | 1,196.8 | 1,190.2 | ||||||||||||
Goodwill | 1,526.6 | 1,498.0 | ||||||||||||
Identifiable intangibles, net | 1,077.1 | 1,112.3 | ||||||||||||
Other assets | 553.0 | 566.0 | ||||||||||||
Total assets | $ | 7,043.1 | $ | 7,059.2 | ||||||||||
Liabilities, Shareholders’ Equity | ||||||||||||||
Current liabilities: | ||||||||||||||
Accounts payable | $ | 702.3 | $ | 733.5 | ||||||||||
Current portion of borrowings | 39.0 | 31.0 | ||||||||||||
Other accrued liabilities | 587.9 | 620.2 | ||||||||||||
Total current liabilities | 1,329.2 | 1,384.7 | ||||||||||||
Long-term borrowings | 3,528.9 | 3,673.3 | ||||||||||||
Accrued pensions | 209.4 | 205.1 | ||||||||||||
Deferred income taxes | 155.4 | 162.1 | ||||||||||||
Other liabilities | 131.2 | 134.5 | ||||||||||||
Total liabilities | 5,354.1 | 5,559.7 | ||||||||||||
Shareholders’ equity: | ||||||||||||||
Common shares, $1.00 par, 1,000.0 shares authorized, 253.5 and 252.4 shares issued at June 30, 2023 and December 31, 2022, respectively | 253.5 | 252.4 | ||||||||||||
Capital in excess of par | 1,557.5 | 1,536.5 | ||||||||||||
Retained earnings | 1,140.2 | 1,018.8 | ||||||||||||
Treasury shares, at cost, 31.8 shares at June 30, 2023 and December 31, 2022 | (887.3) | (887.3) | ||||||||||||
Accumulated other comprehensive loss | (419.7) | (466.9) | ||||||||||||
Total Axalta shareholders’ equity | 1,644.2 | 1,453.5 | ||||||||||||
Noncontrolling interests | 44.8 | 46.0 | ||||||||||||
Total shareholders’ equity | 1,689.0 | 1,499.5 | ||||||||||||
Total liabilities and shareholders’ equity | $ | 7,043.1 | $ | 7,059.2 |
AXALTA COATING SYSTEMS LTD. | ||||||||||||||
Condensed Consolidated Statements of Cash Flows (Unaudited) | ||||||||||||||
(In millions) | ||||||||||||||
Six Months Ended June 30, | ||||||||||||||
2023 | 2022 | |||||||||||||
Operating activities: | ||||||||||||||
Net income | $ | 121.6 | $ | 85.0 | ||||||||||
Adjustment to reconcile net income to cash provided by (used for) operating activities: | ||||||||||||||
Depreciation and amortization | 135.7 | 155.0 | ||||||||||||
Amortization of deferred financing costs and original issue discount | 4.3 | 4.8 | ||||||||||||
Debt extinguishment and refinancing related costs | 3.0 | (0.2) | ||||||||||||
Deferred income taxes | 0.5 | 2.0 | ||||||||||||
Realized and unrealized foreign exchange losses, net | 18.8 | 4.9 | ||||||||||||
Stock-based compensation | 13.6 | 9.0 | ||||||||||||
Divestiture and impairment charges | 15.4 | 0.7 | ||||||||||||
Interest income on swaps designated as net investment hedges | (6.1) | (10.0) | ||||||||||||
Commercial agreement restructuring charge | — | 25.0 | ||||||||||||
Other non-cash, net | 1.0 | (7.1) | ||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||
Trade accounts and notes receivable | (194.2) | (190.1) | ||||||||||||
Inventories | 69.5 | (151.4) | ||||||||||||
Prepaid expenses and other assets | (51.8) | (58.9) | ||||||||||||
Accounts payable | (11.7) | 147.5 | ||||||||||||
Other accrued liabilities | (39.8) | (39.4) | ||||||||||||
Other liabilities | (0.6) | (8.5) | ||||||||||||
Cash provided by (used for) operating activities | 79.2 | (31.7) | ||||||||||||
Investing activities: | ||||||||||||||
Purchase of property, plant and equipment | (73.9) | (72.0) | ||||||||||||
Interest proceeds on swaps designated as net investment hedges | 6.1 | 10.0 | ||||||||||||
Settlement proceeds on swaps designated as net investment hedges | 29.4 | 25.0 | ||||||||||||
Other investing activities, net | 1.4 | (1.1) | ||||||||||||
Cash used for investing activities | (37.0) | (38.1) | ||||||||||||
Financing activities: | ||||||||||||||
Proceeds from short-term borrowings | 8.8 | — | ||||||||||||
Payments on short-term borrowings | (25.8) | (44.0) | ||||||||||||
Payments on long-term borrowings | (156.7) | (13.7) | ||||||||||||
Financing-related costs | (6.3) | (0.1) | ||||||||||||
Purchases of common stock | — | (200.1) | ||||||||||||
Net cash flows associated with stock-based awards | 8.5 | (2.1) | ||||||||||||
Deferred acquisition-related consideration | (7.7) | — | ||||||||||||
Other financing activities, net | — | (0.2) | ||||||||||||
Cash used for financing activities | (179.2) | (260.2) | ||||||||||||
Decrease in cash | (137.0) | (330.0) | ||||||||||||
Effect of exchange rate changes on cash | 2.1 | (11.0) | ||||||||||||
Cash at beginning of period | 654.9 | 851.2 | ||||||||||||
Cash at end of period | $ | 520.0 | $ | 510.2 | ||||||||||
Cash at end of period reconciliation: | ||||||||||||||
Cash and cash equivalents | $ | 517.6 | $ | 500.2 | ||||||||||
Restricted cash | 2.4 | 10.0 | ||||||||||||
Cash at end of period | $ | 520.0 | $ | 510.2 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Income from operations | $ | 137.6 | $ | 103.6 | $ | 262.9 | $ | 189.9 | ||||||||||||||||||
Other expense, net | 8.5 | 7.2 | 9.8 | 9.0 | ||||||||||||||||||||||
Total | 129.1 | 96.4 | 253.1 | 180.9 | ||||||||||||||||||||||
Debt extinguishment and refinancing-related costs (benefits) (a) | 1.2 | (0.2) | 3.0 | (0.2) | ||||||||||||||||||||||
Termination benefits and other employee-related costs (b) | 2.3 | 2.7 | 2.1 | 5.1 | ||||||||||||||||||||||
Acquisition and divestiture-related (benefits) costs (c) | (0.1) | 2.2 | 0.4 | 2.6 | ||||||||||||||||||||||
Impairment charges (benefits) (d) | 8.3 | (0.6) | 15.4 | (0.3) | ||||||||||||||||||||||
Accelerated depreciation and site closure costs (e) | 0.8 | 1.8 | 1.9 | 3.1 | ||||||||||||||||||||||
Russia sanction-related impacts (f) | 0.1 | 0.3 | (1.3) | 6.1 | ||||||||||||||||||||||
Commercial agreement restructuring impacts (g) | — | 25.0 | — | 25.0 | ||||||||||||||||||||||
Other adjustments (h) | (0.2) | (0.1) | (0.3) | 0.3 | ||||||||||||||||||||||
Step-up depreciation and amortization (i) | 13.0 | 23.1 | 29.5 | 47.5 | ||||||||||||||||||||||
Adjusted EBIT | $ | 154.5 | $ | 150.6 | $ | 303.8 | $ | 270.1 | ||||||||||||||||||
Segment Adjusted EBIT: | ||||||||||||||||||||||||||
Performance Coatings | $ | 117.8 | $ | 125.2 | $ | 227.1 | $ | 219.8 | ||||||||||||||||||
Mobility Coatings | 23.7 | 2.3 | 47.2 | 2.8 | ||||||||||||||||||||||
Total | 141.5 | 127.5 | 274.3 | 222.6 | ||||||||||||||||||||||
Step-up depreciation and amortization (i) | 13.0 | 23.1 | 29.5 | 47.5 | ||||||||||||||||||||||
Adjusted EBIT | $ | 154.5 | $ | 150.6 | $ | 303.8 | $ | 270.1 |
(a) | Represents expenses and associated changes to estimates related to the prepayment, restructuring, and refinancing of our indebtedness, which are not considered indicative of our ongoing operating performance. | ||||
(b) | Represents expenses and associated changes to estimates related to employee termination benefits associated with restructuring programs and other employee-related costs. These amounts are not considered indicative of our ongoing operating performance. | ||||
(c) | Represents acquisition and divestiture-related benefits, expenses and integration activities associated with our business combinations, all of which are not considered indicative of our ongoing operating performance. The amounts for the six months ended June 30, 2023 include $0.8 million of due diligence and other related costs associated with unconsummated merger and acquisition transactions. | ||||
(d) | Represents impairment charges and benefits, which are not considered indicative of our ongoing operating performance. The losses recorded during the three and six months ended June 30, 2023 were $8.3 million and $15.4 million, respectively, due to the decision to demolish assets at a previously closed manufacturing site during the three months ended June 30, 2023 and the then anticipated exit of a non-core business category in the Mobility Coatings segment during the three months ended March 31, 2023. The amounts recorded during the three and six months ended June 30, 2022 relate primarily to insurance recoveries on assets impaired in a prior year. | ||||
(e) | Represents incremental depreciation expense resulting from truncated useful lives of the assets impacted by our manufacturing footprint assessments and costs related to the closure of certain manufacturing sites, which we do not consider indicative of our ongoing operating performance. | ||||
(f) | Represents expenses and associated changes to estimates related to sanctions imposed on Russia in response to the conflict with Ukraine for incremental reserves on accounts receivable and inventory, which we do not consider indicative of our ongoing operating performance. | ||||
(g) | Represents a non-cash charge associated with the forgiveness of a portion of up-front customer incentives with repayment features which was done along with our customer completing a recapitalization and restructuring of its indebtedness and the execution of a new long-term exclusive sales agreement with us. This amount is not considered to be indicative of our ongoing operating performance. | ||||
(h) | Represents costs for certain non-operational or non-cash (gains) losses, unrelated to our core business and which we do not consider indicative of our ongoing operating performance. | ||||
(i) | Represents the incremental step-up depreciation and amortization expense associated with the acquisition of DuPont Performance Coatings by Axalta. We believe this will assist investors in performing meaningful comparisons of past, present and future operating results and better highlight the results of our ongoing operating performance. |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Net income | $ | 61.1 | $ | 44.1 | $ | 121.6 | $ | 85.0 | ||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interests | 0.2 | — | 0.2 | (0.6) | ||||||||||||||||||||||
Net income attributable to controlling interests | 60.9 | 44.1 | 121.4 | 85.6 | ||||||||||||||||||||||
Debt extinguishment and refinancing-related costs (benefits) (a) | 1.2 | (0.2) | 3.0 | (0.2) | ||||||||||||||||||||||
Termination benefits and other employee-related costs (b) | 2.2 | 2.7 | 2.0 | 5.1 | ||||||||||||||||||||||
Acquisition and divestiture-related (benefits) costs (c) | (0.1) | 2.2 | 0.4 | 2.6 | ||||||||||||||||||||||
Impairment charges (benefits) (d) | 8.3 | (0.6) | 15.4 | (0.3) | ||||||||||||||||||||||
Accelerated depreciation and site closure costs (e) | 0.8 | 1.8 | 1.9 | 3.1 | ||||||||||||||||||||||
Russia sanction-related impacts (f) | — | 0.2 | (1.4) | 5.2 | ||||||||||||||||||||||
Commercial agreement restructuring impacts (g) | — | 25.0 | — | 25.0 | ||||||||||||||||||||||
Other adjustments (h) | (0.2) | (0.1) | (0.3) | 0.3 | ||||||||||||||||||||||
Step-up depreciation and amortization (i) | 13.0 | 23.1 | 29.5 | 47.5 | ||||||||||||||||||||||
Total adjustments | 25.2 | 54.1 | 50.5 | 88.3 | ||||||||||||||||||||||
Income tax provision impacts (j) | 9.2 | 7.9 | 16.5 | 14.5 | ||||||||||||||||||||||
Adjusted net income | $ | 76.9 | $ | 90.3 | $ | 155.4 | $ | 159.4 | ||||||||||||||||||
Adjusted diluted net income per share | $ | 0.35 | $ | 0.41 | $ | 0.70 | $ | 0.71 | ||||||||||||||||||
Diluted weighted average shares outstanding | 222.5 | 221.4 | 222.3 | 223.3 |
(a) | Represents expenses and associated changes to estimates related to the prepayment, restructuring, and refinancing of our indebtedness, which are not considered indicative of our ongoing operating performance. | ||||
(b) | Represents expenses and associated changes to estimates related to employee termination benefits associated with restructuring programs and other employee-related costs. These amounts are not considered indicative of our ongoing operating performance. | ||||
(c) | Represents acquisition and divestiture-related benefits, expenses and integration activities associated with our business combinations, all of which are not considered indicative of our ongoing operating performance. The amounts for the six months ended June 30, 2023 include $0.8 million of due diligence and other related costs associated with unconsummated merger and acquisition transactions. | ||||
(d) | Represents impairment charges and benefits, which are not considered indicative of our ongoing operating performance. The losses recorded during the three and six months ended June 30, 2023 were $8.3 million and $15.4 million, respectively, due to the decision to demolish assets at a previously closed manufacturing site during the three months ended June 30, 2023 and the then anticipated exit of a non-core business category in the Mobility Coatings segment during the three months ended March 31, 2023. The amounts recorded during the three and six months ended June 30, 2022 relate primarily to insurance recoveries on assets impaired in a prior year. | ||||
(e) | Represents incremental depreciation expense resulting from truncated useful lives of the assets impacted by our manufacturing footprint assessments and costs related to the closure of certain manufacturing sites, which we do not consider indicative of our ongoing operating performance. | ||||
(f) | Represents expenses and associated changes to estimates related to sanctions imposed on Russia in response to the conflict with Ukraine for incremental reserves on accounts receivable and inventory, which we do not consider indicative of our ongoing operating performance. | ||||
(g) | Represents a non-cash charge associated with the forgiveness of a portion of up-front customer incentives with repayment features which was done along with our customer completing a recapitalization and restructuring of its indebtedness and the execution of a new long-term exclusive sales agreement with us. This amount is not considered to be indicative of our ongoing operating performance. | ||||
(h) | Represents costs for certain non-operational or non-cash (gains) losses, unrelated to our core business and which we do not consider indicative of our ongoing operating performance. | ||||
(i) | Represents the incremental step-up depreciation and amortization expense associated with the acquisition of DuPont Performance Coatings by Axalta. We believe this will assist investors in performing meaningful comparisons of past, present and future operating results and better highlight the results of our ongoing operating performance. | ||||
(j) | The income tax impacts are determined using the applicable rates in the taxing jurisdictions in which expense or income occurred and includes both current and deferred income tax expense (benefit) based on the nature of the non-GAAP performance measure. Additionally, the income tax impact includes the removal of discrete income tax impacts within our effective tax rate which were benefits of $3.1 million, $4.6 million, expenses of $4.3 million and $5.0 million for the three and six months ended June 30, 2023 and 2022, respectively. The tax adjustments for the three and six months ended June 30, 2023 and 2022 include the deferred tax benefit ratably amortized into our adjusted income tax rate as the tax attribute related to a January 1, 2020 intra-entity transfer of certain intellectual property rights is realized. |
Three Months Ended March 31, | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||||
Cash (used for) provided by operating activities | $ | (51.8) | $ | (43.9) | $ | 131.0 | $ | 12.2 | $ | 79.2 | $ | (31.7) | ||||||||||||||||||||||||||
Purchase of property, plant and equipment | (41.4) | (42.5) | (32.5) | (29.5) | (73.9) | (72.0) | ||||||||||||||||||||||||||||||||
Interest proceeds on swaps designated as net investment hedges | 5.6 | 6.2 | 0.5 | 3.8 | 6.1 | 10.0 | ||||||||||||||||||||||||||||||||
Free cash flow | $ | (87.6) | $ | (80.2) | $ | 99.0 | $ | (13.5) | $ | 11.4 | $ | (93.7) |
Three Months Ended June 30, | Twelve Months Ended June 30, 2023 | Six Months Ended June 30, | Year Ended December 31, 2022 | |||||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||
Net income | $ | 61.1 | $ | 44.1 | $ | 228.8 | $ | 121.6 | $ | 85.0 | $ | 192.2 | ||||||||||||||||||||||||||
Interest expense, net | 54.6 | 33.5 | 176.5 | 102.8 | 66.1 | 139.8 | ||||||||||||||||||||||||||||||||
Provision for income taxes | 13.4 | 18.8 | 64.0 | 28.7 | 29.8 | 65.1 | ||||||||||||||||||||||||||||||||
Depreciation and amortization | 66.2 | 77.3 | 283.8 | 135.7 | 155.0 | 303.1 | ||||||||||||||||||||||||||||||||
EBITDA | 195.3 | 173.7 | 753.1 | 388.8 | 335.9 | 700.2 | ||||||||||||||||||||||||||||||||
Debt extinguishment and refinancing-related costs (benefits) (a) | 1.2 | (0.2) | 17.9 | 3.0 | (0.2) | 14.7 | ||||||||||||||||||||||||||||||||
Termination benefits and other employee-related costs (benefits) (b) | 2.3 | 2.7 | 21.9 | 2.1 | 4.6 | 24.4 | ||||||||||||||||||||||||||||||||
Acquisition and divestiture-related (benefits) costs (c) | (0.1) | 2.2 | 0.7 | 0.4 | 2.6 | 2.9 | ||||||||||||||||||||||||||||||||
Impairment charges (benefits) (d) | 8.3 | (0.6) | 15.3 | 15.4 | (0.3) | (0.4) | ||||||||||||||||||||||||||||||||
Site closure costs (e) | 0.8 | 1.1 | 2.5 | 1.9 | 1.7 | 2.3 | ||||||||||||||||||||||||||||||||
Foreign exchange remeasurement losses (f) | 9.6 | 4.9 | 19.6 | 11.9 | 7.5 | 15.2 | ||||||||||||||||||||||||||||||||
Long-term employee benefit plan adjustments (g) | 2.3 | 0.1 | 4.0 | 4.5 | 0.2 | (0.3) | ||||||||||||||||||||||||||||||||
Stock-based compensation (h) | 7.3 | 3.7 | 26.8 | 13.6 | 9.0 | 22.2 | ||||||||||||||||||||||||||||||||
Russia sanction-related impacts (i) | 0.1 | 0.3 | (2.4) | (1.3) | 6.1 | 5.0 | ||||||||||||||||||||||||||||||||
Commercial agreement restructuring impacts (j) | — | 25.0 | — | — | 25.0 | 25.0 | ||||||||||||||||||||||||||||||||
Other adjustments (k) | (0.2) | (0.2) | (0.9) | (0.3) | 0.2 | (0.4) | ||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 226.9 | $ | 212.7 | $ | 858.5 | $ | 440.0 | $ | 392.3 | $ | 810.8 | ||||||||||||||||||||||||||
Adjusted EBITDA to interest expense coverage ratio | 4.9 | x |
(a) | Represents expenses and associated changes to estimates related to the prepayment, restructuring, and refinancing of our indebtedness, which are not considered indicative of our ongoing operating performance. | ||||
(b) | Represents expenses and associated changes to estimates related to employee termination benefits associated with restructuring programs and other employee-related costs. These amounts are not considered indicative of our ongoing operating performance. | ||||
(c) | Represents acquisition and divestiture-related benefits, expenses and integration activities associated with our business combinations, all of which are not considered indicative of our ongoing operating performance. The amounts for the six months ended June 30, 2023 and year ended December 31, 2022 include $0.8 million and $1.9 million, respectively, of due diligence and other related costs associated with unconsummated merger and acquisition transactions. | ||||
(d) | Represents impairment charges and benefits, which are not considered indicative of our ongoing operating performance. The losses recorded during the three and six months ended June 30, 2023 were $8.3 million and $15.4 million, respectively, due to the decision to demolish assets at a previously closed manufacturing site during the three months ended June 30, 2023 and the then anticipated exit of a non-core business category in the Mobility Coatings segment during the three months ended March 31, 2023. The amounts recorded during the three and six months ended June 30, 2022 and year ended December 31, 2022 relate primarily to insurance recoveries on assets impaired in a prior year. | ||||
(e) | Represents costs related to the closure of certain manufacturing sites, which we do not consider indicative of our ongoing operating performance. | ||||
(f) | Eliminates foreign exchange losses resulting from the remeasurement of assets and liabilities denominated in foreign currencies, net of the impacts of our foreign currency instruments used to hedge our balance sheet exposures. | ||||
(g) | Eliminates the non-cash, non-service cost components of long-term employee benefit costs. | ||||
(h) | Represents non-cash impacts associated with stock-based compensation. | ||||
(i) | Represents expenses and associated changes to estimates related to sanctions imposed on Russia in response to the conflict with Ukraine for incremental reserves on accounts receivable and inventory, which we do not consider indicative of our ongoing operating performance. | ||||
(j) | Represents a non-cash charge associated with the forgiveness of a portion of up-front customer incentives with repayment features which was done along with our customer completing a recapitalization and restructuring of its indebtedness and the execution of a new long-term exclusive sales agreement with us. This amount is not considered to be indicative of our ongoing operating performance. | ||||
(k) | Represents costs for certain non-operational or non-cash (gains) losses, unrelated to our core business and which we do not consider indicative of our ongoing operating performance. |