Advanced Technical Materials (ATM) as Reported | Three Months Ended December 31, | ||||||||||||||||||||||||||||
(in millions; unaudited) | 2022 | 2021 | Change | 2022 | 2021 | ||||||||||||||||||||||||
Net Sales | $ | 409.1 | $ | 255.6 | $ | 153.5 | |||||||||||||||||||||||
GAAP Operating Profit & Margin % | $ | 27.6 | $ | 5.5 | $ | 22.1 | 6.7 | % | 2.2 | % | |||||||||||||||||||
Adjusted EBITDA & Margin % | $ | 61.6 | $ | 28.1 | $ | 33.5 | 15.1 | % | 11.0 | % |
ATM Comparable Results | |||||||||||||||||||||||||||||
Net Sales | $ | 409.1 | $ | 403.2 | $ | 5.9 | |||||||||||||||||||||||
GAAP Operating Profit & Margin % | $ | 27.6 | $ | 11.8 | $ | 15.8 | 6.7 | % | 2.9 | % | |||||||||||||||||||
Adjusted EBITDA & Margin % | $ | 61.6 | $ | 42.4 | $ | 19.2 | 15.1 | % | 10.5 | % |
Fiber-Based Solutions (FBS) as Reported | Three Months Ended December 31, | ||||||||||||||||||||||||||||
(in millions; unaudited) | 2022 | 2021 | Change | 2022 | 2021 | ||||||||||||||||||||||||
Net Sales | $ | 251.0 | $ | 134.8 | $ | 116.2 | |||||||||||||||||||||||
GAAP Operating Profit & Margin % | $ | 30.7 | $ | 22.4 | $ | 8.3 | 12.2 | % | 16.6 | % | |||||||||||||||||||
Adjusted EBITDA & Margin % | $ | 50.2 | $ | 30.8 | $ | 19.4 | 20.0 | % | 22.8 | % |
FBS Comparable Results | |||||||||||||||||||||||||||||
Net Sales | $ | 251.0 | $ | 251.5 | $ | (0.5) | |||||||||||||||||||||||
GAAP Operating Profit & Margin % | $ | 30.7 | $ | 34.6 | $ | (3.9) | 12.2 | % | 13.8 | % | |||||||||||||||||||
Adjusted EBITDA & Margin % | $ | 50.2 | $ | 46.8 | $ | 3.4 | 20.0 | % | 18.6 | % |
Unallocated as Reported | Three Months Ended December 31, | ||||||||||||||||||||||||||||
(in millions; unaudited) | 2022 | 2021 | Change | 2022 | 2021 | ||||||||||||||||||||||||
GAAP Operating Expense & % of Sales | $ | (31.4) | $ | (17.0) | $ | (14.4) | (4.8) | % | (4.4) | % | |||||||||||||||||||
Adjusted EBITDA & % of Sales | $ | (19.4) | $ | (11.9) | $ | (7.5) | (2.9) | % | (3.0) | % | |||||||||||||||||||
Unallocated Comparable Results | |||||||||||||||||||||||||||||
GAAP Operating Expense & % of Sales | $ | (31.4) | $ | (40.3) | $ | 8.9 | (4.8) | % | (6.2) | % | |||||||||||||||||||
Adjusted EBITDA & % of Sales | $ | (19.4) | $ | (18.0) | $ | (1.4) | (2.9) | % | (2.7) | % |
Three Months Ended December 31, | |||||||||||||||||
2022 | 2021 | % Change | |||||||||||||||
Net sales | $ | 660.1 | $ | 390.4 | 69.1% | ||||||||||||
Cost of products sold | 537.8 | 314.2 | 71.2 | ||||||||||||||
Gross profit | 122.3 | 76.2 | 60.5 | ||||||||||||||
Selling expense | 22.6 | 12.5 | 80.8 | ||||||||||||||
Research and development expense | 8.3 | 5.4 | 53.7 | ||||||||||||||
General expense | 62.6 | 43.2 | 44.9 | ||||||||||||||
Total nonmanufacturing expenses | 93.5 | 61.1 | 53.0 | ||||||||||||||
Restructuring and impairment expense | 1.9 | 4.2 | (54.8) | ||||||||||||||
Operating profit | 26.9 | 10.9 | N.M. | ||||||||||||||
Interest expense | 27.4 | 14.8 | 85.1 | ||||||||||||||
Other income (expense), net | (4.9) | 35.1 | N.M. | ||||||||||||||
Income (loss) before income taxes and income from equity affiliates | (5.4) | 31.2 | N.M. | ||||||||||||||
Income tax benefit | (7.8) | (21.8) | (64.2) | ||||||||||||||
Income from equity affiliates, net of income taxes | 0.1 | 0.3 | (66.7) | ||||||||||||||
Net income | $ | 2.5 | $ | 53.3 | (95.3)% | ||||||||||||
Dividends paid to common stockholders | (0.2) | (0.1) | N.M. | ||||||||||||||
Undistributed earnings available to common stockholders | — | (0.5) | N.M. | ||||||||||||||
Net income attributable to common stockholders | $ | 2.3 | $ | 52.7 | (95.6)% | ||||||||||||
Net income per share | |||||||||||||||||
Basic | $ | 0.04 | $ | 1.70 | (97.6)% | ||||||||||||
Diluted | $ | 0.04 | $ | 1.68 | (97.6)% | ||||||||||||
Cash dividends declared per share | $ | 0.40 | $ | 0.44 | |||||||||||||
Weighted average shares outstanding | |||||||||||||||||
Basic | 54,389,900 | 31,055,200 | |||||||||||||||
Diluted | 54,686,300 | 31,454,300 |
Year Ended December 31, | |||||||||||||||||
2022 | 2021 | % Change | |||||||||||||||
Net sales | $ | 2,167.4 | $ | 1,440.0 | 50.5% | ||||||||||||
Cost of products sold | 1,729.8 | 1,109.7 | 55.9 | ||||||||||||||
Gross profit | 437.6 | 330.3 | 32.5 | ||||||||||||||
Selling expense | 74.2 | 46.7 | 58.9 | ||||||||||||||
Research and development expense | 26.6 | 20.3 | 31.0 | ||||||||||||||
General expense | 266.1 | 169.9 | 56.6 | ||||||||||||||
Total nonmanufacturing expenses | 366.9 | 236.9 | 54.9 | ||||||||||||||
Restructuring and impairment expense | 19.3 | 10.1 | 91.1 | ||||||||||||||
Operating profit | 51.4 | 83.3 | (38.3) | ||||||||||||||
Interest expense | 86.1 | 46.1 | 86.8 | ||||||||||||||
Other income, net | 10.3 | 35.9 | (71.3) | ||||||||||||||
Income (loss) before income taxes and income from equity affiliates | (24.4) | 73.1 | N.M. | ||||||||||||||
Income tax benefit | (12.6) | (9.4) | 34.0 | ||||||||||||||
Income from equity affiliates, net of income taxes | 5.2 | 6.4 | (18.8) | ||||||||||||||
Net income (loss) | $ | (6.6) | $ | 88.9 | N.M. | ||||||||||||
Dividends paid to common stockholders | (0.9) | (0.6) | 50.0% | ||||||||||||||
Undistributed earnings available to common stockholders | — | (0.5) | N.M. | ||||||||||||||
Net income (loss) attributable to common stockholders | $ | (7.5) | $ | 87.8 | N.M. | ||||||||||||
Net income (loss) per share | |||||||||||||||||
Basic | $ | (0.18) | $ | 2.83 | N.M. | ||||||||||||
Diluted | $ | (0.18) | $ | 2.80 | N.M. | ||||||||||||
Cash dividends declared per share | $ | 1.68 | $ | 1.76 | |||||||||||||
Weighted average shares outstanding | |||||||||||||||||
Basic | 42,442,200 | 31,030,400 | |||||||||||||||
Diluted | 42,442,200 | 31,400,300 |
December 31, 2022 | December 31, 2021 | ||||||||||
ASSETS | |||||||||||
Cash and cash equivalents | $ | 124.4 | $ | 74.7 | |||||||
Accounts receivable, net | 266.8 | 238.0 | |||||||||
Inventories, net | 534.9 | 259.5 | |||||||||
Income taxes receivable | 19.7 | 10.0 | |||||||||
Other current assets | 28.9 | 12.4 | |||||||||
Total current assets | 974.7 | 594.6 | |||||||||
Property, plant and equipment, net | 874.9 | 461.7 | |||||||||
Finance lease right-of-use assets | 17.4 | 2.2 | |||||||||
Operating lease right-of-use assets | 35.8 | 25.1 | |||||||||
Deferred income tax benefits | 34.4 | 33.9 | |||||||||
Investment in equity affiliates | 59.1 | 64.6 | |||||||||
Goodwill | 847.2 | 648.3 | |||||||||
Intangible assets, net | 710.3 | 513.9 | |||||||||
Other assets | 122.1 | 76.0 | |||||||||
Total assets | $ | 3,675.9 | $ | 2,420.3 | |||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
Current debt | $ | 34.6 | $ | 2.7 | |||||||
Finance lease liabilities | 0.9 | 0.5 | |||||||||
Operating lease liabilities | 9.3 | 7.3 | |||||||||
Accounts payable | 225.7 | 116.0 | |||||||||
Income taxes payable | 11.4 | 2.6 | |||||||||
Accrued expenses and other current liabilities | 184.2 | 102.0 | |||||||||
Total current liabilities | 466.1 | 231.1 | |||||||||
Long-term debt | 1,672.8 | 1,264.8 | |||||||||
Finance lease liabilities, noncurrent | 17.6 | 2.3 | |||||||||
Operating lease liabilities, noncurrent | 29.7 | 18.7 | |||||||||
Long-term income tax payable | 14.6 | 16.6 | |||||||||
Pension and other postretirement benefits | 81.6 | 39.0 | |||||||||
Deferred income tax liabilities | 172.2 | 95.1 | |||||||||
Other liabilities | 42.0 | 70.5 | |||||||||
Total liabilities | 2,496.6 | 1,738.1 | |||||||||
Stockholders' equity: | |||||||||||
Preferred stock, $0.10 par value per share; 10,000,000 shares authorized; none issued or outstanding | — | — | |||||||||
Common stock, $0.10 par value per share; 100,000,000 shares authorized; 54,929,973 and 31,449,563 shares issued and outstanding at December 31, 2022 and 2021, respectively | 5.5 | 3.1 | |||||||||
Additional paid-in-capital | 658.5 | 101.7 | |||||||||
Retained earnings | 610.7 | 696.4 | |||||||||
Accumulated other comprehensive loss, net of tax | (95.4) | (119.0) | |||||||||
Total stockholders' equity | 1,179.3 | 682.2 | |||||||||
Total liabilities and stockholders' equity | $ | 3,675.9 | 2,420.3 |
Year Ended December 31, | |||||||||||
2022 | 2021 | ||||||||||
Operating | |||||||||||
Net income (loss) | $ | (6.6) | $ | 88.9 | |||||||
Non-cash items included in net income (loss): | |||||||||||
Depreciation and amortization | 129.2 | 88.7 | |||||||||
Amortization of deferred issuance costs | 6.4 | 4.0 | |||||||||
Impairments | 13.8 | 1.6 | |||||||||
Deferred income tax | (31.7) | (27.0) | |||||||||
Pension and other postretirement benefits | (5.5) | 0.7 | |||||||||
Stock-based compensation | 20.4 | 8.5 | |||||||||
Income from equity affiliates | (5.2) | (6.4) | |||||||||
Brazil tax assessment and settlements, net | — | (6.1) | |||||||||
Gain on sale of assets | (2.9) | (35.3) | |||||||||
Cash dividends received from equity affiliates | 4.1 | 3.3 | |||||||||
Gain on foreign currency transactions | (7.5) | (3.5) | |||||||||
Other non-cash items | (0.3) | 2.1 | |||||||||
Cash received from settlement of interest swap agreements | 23.6 | — | |||||||||
Changes in operating working capital | 64.4 | (61.4) | |||||||||
Net cash provided by operations | 202.2 | 58.1 | |||||||||
Investing | |||||||||||
Capital spending | (56.9) | (35.9) | |||||||||
Capitalized software costs | (2.7) | (3.0) | |||||||||
Acquisitions, net of cash acquired | (462.5) | (630.6) | |||||||||
Proceeds from sale of assets | 7.5 | 35.3 | |||||||||
Cash received from settlement of cross-currency swap contracts | 35.8 | — | |||||||||
Other investing | (2.5) | (2.3) | |||||||||
Net cash used in investing | (481.3) | (636.5) | |||||||||
Financing | |||||||||||
Cash dividends paid | (72.2) | (55.3) | |||||||||
Proceeds from issuances of long-term debt | 772.4 | 744.5 | |||||||||
Payments on long-term debt | (339.1) | (55.9) | |||||||||
Payments for debt issuance costs | (22.1) | (14.6) | |||||||||
Payments on financing lease obligations | (0.7) | (15.4) | |||||||||
Purchases of common stock | (6.9) | (3.4) | |||||||||
Other financing | 0.2 | — | |||||||||
Net cash provided by financing | 331.6 | 599.9 | |||||||||
Effect of exchange rate changes on cash and cash equivalents | (2.8) | (1.5) | |||||||||
Increase in cash and cash equivalents | $ | 49.7 | $ | 20.0 |
Net Sales | |||||||||||||||||||||||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||||||||||||||
2022 | 2021 | % Change | 2022 | 2021 | % Change | ||||||||||||||||||||||||||||||
ATM | $ | 409.1 | $ | 255.6 | 60.1 | % | $ | 1,396.2 | $ | 930.7 | 50.0 | % | |||||||||||||||||||||||
FBS | 251.0 | 134.8 | 86.2 | % | 771.2 | 509.3 | 51.4 | % | |||||||||||||||||||||||||||
Total Consolidated | $ | 660.1 | $ | 390.4 | 69.1 | % | $ | 2,167.4 | $ | 1,440.0 | 50.5 | % |
Operating Profit | |||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||
Return on Net Sales | Return on Net Sales | ||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||||
ATM | $ | 27.6 | $ | 5.5 | 6.7 | % | 2.2 | % | $ | 98.8 | $ | 61.6 | 7.1 | % | 6.6 | % | |||||||||||||||||||||||||||||||
FBS | 30.7 | 22.4 | 12.2 | % | 16.6 | % | 106.6 | 100.5 | 13.8 | % | 19.7 | % | |||||||||||||||||||||||||||||||||||
Unallocated | (31.4) | (17.0) | (4.8) | % | (4.4) | % | (154.0) | (78.8) | (7.1) | % | (5.5) | % | |||||||||||||||||||||||||||||||||||
Total Consolidated | $ | 26.9 | $ | 10.9 | 4.1 | % | 2.8 | % | $ | 51.4 | $ | 83.3 | 2.4 | % | 5.8 | % |
Non-GAAP Adjustments to Operating Profit | |||||||||||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
ATM - Amortization of intangibles and other purchase accounting adjustments | $ | 18.1 | $ | 11.2 | $ | 56.4 | $ | 43.3 | |||||||||||||||
ATM - Restructuring, impairment, and other expenses | 3.1 | 1.9 | 19.6 | 1.9 | |||||||||||||||||||
FBS - Amortization of intangibles and other purchase accounting adjustments | 7.7 | — | 16.3 | — | |||||||||||||||||||
FBS - Restructuring, impairment, and other expenses (income) | (0.4) | 2.5 | (0.5) | 8.9 | |||||||||||||||||||
Unallocated - Restructuring, impairment, and other expenses | 0.4 | — | 5.6 | — | |||||||||||||||||||
Unallocated - Acquisition/Merger and integration costs | 8.5 | — | 68.9 | — | |||||||||||||||||||
Unallocated - Other | — | 2.4 | — | 21.4 | |||||||||||||||||||
Total Consolidated | $ | 37.4 | $ | 18.0 | $ | 166.3 | $ | 75.5 |
Adjusted Operating Profit | |||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||
Return on Net Sales | Return on Net Sales | ||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||||
ATM | $ | 48.8 | $ | 18.6 | 11.9 | % | 7.3 | % | $ | 174.8 | $ | 106.8 | 12.5 | % | 11.5 | % | |||||||||||||||||||||||||||||||
FBS | 38.0 | 24.9 | 15.1 | % | 18.5 | % | 122.4 | 109.4 | 15.9 | % | 21.5 | % | |||||||||||||||||||||||||||||||||||
Unallocated | (22.5) | (14.6) | (3.4) | % | (3.7) | % | (79.5) | (57.4) | (3.7) | % | (4.0) | % | |||||||||||||||||||||||||||||||||||
Total Consolidated | $ | 64.3 | $ | 28.9 | 9.7 | % | 7.4 | % | $ | 217.7 | $ | 158.8 | 10.0 | % | 11.0 | % |
Non-GAAP Adjustments to Adjusted Operating Profit | |||||||||||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
ATM - Depreciation and stock-based compensation | $ | 12.8 | $ | 9.5 | $ | 40.7 | $ | 28.0 | |||||||||||||||
FBS - Depreciation and stock-based compensation | 12.2 | 5.9 | 34.6 | 23.1 | |||||||||||||||||||
Unallocated - Depreciation and stock-based compensation | 3.1 | 2.7 | 12.2 | 9.1 | |||||||||||||||||||
Total Consolidated | $ | 28.1 | $ | 18.1 | $ | 87.5 | $ | 60.2 |
Adjusted EBITDA | |||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||
Return on Net Sales | Return on Net Sales | ||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||||
ATM | $ | 61.6 | $ | 28.1 | 15.1 | % | 11.0 | % | $ | 215.5 | $ | 134.8 | 15.4 | % | 14.5 | % | |||||||||||||||||||||||||||||||
FBS | 50.2 | 30.8 | 20.0 | % | 22.8 | % | 157.0 | 132.5 | 20.4 | % | 26.0 | % | |||||||||||||||||||||||||||||||||||
Unallocated | (19.4) | (11.9) | (2.9) | % | (3.0) | % | (67.3) | (48.3) | (3.1) | % | (3.4) | % | |||||||||||||||||||||||||||||||||||
Total Consolidated | $ | 92.4 | $ | 47.0 | 14.0 | % | 12.0 | % | $ | 305.2 | $ | 219.0 | 14.1 | % | 15.2 | % |
Non-GAAP Reconciliation of Organic Net Sales Growth | |||||||||||||||||
Advanced Technical Materials | Fiber-Based Solutions | Consolidated Mativ | |||||||||||||||
Three Months Ended December 31, 2022 | |||||||||||||||||
Mativ Combined 4Q:21 Net Sales | $ | 403.2 | $ | 251.5 | $ | 654.7 | |||||||||||
Divestiture/closure adjustments | (8.1) | — | (8.1) | ||||||||||||||
Mativ Combined 4Q:21 Comparable Net Sales | $ | 395.1 | $ | 251.5 | $ | 646.6 | |||||||||||
Mativ 4Q:22 Net Sales | $ | 409.1 | $ | 251.0 | $ | 660.1 | |||||||||||
Divestiture/closure adjustments | — | — | — | ||||||||||||||
Mativ 4Q:22 Comparable Net Sales | $ | 409.1 | $ | 251.0 | $ | 660.1 | |||||||||||
Organic growth | 3.5 | % | (0.2) | % | 2.1 | % | |||||||||||
Currency effects on 4Q:22 | $ | (20.1) | $ | (8.2) | $ | (28.3) | |||||||||||
Mativ 4Q:22 Comparable Net Sales with Currency Adjustment | $ | 429.2 | $ | 259.2 | $ | 688.4 | |||||||||||
Organic constant currency growth | 8.6 | % | 3.1 | % | 6.5 | % | |||||||||||
Advanced Technical Materials | Fiber-Based Solutions | Consolidated Mativ | |||||||||||||||
Year Ended December 31, 2022 | |||||||||||||||||
Mativ Combined 2021 Net Sales | $ | 1,524.8 | $ | 943.7 | $ | 2,468.5 | |||||||||||
Divestiture/closure adjustments | 106.6 | — | 106.6 | ||||||||||||||
Mativ Combined 2021 Comparable Net Sales | $ | 1,631.4 | $ | 943.7 | $ | 2,575.1 | |||||||||||
Mativ Combined 2022 Net Sales | $ | 1,744.2 | $ | 1,014.8 | $ | 2,759.0 | |||||||||||
Divestiture/closure adjustments | (16.0) | — | (16.0) | ||||||||||||||
July 1 to July 6 Neenah stub period adjustment (1) | 4.0 | 5.5 | 9.5 | ||||||||||||||
Mativ Combined 2022 Comparable Net Sales | $ | 1,732.2 | $ | 1,020.3 | $ | 2,752.5 | |||||||||||
Organic growth | 6.2 | % | 8.1 | % | 6.9 | % | |||||||||||
Currency effects on 2022 | $ | (64.5) | $ | (28.8) | $ | (93.3) | |||||||||||
Mativ 2022 Comparable Net Sales with Currency Adjustment | $ | 1,796.7 | $ | 1,049.1 | $ | 2,845.8 | |||||||||||
Organic constant currency growth | 10.1 | % | 11.2 | % | 10.5 | % | |||||||||||
(1) Adjustment for estimated Net Sales for the period July 1st to July 6th not included in Mativ's 2022 Reported Net Sales. | |||||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Operating profit | $ | 26.9 | $ | 10.9 | $ | 51.4 | $ | 83.3 | |||||||||||||||
Plus: Restructuring and impairment related expenses | 3.1 | 4.4 | 20.8 | 10.8 | |||||||||||||||||||
Plus: Purchase accounting adjustments | 25.8 | 11.2 | 72.7 | 43.3 | |||||||||||||||||||
Plus: Acquisition/merger and integration related costs | 8.5 | 2.4 | 68.9 | 21.4 | |||||||||||||||||||
Plus: Cybersecurity expenses | — | — | 6.1 | — | |||||||||||||||||||
Less: Brazil tax settlement | — | — | (2.2) | — | |||||||||||||||||||
Adjusted Operating Profit | $ | 64.3 | $ | 28.9 | $ | 217.7 | $ | 158.8 | |||||||||||||||
Income (loss) | $ | 2.5 | $ | 53.3 | $ | (6.6) | $ | 88.9 | |||||||||||||||
Plus: Restructuring and impairment expenses | 1.9 | 4.2 | 19.3 | 10.1 | |||||||||||||||||||
Less: Tax impact of restructuring and impairment expense | (0.4) | (0.9) | (4.2) | (2.4) | |||||||||||||||||||
Less: Gain on sale of assets | — | (35.2) | (2.9) | (35.2) | |||||||||||||||||||
Plus: Tax impact on gain on sale of assets | — | 8.0 | 0.8 | 8.0 | |||||||||||||||||||
Plus: Other restructuring related expenses | 1.2 | 0.2 | 1.5 | 0.7 | |||||||||||||||||||
Less: Tax impact of other restructuring related expenses | (0.3) | (0.1) | (0.3) | (0.2) | |||||||||||||||||||
Plus: Purchase accounting adjustments | 25.8 | 11.2 | 72.7 | 43.3 | |||||||||||||||||||
Less: Tax impact of purchase accounting adjustments | (5.9) | (2.3) | (16.3) | (8.7) | |||||||||||||||||||
Less: Brazil tax assessments/settlements | — | — | (2.8) | (6.1) | |||||||||||||||||||
Plus: Tax impact of Brazil tax assessments/settlements | — | — | 1.0 | 2.8 | |||||||||||||||||||
Plus: Cybersecurity expenses | — | — | 6.1 | — | |||||||||||||||||||
Less: Tax impact of cybersecurity expenses | — | — | (1.4) | — | |||||||||||||||||||
Plus: Acquisition/merger and integration related costs | 8.5 | 2.4 | 72.6 | 21.4 | |||||||||||||||||||
Less: Tax impact on acquisition/merger and integration related costs | (0.6) | (0.5) | (10.8) | (4.7) | |||||||||||||||||||
Plus: Acquisition related foreign currency exchange impacts | — | — | — | 6.9 | |||||||||||||||||||
Less: Luxembourg valuation allowance release | — | (33.6) | — | (33.6) | |||||||||||||||||||
Plus: Reversal of valuation allowance on prior year tax credits | — | 4.6 | — | 4.6 | |||||||||||||||||||
Plus (less): Tax legislative changes, net of other discrete items | (0.8) | 1.4 | (1.7) | 3.5 | |||||||||||||||||||
Adjusted Income | $ | 31.9 | $ | 12.7 | $ | 127.0 | $ | 99.3 | |||||||||||||||
Earnings (loss) per share - diluted | $ | 0.04 | $ | 1.68 | $ | (0.18) | $ | 2.80 | |||||||||||||||
Plus: Restructuring and impairment related expenses | 0.03 | 0.13 | 0.45 | 0.32 | |||||||||||||||||||
Less: Tax impact of restructuring and impairment expense | (0.01) | (0.03) | (0.10) | (0.08) | |||||||||||||||||||
Less: Gain on sale of assets | — | (1.12) | (0.07) | (1.12) | |||||||||||||||||||
Plus: Tax impact on gain on sale of assets | — | 0.25 | 0.02 | 0.25 | |||||||||||||||||||
Plus: Other restructuring related expenses | 0.02 | — | 0.04 | 0.02 | |||||||||||||||||||
Less: Tax impact of other restructuring related expenses | (0.01) | (0.01) | (0.01) | (0.01) | |||||||||||||||||||
Plus: Purchase accounting adjustments | 0.47 | 0.35 | 1.70 | 1.37 | |||||||||||||||||||
Less: Tax impact of purchase accounting adjustment | (0.11) | (0.07) | (0.38) | (0.28) | |||||||||||||||||||
Less: Brazil tax assessments/settlements | — | — | (0.07) | (0.20) | |||||||||||||||||||
Plus: Tax impact of Brazil tax assessments/settlements | — | — | 0.02 | 0.09 | |||||||||||||||||||
Plus: Cybersecurity expenses | — | — | 0.14 | — | |||||||||||||||||||
Less: Tax impact of cybersecurity expenses | — | — | (0.03) | — | |||||||||||||||||||
Plus: Acquisition/merger and integration related costs | 0.16 | 0.08 | 1.70 | 0.68 | |||||||||||||||||||
Less: Tax impact on acquisition/merger and integration related costs | (0.01) | (0.02) | (0.25) | (0.15) | |||||||||||||||||||
Plus: Acquisition related foreign currency exchange impacts | — | — | — | 0.22 | |||||||||||||||||||
Less: Luxembourg valuation allowance release | — | (1.07) | — | (1.07) | |||||||||||||||||||
Plus: Reversal of valuation allowance on prior year tax credits | — | 0.15 | — | 0.15 | |||||||||||||||||||
Plus (less): Tax legislative changes, net of other discrete items | (0.02) | 0.04 | (0.04) | 0.11 | |||||||||||||||||||
Adjusted Earnings Per Share - Diluted | $ | 0.56 | $ | 0.36 | $ | 2.94 | $ | 3.10 | |||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Net income (loss) | $ | 2.5 | $ | 53.3 | $ | (6.6) | $ | 88.9 | |||||||||||||||
Plus: Interest expense on debt | 27.4 | 14.8 | 86.8 | 50.6 | |||||||||||||||||||
Less: Interest income on Brazil tax assessments/settlements | — | — | (0.7) | (4.5) | |||||||||||||||||||
Plus: Provision for income taxes | (7.8) | (21.8) | (12.6) | (9.4) | |||||||||||||||||||
Plus: Depreciation and amortization | 42.0 | 26.5 | 129.2 | 94.0 | |||||||||||||||||||
Plus: Stock compensation expense | 2.6 | — | 11.7 | — | |||||||||||||||||||
Plus: Inventory step up expense | 9.3 | — | 19.3 | — | |||||||||||||||||||
Plus: Restructuring and impairment expense | 1.9 | 4.2 | 19.3 | 10.1 | |||||||||||||||||||
Plus: Other restructuring related expense | 1.2 | (0.2) | 1.5 | 0.3 | |||||||||||||||||||
Plus: Cybersecurity expenses | — | — | 6.1 | — | |||||||||||||||||||
Plus: Acquisition/merger and integration related costs | 8.5 | 2.4 | 68.9 | 21.4 | |||||||||||||||||||
Less: Income from equity affiliates | (0.1) | (0.3) | (5.2) | (6.4) | |||||||||||||||||||
Plus (less): Other income, net | 4.9 | (35.1) | (10.3) | (41.2) | |||||||||||||||||||
Plus: Acquisition related foreign currency exchange impacts | — | — | — | 6.9 | |||||||||||||||||||
Less: Brazil tax assessments/settlements | — | — | (2.2) | (1.6) | |||||||||||||||||||
Adjusted EBITDA (1) | $ | 92.4 | $ | 43.8 | $ | 305.2 | $ | 209.1 | |||||||||||||||
Cash provided by operating activities | $ | 185.0 | $ | 30.6 | 202.2 | $ | 58.1 | ||||||||||||||||
Less: Capital spending | (20.4) | (12.1) | (56.9) | (35.9) | |||||||||||||||||||
Less: Capitalized software costs | (0.6) | (1.1) | (2.7) | (3.0) | |||||||||||||||||||
Free Cash Flow | $ | 164.0 | $ | 17.4 | $ | 142.6 | $ | 19.2 | |||||||||||||||
December 31, 2022 | December 31, 2021 | ||||||||||||||||||||||
Total Debt | $ | 1,707.4 | $ | 1,270.3 | |||||||||||||||||||
Less: Cash | 124.4 | 74.7 | |||||||||||||||||||||
Net Debt | $ | 1,583.0 | $ | 1,195.6 | |||||||||||||||||||
(1) This reconciliation from Net income to Adjusted EBITDA for the quarter and year ended December 31, 2021 is consistent with the press release filed on February 23, 2022. For conformed reconciliations for the quarter and year ended December 31, 2021, refer to the Non-GAAP reconciliations of combined results in the tables below. |
Non-GAAP Reconciliation of Combined Legacy Neenah and SWM Operating Profit for Comparability | |||||||||||||||||||||||||||||||||||
(in millions) (Unaudited) | |||||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||||
December 31, 2021 | December 31, 2022 | ||||||||||||||||||||||||||||||||||
Legacy Neenah | Adjustments | Legacy Neenah Adjusted | Legacy SWM | Mativ Combined for Comparison | Mativ | ||||||||||||||||||||||||||||||
Advanced Technical Materials (ATM) (1) | |||||||||||||||||||||||||||||||||||
Net Sales | $ | 166.7 | $ | (19.1) | $ | 147.6 | $ | 255.6 | $ | 403.2 | $ | 409.1 | |||||||||||||||||||||||
GAAP Operating Profit | 4.7 | 1.6 | 6.3 | 5.5 | 11.8 | 27.6 | |||||||||||||||||||||||||||||
Amortization of intangibles and other purchase accounting adjustments | 2.2 | (0.1) | 2.1 | 11.2 | 13.3 | 18.1 | |||||||||||||||||||||||||||||
Restructuring, impairment, and other expenses | 0.3 | — | 0.3 | 1.9 | 2.2 | 3.1 | |||||||||||||||||||||||||||||
Acquisition/Merger and integration costs | 0.1 | — | 0.1 | — | 0.1 | — | |||||||||||||||||||||||||||||
Other | 1.0 | — | 1.0 | — | 1.0 | — | |||||||||||||||||||||||||||||
Adjusted Operating Profit (2) | $ | 8.3 | $ | 1.5 | $ | 9.8 | $ | 18.6 | $ | 28.4 | $ | 48.8 | |||||||||||||||||||||||
Adjusted Operating Profit Margin | 5.0 | % | N/A | 6.6 | % | 7.3 | % | 7.0 | % | 11.9 | % | ||||||||||||||||||||||||
Depreciation and stock-based compensation expense (3) | 5.2 | (0.7) | 4.5 | 9.5 | 14.0 | 12.8 | |||||||||||||||||||||||||||||
Adjusted EBITDA (4) | $ | 13.5 | $ | 0.8 | $ | 14.3 | $ | 28.1 | $ | 42.4 | $ | 61.6 | |||||||||||||||||||||||
Adjusted EBITDA Margin | 8.1 | % | N/A | 9.7 | % | 11.0 | % | 10.5 | % | 15.1 | % | ||||||||||||||||||||||||
Fiber-Based Solutions (FBS) (1) | |||||||||||||||||||||||||||||||||||
Net Sales | $ | 97.6 | $ | 19.1 | $ | 116.7 | $ | 134.8 | $ | 251.5 | $ | 251.0 | |||||||||||||||||||||||
GAAP Operating Profit | 11.9 | 0.3 | 12.2 | 22.4 | 34.6 | 30.7 | |||||||||||||||||||||||||||||
Amortization of intangibles and other purchase accounting adjustments | 0.2 | 0.1 | 0.3 | — | 0.3 | 7.7 | |||||||||||||||||||||||||||||
Restructuring, impairment, and other expenses | 0.2 | — | 0.2 | 2.5 | 2.7 | (0.4) | |||||||||||||||||||||||||||||
Other | 0.2 | — | 0.2 | — | 0.2 | — | |||||||||||||||||||||||||||||
Adjusted Operating Profit (2) | $ | 12.5 | $ | 0.4 | $ | 12.9 | $ | 24.9 | $ | 37.8 | $ | 38.0 | |||||||||||||||||||||||
Adjusted Operating Profit Margin | 12.8 | % | N/A | 11.1 | % | 18.5 | % | 15.0 | % | 15.1 | % | ||||||||||||||||||||||||
Depreciation and stock-based compensation expense (3) | 2.4 | 0.7 | 3.1 | 5.9 | 9.0 | 12.2 | |||||||||||||||||||||||||||||
Adjusted EBITDA (4) | $ | 14.9 | $ | 1.1 | $ | 16.0 | $ | 30.8 | $ | 46.8 | $ | 50.2 | |||||||||||||||||||||||
Adjusted EBITDA Margin | 15.3 | % | N/A | 13.7 | % | 22.8 | % | 18.6 | % | 20.0 | % | ||||||||||||||||||||||||
Non-GAAP Reconciliation of Combined Legacy Neenah and SWM Operating Profit for Comparability | |||||||||||||||||||||||||||||||||||
(in millions) (Unaudited) | |||||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||||
December 31, 2021 | December 31, 2022 | ||||||||||||||||||||||||||||||||||
Legacy Neenah | Adjustments | Legacy Neenah Adjusted | Legacy SWM | Mativ Combined for Comparison | Mativ | ||||||||||||||||||||||||||||||
Corporate Unallocated | |||||||||||||||||||||||||||||||||||
GAAP Operating Loss | $ | (20.8) | $ | (2.5) | $ | (23.3) | $ | (17.0) | $ | (40.3) | $ | (31.4) | |||||||||||||||||||||||
Restructuring, impairment, and other expenses | 0.2 | — | 0.2 | — | 0.2 | 0.4 | |||||||||||||||||||||||||||||
Acquisition/Merger and integration costs | 0.5 | — | 0.5 | — | 0.5 | 8.5 | |||||||||||||||||||||||||||||
Other | 15.6 | — | 15.6 | 2.4 | 18.0 | — | |||||||||||||||||||||||||||||
Adjusted Operating Loss (2) | $ | (4.5) | $ | (2.5) | $ | (7.0) | $ | (14.6) | $ | (21.6) | $ | (22.5) | |||||||||||||||||||||||
% of total Net Sales | (1.7) | % | N/A | (2.6) | % | (3.7) | % | (3.3) | % | (3.4) | % | ||||||||||||||||||||||||
Depreciation and stock-based compensation expense (3) | 0.9 | — | 0.9 | 2.7 | 3.6 | 3.1 | |||||||||||||||||||||||||||||
Adjusted EBITDA (4) | $ | (3.6) | $ | (2.5) | $ | (6.1) | $ | (11.9) | $ | (18.0) | $ | (19.4) | |||||||||||||||||||||||
% of total Net Sales | (1.4) | % | N/A | (2.3) | % | (3.0) | % | (2.7) | % | (2.9) | % | ||||||||||||||||||||||||
Consolidated | |||||||||||||||||||||||||||||||||||
Net Sales | $ | 264.3 | $ | — | $ | 264.3 | $ | 390.4 | $ | 654.7 | $ | 660.1 | |||||||||||||||||||||||
GAAP Operating Profit (Loss) (1) | (4.2) | (0.6) | (4.8) | 10.9 | 6.1 | 26.9 | |||||||||||||||||||||||||||||
Amortization of intangibles and other purchase accounting adjustments | 2.4 | — | 2.4 | 11.2 | 13.6 | 25.8 | |||||||||||||||||||||||||||||
Restructuring, impairment, and other expenses | 0.7 | — | 0.7 | 4.4 | 5.1 | 3.1 | |||||||||||||||||||||||||||||
Acquisition/Merger and integration costs | 0.6 | — | 0.6 | — | 0.6 | 8.5 | |||||||||||||||||||||||||||||
Other | 16.8 | — | 16.8 | 2.4 | 19.2 | — | |||||||||||||||||||||||||||||
Adjusted Operating Profit (2) | $ | 16.3 | $ | (0.6) | $ | 15.7 | $ | 28.9 | $ | 44.6 | $ | 64.3 | |||||||||||||||||||||||
Adjusted Operating Profit Margin | 6.2 | % | N/A | 5.9 | % | 7.4 | % | 6.8 | % | 9.7 | % | ||||||||||||||||||||||||
Depreciation and stock-based compensation expense (3) | 8.5 | — | 8.5 | 18.1 | 26.6 | 28.1 | |||||||||||||||||||||||||||||
Adjusted EBITDA (4) | $ | 24.8 | $ | (0.6) | $ | 24.2 | $ | 47.0 | $ | 71.2 | $ | 92.4 | |||||||||||||||||||||||
Adjusted EBITDA Margin | 9.4 | % | N/A | 9.2 | % | 12.0 | % | 10.9 | % | 14.0 | % | ||||||||||||||||||||||||
The following notes apply to all periods and tables presented herein: | |||||||||||||||||||||||||||||||||||
(1) Effective with the merger, certain assets/net sales were reclassified out of ATM and into FBS, and to conform with legacy SWM accounting practices certain of legacy Neenah operating expenses were reclassified out of the ATM and FBS operating segments and moved to Corporate Unallocated. In addition, certain legacy Neenah Corporate Unallocated operating expenses were reclassified out of GAAP Operating Profit and moved to other income, net to conform with legacy SWM accounting practices. | |||||||||||||||||||||||||||||||||||
(2) Effective with the merger, legacy Neenah's definition of Adjusted Operating Profit, a non-GAAP financial measure, was conformed to legacy SWM's Adjusted Operating Profit definition which includes an add-back for amortization of intangible assets and other purchase accounting adjustments. | |||||||||||||||||||||||||||||||||||
(3) Depreciation and stock-based compensation excludes stock-based compensation included in acquisition/merger and integration costs. | |||||||||||||||||||||||||||||||||||
(4) Effective with the merger, legacy SWM's definition of EBITDA, a non-GAAP financial measure, was conformed to legacy Neenah's EBITDA definition which includes an add-back for stock-based compensation. The revised EBITDA definition is more aligned with the terms of the Company's Credit Agreement. |
Non-GAAP Reconciliation of Combined Legacy Neenah and SWM Operating Profit for Comparability | |||||||||||||||||||||||||||||||||||
(in millions) (Unaudited) | |||||||||||||||||||||||||||||||||||
Year Ended | |||||||||||||||||||||||||||||||||||
December 31, 2021 | December 31, 2022 | ||||||||||||||||||||||||||||||||||
Legacy Neenah | Adjustments | Legacy Neenah Adjusted | Legacy SWM | Mativ Combined for Comparison | Mativ Combined for Comparison | ||||||||||||||||||||||||||||||
Advanced Technical Materials (ATM) (1) | |||||||||||||||||||||||||||||||||||
Net Sales | $ | 664.2 | $ | (70.1) | $ | 594.1 | $ | 930.7 | $ | 1,524.8 | $ | 1,744.2 | |||||||||||||||||||||||
GAAP Operating Profit | 5.6 | 0.1 | 5.7 | 61.6 | 67.3 | 131.4 | |||||||||||||||||||||||||||||
Amortization of intangibles and other purchase accounting adjustments | 8.0 | 4.7 | 12.7 | 43.3 | 56.0 | 60.5 | |||||||||||||||||||||||||||||
Restructuring, impairment, and other expenses | 37.5 | — | 37.5 | 1.9 | 39.4 | 22.3 | |||||||||||||||||||||||||||||
Acquisition/Merger and integration costs | 5.8 | (5.1) | 0.7 | — | 0.7 | 0.5 | |||||||||||||||||||||||||||||
Other | 2.2 | — | 2.2 | — | 2.2 | — | |||||||||||||||||||||||||||||
Adjusted Operating Profit (2) | $ | 59.1 | $ | (0.3) | $ | 58.8 | $ | 106.8 | $ | 165.6 | $ | 214.7 | |||||||||||||||||||||||
Adjusted Operating Profit Margin | 8.9 | % | 0.4 | % | 9.9 | % | 11.5 | % | 10.9 | % | 12.3 | % | |||||||||||||||||||||||
Depreciation and stock-based compensation expense (3) | 21.4 | (2.8) | 18.6 | 28.0 | 46.6 | 49.3 | |||||||||||||||||||||||||||||
Adjusted EBITDA (4) | $ | 80.5 | $ | (3.1) | $ | 77.4 | $ | 134.8 | $ | 212.2 | $ | 264.0 | |||||||||||||||||||||||
Adjusted EBITDA Margin | 12.1 | % | 4.4 | % | 13.0 | % | 14.5 | % | 13.9 | % | 15.1 | % | |||||||||||||||||||||||
Fiber-Based Solutions (FBS) (1) | |||||||||||||||||||||||||||||||||||
Net Sales | $ | 364.3 | $ | 70.1 | $ | 434.4 | $ | 509.3 | $ | 943.7 | $ | 1,014.8 | |||||||||||||||||||||||
GAAP Operating Profit | 40.9 | 9.3 | 50.2 | 100.5 | 150.7 | 134.5 | |||||||||||||||||||||||||||||
Amortization of intangibles and other purchase accounting adjustments | 0.7 | 0.4 | 1.1 | — | 1.1 | 16.9 | |||||||||||||||||||||||||||||
Restructuring, impairment, and other expenses | 0.1 | — | 0.1 | 8.9 | 9.0 | (0.5) | |||||||||||||||||||||||||||||
Other | 0.7 | — | 0.7 | — | 0.7 | 0.1 | |||||||||||||||||||||||||||||
Adjusted Operating Profit (2) | $ | 42.4 | $ | 9.7 | $ | 52.1 | $ | 109.4 | $ | 161.5 | $ | 151.0 | |||||||||||||||||||||||
Adjusted Operating Profit Margin | 11.6 | % | 13.8 | % | 12.0 | % | 21.5 | % | 17.1 | % | 14.9 | % | |||||||||||||||||||||||
Depreciation and stock-based compensation expense (3) | 9.8 | 2.8 | 12.6 | 23.1 | 35.7 | 40.7 | |||||||||||||||||||||||||||||
Adjusted EBITDA (4) | $ | 52.2 | $ | 12.5 | $ | 64.7 | $ | 132.5 | $ | 197.2 | $ | 191.7 | |||||||||||||||||||||||
Adjusted EBITDA Margin | 14.3 | % | 17.8 | % | 14.9 | % | 26.0 | % | 20.9 | % | 18.9 | % | |||||||||||||||||||||||
Non-GAAP Reconciliation of Combined Legacy Neenah and SWM Operating Profit for Comparability | |||||||||||||||||||||||||||||||||||
(in millions) (Unaudited) | |||||||||||||||||||||||||||||||||||
Year Ended | |||||||||||||||||||||||||||||||||||
December 31, 2021 | December 31, 2022 | ||||||||||||||||||||||||||||||||||
Legacy Neenah | Adjustments | Legacy Neenah Adjusted | Legacy SWM | Mativ Combined for Comparison | Mativ Combined for Comparison | ||||||||||||||||||||||||||||||
Corporate Unallocated | |||||||||||||||||||||||||||||||||||
GAAP Operating Loss | $ | (58.3) | $ | (12.0) | $ | (70.3) | $ | (78.8) | $ | (149.1) | $ | (186.3) | |||||||||||||||||||||||
Restructuring, impairment, and other expenses | 0.6 | — | 0.6 | — | 0.6 | 5.6 | |||||||||||||||||||||||||||||
Acquisition/Merger and integration costs | 12.6 | — | 12.6 | 19.0 | 31.6 | 79.4 | |||||||||||||||||||||||||||||
Other | 24.3 | — | 24.3 | 2.4 | 26.7 | 0.5 | |||||||||||||||||||||||||||||
Adjusted Operating Loss (2) | $ | (20.8) | $ | (12.0) | $ | (32.8) | $ | (57.4) | $ | (90.2) | $ | (100.8) | |||||||||||||||||||||||
% of total Net Sales | (2.0) | % | — | % | (3.2) | % | (4.0) | % | (3.7) | % | (3.7) | % | |||||||||||||||||||||||
Depreciation and stock-based compensation expense (3) | 5.3 | — | 5.3 | 9.1 | 14.4 | 15.5 | |||||||||||||||||||||||||||||
Adjusted EBITDA (4) | $ | (15.5) | $ | (12.0) | $ | (27.5) | $ | (48.3) | $ | (75.8) | $ | (85.3) | |||||||||||||||||||||||
% of total Net Sales | (1.5) | % | — | % | (2.7) | % | (3.4) | % | (3.1) | % | (3.1) | % | |||||||||||||||||||||||
Consolidated | |||||||||||||||||||||||||||||||||||
Net Sales | $ | 1,028.5 | $ | — | $ | 1,028.5 | $ | 1,440.0 | $ | 2,468.5 | $ | 2,759.0 | |||||||||||||||||||||||
GAAP Operating Profit (Loss) (1) | (11.8) | (2.6) | (14.4) | 83.3 | 68.9 | 79.6 | |||||||||||||||||||||||||||||
Amortization of intangibles and other purchase accounting adjustments | 8.7 | 5.1 | 13.8 | 43.3 | 57.1 | 77.4 | |||||||||||||||||||||||||||||
Restructuring, impairment, and other expenses | 38.2 | — | 38.2 | 10.8 | 49.0 | 27.4 | |||||||||||||||||||||||||||||
Acquisition/Merger and integration costs | 18.4 | (5.1) | 13.3 | 19.0 | 32.3 | 79.9 | |||||||||||||||||||||||||||||
Other | 27.2 | — | 27.2 | 2.4 | 29.6 | 0.6 | |||||||||||||||||||||||||||||
Adjusted Operating Profit (2) | $ | 80.7 | $ | (2.6) | $ | 78.1 | $ | 158.8 | $ | 236.9 | $ | 264.9 | |||||||||||||||||||||||
Adjusted Operating Profit Margin | 7.8 | % | — | % | 7.6 | % | 11.0 | % | 9.6 | % | 9.6 | % | |||||||||||||||||||||||
Depreciation and stock-based compensation expense (3) | 36.5 | — | 36.5 | 60.2 | 96.7 | 105.5 | |||||||||||||||||||||||||||||
Adjusted EBITDA (4) | $ | 117.2 | $ | (2.6) | $ | 114.6 | $ | 219.0 | $ | 333.6 | $ | 370.4 | |||||||||||||||||||||||
Adjusted EBITDA Margin | 11.4 | % | — | % | 11.1 | % | 15.2 | % | 13.5 | % | 13.4 | % |
Non-GAAP Reconciliation of Combined Legacy Neenah and SWM Operating Profit for Comparability | |||||||||||||||||||||||||||||||||||||||||
(in millions) (Unaudited) | |||||||||||||||||||||||||||||||||||||||||
Six Months Ended | Year Ended | ||||||||||||||||||||||||||||||||||||||||
June 30, 2022 | December 31, 2022 | December 31, 2022 | |||||||||||||||||||||||||||||||||||||||
Legacy Neenah | Adjustments | Legacy Neenah Adjusted | Legacy SWM | Mativ Combined for Comparison | Mativ | Mativ Combined for Comparison | |||||||||||||||||||||||||||||||||||
Advanced Technical Materials (ATM) (1) | |||||||||||||||||||||||||||||||||||||||||
Net Sales | $ | 384.1 | $ | (36.1) | $ | 348.0 | $ | 561.0 | $ | 909.0 | $ | 835.2 | $ | 1,744.2 | |||||||||||||||||||||||||||
GAAP Operating Profit | 28.4 | 4.2 | 32.6 | 39.7 | 72.3 | 59.1 | 131.4 | ||||||||||||||||||||||||||||||||||
Amortization of intangibles and other purchase accounting adjustments | 4.3 | (0.2) | 4.1 | 22.2 | 26.3 | 34.2 | 60.5 | ||||||||||||||||||||||||||||||||||
Restructuring, impairment, and other expenses | 2.7 | — | 2.7 | 14.3 | 17.0 | 5.3 | 22.3 | ||||||||||||||||||||||||||||||||||
Acquisition/Merger and integration costs | 0.5 | — | 0.5 | — | 0.5 | — | 0.5 | ||||||||||||||||||||||||||||||||||
Adjusted Operating Profit (2) | $ | 35.9 | $ | 4.0 | $ | 39.9 | $ | 76.2 | $ | 116.1 | $ | 98.6 | $ | 214.7 | |||||||||||||||||||||||||||
Adjusted Operating Profit Margin | 9.3 | % | (11.1) | % | 11.5 | % | 13.6 | % | 12.8 | % | 11.8 | % | 12.3 | % | |||||||||||||||||||||||||||
Depreciation and stock-based compensation expense (3) | 10.1 | (1.4) | 8.7 | 15.4 | 24.1 | 25.2 | 49.3 | ||||||||||||||||||||||||||||||||||
Adjusted EBITDA (4) | $ | 46.0 | $ | 2.6 | $ | 48.6 | $ | 91.6 | $ | 140.2 | $ | 123.8 | $ | 264.0 | |||||||||||||||||||||||||||
Adjusted EBITDA Margin | 12.0 | % | (7.2) | % | 14.0 | % | 16.3 | % | 15.4 | % | 14.8 | % | 15.1 | % | |||||||||||||||||||||||||||
Fiber-Based Solutions (FBS) (1) | |||||||||||||||||||||||||||||||||||||||||
Net Sales | $ | 207.5 | $ | 36.1 | $ | 243.6 | $ | 272.2 | $ | 515.8 | $ | 499.0 | $ | 1,014.8 | |||||||||||||||||||||||||||
GAAP Operating Profit | 26.4 | 1.5 | 27.9 | 48.1 | 76.0 | 58.5 | 134.5 | ||||||||||||||||||||||||||||||||||
Amortization of intangibles and other purchase accounting adjustments | 0.4 | 0.2 | 0.6 | — | 0.6 | 16.3 | 16.9 | ||||||||||||||||||||||||||||||||||
Restructuring, impairment, and other expenses | — | — | — | (0.6) | (0.6) | 0.1 | (0.5) | ||||||||||||||||||||||||||||||||||
Other | 0.1 | — | 0.1 | — | 0.1 | — | 0.1 | ||||||||||||||||||||||||||||||||||
Adjusted Operating Profit (2) | $ | 26.9 | $ | 1.7 | $ | 28.6 | $ | 47.5 | $ | 76.1 | $ | 74.9 | $ | 151.0 | |||||||||||||||||||||||||||
Adjusted Operating Profit Margin | 13.0 | % | 4.7 | % | 11.7 | % | 17.5 | % | 14.8 | % | 15.0 | % | 14.9 | % | |||||||||||||||||||||||||||
Depreciation and stock-based compensation expense (3) | 4.6 | 1.4 | 6.0 | 10.4 | 16.4 | 24.3 | 40.7 | ||||||||||||||||||||||||||||||||||
Adjusted EBITDA (4) | $ | 31.5 | $ | 3.1 | $ | 34.6 | $ | 57.9 | $ | 92.5 | $ | 99.2 | $ | 191.7 | |||||||||||||||||||||||||||
Adjusted EBITDA Margin | 15.2 | % | 8.6 | % | 14.2 | % | 21.3 | % | 17.9 | % | 19.9 | % | 18.9 | % | |||||||||||||||||||||||||||
Non-GAAP Reconciliation of Combined Legacy Neenah and SWM Operating Profit for Comparability | |||||||||||||||||||||||||||||||||||||||||
(in millions) (Unaudited) | |||||||||||||||||||||||||||||||||||||||||
Six Months Ended | Year Ended | ||||||||||||||||||||||||||||||||||||||||
June 30, 2022 | December 31, 2022 | December 31, 2022 | |||||||||||||||||||||||||||||||||||||||
Legacy Neenah | Adjustments | Legacy Neenah Adjusted | Legacy SWM | Mativ Combined for Comparison | Mativ | Mativ Combined for Comparison | |||||||||||||||||||||||||||||||||||
Corporate Unallocated | |||||||||||||||||||||||||||||||||||||||||
GAAP Operating Loss | $ | (25.6) | $ | (6.7) | $ | (32.3) | $ | (49.4) | $ | (81.7) | $ | (104.6) | $ | (186.3) | |||||||||||||||||||||||||||
Restructuring, impairment, and other expenses | — | — | — | — | — | 5.6 | 5.6 | ||||||||||||||||||||||||||||||||||
Acquisition/Merger and integration costs | 10.5 | — | 10.5 | 13.6 | 24.1 | 55.3 | 79.4 | ||||||||||||||||||||||||||||||||||
Other | 0.5 | — | 0.5 | — | 0.5 | — | 0.5 | ||||||||||||||||||||||||||||||||||
Adjusted Operating Loss (2) | $ | (14.6) | $ | (6.7) | $ | (21.3) | $ | (35.8) | $ | (57.1) | $ | (43.7) | $ | (100.8) | |||||||||||||||||||||||||||
% of total Net Sales | (2.5) | % | — | % | (3.6) | % | (4.3) | % | (4.0) | % | (3.3) | % | (3.7) | % | |||||||||||||||||||||||||||
Depreciation and stock-based compensation expense (3) | 3.6 | — | 3.6 | 5.8 | 9.4 | 6.1 | 15.5 | ||||||||||||||||||||||||||||||||||
Adjusted EBITDA (4) | $ | (11.0) | $ | (6.7) | $ | (17.7) | $ | (30.0) | $ | (47.7) | $ | (37.6) | $ | (85.3) | |||||||||||||||||||||||||||
% of total Net Sales | (1.9) | % | — | % | (3.0) | % | (3.6) | % | (3.3) | % | (2.8) | % | (3.1) | % | |||||||||||||||||||||||||||
Consolidated | |||||||||||||||||||||||||||||||||||||||||
Net Sales | $ | 591.6 | $ | — | $ | 591.6 | $ | 833.2 | $ | 1,424.8 | $ | 1,334.2 | $ | 2,759.0 | |||||||||||||||||||||||||||
GAAP Operating Profit (Loss) (1) | 29.2 | (1.0) | 28.2 | 38.4 | 66.6 | 13.0 | 79.6 | ||||||||||||||||||||||||||||||||||
Amortization of intangibles and other purchase accounting adjustments | 4.7 | — | 4.7 | 22.2 | 26.9 | 50.5 | 77.4 | ||||||||||||||||||||||||||||||||||
Restructuring, impairment, and other expenses | 2.7 | — | 2.7 | 13.7 | 16.4 | 11.0 | 27.4 | ||||||||||||||||||||||||||||||||||
Acquisition/Merger and integration costs | 11.0 | — | 11.0 | 13.6 | 24.6 | 55.3 | 79.9 | ||||||||||||||||||||||||||||||||||
Other | 0.6 | — | 0.6 | — | 0.6 | — | 0.6 | ||||||||||||||||||||||||||||||||||
Adjusted Operating Profit (2) | $ | 48.2 | $ | (1.0) | $ | 47.2 | $ | 87.9 | $ | 135.1 | $ | 129.8 | $ | 264.9 | |||||||||||||||||||||||||||
Adjusted Operating Profit Margin | 8.1 | % | — | % | 8.0 | % | 10.5 | % | 9.5 | % | 9.7 | % | 9.6 | % | |||||||||||||||||||||||||||
Depreciation and stock-based compensation expense (3) | 18.3 | — | 18.3 | 31.6 | 49.9 | 55.6 | 105.5 | ||||||||||||||||||||||||||||||||||
Adjusted EBITDA (4) | $ | 66.5 | $ | (1.0) | $ | 65.5 | $ | 119.5 | $ | 185.0 | $ | 185.4 | $ | 370.4 | |||||||||||||||||||||||||||
Adjusted EBITDA Margin | 11.2 | % | — | % | 11.1 | % | 14.3 | % | 13.0 | % | 13.9 | % | 13.4 | % |