Fiscal-fourth quarter 2021 preliminary results
Ashland expects to report sales for the fiscal year end and fourth-fiscal quarter of 2021 of approximately
In addition, Ashland expects to report Adjusted EBITDA for the fiscal year end and fourth-fiscal quarter of 2021 of approximately
“The Ashland team executed at a high level during the quarter despite continued challenges in global supply chain and logistics,” said
Discontinued operations accounting
In addition to the previously announced agreement to sell the Performance Adhesives business and plans to report the results of that business as discontinued operations beginning with the fourth quarter results, Ashland has restated its income statement results for fiscal years 2019 and 2020 with the Performance Adhesives business reflected as discontinued operations. The restated income statement will be filed today with the
Fourth-quarter earnings release and webcast
Among those participating in the webcast presentation will be:
Guillermo Novo , chairman and chief executive officer;Kevin Willis , senior vice president and chief financial officer; andSeth Mrozek , director of investor relations.
The webcast and supporting materials will be accessible through the Investor Relations section of the Ashland website at http://investor.ashland.com. Following the live event, an archived version of the webcast and supporting materials will be available on the website for 12 months.
Investor Day reminder
As a reminder, Ashland will hold a virtual investor day on Friday, November 12, 2021 beginning at
The presentations will outline expectations for Ashland's future performance followed by a live question and answer session and a virtual innovation tradeshow. The virtual tradeshow will allow participants to experience an array of new technologies, innovations and applications that Ashland solvers around the world are contributing to meet customers’ needs. During the live event, additional Ashland leaders will be available to participate in virtual question and answer sessions.
To participate in Ashland’s virtual investor day, please register here.
The information in this release is preliminary, based upon information available at the time of this news release, and actual results may differ.
Use of Non-GAAP Measures
Ashland believes that by removing the impact of depreciation and amortization and excluding certain non-cash charges, amounts spent on interest and taxes and certain other charges that are highly variable from year to year, adjusted EBITDA provides Ashland’s investors with performance measures that reflect the impact to operations from trends in changes in sales, margin and operating expenses, providing a perspective not immediately apparent from net income. The adjustments Ashland makes to derive the non-GAAP measure of adjusted EBITDA exclude items which may cause short-term fluctuations in net income and which Ashland does not consider to be the fundamental attributes or primary drivers of its business. Adjusted EBITDA provides disclosure on the same basis as that used by Ashland’s management to evaluate financial performance on a consolidated and reportable segment basis and provide consistency in our financial reporting, facilitate internal and external comparisons of Ashland’s historical operating performance and its business units and provide continuity to investors for comparability purposes.
About Ashland
Forward-Looking Statements
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Ashland has identified some of these forward-looking statements with words such as “anticipates,” “believes,” “expects,” “estimates,” “is likely,” “predicts,” “projects,” “forecasts,” “objectives,” “may,” “will,” “should,” “plans” and “intends” and the negative of these words or other comparable terminology. Ashland may from time to time make forward-looking statements in its annual reports, quarterly reports and other filings with the
Ashland’s expectations and assumptions include, without limitation, internal forecasts and analyses of current and future market conditions and trends, management plans and strategies, operating efficiencies and economic conditions (such as prices, supply and demand, cost of raw materials, and the ability to recover raw-material cost increases through price increases), and risks and uncertainties associated with the following: the impact of acquisitions and/or divestitures Ashland has made or may make (including the possibility that Ashland may not realize the anticipated benefits from such transactions); Ashland’s substantial indebtedness (including the possibility that such indebtedness and related restrictive covenants may adversely affect Ashland’s future cash flows, results of operations, financial condition and its ability to repay debt); severe weather, natural disasters, public health crises (including the current COVID-19 pandemic), cyber events and legal proceedings and claims (including product recalls, environmental and asbestos matters); the effects of the COVID-19 pandemic on the geographies in which we operate, the end markets we serve and on our supply chain and customers, and without limitation, risks and uncertainties affecting Ashland that are described in Ashland’s most recent Form 10-K (including Item 1A Risk Factors) filed with the
1Financial results are preliminary until Ashland’s FY 2021 Form 10-K is filed with the
™ Trademark, Ashland or its subsidiaries, registered in various countries.
FOR FURTHER INFORMATION:
Investor Relations: Media Relations:
Seth A. Mrozek
+1 (302) 594-5010 +1 (302) 995-3158
samrozek@ashland.com ccbrown@ashland.com
Table 1 | ||||
Reconciliation of Non-GAAP Data - Adjusted EBITDA | ||||
Three months ended | ||||
(In millions) | 3 Months | Fiscal 2021 | ||
Net income (loss) | $ 43 | $ 220 | ||
Income tax expense (benefit) | (2) | (38) | ||
Net interest and other financing expense | 38 | 56 | ||
Depreciation and amortization | 64 | 244 | ||
EBITDA | 143 | 482 | ||
(Income) loss from discontinued operations (net of taxes) | (10) | (47) | ||
Key items included in EBITDA: | ||||
Environmental reserve adjustments | 10 | 43 | ||
Restructuring, separation and other costs | — | 10 | ||
Asset Impairments | 3 | 13 | ||
Inventory adjustments | 2 | 4 | ||
Net loss (gain) on acquisitions and divestitures | — | (11) | ||
Loss (gain) on pension and other postretirement plan remeasurements | 1 | 1 | ||
Total key items included in EBITDA | 16 | 60 | ||
Adjusted EBITDA | $ 149 | $ 495 | ||
Total key items included in EBITDA | $ 16 | $ 60 | ||
Accelerated amortization of debt issuance costs | 1 | 1 | ||
Debt refinancing costs | 16 | 16 | ||
Unrealized gain on securities | 5 | (21) | ||
Total key items, before tax | $ 38 | $ 56 | ||
Historically Adjusted EBITDA | $ 165 | $ 571 | ||
Performance Adhesives EBITDA | (22) | (84) | ||
Stranded Costs, net of stranded D&A | (4) | (14) | ||
Environmental adjustment | 10 | 22 | ||
Adjusted EBITDA | $ 149 | $ 495 |
Attachment
- Q4 2021 Earnings Update_FNL_20211101
Source:
2021 GlobeNewswire, Inc., source