NASHVILLE - Atmus Filtration Technologies Inc. (Atmus; NYSE: ATMU), a global leader in filtration and media solutions, today reported financial results for its first quarter that ended March 31, 2024.
First Quarter Highlights
Net sales of $427 million
GAAP net income of $46 million
Diluted earnings per share of $0.54
Adjusted earnings per share of $0.60
Adjusted EBITDA of $80 million and adjusted EBITDA margin of 18.8%
2024 Outlook
The company is reaffirming guidance for year 2024 as follows:
Revenue to be in the range of $1,610 million to $1,675 million
Adjusted EBITDA margin to be in the range of 18.25 percent to 19.25 percent
Adjusted earnings per share in the range of $2.10 to $2.35
On February 14, 2024, Cummins Inc. announced an exchange offer whereby Cummins shareholders could exchange all or a portion of Cummins common stock for shares of Atmus common stock owned by Cummins. The divestiture of Atmus shares by Cummins was completed on March 18, 2024 and resulted in the full separation of Atmus and divestiture of Cummins' entire ownership and voting interest in Atmus.
'I am proud of our Atmus team who delivered another quarter of solid results as we begin 2024.' said Steph Disher, Chief Executive Officer of Atmus. 'I am pleased with the successful share exchange which was completed during the quarter and am confident in our ability to deliver on our growth strategy as an independent company.'
First Quarter Results
For the first quarter of 2024, Atmus posted net sales of $427 million, compared to $419 million in the first quarter of 2023, an increase of approximately 2%. The increase in sales was primarily driven by increases in pricing and the favorable impacts of currency, partially offset by a decrease in volume.
Gross margin was $112 million, compared to $110 million in the first quarter of fiscal year 2023. Gross margin as a percent of net sales was 26.2% compared to 26.2% in the same period last year. The increase in gross margin was driven by an increase in pricing, partially offset by higher manufacturing costs and lower volumes.
Adjusted EBITDA was $80 million, compared to $79 million in the first quarter of 2023. Adjusted EBITDA margin was 18.8% compared to 18.8% in the same period last year. Adjusted EBITDA in the first quarter of 2024 excludes $6 million of one-time costs associated with the separation of our business from Cummins compared to the prior year quarter which excludes $4 million of one-time costs.
Net income was $46 million, or $0.54 of diluted earnings per share in the first quarter of 2024, compared to $53 million, or $0.63 of diluted earnings per share in the same period last year.
Adjusted earnings per share was $0.60 in the first quarter of 2024, compared to $0.67 of adjusted earnings per share in the same period last year. Higher interest expense because of debt issued at our May, 2023 IPO lowered 2024 results.
The effective tax rate for the first quarter was 22.0%.
Cash used in operating activities was $8 million in the first quarter of 2024, compared to cash provided by operating activities of $43 million in the first quarter of 2023. The higher cash usage was primarily related to increased working capital requirements and the payment of incentive compensation for strong performance achieved in 2023.
Adjusted Free Cash flow was $(13) million in the first quarter of 2024, compared to $37 million in the first quarter of 2023. Adjusted Free Cash Flow in the first quarter of 2024 excludes $3 million of one-time capital expenditures associated with our separation from Cummins compared to $1 million in the prior year. Additionally, Adjusted Free Cash Flow in the first quarter of 2024 excludes $3 million of one-time separation expenditures primarily comprised of working capital inefficiencies associated with the move from intercompany settlement terms with Cummins to standalone practices.
About Atmus Filtration Technologies Inc.
Atmus Filtration Technologies Inc. is a global leader in filtration and media solutions. For more than 65 years, the company has combined its culture of innovation with a rich history of designing and manufacturing filtration solutions. With a presence on six continents, Atmus serves customers across truck, bus, agriculture, construction, mining, marine and power generation vehicle and equipment markets, along with providing comprehensive aftermarket support and solutions. Headquartered in Nashville, Tennessee (U.S.), Atmus employs approximately 4,500 people globally who are committed to creating a better future by protecting what is important. Learn more at https://www.atmus.com .
Forward-looking disclosure statement
This press release contains forward-looking statements within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995, including, without limitation, those that are based on current expectations, estimates and projections about the industries in which we operate and management's views, plans, objectives, projections, beliefs and assumptions. Forward-looking statements may be identified by the use of words such as 'anticipates,' 'expects,' 'forecasts,' 'intends,' 'plans,' 'believes,' 'seeks,' 'estimates,' 'could,' 'should,' 'may' or words of similar meaning. All statements other than statements of historical fact are forward-looking statements, including, without limitation, statements regarding the outlook for our future business and financial performance, discussions of future operations, our strategy for growth and market position. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions, which are difficult to predict. If the underlying assumptions prove correct, or known or unknown risks or uncertainties materialize, our actual outcomes, results and financial condition may differ materially from what is expressed, implied or forecasted in such forward-looking statements. Risks and uncertainties include, but are not limited to, those reflected in the section titled 'Risk Factors' in our Annual Report on Form 10-K, as filed with the Securities and Exchange Commission (the 'SEC') on February 14, 2024, and subsequent filings, all of which are on file with the SEC. You are cautioned not to place undue reliance on forward-looking statements. The forward-looking statements made herein are made only as of the date hereof and we undertake no obligation to publicly update or to revise any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.
Contact:
Todd Chirillo
Email: investor.relations@atmus.com Media relations:
Keri Moenssen
Email: media.inquiries@atmus.com
ATMUS FILTRATION TECHNOLOGIES INC. 
