CABOT CORPORATION Third Quarter Earnings Announcement, Fiscal 2020
CABOT CORPORATION RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
Fiscal 2020 (A) | ||||||||||
Reconciliation of Adjusted EPS to GAAP EPS | Dec. Q | Mar. Q | June Q | Sept. Q | FY 2020 | |||||
Net income (loss) per share attributable to Cabot Corporation | $ | 0.70 | $ | (0.01) | $ | (0.12) | $ | - | $ | 0.59 |
Less: Certain items after tax per share | 0.01 | (0.78) | (0.05) | - | (0.81) | |||||
Adjusted earnings (loss) per share | $ | 0.69 | $ | 0.77 | $ | (0.07) | $ | - | $ | 1.40 |
Fiscal 2019 (A) | ||||||||||
Reconciliation of Adjusted EPS to GAAP EPS | Dec. Q | Mar. Q | June Q | Sept. Q | FY 2019 | |||||
Net income (loss) per share attributable to Cabot Corporation | $ | 1.14 | $ | 0.39 | $ | 0.55 | $ | 0.55 | $ | 2.63 |
Less: Certain items after tax per share | 0.27 | (0.60) | (0.45) | (0.50) | (1.28) | |||||
Adjusted earnings per share | $ | 0.87 | $ | 0.99 | $ | 1.00 | $ | 1.05 | $ | 3.91 |
Less: Specialty Fluids Adjusted earnings per share (B) | 0.14 | 0.15 | 0.02 | - | 0.31 | |||||
Adjusted earnings per share excluding Specialty Fluids | $ | 0.73 | $ | 0.84 | $ | 0.98 | $ | 1.05 | $ | 3.60 |
- Per share amounts are calculated after tax and, where applicable, noncontrolling interest, net of tax.
- Specialty Fluids Adjusted earnings per share is calculated as follows (in millions except for per share amounts):
Specialty Fluids EBIT | $ | 10 | $ | 12 | $ | 2 | $ | - | $ | 24 |
Less: Specialty Fluids taxes (C) | 2 | 3 | 1 | - | 6 | |||||
Specialty Fluids profit after tax | $ | 8 | $ | 9 | $ | 1 | $ | - | $ | 18 |
Divided by: Cabot Corporation diluted weighted average common shares outstanding | 60.1 | 59.3 | 58.4 | 57.6 | 58.8 | |||||
Specialty Fluids Adjusted EPS | $ | 0.14 | $ | 0.15 | $ | 0.02 | $ | - | $ | 0.31 |
- Specialty Fluids taxes calculated by applying Cabot's Operating tax rate for each period to Specialty Fluids EBIT. Please refer to Cabot's fiscal 2019 earnings releases for the reconciliations of the Company's operating tax rate to its effective tax rate.
Dollars in millions | Fiscal 2020 | ||||||||||
Reconciliation of Segment EBIT to Net Income and Segment EBITDA Margin | Dec. Q | Mar. Q | June Q | Sept. Q | FY 2020 | ||||||
Net income (loss) attributable to Cabot Corporation | $ | 41 | $ | (1) | $ | (6) | $ | ― | $ | 34 | |
Net income (loss) attributable to noncontrolling interests | 5 | 4 | 1 | - | 10 | ||||||
Equity in earnings of affiliated companies, net of tax | - | (1) | (1) | - | (2) | ||||||
Provision (benefit) for income taxes | 4 | 10 | (5) | - | 9 | ||||||
Income (loss) before income taxes and equity in earnings of affiliated companies | $ | 50 | $ | 12 | $ | (11) | $ | ― | $ | 51 | |
Interest expense | 14 | 14 | 13 | - | 41 | ||||||
Certain items | 11 | 56 | 7 | - | 74 | ||||||
Unallocated corporate costs | 10 | 12 | 10 | - | 32 | ||||||
General unallocated (income) expense | 1 | - | (2) | - | (1) | ||||||
Less: Equity in earnings of affiliated companies | - | (1) | (1) | - | (2) | ||||||
Total Segment EBIT | $ | 86 | $ | 95 | $ | 18 | $ | ― | $ | 199 | |
Depreciation and amortization | 39 | 39 | 39 | - | 117 | ||||||
Adjustments to depreciation (D) | (1) | - | (1) | - | (2) | ||||||
Total Segment EBITDA | $ | 124 | $ | 134 | $ | 56 | $ | ― | $ | 314 | |
Less: Unallocated corporate costs | 10 | 12 | 10 | - | 32 | ||||||
Adjusted EBITDA | $ | 114 | $ | 122 | $ | 46 | $ | ― | $ | 282 | |
(D) | Adjustments to depreciation includes the addition of the depreciation expense of a contractual joint venture in Purification Solutions less accelerated depreciation | ||||||||||
expense not allocated to a business. | |||||||||||
Dollars in millions | Dec. Q | Mar. Q | June Q | Sept. Q | FY 2020 | ||||||
Reinforcement Materials EBIT | $ | 47 | $ | 61 | $ | (5) | $ | ― | $ | 103 | |
Reinforcement Materials Depreciation and amortization | 17 | 17 | 17 | - | 51 | ||||||
Reinforcement Materials EBITDA | $ | 64 | $ | 78 | $ | 12 | $ | ― | $ | 154 | |
Reinforcement Materials Sales | $ | 379 | $ | 355 | $ | 197 | $ | ― | $ | 931 | |
Reinforcement Materials EBITDA Margin | 17% | 22% | 6% | -% | 17% | ||||||
Dollars in millions | Dec. Q | Mar. Q | June Q | Sept. Q | FY 2020 | ||||||
Performance Chemicals EBIT | $ | 41 | $ | 31 | $ | 21 | $ | ― | $ | 93 | |
Performance Chemicals Depreciation and amortization | 15 | 15 | 15 | - | 45 | ||||||
Performance Chemicals EBITDA | $ | 56 | $ | 46 | $ | 36 | $ | ― | $ | 138 | |
Performance Chemicals Sales | $ | 242 | $ | 245 | $ | 220 | $ | ― | $ | 707 | |
Performance Chemicals EBITDA Margin | 23% | 19% | 16% | -% | 20% | ||||||
Dollars in millions | Dec. Q | Mar. Q | June Q | Sept. Q | FY 2020 | ||||||
Purification Solutions EBIT | $ | (2) | $ | 3 | $ | 2 | $ | ― | $ | 3 | |
Purification Solutions Depreciation and amortization | 6 | 7 | 6 | - | 19 | ||||||
Purification Solutions EBITDA | $ | 4 | $ | 10 | $ | 8 | $ | ― | $ | 22 | |
Purification Solutions Sales | $ | 59 | $ | 64 | $ | 63 | $ | ― | $ | 186 | |
Purification Solutions EBITDA Margin | 7% | 16% | 13% | -% | 12% | ||||||
Dollars in millions | Fiscal 2020 | ||||||||||
Reconciliation of Free Cash Flow and Discretionary Free Cash Flow to Cash Flow | |||||||||||
from Operating Activities | Dec. Q | Mar. Q | June Q | Sept. Q | FY 2020 | ||||||
Cash flow from operating activities (E) | $ | 105 | $ | 24 | $ | 149 | $ | ― | $ | 278 | |
Less: Additions to property, plant and equipment | 68 | 51 | 43 | - | 162 | ||||||
Free cash flow | $ | 37 | $ | (27) | $ | 106 | $ | ― | $ | 116 | |
Plus: Additions to property, plant and equipment | 68 | 51 | 43 | - | 162 | ||||||
Less: Changes in net working capital (F) | 50 | 2 | 126 | - | 178 | ||||||
Less: Sustaining and compliance capital expenditures | 30 | 27 | 24 | - | 81 | ||||||
Discretionary free cash flow | $ | 25 | $ | (5) | $ | (1) | $ | ― | $ | 19 | |
(E) | As provided in the Condensed Consolidated Statements of Cash Flows. | ||||||||||
(F) | Defined as changes in accounts receivable, inventory and accounts payable and accrued liabilities as presented on the Condensed Consolidated Statements of Cash | ||||||||||
Flows. |
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Cabot Corporation published this content on 07 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 August 2020 10:58:20 UTC
