Slide 1: Earnings Summary: Fourth Quarter 2023
Earnings Summary: Fourth Quarter 2023 February 13, 2024
Slide 2: Safe Harbor
Safe Harbor This news release contains “forward-looking statements.” The words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “forecast,” “project,” “should,” “may,” “will,” “would” or the negative thereof and similar expressions are intended to identify such forward-looking statements. Th
Slide 3: Summary – Consolidated Statement of Operations (GAAP)
Summary – Consolidated Statement of Operations GAAP 4Q23 4Q23 $ in millions, except per share data 4Q23 4Q22 3Q23 over 4Q22 over 3Q23 Net Sales $812.3 $946.1 $888.2 (14.1%) (8.5%) Gross Margin 42.4% 42.8% 41.3% Operating Expenses $243.7 $260.7 $250.0 (6.5%) (2.5%) Operating Income $101.0 $143.8 $117
Slide 4: Summary – Consolidated Statement of Operations (Non-GAAP)
Summary – Consolidated Statement of Operations Non-GAAP1 4Q23 4Q23 $ in millions, except per share data 4Q23 4Q22 3Q23 over 4Q22 over 3Q23 Net Sales $812.3 $946.1 $888.2 (14.1%) (8.5%) Adjusted Gross Margin – as a % of Net Sales 42.4% 42.8% 41.4% Non-GAAP Operating Expenses2 $176.4 $185.2 $172.1 (4.
Slide 5: Summary – Consolidated Statement of Operations (GAAP, full year)
Summary – Consolidated Statement of Operations GAAP Year ended Year ended $ in millions, except per share data December 31, 2023 December 31, 2022 Year-over-Year Net Sales $3,523.9 $3,282.0 7.4% Gross Margin 42.5% 42.5% Operating Expenses $998.4 $916.4 8.9% Operating Income $499.2 $480.0 4.0% Operat
Slide 6: Summary – Consolidated Statement of Operations (Non-GAAP, full year)
Summary – Consolidated Statement of Operations Non-GAAP1 Year ended Year ended $ in millions, except per share data December 31, 2023 December 31, 2022 Year-over-Year Net Sales $3,523.9 $3,282.0 7.4% Adjusted Gross Margin – as a % of Net Sales2 42.7% 44.4% Non-GAAP Operating Expenses3 $736.1 $620.5
Slide 7: Materials Solutions (MS) 4Q23 highlights
Materials Solutions (MS) 4Q23 highlights 4Q23 4Q23 Sales increased (SEQ) 6% $ in millions 4Q23 4Q22 3Q23 over 4Q22 over 3Q23 (excluding the divestitures of Electronic Chemicals and Net Sales1 $365.0 $458.0 $435.5 (20.3%) (16.2%) the sale of the business to Segment Profit1 $53.2 $71.5 $57.0 (25.6%) (
Slide 8: Microcontamination Control (MC) 4Q23 highlights
Microcontamination Control (MC) 4Q23 highlights 4Q23 4Q23 Sales increase (SEQ) was by $ in millions 4Q23 4Q22 3Q23 over 4Q22 over 3Q23 driven by continuing strength in liquid filtration and in gas Net Sales $288.4 $284.7 $286.2 1.3% 0.8% purification. Segment Profit $97.6 $107.4 $101.1 (9.1%) (3.5%)
Slide 9: Advanced Materials Handling (AMH) 4Q23 highlights
Advanced Materials Handling (AMH) 4Q23 highlights 4Q23 4Q23 Sales decline (SEQ) was driven $ in millions 4Q23 4Q22 3Q23 over 4Q22 over 3Q23 primarily by lower sales of sensing and control solutions Net Sales $169.2 $213.9 $180.2 (20.9%) (6.1%) and fluid handling products. Segment Profit $20.5 $48.0
Slide 10: Summary – Balance Sheet Items
Summary – Balance Sheet Items 4Q23 4Q22 3Q23 $ in millions $ Amount % Total $ Amount % Total $ Amount % Total Cash, Cash Equivalents, and Restricted Cash $456.9 5.2% $563.4 5.6% $594.0 6.0% Accounts Receivable, net $457.1 5.2% $535.5 5.3% $463.1 4.7% Inventories $607.1 6.9% $812.8 8.0% $662.2 6.7% N
Slide 11: Cash Flows
Cash Flows $ in millions 4Q23 4Q22 3Q23 Beginning Cash Balance $594.0 $754.7 $567.0 Cash provided by operating activities 150.7 32.1 200.0 Capital expenditures (128.7) (147.4) (78.1) Proceeds from revolving credit facilities and debt — — 100.3 Payments on revolving credit facilities and debt (869.7)
Slide 12: Outlook
Outlook GAAP $ in millions, except per share data 1Q24 Guidance 4Q23 Actual 3Q23 Actual Net Sales $770 – $790 $812.3 $888.2 Operating Expenses $230 – $233 $243.7 $250.0 Net Income $42 – $49 $38.0 $33.2 Diluted Earnings per Common Share $0.28 – $0.33 $0.25 $0.22 Operating Margin 13% – 15% 12.4% 13.2%
Slide 13: Appendix
Appendix 13
Slide 14: Summary – Consolidated Statement of Operations – Proforma
Summary – Consolidated Statement of Operations – Proforma1 (Includes CMC Materials results) $ in millions, except per share data 1Q22 2Q22 3Q22 4Q22 FY2022 1Q23 2Q23 3Q23 4Q23 FY2023 Net Sales $969.1 $1,011.9 $993.8 $946.1 $3,920.9 $922.4 $901.0 $888.2 $812.3 $3,523.9 Gross Margin 45.2% 42.4% 37.4%
Slide 15: Summary – Consolidated Statement of Operations (Non-GAAP) – Proforma
Summary – Consolidated Statement of Operations (Non-GAAP) – Proforma1 (Includes CMC Materials results) $ in millions, except per share data 1Q22 2Q22 3Q22 4Q22 FY2022 1Q23 2Q23 3Q23 4Q23 FY2023 Net Sales2 $958.2 $1,011.7 $993.8 $946.1 $3,909.8 $922.4 $901.0 $888.2 $812.3 $3,523.9 Adjusted Gross Marg
Slide 16: Segment Financials Proforma (Includes CMC Materials Results)
Segment Financials Proforma (Includes CMC Materials Results) Unaudited1,2 $ in millions 1Q22 2Q22 3Q22 4Q22 FY2022 1Q23 2Q23 3Q23 Q423 FY2023 Sales: MS $520.5 $530.7 $518.1 $458.0 $2,027.3 $448.3 $440.7 $435.5 $365.0 $1,689.5 MC 266.6 274.1 280.6 284.7 1,106.0 269.3 283.6 286.2 288.4 1,127.5 AMH 198
Slide 17: Segment Financials Proforma Non-GAAP
Segment Financials Proforma Non-GAAP (Includes CMC Materials Results) Unaudited1,2 $ in millions 1Q22 2Q22 3Q22 4Q22 FY2022 1Q23 2Q23 3Q23 Q423 FY2023 Sales: MS 3 $509.6 $530.5 $518.1 $458.0 $2,016.2 $448.3 $440.7 $435.5 $365.0 $1,689.5 MC 266.6 274.1 280.6 284.7 1,106.0 269.3 283.6 286.2 288.4 1,12
Slide 18: GAAP Gross Profit to Adjusted Gross Profit
Reconciliation of GAAP Gross Profit to Adjusted Gross Profit Three months ended Twelve months ended $ in millions December 31, 2023 December 31, 2022 September 30, 2023 December 31, 2023 December 31, 2022 Net sales $812.3 $946.1 $888.2 $3,523.9 $3,282.0 Gross profit-GAAP $344.7 $404.5 $367.1 $1,497.
Slide 19: GAAP Operating Expenses and Tax Rate to Non-GAAP
Reconciliation of GAAP Operating Expenses and Tax Rate to Non-GAAP Operating Expenses and Tax Rate Three months ended Twelve months ended $ in millions December 31, 2023 December 31, 2022 September 30, 2023 December 31, 2023 December 31, 2022 GAAP operating expenses $243.7 $260.7 $250.0 $998.4 $916.
Slide 20: GAAP Net Income to Adjusted Operating Income and Adjusted EBITDA
Reconciliation of GAAP Net Income to Adjusted Operating Income and Adjusted EBITDA Three months ended Twelve months ended $ in millions December 31, 2023 December 31, 2022 September 30, 2023 December 31, 2023 December 31, 2022 Net sales $812.3 $946.1 $888.2 $3,523.9 $3,282.0 Net income 38.0 57.4 33.
Slide 21: GAAP Net Income and Diluted EPS to Non-GAAP
Reconciliation of GAAP Net Income and Diluted Earnings per Common Share to Non-GAAP Net Income and Diluted Non-GAAP Earnings per Common Share Three months ended Twelve months ended $ in millions, except per share data December 31, 2023 December 31, 2022 September 30, 2023 December 31, 2023 December
Slide 22: GAAP Outlook to Non-GAAP Outlook
Reconciliation of GAAP Outlook to Non-GAAP Outlook $ in millions First-Quarter Outlook Reconciliation GAAP operating expenses to non-GAAP operating expenses: March 30, 2024 GAAP operating expenses $230 – $233 Adjustments to net income: Deal, transaction and integration costs 8 Amortization of intang
Slide 23: GAAP Outlook to Non-GAAP Outlook (continued)
Reconciliation of GAAP Outlook to Non-GAAP Outlook (continued) $ in millions First-Quarter Outlook Reconciliation GAAP Operating Margin to non-GAAP Operating Margin and Adjusted March 30, 2024 EBITDA Margin Net sales $770 – $790 GAAP – Operating income $101 – $115 Operating margin – as a % of net sa
Slide 24: Proforma Segment Trend Data to Non-GAAP
Reconciliation of Proforma Segment Trend Data to Non-GAAP Unaudited1,2 $ in millions Q122 Q222 Q322 Q422 FY2022 Q123 Q223 Q323 Q423 FY2023 Adjusted MS segment sales: MS segment Sales $520.5 $530.7 $518.1 $458.0 $2,027.3 $448.3 $440.7 $435.5 $365.0 $1,689.5 Removal of wood treatment sales r * (10.9)
Slide 25: Proforma Segment Trend Data to Non-GAAP (continued)
Reconciliation of Proforma Segment Trend Data to Non-GAAP Unaudited1,2 (continued) $ in millions Q122 Q222 Q322 Q422 FY2022 Q123 Q223 Q323 Q423 FY2023 Adjusted Segment Profit: MS segment profit $141.1 $123.0 $53.1 $71.5 $388.7 ($29.5) $215.7 $57.0 $53.2 $296.4 Adjustments for wood treatment r * (7.4
Slide 26: Proforma Segment Trend Data to Non-GAAP (continued)
Reconciliation of Proforma Segment Trend Data to Non-GAAP Unaudited1,2 (continued) $ in millions Q122 Q222 Q322 Q422 FY2022 Q123 Q223 Q323 Q423 FY2023 Unallocated expenses $20.2 $17.6 $9.3 $7.3 $54.4 $43.6 $29.9 $21.4 $19.2 $114.2 Other adjustments j * (0.3) (0.1) (0.1) (0.1) (0.6) (0.1) — — (0.4) (
Slide 27: Proforma Net Sales to Proforma Non-GAAP Net Sales
Reconciliation of Proforma Net Sales to Proforma Non-GAAP Net Sales $ in millions Q122 Q222 Q322 Q422 FY2022 Q123 Q223 Q323 Q423 FY2023 Proforma net sales 1 $969.1 $1,011.9 $993.8 $946.1 $3,920.9 $922.4 $901.0 $888.2 $812.3 $3,523.9 Removal of Wood treatment r * (10.9) (0.2) — — (11.1) — — — — — Pro
Slide 28: Proforma Operating Expenses and Tax Rate to Non-GAAP
Reconciliation of Proforma Operating Expenses and Tax Rate to Proforma Non-GAAP Operating Expenses and Non-GAAP Tax Rate $ in millions Q122 Q222 Q322 Q422 FY2022 Q123 Q223 Q323 Q423 FY2023 Proforma Operating Expense 218.2 226.9 356.8 260.7 1,062.6 388.2 116.6 250.0 243.7 998.4 Goodwill impairment a
Slide 29: Proforma Net Income to Adjusted Operating Income and Adjusted EBITDA
Reconciliation of Proforma Net Income to Proforma Adjusted Operating Income and Adjusted EBITDA $ in millions Q122 Q222 Q322 Q422 FY2022 Q123 Q223 Q323 Q423 FY2023 Net sales $969.1 $1,011.9 $993.8 $946.1 $3,920.9 $922.4 $901.0 $888.2 $812.3 $3,523.9 Net income (loss) 160.3 140.1 (73.7) 57.4 284.1 (8
Slide 30: Proforma Net Income to Adjusted Operating Income Non-GAAP and Adjusted EBITDA
Reconciliation of Proforma Net Income to Proforma Adjusted Operating Income Non-GAAP and Adjusted EBITDA Non-GAAP $ in millions Q122 Q222 Q322 Q422 FY2022 Q123 Q223 Q323 Q423 FY2023 Proforma Operating Income $219.9 $201.9 $14.9 $143.8 $580.5 $13.5 $267.6 $117.1 $101.0 $499.2 Proforma Operating Incom
Slide 31: Proforma Net Income and Diluted EPS to Non-GAAP
Reconciliation of Proforma Net Income and Diluted EPS to Proforma Non-GAAP Net Income and Diluted Non-GAAP EPS $ in millions, except per share data Q122 Q222 Q322 Q422 FY2022 Q123 Q223 Q323 Q423 FY2023 Proforma Net Income (Loss) $160.3 $140.1 ($73.7) $57.4 $284.1 ($88.2) $197.6 $33.2 $38.0 $180.7 Ad
Slide 32: Footnotes
Footnotes a. Non-cash impairment charges associated with goodwill. q. Relates to the change in control agreements that were in place with management of b. Non-recurring deal and transaction costs associated with the CMC Materials acquisition CMC Materials prior to the acquisition and the associated