PHILADELPHIA, Nov. 2, 2021 /PRNewswire/ --
Third Quarter 2021 Highlights
- Revenue of $1.19 billion, an
increase of 10 percent versus Q3 2020 and up 9 percent
organically1
- Consolidated GAAP net income of $160
million, up 43 percent versus Q3 2020
- Adjusted EBITDA of $293 million,
up 12 percent versus Q3 2020
- Consolidated GAAP earnings of $1.22 per diluted share, up 44 percent versus Q3
2020
- Consolidated adjusted earnings per diluted share of
$1.43, up 17 percent versus Q3
2020
- Share repurchases of $200
million
Full-Year Outlook2
- Maintains revenue forecast in the range of $4.9 to $5.1
billion, reflecting 8 percent growth at the midpoint versus
2020
- Maintains adjusted EBITDA forecast in the range of $1.29 to $1.35
billion, reflecting 6 percent growth at the midpoint versus
2020
- Raises 2021 adjusted earnings forecast in the range of
$6.59 to $6.99 per diluted share, reflecting 10 percent
growth at the midpoint versus 2020
- Reiterates free cash flow forecast in the range of $480 to $570
million, reflecting a 4 percent decline at the midpoint
versus 2020
- Expects to repurchase $350 to
$450 million of FMC shares through
end of year
FMC Corporation (NYSE:FMC) today reported third quarter 2021
revenue of $1.19 billion, an increase
of 10 percent versus third quarter 2020. Revenue increased 9
percent organically. On a GAAP basis, the company reported earnings
of $1.22 per diluted share in the
third quarter, an increase of 44 percent versus third quarter 2020.
Adjusted earnings were $1.43 per
diluted share, an increase of 17 percent versus third quarter 2020,
and 12 cents above the midpoint of
guidance.
|
Third Quarter
Adjusted EPS versus Guidance (midpoint)*
|
+12
cents*
|
|
Adjusted
EBITDA
|
+12 cents
|
|
Depreciation and
amortization
|
-1 cent
|
|
Share count
|
+1 cent
|
|
All other
factors
|
-
|
|
* Guidance refers to
midpoint of EPS guidance presented on August 3, 2021
|
Mark Douglas, FMC president and
chief executive officer, said, "FMC delivered a strong quarter
driven by robust product demand. Our operations and procurement
teams overcame supply chain and logistics challenges that have
impacted many industries. Adjusted EBITDA momentum not only
reflects volume growth, but also our focus on increasing prices,
continued cost discipline, and a shift in timing of some cost
headwinds. In addition, we are seeing significant contribution to
growth this year from new product launches and from FMC's Plant
Health business, reflecting the strength of our innovation
capabilities and world-class R&D pipeline."
The third quarter revenue growth was driven by 9 percent
contribution from volume and a 1 percent FX tailwind. Invoice level
prices increased in all regions during the quarter; this was masked
by some favorable rebate and other adjustments in the prior-year
period that did not repeat. In Asia, revenue increased 20 percent (up 19
percent organically) driven by broad-based volume growth and price
increases across nearly all countries. EMEA grew revenue 12 percent
(up 10 percent organically) driven by strong demand for FMC
herbicides and diamides across the whole region. In Latin America, revenue increased 11 percent
(up 9 percent organically) driven by soybean and corn growth in
Brazil and Argentina, as well as price increases. In
North America, sales decreased 6
percent (down 6 percent organically), reflecting year-over-year
impact of a continued shift in volume by geography from the
company's global diamide partnerships. Excluding revenue from the
global partnerships, the region grew more than 20 percent driven by
strong demand for diamides and fall herbicides, as well as price
increases. Finally, FMC's Plant Health business had an excellent
quarter with 40 percent year-over-year growth led by
biologicals.
|
FMC
Revenue
|
Q3
2021
|
|
Total Revenue
Change (GAAP)
|
10%
|
|
Less FX
Impact
|
1%
|
|
Organic Revenue
Change (Non-GAAP)
|
9%
|
2021 Outlook2
The company maintains its forecast for full-year 2021 revenue to
be in the range of $4.9 billion to
$5.1 billion, representing an 8
percent increase at the midpoint versus 2020. Full-year
adjusted EBITDA is expected to be in the range of $1.29 billion to $1.35
billion, representing a 6 percent year-over-year growth at
the midpoint. 2021 adjusted earnings is now expected to be in the
range of $6.59 to $6.99 per diluted share, up 10 percent at the
midpoint, reflecting the impact of share repurchases completed
year-to-date.
Full-year earnings growth can be attributed to strong volume
growth of higher margin products, the launch of new products
including XywayTM fungicide, Overwatch®
herbicide and VantacorTM insect control, as well as
price increases. Full-year free cash flow is expected to be
$480 million to $570 million and the company expects to
repurchase $350 million to
$450 million of FMC shares in 2021,
including the $300 million
repurchased through September.
Fourth Quarter Outlook2
Fourth quarter revenue is expected to be in the range of
$1.27 billion to $1.47 billion, representing a 19 percent increase
at the midpoint compared to fourth quarter 2020 and organic growth
of 19 percent. Adjusted EBITDA is forecasted to be in the range of
$343 million to $403 million,
representing a 29 percent increase at the midpoint versus fourth
quarter 2020. FMC expects adjusted earnings per diluted share to be
in the range of $1.80 to $2.20 in the fourth quarter, which represents
growth of 41 percent at the midpoint versus fourth quarter 2020.
The company expects to repurchase $50
million to $150 million of FMC
shares in the quarter.
"We are maintaining our full-year guidance and remain confident
in our ability to deliver the fourth quarter forecast driven by
high margin volume growth and accelerating price increases, despite
the volatile supply conditions in crop protection and other
industries," said Douglas.
|
Full Year Outlook
2
|
Q4 2021
Outlook 2
|
|
Revenue
|
$4.9 to $5.1
billion
|
$1.27 to $1.47
billion
|
|
Organic Growth
1
|
7%
|
19%
|
|
Estimated FX
Impact
|
1%
|
0%
|
|
Growth at midpoint
vs. 2020
|
8%
|
19%
|
|
Adjusted
EBITDA
|
$1.29 to $1.35
billion
|
$343 to $403
million
|
|
Growth at midpoint
vs. 2020
|
6%
|
29%
|
|
Adjusted
EPS^
|
$6.59 to
$6.99
|
$1.80 to
$2.20
|
|
Growth at midpoint
vs. 2020
|
10%
|
41%
|
|
^ EPS estimates
assume 129 million diluted shares for full year and 128
million diluted shares for Q4. Outlook for EPS and weighted average
diluted shares outstanding (WADSO) does not include the impact of
any share repurchases in Q4 2021
|
Supplemental Information
The company will post supplemental information on the web at
https://investors.fmc.com, including its webcast slides for
tomorrow's earnings call, definitions of non-GAAP terms and
reconciliations of non-GAAP figures to the nearest available GAAP
term.
About FMC
FMC Corporation is a global agricultural sciences company
dedicated to helping growers produce food,
feed, fiber and fuel for an expanding world population
while adapting to a changing environment. FMC's innovative
crop protection solutions – including biologicals, crop nutrition,
digital and precision agriculture – enable growers, crop advisers
and turf and pest management professionals to address their
toughest challenges economically while protecting the environment.
With approximately 6,400 employees at more than 100 sites
worldwide, FMC is committed to discovering new herbicide,
insecticide and fungicide active ingredients, product formulations
and pioneering technologies that are consistently better for the
planet. Visit fmc.com to learn more and follow us
on LinkedIn® and Twitter®.
Always read and follow all label directions, restrictions and
precautions for use. Products listed here may not be registered for
sale or use in all states, countries or jurisdictions. FMC, the FMC
logo, Xyway, Overwatch and Vantacor are trademarks of FMC
Corporation or an affiliate.
Statement under the Safe Harbor Provisions of the Private
Securities Litigation Reform Act of 1995: FMC and its
representatives may from time to time make written or oral
statements that are "forward-looking" and provide other than
historical information, including statements contained in this
press release, in FMC's other filings with the SEC, and in reports
or letters to FMC stockholders.
In some cases, FMC has identified forward-looking statements
by such words or phrases as "will likely result," "is confident
that," "expect," "expects," "should," "could," "may," "will
continue to," "believe," "believes," "anticipates," "predicts,"
"forecasts," "estimates," "projects," "potential," "intends" or
similar expressions identifying "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995, including the negative of those words and phrases. Such
forward-looking statements are based on management's current views
and assumptions regarding future events, future business conditions
and the outlook for the company based on currently available
information. These statements involve known and unknown risks,
uncertainties and other factors that may cause actual results to be
materially different from any results, levels of activity,
performance or achievements expressed or implied by any
forward-looking statement. Currently, one of the most significant
factors is the potential adverse effect of the current COVID-19
pandemic on the financial condition, results of operations, cash
flows and performance of FMC, which is substantially influenced by
the potential adverse effect of the pandemic on FMC's customers and
suppliers and the global economy and financial markets. The extent
to which COVID-19 impacts us will depend on future developments,
which are highly uncertain and cannot be predicted with confidence,
including the scope, severity and duration of the pandemic, the
actions taken to contain the pandemic or mitigate its impact, and
the direct and indirect economic effects of the pandemic and
containment measures, among others. Additional factors
include, among other things, the risk factors included within FMC's
2020 Form 10-K filed with the SEC. Moreover, investors are
cautioned to interpret many of these factors as being heightened as
a result of the ongoing and numerous adverse impacts of the
COVID-19 pandemic.
FMC cautions readers not to place undue reliance on any such
forward-looking statements, which speak only as of the date made.
Forward-looking statements are qualified in their entirety by the
above cautionary statement. FMC undertakes no obligation, and
specifically disclaims any duty, to update or revise any
forward-looking statements to reflect events or circumstances
arising after the date on which they were made, except as otherwise
required by law.
This press release contains certain "non-GAAP financial
terms" which are defined on our website www.fmc.com/investors. In
addition, we have also provided on our website reconciliations of
non-GAAP terms to the most directly comparable GAAP term.
- Organic revenue growth (non-GAAP) excludes the impact of
foreign currency changes.
- Although we provide forecasts for adjusted earnings per share,
adjusted EBITDA and free cash flow (non-GAAP financial measures),
we are not able to forecast the most directly comparable measures
calculated and presented in accordance with GAAP. Certain elements
of the composition of the GAAP amounts are not predictable, making
it impractical for us to forecast. Such elements include, but are
not limited to, restructuring, acquisition charges, and
discontinued operations. As a result, no GAAP outlook is
provided.
|
FMC
CORPORATION
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
|
|
(Unaudited, in
millions, except per share amounts)
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
Revenue
|
$
|
1,194.0
|
|
|
$
|
1,084.6
|
|
|
$
|
3,631.6
|
|
|
$
|
3,489.9
|
|
|
Costs of sales and
services
|
681.2
|
|
|
618.2
|
|
|
2,074.6
|
|
|
1,939.3
|
|
|
Gross
margin
|
$
|
512.8
|
|
|
$
|
466.4
|
|
|
$
|
1,557.0
|
|
|
$
|
1,550.6
|
|
|
Selling, general and
administrative expenses
|
183.5
|
|
|
187.7
|
|
|
519.0
|
|
|
548.1
|
|
|
Research and
development expenses
|
79.5
|
|
|
71.7
|
|
|
219.4
|
|
|
203.3
|
|
|
Restructuring and
other charges (income)
|
32.8
|
|
|
11.0
|
|
|
52.3
|
|
|
43.9
|
|
|
Total costs and
expenses
|
$
|
977.0
|
|
|
$
|
888.6
|
|
|
$
|
2,865.3
|
|
|
$
|
2,734.6
|
|
|
Income from
continuing operations before non-operating pension and
postretirement charges (income), interest expense, net and income
taxes
|
$
|
217.0
|
|
|
$
|
196.0
|
|
|
$
|
766.3
|
|
|
$
|
755.3
|
|
|
Non-operating pension
and postretirement charges (income)
|
5.1
|
|
|
11.6
|
|
|
14.7
|
|
|
16.0
|
|
|
Interest expense,
net
|
33.1
|
|
|
35.5
|
|
|
98.1
|
|
|
117.0
|
|
|
Income (loss) from
continuing operations before income taxes
|
$
|
178.8
|
|
|
$
|
148.9
|
|
|
$
|
653.5
|
|
|
$
|
622.3
|
|
|
Provision (benefit)
for income taxes
|
8.7
|
|
|
18.4
|
|
|
74.3
|
|
|
82.3
|
|
|
Income (loss) from
continuing operations
|
$
|
170.1
|
|
|
$
|
130.5
|
|
|
$
|
579.2
|
|
|
$
|
540.0
|
|
|
Discontinued
operations, net of income taxes
|
(9.7)
|
|
|
(18.4)
|
|
|
(32.4)
|
|
|
(36.7)
|
|
|
Net income
(loss)
|
$
|
160.4
|
|
|
$
|
112.1
|
|
|
$
|
546.8
|
|
|
$
|
503.3
|
|
|
Less: Net income
(loss) attributable to noncontrolling interests
|
2.5
|
|
|
0.7
|
|
|
3.4
|
|
|
1.3
|
|
|
Net income (loss)
attributable to FMC stockholders
|
$
|
157.9
|
|
|
$
|
111.4
|
|
|
$
|
543.4
|
|
|
$
|
502.0
|
|
|
Amounts
attributable to FMC stockholders:
|
|
|
|
|
|
|
|
|
Income (loss)
from continuing operations
|
$
|
167.6
|
|
|
$
|
129.8
|
|
|
$
|
575.8
|
|
|
$
|
538.7
|
|
|
Discontinued
operations, net of tax
|
(9.7)
|
|
|
(18.4)
|
|
|
(32.4)
|
|
|
(36.7)
|
|
|
Net income
(loss)
|
$
|
157.9
|
|
|
$
|
111.4
|
|
|
$
|
543.4
|
|
|
$
|
502.0
|
|
|
Basic earnings
(loss) per common share attributable to FMC
stockholders:
|
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
1.30
|
|
|
$
|
1.00
|
|
|
$
|
4.46
|
|
|
$
|
4.14
|
|
|
Discontinued
operations
|
(0.08)
|
|
|
(0.14)
|
|
|
(0.25)
|
|
|
(0.28)
|
|
|
Basic
earnings per common share
|
$
|
1.22
|
|
|
$
|
0.86
|
|
|
$
|
4.21
|
|
|
$
|
3.86
|
|
|
Average number of
shares outstanding used in basic earnings per share
computations
|
128.3
|
|
|
129.9
|
|
|
129.0
|
|
|
129.7
|
|
|
Diluted earnings
(loss) per common share attributable to FMC
stockholders:
|
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
1.30
|
|
|
$
|
0.99
|
|
|
$
|
4.44
|
|
|
$
|
4.12
|
|
|
Discontinued
operations
|
(0.08)
|
|
|
(0.14)
|
|
|
(0.25)
|
|
|
(0.28)
|
|
|
Diluted
earnings per common share
|
$
|
1.22
|
|
|
$
|
0.85
|
|
|
$
|
4.19
|
|
|
$
|
3.84
|
|
|
Average number of
shares outstanding used in diluted earnings per share
computations
|
129.0
|
|
|
130.8
|
|
|
129.7
|
|
|
130.6
|
|
|
|
|
|
|
|
|
|
|
Other
Data:
|
|
|
|
|
|
|
|
|
Capital additions and
other investing activities
|
$
|
32.7
|
|
|
$
|
14.5
|
|
|
$
|
98.6
|
|
|
$
|
58.3
|
|
|
Depreciation and
amortization expense
|
43.4
|
|
|
41.5
|
|
|
128.5
|
|
|
120.7
|
|
|
FMC
CORPORATION
|
|
RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES
|
|
|
RECONCILIATION OF
NET INCOME (LOSS) ATTRIBUTABLE TO FMC STOCKHOLDERS (GAAP) TO
ADJUSTED AFTER-TAX EARNINGS FROM CONTINUING OPERATIONS,
ATTRIBUTABLE TO FMC STOCKHOLDERS (NON-GAAP)
|
|
|
(Unaudited, in
millions, except per share amounts)
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
Net income (loss)
attributable to FMC stockholders (GAAP)
|
$
|
157.9
|
|
|
$
|
111.4
|
|
|
$
|
543.4
|
|
|
$
|
502.0
|
|
|
Corporate special
charges (income):
|
|
|
|
|
|
|
|
|
Restructuring and
other charges (income) (a)
|
32.8
|
|
|
11.0
|
|
|
52.3
|
|
|
43.9
|
|
|
Non-operating pension
and postretirement charges (income) (b)
|
5.1
|
|
|
11.6
|
|
|
14.7
|
|
|
16.0
|
|
|
Transaction-related
charges (c)
|
—
|
|
|
14.4
|
|
|
0.4
|
|
|
40.4
|
|
|
Income tax expense
(benefit) on Corporate special charges (income)
(d)
|
(4.1)
|
|
|
(6.1)
|
|
|
(10.4)
|
|
|
(16.9)
|
|
|
Discontinued
operations attributable to FMC stockholders, net of income taxes
(e)
|
9.7
|
|
|
18.4
|
|
|
32.4
|
|
|
36.7
|
|
|
Tax adjustment
(f)
|
(16.5)
|
|
|
(0.6)
|
|
|
(12.7)
|
|
|
1.6
|
|
|
Adjusted after-tax
earnings from continuing operations attributable to FMC
stockholders (Non-GAAP) (1)
|
$
|
184.9
|
|
|
$
|
160.1
|
|
|
$
|
620.1
|
|
|
$
|
623.7
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
common share (GAAP)
|
$
|
1.22
|
|
|
$
|
0.85
|
|
|
$
|
4.19
|
|
|
$
|
3.84
|
|
|
Corporate special
charges (income) per diluted share, before tax:
|
|
|
|
|
|
|
|
|
Restructuring and
other charges (income)
|
0.25
|
|
|
0.08
|
|
|
0.40
|
|
|
0.34
|
|
|
Non-operating pension
and postretirement charges (income)
|
0.04
|
|
|
0.09
|
|
|
0.12
|
|
|
0.13
|
|
|
Transaction-related
charges
|
—
|
|
|
0.11
|
|
|
—
|
|
|
0.31
|
|
|
Income tax expense
(benefit) on Corporate special charges (income), per diluted
share
|
(0.03)
|
|
|
(0.05)
|
|
|
(0.08)
|
|
|
(0.13)
|
|
|
Discontinued
operations attributable to FMC stockholders, net of income taxes
per diluted share
|
0.08
|
|
|
0.14
|
|
|
0.25
|
|
|
0.28
|
|
|
Tax adjustments per
diluted share
|
(0.13)
|
|
|
—
|
|
|
(0.10)
|
|
|
0.01
|
|
|
Diluted adjusted
after-tax earnings from continuing operations per share,
attributable to FMC stockholders (Non-GAAP)
|
$
|
1.43
|
|
|
$
|
1.22
|
|
|
$
|
4.78
|
|
|
$
|
4.78
|
|
|
|
|
|
|
|
|
|
|
Average number of
shares outstanding used in diluted adjusted after-tax earnings from
continuing operations per share computations
|
129.0
|
|
|
130.8
|
|
|
129.7
|
|
|
130.6
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
The Company believes
that the Non-GAAP financial measure "Adjusted after-tax earnings
from continuing operations attributable to FMC stockholders" and
its presentation on a per share basis provides useful information
about the Company's operating results to management, investors, and
securities analysts. Adjusted earnings excludes the effects of
corporate special charges, tax-related adjustments and the results
of our discontinued operations. The Company also believes that
excluding the effects of these items from operating results allows
management and investors to compare more easily the financial
performance of its underlying business from period to
period.
|
|
|
|
(a)
|
Three Months Ended
September 30, 2021:
|
|
Restructuring and
other charges (income) is primarily comprised of $23.8 million of
charges for the establishment of reserves for certain historical
India indirect tax matters that were triggered during the period.
These charges are also comprised of severance and restructuring
charges of $2.1 million from other restructuring programs, as well
as environmental sites of $3.7 million and other charges of $3.2
million.
|
|
|
|
Three Months Ended
September 30, 2020:
|
|
Restructuring and
other charges (income) is comprised of charges associated with the
integration of the DuPont Crop Protection Business. These charges
include severance, accelerated depreciation on certain fixed
assets, and other costs of $6.4 million. The remaining
restructuring and other charges (income) primarily includes charges
of environmental sites of $4.0 million.
|
|
|
|
Nine Months Ended
September 30, 2021:
|
|
Restructuring and
other charges (income) is comprised of costs related to India
indirect tax matters, as mentioned above, of $23.8 million. These
charges also include regional realignment activities, primarily the
move of our European headquarters, including severance and employee
relocation costs, of $8.9 million. Additionally, restructuring and
other charges (income) is comprised of charges associated with
certain in-flight restructuring programs from the integration of
the DuPont Crop Protection Business, including severance,
accelerated depreciation on certain fixed assets, and other costs
of $5.8 million. These charges also include severance and
restructuring charges of $4.2 million from other restructuring
programs, as well as environmental sites and other charges of $9.6
million.
|
|
|
|
Nine Months Ended
September 30, 2020:
|
|
Restructuring and
other charges (income) is primarily comprised of charges associated
with the integration of the DuPont Crop Protection Business. These
charges include severance, accelerated depreciation on certain
fixed assets, and other costs of $29.6 million. The remaining
restructuring and other charges (income) primarily includes charges
of environmental sites of $13.7 million.
|
|
|
|
(b)
|
Our non-operating
pension and postretirement charges (income) are defined as those
costs (benefits) related to interest, expected return on plan
assets, amortized actuarial gains and losses and the impacts of any
plan curtailments or settlements. These are excluded from our
Adjusted Earnings and are primarily related to changes in pension
plan assets and liabilities which are tied to financial market
performance and we consider these costs to be outside our
operational performance. We continue to include the service cost
and amortization of prior service cost in our Adjusted Earnings
results noted above. These elements reflect the current year
operating costs to our businesses for the employment benefits
provided to active employees.
|
|
|
|
(c)
|
Charges related to
legal and professional fees associated with acquisition activities.
We completed the integration of the DuPont Crop Protection Business
as of June 30, 2020, except for the completion of certain in-flight
initiatives, primarily associated with the finalization of our
worldwide ERP system. The transition services agreement is now
terminated and the last phase of the ERP system transition went
live in November 2020 with a stabilization period that ended in the
first quarter of 2021.
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
(in
Millions)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
DuPont Crop
Protection Business Acquisition
|
|
|
|
|
|
|
|
|
Legal and professional
fees (1)
|
$
|
—
|
|
|
$
|
14.4
|
|
|
$
|
0.4
|
|
|
$
|
40.4
|
|
|
Total
Transaction-related charges
|
$
|
—
|
|
|
$
|
14.4
|
|
|
$
|
0.4
|
|
|
$
|
40.4
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Represents
transaction costs, costs for transitional employees, other acquired
employees related costs, and transactional-related costs such as
legal and professional third-party fees. These charges are recorded
as a component of "Selling, general and administrative expense" on
the condensed consolidated statements of income (loss).
|
|
|
|
(d)
|
The income tax
expense (benefit) on Corporate special charges (income) is
determined using the applicable rates in the taxing jurisdictions
in which the corporate special charge or income occurred and
includes both current and deferred income tax expense (benefit)
based on the nature of the non-GAAP performance measure.
|
|
|
|
(e)
|
Three and Nine
Months Ended September 30, 2021 and 2020
|
|
Discontinued
operations includes provisions, net of recoveries, for
environmental liabilities and legal reserves and expenses related
to previously discontinued operations and retained liabilities.
Discontinued operations, net of income taxes for the three and nine
months ended September 30, 2021 includes a gain on sale of
approximately $13 million, net of tax from the sale of land of our
discontinued site in Richmond, California.
|
|
|
|
(f)
|
We exclude the GAAP
tax provision, including discrete items, from the Non-GAAP measure
of income, and include a Non-GAAP tax provision based upon the
projected annual Non-GAAP effective tax rate. The GAAP tax
provision includes certain discrete tax items including, but are
not limited to: income tax expenses or benefits that are not
related to continuing operating results in the current year; tax
adjustments associated with fluctuations in foreign currency
remeasurement of certain foreign operations; certain changes in
estimates of tax matters related to prior fiscal years; certain
changes in the realizability of deferred tax assets and related
interim accounting impacts; and changes in tax law. Management
believes excluding these discrete tax items assists investors and
securities analysts in understanding the tax provision and the
effective tax rate related to continuing operating results thereby
providing investors with useful supplemental information about
FMC's operational performance.
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
(in
Millions)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
Non-GAAP tax
adjustments
|
|
|
|
|
|
|
|
|
Revisions to valuation
allowances of historical deferred tax assets
|
$
|
(5.9)
|
|
|
$
|
—
|
|
|
$
|
(5.4)
|
|
|
$
|
(0.4)
|
|
|
Foreign currency
remeasurement and other discrete items
|
(10.6)
|
|
|
(0.6)
|
|
|
(7.3)
|
|
|
2.0
|
|
|
Total Non-GAAP tax
adjustments
|
$
|
(16.5)
|
|
|
$
|
(0.6)
|
|
|
$
|
(12.7)
|
|
|
$
|
1.6
|
|
|
RECONCILIATION OF
NET INCOME (LOSS) (GAAP) TO ADJUSTED EARNINGS FROM CONTINUING
OPERATIONS, BEFORE INTEREST, INCOME TAXES, DEPRECIATION AND
AMORTIZATION, AND NONCONTROLLING INTERESTS
(NON-GAAP)
|
|
(Unaudited, in
millions)
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
Net income (loss)
(GAAP)
|
$
|
160.4
|
|
|
$
|
112.1
|
|
|
$
|
546.8
|
|
|
$
|
503.3
|
|
|
Restructuring and
other charges (income)
|
32.8
|
|
|
11.0
|
|
|
52.3
|
|
|
43.9
|
|
|
Non-operating pension
and postretirement charges (income)
|
5.1
|
|
|
11.6
|
|
|
14.7
|
|
|
16.0
|
|
|
Transaction-related
charges
|
—
|
|
|
14.4
|
|
|
0.4
|
|
|
40.4
|
|
|
Discontinued
operations, net of income taxes
|
9.7
|
|
|
18.4
|
|
|
32.4
|
|
|
36.7
|
|
|
Interest expense,
net
|
33.1
|
|
|
35.5
|
|
|
98.1
|
|
|
117.0
|
|
|
Depreciation and
amortization
|
43.4
|
|
|
41.5
|
|
|
128.5
|
|
|
120.7
|
|
|
Provision (benefit)
for income taxes
|
8.7
|
|
|
18.4
|
|
|
74.3
|
|
|
82.3
|
|
|
Adjusted earnings
from continuing operations, before interest, income taxes,
depreciation and amortization, and noncontrolling interests
(Non-GAAP) (1)
|
$
|
293.2
|
|
|
$
|
262.9
|
|
|
$
|
947.5
|
|
|
$
|
960.3
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Referred to as
Adjusted EBITDA. Defined as operating profit excluding corporate
special charges (income) and depreciation and amortization
expense.
|
|
RECONCILIATION OF
CASH PROVIDED (REQUIRED) BY OPERATING ACTIVITIES OF CONTINUING
OPERATIONS (GAAP) TO FREE CASH FLOW (NON-GAAP)
|
|
(Unaudited, in
millions)
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
Cash provided
(required) by operating activities of continuing operations
(GAAP)(1)
|
$
|
337.6
|
|
|
$
|
361.9
|
|
|
$
|
298.2
|
|
|
$
|
313.5
|
|
|
Transaction and
integration costs
|
2.6
|
|
|
13.8
|
|
|
8.4
|
|
|
53.3
|
|
|
Adjusted cash from
operations (2)
|
$
|
340.2
|
|
|
$
|
375.7
|
|
|
$
|
306.6
|
|
|
$
|
366.8
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
(29.5)
|
|
|
(12.0)
|
|
|
(76.4)
|
|
|
(35.2)
|
|
|
Other investing
activities
|
(3.2)
|
|
|
(2.5)
|
|
|
(22.2)
|
|
|
(23.1)
|
|
|
Capital additions
and other investing activities
|
$
|
(32.7)
|
|
|
$
|
(14.5)
|
|
|
$
|
(98.6)
|
|
|
$
|
(58.3)
|
|
|
|
|
|
|
|
|
|
|
Cash provided
(required) by operating activities of discontinued
operations
|
(21.5)
|
|
|
(21.0)
|
|
|
(53.9)
|
|
|
(66.3)
|
|
|
Cash provided
(required) by investing activities of discontinued
operations
|
16.8
|
|
|
—
|
|
|
16.8
|
|
|
1.1
|
|
|
Transaction and
integration costs
|
(2.6)
|
|
|
(13.8)
|
|
|
(8.4)
|
|
|
(53.3)
|
|
|
Investment in
Enterprise Resource Planning system
|
—
|
|
|
(11.6)
|
|
|
(12.7)
|
|
|
(42.2)
|
|
|
Legacy and
transformation
|
$
|
(7.3)
|
|
|
$
|
(46.4)
|
|
|
$
|
(58.2)
|
|
|
$
|
(160.7)
|
|
|
|
|
|
|
|
|
|
|
Free cash flow
(Non-GAAP) (3)
|
$
|
300.2
|
|
|
$
|
314.8
|
|
|
$
|
149.8
|
|
|
$
|
147.8
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
The cash provided
(required) by operating activities for the three months ended
September 30, 2021 and 2020 is the calculation of the nine months
ended September 30, 2021 and 2020 less the previously reported six
months ended June 30, 2021 and 2020, respectively.
|
|
(2)
|
Adjusted cash from
operations is defined as cash provided (required) by operating
activities of continuing operations excluding the effects of
transaction-related cash flows.
|
|
(3)
|
Free cash flow is
defined as Adjusted cash from operations reduced by spending for
capital additions and other investing activities as well as legacy
and transformation spending. We believe that this Non-GAAP
financial measure provides a useful basis for investors and
securities analysts about the cash generated by routine business
operations, including capital expenditures, in addition to
assessing our ability to repay debt, fund acquisitions and return
capital to shareholders through share repurchases and dividends.
Our use of free cash flow has limitations as an analytical tool and
should not be considered in isolation or as a substitute for an
analysis of our results under U.S. GAAP.
|
|
RECONCILIATION OF
REVENUE CHANGE (GAAP) TO
|
|
ORGANIC REVENUE
CHANGE (NON-GAAP) (1)
|
|
(Unaudited)
|
|
|
Three Months
Ended
September 30, 2021 vs. 2020
|
|
Nine Months
Ended
September 30, 2021 vs. 2020
|
|
Total Revenue
Change (GAAP)
|
10
|
%
|
|
4
|
%
|
|
Less: Foreign Currency
Impact
|
1
|
%
|
|
2
|
%
|
|
Organic Revenue
Change (Non-GAAP)
|
9
|
%
|
|
2
|
%
|
|
|
Full Year
Outlook
|
|
Q4 2021
Outlook
|
|
Projected Total
Revenue Change at Midpoint (GAAP)
|
8
|
%
|
|
19
|
%
|
|
Less: Estimated
Foreign Currency Impact
|
1
|
%
|
|
—
|
%
|
|
Projected Organic
Revenue Change (Non-GAAP)
|
7
|
%
|
|
19
|
%
|
|
|
|
|
|
|
|
|
|
|
(1)
|
We believe organic
revenue growth (non-GAAP) provides management and investors with
useful supplemental information regarding our on going revenue
performance and trends by presenting revenue growth excluding the
impact of fluctuations in foreign exchange rates.
|
|
FMC
CORPORATION
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(Unaudited, in
millions)
|
|
|
September 30,
2021
|
|
December 31,
2020
|
|
Cash and cash
equivalents
|
$
|
341.0
|
|
|
$
|
568.9
|
|
|
Trade receivables,
net of allowance of $32.9 in 2021 and $27.9 in 2020
|
2,503.5
|
|
|
2,330.3
|
|
|
Inventories
|
1,450.5
|
|
|
1,095.6
|
|
|
Prepaid and other
current assets
|
433.2
|
|
|
380.8
|
|
|
Total current
assets
|
$
|
4,728.2
|
|
|
$
|
4,375.6
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
782.2
|
|
|
771.7
|
|
|
Goodwill
|
1,464.3
|
|
|
1,468.9
|
|
|
Other intangibles,
net
|
2,546.2
|
|
|
2,625.2
|
|
|
Deferred income
taxes
|
213.4
|
|
|
229.6
|
|
|
Other long-term
assets
|
675.9
|
|
|
715.4
|
|
|
Total
assets
|
$
|
10,410.2
|
|
|
$
|
10,186.4
|
|
|
|
|
|
|
Short-term debt and
current portion of long-term debt
|
$
|
762.0
|
|
|
$
|
338.3
|
|
|
Accounts payable,
trade and other
|
1,101.4
|
|
|
946.7
|
|
|
Advanced payments
from customers
|
3.2
|
|
|
347.1
|
|
|
Accrued and other
liabilities
|
615.1
|
|
|
674.7
|
|
|
Accrued customer
rebates
|
678.4
|
|
|
295.2
|
|
|
Guarantees of vendor
financing
|
155.1
|
|
|
140.6
|
|
|
Accrued pensions and
other postretirement benefits, current
|
4.2
|
|
|
4.2
|
|
|
Income
taxes
|
108.2
|
|
|
82.2
|
|
|
Total current
liabilities
|
$
|
3,427.6
|
|
|
$
|
2,829.0
|
|
|
|
|
|
|
Long-term debt, less
current portion
|
$
|
2,631.7
|
|
|
$
|
2,929.5
|
|
|
Long-term
liabilities
|
1,293.9
|
|
|
1,443.7
|
|
|
Equity
|
3,057.0
|
|
|
2,984.2
|
|
|
Total liabilities
and equity
|
$
|
10,410.2
|
|
|
$
|
10,186.4
|
|
|
FMC
CORPORATION
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(Unaudited, in
millions)
|
|
|
Nine Months Ended
September 30,
|
|
2021
|
|
2020
|
|
Cash provided
(required) by operating activities of continuing
operations
|
$
|
298.2
|
|
|
$
|
313.5
|
|
|
|
|
|
|
Cash provided
(required) by operating activities of discontinued
operations
|
(53.9)
|
|
|
(66.3)
|
|
|
|
|
|
|
Cash provided
(required) by investing activities of continuing
operations
|
(115.9)
|
|
|
(100.5)
|
|
|
|
|
|
|
Cash provided
(required) by investing activities of discontinued
operations
|
16.8
|
|
|
1.1
|
|
|
|
|
|
|
Cash provided
(required) by financing activities of continuing
operations
|
(367.0)
|
|
|
(186.4)
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash
|
(6.1)
|
|
|
(3.4)
|
|
|
Increase (decrease)
in cash and cash equivalents
|
$
|
(227.9)
|
|
|
$
|
(42.0)
|
|
|
|
|
|
|
Cash and cash
equivalents of continuing operations, beginning of
period
|
$
|
568.9
|
|
|
$
|
339.1
|
|
|
Cash and cash
equivalents of discontinued operations
|
—
|
|
|
—
|
|
|
|
|
|
|
Cash and cash
equivalents, beginning of period
|
$
|
568.9
|
|
|
$
|
339.1
|
|
|
Less: cash and cash
equivalent of discontinued operations, end of period
|
—
|
|
|
—
|
|
|
|
|
|
|
Cash and cash
equivalents, end of period
|
$
|
341.0
|
|
|
$
|
297.1
|
|
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SOURCE FMC Corporation
