8-K
NORDSON CORP (NDSN)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): September 8, 2022
NORDSON CORPORATION
(Exact Name of Registrant as Specified in its Charter)
| Ohio | 000-07977 | 34-0590250 | ||
|---|---|---|---|---|
| (State or Other<br><br>Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer<br><br>Identification Number) | 28601 Clemens Road<br><br>Westlake, Ohio 44145<br><br>(Address of Principal Executive<br><br>Offices, including Zip Code) | |
| --- |
Registrant’s Telephone Number, including Area Code: 440-892-1580
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of Each Class | Trading Symbol(s) | Name of Each Exchange<br>On Which Registered |
|---|---|---|
| Common Shares, without par value | NDSN | Nasdaq Stock Market LLC |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933(§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
Effective August 1, 2022, the beginning of the company’s fiscal fourth quarter, Nordson Corporation reorganized into three financial reporting segments. The attached exhibit provides historical financial information reflecting this realignment.
As provided in General Instruction B.2 of Form 8-K, the information contained in Item 2.02 of this Form 8-K shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall any such information be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| 99.1 | Operating segment historical financial information |
|---|
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| NORDSON CORPORATION | |||
|---|---|---|---|
| Date: | September 8, 2022 | By: | /s/ Jennifer L. McDonough |
| Jennifer L. McDonough | |||
| Executive Vice President<br><br>General Counsel & Secretary |
Document
Exhibit 99.1
RECONCILIATION OF NON-GAAP MEASURES - ADJUSTED OPERATING PROFIT AND EBITDA (Unaudited)
(Dollars in thousands)
| Three Months Ended | YTD | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| July 31, 2022 | April 30, 2022 | January 31, 2022 | July 31, 2022 | |||||||||
| SALES BY SEGMENT | ||||||||||||
| Industrial precision solutions | $ | 341,215 | $ | 316,434 | $ | 323,933 | $ | 981,582 | ||||
| Medical and fluid solutions | 177,840 | 172,212 | 158,784 | 508,836 | ||||||||
| Advanced technology solutions | 143,073 | 146,757 | 126,449 | 416,279 | ||||||||
| Total sales | $ | 662,128 | $ | 635,403 | $ | 609,166 | $ | 1,906,697 | ||||
| OPERATING PROFIT | ||||||||||||
| Industrial precision solutions | $ | 119,706 | $ | 102,196 | $ | 102,187 | $ | 324,089 | ||||
| Medical and fluid solutions | 58,103 | 58,314 | 49,093 | 165,510 | ||||||||
| Advanced technology solutions | 28,155 | 40,144 | 27,234 | 95,533 | ||||||||
| Corporate | (21,046) | (16,681) | (22,654) | (60,381) | ||||||||
| Total operating profit | $ | 184,918 | $ | 183,973 | $ | 155,860 | $ | 524,751 | ||||
| OPERATING PROFIT ADJUSTMENTS (1) | ||||||||||||
| Industrial precision solutions | $ | — | $ | — | $ | 1,563 | $ | 1,563 | ||||
| Medical and fluid solutions | 2,498 | — | — | 2,498 | ||||||||
| Corporate | 897 | — | — | 897 | ||||||||
| Total adjustments | $ | 3,395 | $ | — | $ | 1,563 | $ | 4,958 | ||||
| ADJUSTED OPERATING PROFIT (NON-GAAP) (2) | ||||||||||||
| Industrial precision solutions | $ | 119,706 | $ | 102,196 | $ | 103,750 | $ | 325,652 | ||||
| Medical and fluid solutions | 60,601 | 58,314 | 49,093 | 168,008 | ||||||||
| Advanced technology solutions | 28,155 | 40,144 | 27,234 | 95,533 | ||||||||
| Corporate | (20,149) | (16,681) | (22,654) | (59,484) | ||||||||
| Total operating profit - adjusted | $ | 188,313 | $ | 183,973 | $ | 157,423 | $ | 529,709 | ||||
| DEPRECIATION & AMORTIZATION | ||||||||||||
| Industrial precision solutions | $ | 6,347 | $ | 6,916 | $ | 7,442 | $ | 20,705 | ||||
| Medical and fluid solutions | 15,021 | 13,578 | 13,547 | 42,146 | ||||||||
| Advanced technology solutions | 2,195 | 2,247 | 2,263 | 6,705 | ||||||||
| Corporate | 1,324 | 2,224 | 2,138 | 5,686 | ||||||||
| Total depreciation & amortization | $ | 24,887 | $ | 24,965 | $ | 25,390 | $ | 75,242 | ||||
| EBITDA (NON-GAAP) (2) | ||||||||||||
| Industrial precision solutions | $ | 126,053 | $ | 109,112 | $ | 111,192 | $ | 346,357 | ||||
| Medical and fluid solutions | 75,622 | 71,892 | 62,640 | 210,154 | ||||||||
| Advanced technology solutions | 30,350 | 42,391 | 29,497 | 102,238 | ||||||||
| Corporate | (18,825) | (14,457) | (20,516) | (53,798) | ||||||||
| Total EBITDA | $ | 213,200 | $ | 208,938 | $ | 182,813 | $ | 604,951 |
(1) Represents severance and other non-cash inventory charges associated with the NDC acquisition.
(2) Adjusted operating profit and EBITDA are non-GAAP measures used by management to evaluate the Company's ongoing operations. Adjusted operating profit is defined as operating profit plus certain adjustments, such as severance and non-cash inventory charges associated with acquisitions or facility closures. EBITDA is defined as adjusted operating profit plus depreciation and amortization.
RECONCILIATION OF NON-GAAP MEASURES - ADJUSTED OPERATING PROFIT AND EBITDA (Unaudited)
(Dollars in thousands)
| Three Months Ended | YTD | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| October 31, 2021 | July 31, 2021 | April 30, 2021 | January 31, 2021 | October 31, 2021 | ||||||
| SALES BY SEGMENT | ||||||||||
| Industrial precision solutions | $ | 314,307 | $ | 345,449 | $ | 298,775 | $ | 288,416 | $ | 1,246,947 |
| Medical and fluid solutions | 163,504 | 169,119 | 168,771 | 140,260 | 641,654 | |||||
| Advanced technology solutions | 121,436 | 132,290 | 121,992 | 97,890 | 473,608 | |||||
| Total sales | $ | 599,247 | $ | 646,858 | $ | 589,538 | $ | 526,566 | $ | 2,362,209 |
| OPERATING PROFIT | ||||||||||
| Industrial precision solutions | $ | 102,677 | $ | 123,829 | $ | 104,283 | $ | 83,403 | $ | 414,192 |
| Medical and fluid solutions | 50,758 | 53,370 | 55,903 | 38,163 | 198,194 | |||||
| Advanced technology solutions | 16,346 | 27,399 | 20,682 | 9,039 | 73,466 | |||||
| Corporate | (18,346) | (16,322) | (14,477) | (21,580) | (70,725) | |||||
| Total operating profit | $ | 151,435 | $ | 188,276 | $ | 166,391 | $ | 109,025 | $ | 615,127 |
| DEPRECIATION & AMORTIZATION | ||||||||||
| Industrial precision solutions | $ | 6,259 | $ | 5,964 | $ | 6,468 | $ | 6,982 | $ | 25,673 |
| Medical and fluid solutions | 14,033 | 15,477 | 13,427 | 13,663 | 56,600 | |||||
| Advanced technology solutions | 2,954 | 2,997 | 2,994 | 2,881 | 11,826 | |||||
| Corporate | 2,404 | 2,460 | 2,427 | 2,493 | 9,784 | |||||
| Total depreciation & amortization | $ | 25,650 | $ | 26,898 | $ | 25,316 | $ | 26,019 | $ | 103,883 |
| EBITDA (NON-GAAP) (1) | ||||||||||
| Industrial precision solutions | $ | 108,936 | $ | 129,793 | $ | 110,751 | $ | 90,385 | $ | 439,865 |
| Medical and fluid solutions | 64,791 | 68,847 | 69,330 | 51,826 | 254,794 | |||||
| Advanced technology solutions | 19,300 | 30,396 | 23,676 | 11,920 | 85,292 | |||||
| Corporate | (15,942) | (13,862) | (12,050) | (19,087) | (60,941) | |||||
| Total EBITDA | $ | 177,085 | $ | 215,174 | $ | 191,707 | $ | 135,044 | $ | 719,010 |
(1) Adjusted operating profit and EBITDA are non-GAAP measures used by management to evaluate the Company's ongoing operations. Adjusted operating profit is defined as operating profit plus certain adjustments, such as cost structure simplification actions. EBITDA is defined as adjusted operating profit plus depreciation and amortization.
RECONCILIATION OF NON-GAAP MEASURES - ADJUSTED OPERATING PROFIT AND EBITDA (Unaudited)
(Dollars in thousands)
| Three Months Ended | YTD | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| October 31, 2020 | July 31, 2020 | April 30, 2020 | January 31, 2020 | October 31, 2020 | ||||||
| SALES BY SEGMENT | ||||||||||
| Industrial precision solutions | $ | 308,385 | $ | 288,965 | $ | 282,274 | $ | 263,799 | $ | 1,143,423 |
| Medical and fluid solutions | 148,032 | 136,773 | 144,792 | 135,302 | 564,899 | |||||
| Advanced technology solutions | 102,108 | 112,443 | 102,412 | 95,815 | 412,778 | |||||
| Total sales | $ | 558,525 | $ | 538,181 | $ | 529,478 | $ | 494,916 | $ | 2,121,100 |
| OPERATING PROFIT | ||||||||||
| Industrial precision solutions | $ | 425 | $ | 74,744 | $ | 76,454 | $ | 56,405 | $ | 208,028 |
| Medical and fluid solutions | 43,414 | 32,049 | 43,049 | 31,784 | 150,296 | |||||
| Advanced technology solutions | 7,260 | 17,903 | 15,640 | 503 | 41,306 | |||||
| Corporate | (13,731) | (12,641) | (10,114) | (13,599) | (50,085) | |||||
| Total operating profit | $ | 37,368 | $ | 112,055 | $ | 125,029 | $ | 75,093 | $ | 349,545 |
| OPERATING PROFIT ADJUSTMENTS (1) | ||||||||||
| Industrial precision solutions | $ | 91,419 | $ | 2,813 | $ | 364 | $ | 300 | $ | 94,896 |
| Medical and fluid solutions | 44 | 3,147 | — | — | 3,191 | |||||
| Advanced technology solutions | 1,380 | 266 | — | 2,970 | 4,616 | |||||
| Corporate | — | 1,387 | — | — | 1,387 | |||||
| Total adjustments | $ | 92,843 | $ | 7,613 | $ | 364 | $ | 3,270 | $ | 104,090 |
| ADJUSTED OPERATING PROFIT (NON-GAAP) (2) | ||||||||||
| Industrial precision solutions | $ | 91,844 | $ | 77,557 | $ | 76,818 | $ | 56,705 | $ | 302,924 |
| Medical and fluid solutions | 43,458 | 35,196 | 43,049 | 31,784 | 153,487 | |||||
| Advanced technology solutions | 8,640 | 18,169 | 15,640 | 3,473 | 45,922 | |||||
| Corporate | (13,731) | (11,254) | (10,114) | (13,599) | (48,698) | |||||
| Total operating profit - adjusted | $ | 130,211 | $ | 119,668 | $ | 125,393 | $ | 78,363 | $ | 453,635 |
| DEPRECIATION & AMORTIZATION | ||||||||||
| Industrial precision solutions | $ | 9,951 | $ | 9,865 | $ | 9,296 | $ | 9,827 | $ | 38,939 |
| Medical and fluid solutions | 13,832 | 13,535 | 12,606 | 13,615 | 53,588 | |||||
| Advanced technology solutions | 2,878 | 2,731 | 2,639 | 2,707 | 10,955 | |||||
| Corporate | 2,477 | 2,369 | 2,505 | 2,469 | 9,820 | |||||
| Total depreciation & amortization | $ | 29,138 | $ | 28,500 | $ | 27,046 | $ | 28,618 | $ | 113,302 |
| EBITDA (NON-GAAP) (2) | ||||||||||
| Industrial precision solutions | $ | 101,795 | $ | 87,422 | $ | 86,114 | $ | 66,532 | $ | 341,863 |
| Medical and fluid solutions | 57,290 | 48,731 | 55,655 | 45,399 | 207,075 | |||||
| Advanced technology solutions | 11,518 | 20,900 | 18,279 | 6,180 | 56,877 | |||||
| Corporate | (11,254) | (8,885) | (7,609) | (11,130) | (38,878) | |||||
| Total EBITDA | $ | 159,349 | $ | 148,168 | $ | 152,439 | $ | 106,981 | $ | 566,937 |
(1) Represents assets held for sale impairment charge, costs and adjustments related to cost structure simplification actions, and charges associated with our 2020 acquisition.
(2) Adjusted operating profit and EBITDA are non-GAAP measures used by management to evaluate the Company's ongoing operations. Adjusted operating profit is defined as operating profit plus certain adjustments, such as assets held for sale
impairment charge, severance and non-cash inventory charges associated with acquisitions or facility closures. EBITDA is defined as adjusted operating profit plus depreciation and amortization.
Management uses these non-GAAP measures internally to make strategic decisions, forecast future results, and evaluate the Company's current performance. Given management's use of these non-GAAP measures, the Company believes these measures are important to investors in understanding the Company's current and future operating results as seen through the eyes of management. In addition, management believes these non-GAAP measures are useful to investors in enabling them to better assess changes in the Company's core business across different time periods. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures to other companies' non-GAAP financial measures, even if they have similar names. Amounts may not add due to rounding.
Contact
Lara Mahoney
Vice President,
Investor Relations & Corporate Communications
440.204.9985
Lara.Mahoney@nordson.com