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): December 15, 2020
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 forcomplying 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.
On December 15, 2020, Nordson Corporation issued a press release relating to its results of operations for the fourth quarter of fiscal 2020. A copy is attached as Exhibit 99.1.
Item 9.01 Financial Statements and Exhibits.(d) Exhibits.
(d) Exhibits.
| 99.1 | Press release of Nordson Corporation dated December 15, 2020. |
|---|---|
| 104 | Cover Page Interactive Data File (embedded within the inline XBRL document). |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
| NORDSON CORPORATION | |||
|---|---|---|---|
| Date: | December 15, 2020 | By: | /s/ Joseph P. Kelley |
| Joseph P. Kelley | |||
| Executive Vice President<br><br>Chief Financial Officer |
Document
Exhibit 99.1
Nordson Corporation Reports Fiscal Year 2020 Fourth Quarter and Full Year Results
Fourth Quarter:
•Sales were $559 million, a 5% year-over-year decrease
•Portfolio strengthening with announced divestiture of screws and barrels product line
•Operating profit was $37 million, or 7% of sales
•Adjusted operating profit was $130 million, or 23% of sales
•Earnings were $0.31 per diluted share
•Adjusted earnings were $1.59 per diluted share, an 11% decrease from prior year
Full Year:
•Sales were $2.1 billion, a 3% year-over-year decrease
•Earnings were $4.27 per diluted share
•Adjusted earnings were $5.48 per diluted share, a 7% decrease from prior year
2021 First Quarter Guidance:
•Fiscal 2021 first quarter sales growth of 2 to 3% over prior year first quarter; adjusted earnings growth in the range of 15 to 20%
WESTLAKE, Ohio--(BUSINESS WIRE)--December 15, 2020--Nordson Corporation (Nasdaq: NDSN) today reported results for the fiscal fourth quarter ended October 31, 2020. Sales were $559 million, a 5% decrease compared to the prior year’s fourth quarter sales of $585 million. Continued strength in test and inspection product lines serving electronics end markets and growth in our medical product lines was offset by weakness in industrial and automotive end markets. The change in fourth quarter 2020 sales included a decrease of approximately 7% organic volume, acquisitions contributed 1%, and a favorable effect from currency translation of approximately 2%.
Operating profit in the quarter was $37 million. As the company announced on December 3, 2020, it intends to divest the non-strategic screws and barrels product line within the Industrial Precision Solutions segment, which will strengthen the company’s ongoing earnings and profitable growth profile. This strategic portfolio transaction required a one-time, non-cash asset impairment charge of $87 million, which was recognized during the fourth quarter. Excluding this non-cash impairment charge and other non-recurring charges associated with cost structure simplification actions and amortization of the step-up in acquired inventory, adjusted operating profit was $130 million, or 23% of sales. EBITDA, which is defined as adjusted operating profit plus depreciation and amortization, in the quarter totaled $159 million, or 29% of sales, which represents a decrease of 5% from the prior year EBITDA of $168 million.
Net income was $18 million, and GAAP diluted earnings per share were $0.31. Adjusted earnings, which excludes non-recurring charges and discrete tax benefits of $2 million, totaled $93 million, or $1.59 per share, an 11% decrease from the prior year adjusted earnings of $104 million.
Commenting on the company’s fiscal fourth quarter 2020 results, Nordson President and Chief Executive Officer Sundaram Nagarajan said, “I am proud of the dedication shown by our global team through their ongoing commitment to superior customer service and continued deployment of the NBS Next growth framework. Fourth quarter sales were the strongest quarter of the year. We also continued to make progress on strategically positioning our portfolio for sustainable long-term growth with the acquisition of vivaMOS, Ltd. and the recently announced divestiture of the screws and barrels product line. This combination of focusing on Nordson strengths and prioritizing future profitable growth opportunities has us well positioned heading into fiscal year 2021.”
Fourth Quarter Segment Results
Industrial Precision Solutions sales of $308 million decreased approximately 8% compared to the prior year fourth quarter, driven by a 10% organic decrease partially offset by favorable currency impacts. This organic sales decline was in part driven by weaker demand in industrial and automotive end markets, where we had record sales in the prior year fourth quarter. Operating profit totaled $0.4 million in the quarter, including an $87 million non-cash impairment charge for the pending divestiture of the screws and barrels product line and $4 million in structural cost reduction actions. Adjusted operating profit, excluding these non-recurring items, was $92 million, or 30% of sales, equal to prior year adjusted operating profit margin.
Advanced Technology Solutions sales of $250 million increased approximately 1% compared to the prior year fourth quarter. Acquisitions and favorable currency impacts increased sales by approximately 2% and 1%, respectively, which was principally offset by organic volume decreases of 3%. Continued sales growth in test and inspection product lines, coupled with stable demand in medical product lines, was offset by weaker demand in fluid dispense product lines serving industrial end markets. Operating profit, which included $1 million of the step-up in acquired inventory amortization, totaled $51 million. Adjusted operating profit was $52 million, or 21% of sales, which was down slightly compared to prior year profits.
Fiscal 2020 Full Year Results
Sales for the fiscal year ended October 31, 2020 were $2.1 billion, a decrease of 3% compared to the same period a year ago. This change in sales included a decrease in organic volume of 4%, offset by growth related to acquisitions. The full year impact of currency translation differences was not significant. Full year operating profit was $350 million and diluted earnings per share were $4.27. Excluding the non-cash impairment charge, structural cost reduction expenses, the step up in value of acquired inventory, and discrete tax expense, adjusted operating profit was $454 million and adjusted diluted earnings per share were $5.48, a 7% decrease from the prior year adjusted diluted earnings per share of $5.87.
Outlook
“Throughout this unprecedented year, the safety of our people and the value they deliver to our customers remained among our top priorities,” Nagarajan stated. “We continue to make progress by deploying the NBS Next growth framework and aligning the organization to remain invested in our key strengths during this unique macroeconomic environment. The commitment of our employees combined with the resilience of our diverse end markets resulted in sound financial performance in fiscal 2020. We are entering fiscal 2021 from this solid foundation, and we have strong backlog entering the fiscal first quarter. I am confident in our ability to deliver long-term profitable growth.”
Backlog for the quarter ended October 31, 2020 was approximately $416 million, an increase of 5% compared to the same period a year ago, and the trailing twelve-week order entry is 5% above prior year levels. Based on these current order entry trends, backlog amounts and the correlation to sales timing, we expect the fiscal 2021 first quarter sales growth to be approximately 2 to 3%, with adjusted earnings growth in the range of 15 to 20% as compared to fiscal 2020 first quarter.
Nordson management will provide additional commentary on these results and outlook during its previously announced webcast on Wednesday, December 16, 2020 at 8:30 a.m. eastern time, which can be accessed at https://investors.nordson.com. For persons unable to listen to the live broadcast, a replay will be available for 14 days after the event. Information about Nordson’s investor relations and shareholder services is available from Lara Mahoney, vice president, investor relations and corporate communications at (440) 204-9985 or lara.mahoney@nordson.com.
Certain statements contained in this release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by terminology such as "may," "will," "should," "could," "expects," "anticipates," "believes," "projects," "forecasts," “outlook,” “guidance,” "continue," “target,” or the negative of such terms or comparable terminology. These statements reflect management’s current expectations and involve a number of risks and uncertainties. These risks and uncertainties include, but are not limited to, U.S. and international economic conditions, financial, and market conditions, currency exchange rates and devaluations, possible acquisitions including the Company’s ability to successfully integrate acquisitions; the Company’s ability to successfully divest or dispose of businesses that are deemed not to fit with its strategic plan; the effects of changes in U.S. trade policy and trade agreements; the effects of changes in tax law; and the possible effects of events beyond our control, such as political unrest, acts of terror, natural disasters and pandemics, including the current coronavirus (COVID-19) pandemic and the other factors discussed in Item 1A (Risk Factors) in the Company’s most recently filed Annual Report on Form 10-K and in its Forms 10-Q filed with the Securities and Exchange Commission, which should be reviewed carefully. The Company undertakes no obligation to update or revise any forward-looking statement in this press release.
Nordson Corporation engineers, manufactures and markets differentiated products and systems used for the precision dispensing of adhesives, coatings, sealants, biomaterials, polymers, plastics and other materials, fluid management, test and inspection, UV curing and plasma surface treatment, all supported by application expertise and direct global sales and service. Nordson serves a wide variety of consumer non-durable, durable and technology end markets including packaging, nonwovens, electronics, medical, appliances, energy, transportation, construction, and general product assembly and finishing. Founded in 1954 and headquartered in Westlake, Ohio, the Company has operations and support offices in more than 35 countries. Visit Nordson on the web at http://www.nordson.com, @Nordson_Corp, or www.facebook.com/nordson.
Attachment 1
NORDSON CORPORATION
CONSOLIDATED STATEMENT OF INCOME (Unaudited)
(Dollars in thousands except for per-share amounts)
| Three months ended | Twelve months ended | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 10/31/2020 | 10/31/2019 | 10/31/2020 | 10/31/2019 | |||||||||
| Sales | $ | 558,525 | $ | 585,451 | $ | 2,121,100 | $ | 2,194,226 | ||||
| Cost of sales | 261,657 | 266,476 | 990,632 | 1,002,123 | ||||||||
| Gross profit | 296,868 | 318,975 | 1,130,468 | 1,192,103 | ||||||||
| Gross margin % | 53.2 | % | 54.5 | % | 53.3 | % | 54.3 | % | ||||
| Selling & administrative expenses | 172,129 | 179,315 | 693,552 | 708,990 | ||||||||
| Assets held for sale impairment charge | 87,371 | — | 87,371 | — | ||||||||
| Operating profit | 37,368 | 139,660 | 349,545 | 483,113 | ||||||||
| Interest expense - net | (6,432) | (10,216) | (30,479) | (45,301) | ||||||||
| Other expense - net | (4,634) | (2,162) | (17,577) | (6,708) | ||||||||
| Income before income taxes | 26,302 | 127,282 | 301,489 | 431,104 | ||||||||
| Income taxes | 7,827 | 24,609 | 51,950 | 94,013 | ||||||||
| Net Income | $ | 18,475 | $ | 102,673 | $ | 249,539 | $ | 337,091 | ||||
| Weighted-average common shares outstanding: | ||||||||||||
| Basic | 57,988 | 57,456 | 57,757 | $ | 57,462 | |||||||
| Diluted | 58,679 | 58,255 | 58,473 | 58,202 | ||||||||
| Earnings per share: | ||||||||||||
| Basic earnings | $ | 0.32 | $ | 1.79 | $ | 4.32 | $ | 5.87 | ||||
| Diluted earnings | $ | 0.31 | $ | 1.76 | $ | 4.27 | $ | 5.79 |
Attachment 2
NORDSON CORPORATION
CONSOLIDATED BALANCE SHEET (Unaudited)
(Dollars in thousands)
| October 31, 2020 | October 31, 2019 | |||
|---|---|---|---|---|
| Cash and cash equivalents | $ | 208,293 | $ | 151,164 |
| Receivables - net | 471,873 | 530,765 | ||
| Inventories - net | 277,033 | 283,399 | ||
| Other current assets | 43,798 | 45,867 | ||
| Assets held for sale | 19,615 | — | ||
| Total current assets | 1,020,612 | 1,011,195 | ||
| Property, plant & equipment - net | 358,618 | 398,895 | ||
| Goodwill | 1,713,354 | 1,614,739 | ||
| Other assets | 582,072 | 491,618 | ||
| $ | 3,674,656 | $ | 3,516,447 | |
| Current maturities of long-term debt | $ | 38,043 | $ | 168,738 |
| Accounts payable and accrued liabilities | 311,898 | 308,888 | ||
| Liabilities held for sale | 13,148 | — | ||
| Total current liabilities | 363,089 | 477,626 | ||
| Long-term debt | 1,067,952 | 1,075,404 | ||
| Other liabilities | 484,624 | 382,372 | ||
| Total shareholders' equity | 1,758,991 | 1,581,045 | ||
| $ | 3,674,656 | $ | 3,516,447 |
Attachment 3
NORDSON CORPORATION
CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)
(Dollars in thousands)
| Twelve Months Ended | ||||
|---|---|---|---|---|
| October 31, 2020 | October 31, 2019 | |||
| Cash flows from operating activities: | ||||
| Net Income | $ | 249,539 | $ | 337,091 |
| Depreciation and amortization | 113,302 | 110,244 | ||
| Impairment loss on assets held for sale | 87,371 | — | ||
| Other non-cash items | 5,278 | 19,606 | ||
| Changes in working capital | 46,931 | (84,048) | ||
| Net cash provided by operating activities | 502,421 | 382,893 | ||
| Cash flows from investing activities: | ||||
| Additions to property, plant and equipment | (50,535) | (64,244) | ||
| Acquisitions | (142,414) | (12,486) | ||
| Other - net | (1,160) | 441 | ||
| Net cash used in investing activities | (194,109) | (76,289) | ||
| Cash flows from financing activities: | ||||
| Repayment of long-term debt | (153,816) | (69,580) | ||
| Repayment of finance lease obligations | (7,605) | (4,859) | ||
| Dividends paid | (88,347) | (82,145) | ||
| Issuance of common shares | 50,853 | 26,020 | ||
| Purchase of treasury shares | (52,614) | (120,510) | ||
| Net cash used in financing activities | (251,529) | (251,074) | ||
| Effective of exchange rate change on cash | 346 | (44) | ||
| Net change in cash and cash equivalents | 57,129 | 55,486 | ||
| Cash and cash equivalents: | ||||
| Beginning of period | 151,164 | 95,678 | ||
| End of period | $ | 208,293 | $ | 151,164 |
Attachment 4
NORDSON CORPORATION
SALES BY GEOGRAPHIC SEGMENT (Unaudited)
(Dollars in thousands)
| Three Months Ended | Sales Variance | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Oct 31, 2020 | Oct 31, 2019 | Organic | Acquisitions | Currency | Total | |||||||
| SALES BY SEGMENT | ||||||||||||
| Industrial precision solutions | $ | 308,385 | $ | 336,451 | (10.0) | % | — | % | 1.7 | % | (8.3) | % |
| Advanced technology solutions | 250,140 | 249,000 | (3.1) | % | 2.2 | % | 1.4 | % | 0.5 | % | ||
| Total Sales | $ | 558,525 | $ | 585,451 | (7.1) | % | 0.9 | % | 1.6 | % | (4.6) | % |
| SALES BY GEOGRAPHIC REGION | ||||||||||||
| United States | $ | 194,701 | $ | 206,874 | (7.1) | % | 1.2 | % | — | % | (5.9) | % |
| Americas | 35,452 | 44,503 | (22.5) | % | 6.4 | % | (4.2) | % | (20.3) | % | ||
| Europe | 142,082 | 145,946 | (7.4) | % | 0.1 | % | 4.7 | % | (2.6) | % | ||
| Japan | 36,248 | 37,190 | (4.5) | % | — | % | 2.0 | % | (2.5) | % | ||
| Asia Pacific | 150,042 | 150,938 | (2.9) | % | — | % | 2.3 | % | (0.6) | % | ||
| Total Sales | $ | 558,525 | $ | 585,451 | (7.1) | % | 0.9 | % | 1.6 | % | (4.6) | % |
| Twelve Months Ended | Sales Variance | |||||||||||
| Oct 31, 2020 | Oct 31, 2019 | Organic | Acquisitions | Currency | Total | |||||||
| SALES BY SEGMENT | ||||||||||||
| Industrial precision solutions | $ | 1,143,423 | $ | 1,208,376 | (4.8) | % | — | % | (0.6) | % | (5.4) | % |
| Advanced technology solutions | 977,677 | 985,850 | (2.3) | % | 1.4 | % | 0.1 | % | (0.8) | % | ||
| Total Sales | $ | 2,121,100 | $ | 2,194,226 | (3.7) | % | 0.6 | % | (0.2) | % | (3.3) | % |
| SALES BY GEOGRAPHIC REGION | ||||||||||||
| United States | $ | 755,642 | $ | 758,383 | (1.1) | % | 0.7 | % | — | % | (0.4) | % |
| Americas | 141,473 | 167,661 | (14.8) | % | 3.0 | % | (3.8) | % | (15.6) | % | ||
| Europe | 536,636 | 571,596 | (6.4) | % | 0.4 | % | (0.1) | % | (6.1) | % | ||
| Japan | 126,601 | 126,756 | (2.1) | % | 0.2 | % | 1.8 | % | (0.1) | % | ||
| Asia Pacific | 560,748 | 569,830 | (1.7) | % | 0.2 | % | (0.1) | % | (1.6) | % | ||
| Total Sales | $ | 2,121,100 | $ | 2,194,226 | (3.7) | % | 0.6 | % | (0.2) | % | (3.3) | % |
Attachment 5
NORDSON CORPORATION
RECONCILIATION OF NON-GAAP MEASURES - ADJUSTED OPERATING PROFIT AND EBITDA (Unaudited)
(Dollars in thousands)
| Three months ended | Twelve months ended | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| October 31, 2020 | October 31, 2019 | October 31, 2020 | October 31, 2019 | |||||||||||||
| SALES BY SEGMENT | ||||||||||||||||
| Industrial precision solutions | $ | 308,385 | $ | 336,451 | $ | 1,143,423 | $ | 1,208,376 | ||||||||
| Advanced technology solutions | 250,140 | 249,000 | 977,677 | 985,850 | ||||||||||||
| Total sales | $ | 558,525 | $ | 585,451 | $ | 2,121,100 | $ | 2,194,226 | ||||||||
| OPERATING PROFIT | ||||||||||||||||
| Industrial precision solutions | $ | 425 | $ | 99,353 | $ | 208,028 | $ | 329,054 | ||||||||
| Advanced technology solutions | 50,674 | 54,727 | 191,602 | 205,609 | ||||||||||||
| Corporate | (13,731) | (14,420) | (50,085) | (51,550) | ||||||||||||
| Total operating profit | $ | 37,368 | $ | 139,660 | $ | 349,545 | $ | 483,113 | ||||||||
| OPERATING PROFIT ADJUSTMENTS (1) | ||||||||||||||||
| Industrial precision solutions | $ | 91,419 | $ | 314 | $ | 94,896 | $ | 2,123 | ||||||||
| Advanced technology solutions | 1,424 | 733 | 7,807 | 1,568 | ||||||||||||
| Corporate | — | 681 | 1,387 | 873 | ||||||||||||
| Total adjustments | $ | 92,843 | $ | 1,728 | $ | 104,090 | $ | 4,564 | ||||||||
| ADJUSTED OPERATING PROFIT (NON-GAAP) | % of Sales | % of Sales | % of Sales | % of Sales | ||||||||||||
| Industrial precision solutions | $ | 91,844 | 30 | % | $ | 99,667 | 30 | % | $ | 302,924 | 26 | % | $ | 331,177 | 27 | % |
| Advanced technology solutions | 52,098 | 21 | % | 55,460 | 22 | % | 199,409 | 20 | % | 207,177 | 21 | % | ||||
| Corporate | (13,731) | (13,739) | (48,698) | (50,677) | ||||||||||||
| Total operating profit - adjusted | $ | 130,211 | 23 | % | $ | 141,388 | 24 | % | $ | 453,635 | 21 | % | $ | 487,677 | 22 | % |
| DEPRECIATION & AMORTIZATION | ||||||||||||||||
| Industrial precision solutions | $ | 9,951 | $ | 9,669 | $ | 38,939 | $ | 38,333 | ||||||||
| Advanced technology solutions | 16,710 | 15,462 | 64,543 | 62,836 | ||||||||||||
| Corporate | 2,477 | 1,782 | 9,820 | 9,075 | ||||||||||||
| Total depreciation & amortization | $ | 29,138 | $ | 26,913 | $ | 113,302 | $ | 110,244 | ||||||||
| EBITDA (NON-GAAP) | ||||||||||||||||
| Industrial precision solutions | $ | 101,795 | 33 | % | $ | 109,336 | 32 | % | $ | 341,863 | 30 | % | $ | 369,510 | 31 | % |
| Advanced technology solutions | 68,808 | 28 | % | 70,922 | 28 | % | 263,952 | 27 | % | 270,013 | 27 | % | ||||
| Corporate | (11,254) | (11,957) | (38,878) | (41,602) | ||||||||||||
| Total EBITDA | $ | 159,349 | 29 | % | $ | 168,301 | 29 | % | $ | 566,937 | 27 | % | $ | 597,921 | 27 | % |
(1) Represents assets held for sale impairment charge, costs and adjustments related to cost structure simplification actions, and charges associated with our 2020 and 2019 acquisitions.
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 an assets held for sale impairment charge, cost structure simplification actions, and non-cash inventory charges related to acquisitions. EBITDA is defined as adjusted operating profit plus depreciation and amortization.
Attachment 6
NORDSON CORPORATION
RECONCILIATION OF NON-GAAP MEASURES - PROFITABILITY (Unaudited)
(Dollars in thousands)
| Three Months Ended October 31, | Twelve Months Ended October 31, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | |||||||||
| GAAP AS REPORTED | ||||||||||||
| Operating Profit | $ | 37,368 | $ | 139,660 | $ | 349,545 | $ | 483,113 | ||||
| Other / interest income (expense) - net | (11,066) | (12,378) | (48,056) | (52,009) | ||||||||
| Net Income | 18,475 | 102,673 | 249,539 | 337,091 | ||||||||
| EPS diluted | $ | 0.31 | $ | 1.76 | $ | 4.27 | $ | 5.79 | ||||
| Shares outstanding - diluted | 58,679 | 58,255 | 58,473 | 58,202 | ||||||||
| OPERATING PROFIT ADJUSTMENTS | ||||||||||||
| Inventory step-up amortization | $ | 1,298 | $ | 342 | $ | 2,527 | $ | 530 | ||||
| Severance and other | 4,174 | 1,386 | 14,192 | 4,034 | ||||||||
| Assets held for sale impairment charge | 87,371 | — | 87,371 | — | ||||||||
| NON-OPERATING EXPENSE ADJUSTMENTS | ||||||||||||
| Pension settlement loss | $ | — | $ | — | $ | 2,508 | $ | — | ||||
| Total adjustments | $ | 92,843 | $ | 1,728 | $ | 106,598 | $ | 4,564 | ||||
| Adjustments net of tax | $ | 76,390 | $ | 1,396 | $ | 87,214 | $ | 3,578 | ||||
| Other discrete tax items | $ | (1,820) | $ | 171 | $ | (16,311) | $ | 911 | ||||
| EPS effect of adjustments and other discrete tax items | $ | 1.27 | $ | 0.03 | $ | 1.21 | $ | 0.08 | ||||
| NON-GAAP MEASURES-ADJUSTED PROFITABILITY | ||||||||||||
| Operating Profit | $ | 130,211 | $ | 141,388 | $ | 453,635 | $ | 487,677 | ||||
| Operating profit % of sales | 23.3 | % | 24.2 | % | 21.4 | % | 22.2 | % | ||||
| Net income | $ | 93,045 | $ | 104,240 | $ | 320,442 | $ | 341,580 | ||||
| Diluted earnings | $ | 1.59 | $ | 1.79 | $ | 5.48 | $ | 5.87 |
Adjusted operating profit is defined as operating profit plus certain adjustments such as an assets held for sale impairment charge, cost structure simplification actions and non-cash inventory charges related to acquisitions. Adjusted operating profit as a percentage of sales is defined as adjusted operating profit divided by sales.
Adjusted net income is defined as net income plus tax effected adjustments and other discrete tax items.
Adjusted earnings is defined as GAAP EPS adjusted for tax effected adjustments and other discrete tax items.
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.
Contacts
Lara Mahoney
Vice President,
Investor Relations & Corporate Communications
440.204.9985
Lara.Mahoney@nordson.com
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