Orion SA
For the period ended Sep 30, 2024. Filed Nov 7, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Nov 7, 2024
Extracted filing text, with the paragraph anchors used by the comparison.
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Financial Information by Segment
Note K. Financial Information by Segment
Segment information
We disclose the results of each of our operating segments in accordance with ASC 280, Segment Reporting. We manage our business intwo operating segments as follows:
Rubber Carbon Black—Used in the reinforcement of rubber in tires and mechanical rubber goods, and
Specialty Carbon Black—Used for protection, colorization and conductivity in coatings, polymers, batteries, printing and other special applications.
Corporate includes income and expenses that cannot be directly allocated to the business segments or that are managed at the corporate level. This includes finance income and expenses, taxes and items with less bearing on the underlying core business.
Discrete financial information is available for each of the segments, and the CODM uses operating results of each operating segment for performance evaluation and resource allocation.
Our CODM uses Adjusted EBITDA as the primary measure for reviewing our segment profitability. We define Adjusted EBITDA as Income from operations before depreciation and amortization, share-based compensation, and non-recurring items (such as restructuring expenses, legal settlements gains, etc.) plus Earnings in affiliated companies, net of tax.
The CODM does not review reportable segment asset or liability information for purposes of assessing performance or allocating resources.
Segment operating results for the three months ended September 30, 2024 and 2023 are as follows:
| Rubber · Specialty · Corporate · Total | ||||||
|---|---|---|---|---|---|---|
| (In millions) | ||||||
| Net sales from external customers | $300.9 | $162.5 | $— | $463.4 | ||
| Depreciation and amortization of intangible assets, right of use assets, and property, plant and equipment | 18.3 | 12.5 | — | 30.8 | ||
| Equity in earnings of affiliated companies, net of tax | 0.2 | — | — | 0.2 | ||
| Interest and other financial expense, net | (15.9) | (15.9) | ||||
| Adjusted EBITDA | 52.9 | 27.2 | — | 80.1 | ||
| Net sales from external customers | $315.8 | $150.4 | $— | $466.2 | ||
| Depreciation and amortization of intangible assets, right of use assets, and property, plant and equipment | 17.3 | 10.6 | — | 27.9 | ||
| Equity in earnings of affiliated companies, net of tax | 0.1 | — | — | 0.1 | ||
| Interest and other financial expense, net | (12.9) | (12.9) | ||||
| Reclassification of actuarial gain from AOCI | 2.2 | 2.2 | ||||
| Adjusted EBITDA | 51.2 | 26.1 | — | 77.3 | ||
Segment operating results for the nine months ended September 30, 2024 and 2023:
| Rubber · Specialty · Corporate · Total | ||||||
|---|---|---|---|---|---|---|
| (In millions) | ||||||
| Net sales from external customers | $944.4 | $498.9 | $— | $1,443.3 | ||
| Depreciation and amortization of intangible assets, right of use assets, and property, plant and equipment | 53.1 | 36.9 | — | 90.0 | ||
| Equity in earnings of affiliated companies, net of tax | 0.5 | — | — | 0.5 | ||
| Interest and other financial expense, net | (40.8) | (40.8) | ||||
| Adjusted EBITDA | 157.4 | 83.1 | — | 240.5 | ||
| Net sales from external customers | $963.8 | $461.9 | $— | $1,425.7 | ||
| Depreciation and amortization of intangible assets, right of use assets, and property, plant and equipment | 51.0 | 29.8 | — | 80.8 | ||
| Excluding equity in earnings of affiliated companies, net of tax | 0.4 | — | — | 0.4 | ||
| Interest and other financial expense, net | (41.6) | (41.6) | ||||
| Reclassification of actuarial losses from AOCI | 6.7 | 6.7 | ||||
| Adjusted EBITDA | 172.4 | 93.3 | — | 265.7 | ||
A reconciliation of Income before earnings in affiliated companies and income taxes to Adjusted EBITDA for each of the periods presented is as follows:
| Three Months Ended September 30, | Nine Months Ended September 30, | |||
|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |
| (In millions) | ||||
| Income (loss) before earnings in affiliated companies and income taxes | $(31.2) | $35.0 | $38.3 | $143.2 |
| Corporate charges | 64.4 | 3.6 | 70.9 | 6.4 |
| Depreciation and amortization of intangible assets, right of use assets, and property, plant and equipment | 30.8 | 27.9 | 90.0 | 80.8 |
| Equity in earnings of affiliated companies, net of tax | 0.2 | 0.1 | 0.5 | 0.4 |
| Interest and other financial expense, net | 15.9 | 12.9 | 40.8 | 41.6 |
| Reclassification of actuarial gain from AOCI | — | (2.2) | — | (6.7) |
| Adjusted EBITDA | $80.1 | $77.3 | $240.5 | $265.7 |
Corporate charges include the following:
| Three Months Ended September 30, | Nine Months Ended September 30, | |||
|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |
| (In millions) | ||||
| Loss due to misappropriation of assets, net: | ||||
| Misappropriation of assets, net | $59.2 | $— | $59.2 | $— |
| Professional fees related to misappropriation of assets | $1.5 | $— | $1.5 | $— |
| Long term incentive plan | $4.8 | $3.6 | $11.3 | $8.3 |
| Other non-operating | (1.1) | — | (1.1) | (1.9) |
| Corporate Charges | $64.4 | $3.6 | $70.9 | $6.4 |
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