Atmus Filtration Technologies Inc
For the period ended May 14, 2024. Filed Mar 27, 2024.
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May 14, 2024 · Filed Mar 27, 2024
Contents
APPENDIX A
NON-GAAP FINANCIAL MEASURES
We use non-GAAP (Generally Accepted Accounting Principles) financial information in this Proxy Statement and believe it is useful to investors as it provides additional information to facilitate comparisons of historical operating results, identify trends in our underlying operating results and provide additional insight and transparency on how we evaluate our business. These non-GAAP financial measures have no standardized meaning prescribed by U.S. GAAP and therefore are unlikely to be comparable to the calculation of similar measures for other companies. We believe the non-GAAP measures should always be considered along with the related U.S. GAAP financial measures.
We provide the following definitions for the non-GAAP financial measures used in this Proxy Statement:
“EBITDA” is defined as earnings or losses before interest expense, income taxes, depreciation and amortization and “EBITDA margin” is defined as EBITDA as a percent of net sales.
“Adjusted EBITDA” is defined as EBITDA after adding back certain one-time expenses, reflected in cost of sales and selling, general and administrative expenses, associated with becoming a standalone public company and “Adjusted EBITDA margin” is defined as Adjusted EBITDA as a percent of net sales.
“Free cash flow” is defined as cash flows provided by (used for) operating activities less capital expenditures and “Adjusted free cash flow” is defined as Free cash flow after adding back certain one-time capital expenditures associated with becoming a standalone public company.
Reconciliations of adjusted results to the most directly comparable GAAP measures are as follows:
| For the Years EndedDecember 31, | |||
|---|---|---|---|
| 2023 | 2022 | 2021 | |
| (in millions) | |||
| NET INCOME | $171.3 | $170.4 | $170.1 |
| Plus: | |||
| Interest expense | 25.8 | 0.7 | 0.8 |
| Income tax expense | 55.1 | 41.6 | 46.5 |
| Depreciation and amortization | 21.5 | 21.6 | 21.6 |
| EBITDA (non-GAAP) | $273.7 | $234.3 | $239.0 |
| Plus: | |||
| One-time separation costs(a) | $28.6 | $9.0 | $— |
| Adjusted EBITDA (non-GAAP) | $302.3 | $243.3 | $239.0 |
| Net sales | $1,628.1 | $1,562.1 | $1,438.8 |
| Net income margin | 10.5% | 10.9% | 11.8% |
| EBITDA margin (non-GAAP) | 16.8% | 15.0% | 16.6% |
| Adjusted EBITDA margin (non-GAAP) | 18.6% | 15.6% | 16.6% |
| (a) Primarily comprised of one-time expenses related to information technology, warehousing and human resources separation costs | |||
| For the Years EndedDecember 31, | |||
|---|---|---|---|
| 2023 | 2022 | 2021 | |
| (in millions) | |||
| Cash provided by operating activities | $189.0 | $165.7 | $209.9 |
| Less: | |||
| Capital expenditures | $45.8 | $37.5 | $33.4 |
| Free cash flow (non-GAAP) | $143.2 | $128.2 | $176.5 |
| Plus: | |||
| One-time separation capital expenditures | $9.2 | $0.5 | $— |
| Adjusted free cash flow (non-GAAP) | $152.4 | $128.7 | $176.5 |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.