CLEVELAND, Sept. 5, 2024 /PRNewswire/ -- Avient Corporation (NYSE: AVNT) ("Avient") today announced the pricing of its previously announced offering of $650 million in aggregate principal amount of senior notes due 2031 (the "notes") in an offering exempt from the registration requirements of the Securities Act of 1933 (the "Securities Act"). The notes will bear interest at an annual rate of 6.250% and will be issued at a price of 100.000% of their principal amount. The closing of the notes offering is expe ...

CLEVELAND, Sept. 5, 2024 /PRNewswire/ -- Avient Corporation (NYSE: AVNT) ("Avient") today announced the commencement of an offering of $650 million in aggregate principal amount of senior notes due 2031 (the "notes") in an offering exempt from the registration requirements of the Securities Act of 1933 (the "Securities Act").Avient intends to use the net proceeds from the offering, together with cash on hand, to redeem all of its outstanding 5.75% senior notes due 2025 (the "2025 senior notes") and pay rela ...

Avient Corporation’s (AVNT) shares reached a fresh 52-week high of $49.42 on Aug. 26 before closing at $48.64.In the past year, the stock has appreciated 26% against the industry’s 6.8% decline in the same period.Image Source: Zacks Investment ResearchWhat’s Driving Avient?Avient is optimistic about sustaining its strong momentum from the second quarter throughout the rest of 2024. The company remains committed to its growth strategy, focusing on delivering innovative materials and processing solutions that ...

All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, ...

[PART I — FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20%E2%80%94%20FINANCIAL%20INFORMATION) This section presents Avient Corporation's unaudited condensed consolidated financial statements, MD&A, market risk, and controls [ITEM 1. FINANCIAL STATEMENTS](index=3&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) This section presents Avient Corporation's unaudited condensed consolidated financial statements and detailed notes for the periods ended June 30, 2024 [Condensed Consolidated Statements of Income (Unaudited)](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20(Unaudited)) Avient Corporation reported significant improvements in net income, EPS, sales, gross margin, and operating income for the periods ended June 30, 2024 Condensed Consolidated Statements of Income (Unaudited) | Metric (in millions, except per share) | 3 Months Ended Jun 30, 2024 | 3 Months Ended Jun 30, 2023 | Change ($ millions) | Change (%) | 6 Months Ended Jun 30, 2024 | 6 Months Ended Jun 30, 2023 | Change ($ millions) | Change (%) | | :------------------------------------- | :-------------------------- | :-------------------------- | :------------------ | :--------- | :-------------------------- | :-------------------------- | :------------------ | :--------- | | Sales | $849.7 | $824.4 | $25.3 | 3.1% | $1,678.7 | $1,670.1 | $8.6 | 0.5% | | Gross margin | $257.6 | $240.7 | $16.9 | 7.0% | $535.8 | $488.3 | $47.5 | 9.7% | | Operating income | $72.5 | $62.3 | $10.2 | 16.4% | $166.5 | $119.4 | $47.1 | 39.4% | | Net income attributable to Avient common shareholders | $33.6 | $22.1 | $11.5 | 52.0% | $83.0 | $42.0 | $41.0 | 97.6% | | Basic EPS (Continuing Operations) | $0.37 | $0.24 | | | $0.91 | $0.47 | | | | Diluted EPS (Continuing Operations) | $0.36 | $0.24 | | | $0.90 | $0.47 | | | | Cash dividends declared per share | $0.2575 | $0.2475 | | | $0.5150 | $0.4950 | | | [Condensed Consolidated Statements of Comprehensive Income (Unaudited)](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Unaudited)) Total comprehensive income attributable to Avient common shareholders increased for the three months but slightly decreased for the six months ended June 30, 2024 Condensed Consolidated Statements of Comprehensive Income (Unaudited) | Metric (in millions) | 3 Months Ended Jun 30, 2024 | 3 Months Ended Jun 30, 2023 | 6 Months Ended Jun 30, 2024 | 6 Months Ended Jun 30, 2023 | | :------------------------------------------------------ | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Net income | $33.8 | $22.3 | $83.5 | $42.7 | | Translation adjustments and related hedging instruments | $(18.5) | $(16.3) | $(44.4) | $1.3 | | Total comprehensive income attributable to Avient common shareholders | $15.1 | $4.2 | $38.6 | $40.2 | [Condensed Consolidated Balance Sheets (Unaudited)](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20(Unaudited)) Avient's total assets slightly decreased as of June 30, 2024, while current liabilities significantly increased due to debt reclassification Condensed Consolidated Balance Sheets (Unaudited) | Metric (in millions) | As of June 30, 2024 | As of December 31, 2023 | Change ($ millions) | Change (%) | | :----------------------------------------- | :------------------ | :---------------------- | :------------------ | :--------- | | Total assets | $5,907.8 | $5,968.5 | $(60.7) | (1.0)% | | Cash and cash equivalents | $489.4 | $545.8 | $(56.4) | (10.3)% | | Accounts receivable, net | $486.6 | $399.9 | $86.7 | 21.7% | | Inventories, net | $365.9 | $347.0 | $18.9 | 5.4% | | Goodwill | $1,685.1 | $1,719.3 | $(34.2) | (2.0)% | | Intangible assets, net | $1,515.7 | $1,590.8 | $(75.1) | (4.7)% | | Total current liabilities | $1,498.2 | $773.6 | $724.6 | 93.7% | | Short-term and current portion of long-term debt | $657.7 | $9.5 | $648.2 | 6823.2% | | Long-term debt | $1,420.8 | $2,070.5 | $(649.7) | (31.4)% | | Total equity | $2,334.2 | $2,338.0 | $(3.8) | (0.2)% | [Condensed Consolidated Statements of Cash Flows (Unaudited)](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20(Unaudited)) Net cash provided by operating activities significantly increased for the six months ended June 30, 2024, while investing and financing activities used cash Condensed Consolidated Statements of Cash Flows (Unaudited) | Metric (in millions) | 6 Months Ended Jun 30, 2024 | 6 Months Ended Jun 30, 2023 | Change ($ millions) | | :-------------------------------------------------- | :-------------------------- | :-------------------------- | :------------------ | | Net cash provided (used) by operating activities | $63.1 | $(24.7) | $87.8 | | Net cash used by investing activities | $(54.5) | $(38.6) | $(15.9) | | Net cash used by financing activities | $(54.8) | $(48.3) | $(6.5) | | Decrease in cash and cash equivalents | $(56.4) | $(112.4) | $56.0 | | Cash and cash equivalents at end of period | $489.4 | $528.7 | $(39.3) | [Consolidated Statements of Shareholders' Equity (Unaudited)](index=7&type=section&id=Consolidated%20Statements%20of%20Shareholders'%20Equity%20(Unaudited)) Avient's total equity remained stable from December 31, 2023, to June 30, 2024, with net income offset by other comprehensive loss and dividends - Net income for the six months ended June 30, 2024, was **$83.0 million** attributable to Avient common shareholders, contributing to equity[14](index=14&type=chunk) - Other comprehensive loss, primarily due to translation adjustments, negatively impacted equity by **$44.4 million** for the six months ended June 30, 2024[6](index=6&type=chunk)[14](index=14&type=chunk) - Cash dividends declared were **$0.2575 per share** for each quarter in 2024, totaling **$47.0 million** for the six months[5](index=5&type=chunk)[11](index=11&type=chunk)[14](index=14&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations for the financial statements, covering accounting policies, estimates, and specific line items [Note 1 — BASIS OF PRESENTATION](index=8&type=section&id=Note%201%20%E2%80%94%20BASIS%20OF%20PRESENTATION) Interim financial statements are prepared in conformity with GAAP and include management's estimates and assumptions - Interim financial statements are prepared in conformity with GAAP and include management's estimates and assumptions[18](index=18&type=chunk) - Operating results for the three and six months ended June 30, 2024, are not necessarily indicative of future results[18](index=18&type=chunk) [Note 2 — GOODWILL AND INTANGIBLE ASSETS](index=8&type=section&id=Note%202%20%E2%80%94%20GOODWILL%20AND%20INTANGIBLE%20ASSETS) Goodwill and intangible assets decreased primarily due to currency translation impacts for the six months ended June 30, 2024 Goodwill and Intangible Assets (in millions) | Asset (in millions) | As of June 30, 2024 | As of December 3

Financial Data and Key Metrics Changes - The company reported sales of $850 million for Q2 2024, representing a 3% increase over Q2 2023 on an as-reported basis and a 5% increase on an organic basis, marking the first sales growth in seven quarters [7][8] - Adjusted EBITDA margins expanded to 16.9%, a 100 basis point improvement year-over-year, with adjusted earnings per share of $0.76, reflecting a 21% increase compared to the previous year [8][14] Business Line Data and Key Metrics Changes - The color, additives, and inks segment grew 5% organically, driven by strong demand in packaging and building and construction, with EBITDA for this segment increasing by 15% [18] - The specialty engineered materials segment saw a 4% organic growth, primarily due to restocking in consumer and healthcare markets, with adjusted EBITDA growing by 7% [19] Market Data and Key Metrics Changes - The packaging and consumer end markets grew by 8% and 10% respectively, significantly impacting overall sales growth [9] - Healthcare sales increased by 10% year-over-year, indicating a recovery from previous destocking trends [10] - Telecommunications and energy markets faced challenges, with sales down double digits, but improvements are expected in the second half of the year [11] Company Strategy and Development Direction - The company aims to deliver organic top-line growth while expanding margins, focusing on gaining market share and winning new product specifications [7][25] - A strategic plan is being finalized, with an Investor Day scheduled for December 4, 2024, to share further details [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining growth momentum into the second half of the year, supported by a strong order book and market demand recovery [30] - The company anticipates continued growth in healthcare and defense sectors, with expectations for double-digit growth in defense for the full year [37] Other Important Information - The company has reduced its greenhouse gas emissions by 48% since 2019 and received improved sustainability ratings from independent agencies [23][24] - Full-year adjusted EBITDA guidance has been increased to a range of $515 million to $540 million, with adjusted earnings per share guidance raised to $2.55 to $2.70 [22] Q&A Session Summary Question: Visibility into the second half of the year - Management indicated that order patterns and market demand are showing positive signs, supporting expectations for continued growth momentum [30] Question: Healthcare segment evolution - The destocking process in healthcare is believed to be over, with new opportunities in drug delivery and monitoring devices contributing to double-digit growth [32] Question: Defense segment expectations - Management expects double-digit growth in the defense segment for Q3, driven by new programs and orders from NATO countries [37] Question: Raw material inflation expectations - The company anticipates a headwind from raw material inflation in the second half, with specific expectations for $5 to $10 million in inflation impacts [40][60] Question: Cash flow and working capital expectations - Free cash flow was reported at over $185 million, with expectations for higher capital expenditures and working capital usage in 2024 [63]

Core Insights - Avient reported revenue of $849.7 million for the quarter ended June 2024, reflecting a year-over-year increase of 3.1% and surpassing the Zacks Consensus Estimate by 1.01% [1] - Earnings per share (EPS) for the quarter was $0.76, up from $0.63 in the same quarter last year, exceeding the consensus estimate of $0.72 by 5.56% [1] Revenue Performance - Specialty Engineered Materials sales were $308.10 million, slightly below the average estimate of $310.58 million, with a year-over-year increase of 2.4% [3] - Color, Additives and Inks sales reached $542 million, exceeding the average estimate of $531.63 million, marking a year-over-year growth of 3.3% [4] - Corporate sales reported a loss of $0.40 million, better than the estimated loss of $0.95 million, but reflecting a significant year-over-year decline of 55.6% [5] Operating Income - Operating income for Color, Additives and Inks was $86.10 million, surpassing the average estimate of $80.32 million [6] - Operating income for Specialty Engineered Materials was $42.80 million, slightly below the average estimate of $44.40 million [7] - Corporate operating loss was $56.40 million, worse than the average estimated loss of $38.10 million [8] Stock Performance - Avient's shares have returned -3.2% over the past month, compared to a -6.7% change in the Zacks S&P 500 composite [8] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [8]

Company Performance - Avient reported quarterly earnings of $0.76 per share, exceeding the Zacks Consensus Estimate of $0.72 per share, and up from $0.63 per share a year ago, representing an earnings surprise of 5.56% [1] - The company posted revenues of $849.7 million for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 1.01%, and an increase from $824.4 million year-over-year [1] - Over the last four quarters, Avient has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [1] Future Outlook - The immediate price movement of Avient's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [2][3] - The current consensus EPS estimate for the upcoming quarter is $0.60 on revenues of $801.23 million, and for the current fiscal year, it is $2.61 on revenues of $3.22 billion [4] - The estimate revisions trend for Avient is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [4] Industry Context - The Chemical - Diversified industry, to which Avient belongs, is currently in the bottom 8% of over 250 Zacks industries, which may impact stock performance [5] - Another company in the same industry, Kronos Worldwide, is expected to report quarterly earnings of $0.21 per share, reflecting a year-over-year change of +400%, with revenues anticipated to be $504.19 million, up 13.8% from the previous year [5][6]

Core Viewpoint - Avient Corporation reported strong second quarter results for 2024, with sales reaching $850 million, a 3% increase year-over-year, and a 5% organic growth excluding foreign exchange impacts. The company also raised its full-year adjusted EPS guidance due to robust performance across all regions and segments [1][4]. Financial Performance - Second quarter sales were $849.7 million compared to $824.4 million in the prior year quarter, marking a 3% increase [1]. - GAAP EPS from continuing operations was $0.36, up from $0.24 in the prior year quarter, while adjusted EPS was $0.76, exceeding guidance of $0.71 and increasing 21% year-over-year [2][4]. - The company increased its full-year adjusted EPS guidance to a range of $2.55 to $2.70, reflecting an 8% to 14% growth over the previous year [1][4]. Segment Performance - The Color, Additives and Inks segment and the Specialty Engineered Materials segment both contributed to consolidated sales growth, with particular success in packaging and consumer markets [3]. - Organic sales growth was reported across all regions, with the US and Canada growing by 5% and Latin America by 19% [3]. Sustainability Initiatives - Avient published its 2023 Sustainability Report, highlighting progress towards its 2030 Sustainability Goals and improved ESG performance ratings, including a Gold rating from Ecovadis and an A- from CDP [5]. Future Outlook - The company anticipates adjusted EPS of $0.62 for the third quarter, a 9% increase over the prior year, and expects continued organic sales growth in both segments [4]. - An Investor Day is scheduled for December 4th in New York City to discuss the company's strategy [1][4].

Avient Second Quarter 2024 Financial Results [Financial & Operational Highlights](index=1&type=section&id=Financial%20%26%20Operational%20Highlights) Avient reported strong second-quarter 2024 results, with a 3% increase in sales to $850 million and a 5% organic increase, as adjusted EPS of $0.76 significantly beat guidance and grew 21% year-over-year, driven by broad-based organic revenue growth, favorable input costs, and lower interest expense, marking the first consolidated sales expansion in seven quarters Q2 2024 Key Financial Metrics vs. Q2 2023 | Metric | Q2 2024 | Q2 2023 | Change | | :--- | :--- | :--- | :--- | | Sales | $849.7M | $824.4M | +3.1% | | GAAP EPS (from continuing operations) | $0.36 | $0.24 | +50.0% | | Adjusted EPS | $0.76 | $0.63 | +20.6% | - Organic sales grew **5%** year-over-year when excluding the impact of foreign exchange[1](index=1&type=chunk) - Consolidated sales expanded for the first time in seven quarters, with contributions from both the Color, Additives and Inks, and Specialty Engineered Materials segments[3](index=3&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management highlighted broad-based growth across all geographic regions and most end markets, with particular success in the packaging and consumer sectors, as all regions delivered year-over-year organic sales growth, led by strong performance in the Americas, which benefited from improving demand, new specifications, and market share gains Q2 2024 Regional Organic Sales Growth (YoY) | Region | Organic Sales Growth | | :--- | :--- | | Latin America | 19% | | US and Canada | 5% | | EMEA | 4% | | Asia | 1% | - Growth was driven by improving underlying demand trends and winning new specifications, particularly in the Americas[4](index=4&type=chunk) - Growth in Europe and Asia was largely attributed to restocking and share gains, especially in the packaging end market[4](index=4&type=chunk) [2024 Business Outlook](index=2&type=section&id=2024%20Business%20Outlook) Avient has raised its full-year 2024 guidance due to strong second-quarter results, now expecting full-year adjusted EPS to be between $2.55 and $2.70, and third-quarter adjusted EPS projected at $0.62, representing a 9% increase over the prior year - Third-quarter 2024 adjusted EPS is expected to be **$0.62**, a **9%** increase year-over-year[5](index=5&type=chunk) Full-Year 2024 Updated Guidance | Metric | Revised Guidance | Prior Guidance | | :--- | :--- | :--- | | Adjusted EBITDA | $515M - $540M | $510M - $535M | | Adjusted EPS | $2.55 - $2.70 | $2.50 - $2.65 | - The revised full-year adjusted EPS guidance reflects an **8% to 14%** growth over the prior year[1](index=1&type=chunk) [Corporate Updates](index=1&type=section&id=Corporate%20Updates) Avient has published its 2023 Sustainability Report, showcasing progress towards its 2030 goals and upgraded ESG ratings, and announced it will host an Investor Day on December 4, 2024, in New York City to discuss its strategy - The company released its 2023 Sustainability Report, highlighting upgraded ratings to **Gold** from Ecovadis and **A-** from CDP[7](index=7&type=chunk) - An Investor Day will be held on **December 4, 2024**, in New York City to highlight the company's strategy[1](index=1&type=chunk)[5](index=5&type=chunk) Financial Statements & Reconciliations [Consolidated Statements of Income](index=7&type=section&id=Consolidated%20Statements%20of%20Income) For the second quarter of 2024, sales increased to $849.7 million from $824.4 million in the prior-year period, with operating income growing to $72.5 million and net income attributable to Avient shareholders rising to $33.6 million, or $0.36 per diluted share Condensed Consolidated Statements of Income (in millions, except per share data) | Metric | Q2 2024 | Q2 2023 | Six Months 2024 | Six Months 2023 | | :--- | :--- | :--- | :--- | :--- | | Sales | $849.7 | $824.4 | $1,678.7 | $1,670.1 | | Gross Margin | $257.6 | $240.7 | $535.8 | $488.3 | | Operating Income | $72.5 | $62.3 | $166.5 | $119.4 | | Net Income (to Avient shareholders) | $33.6 | $22.1 | $83.0 | $42.0 | | Diluted EPS (from continuing ops) | $0.36 | $0.24 | $0.90 | $0.47 | [Consolidated Balance Sheets](index=10&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2024, Avient's total assets were $5.91 billion, with cash and cash equivalents at $489.4 million (a decrease from $545.8 million at the end of 2023), total debt at approximately $2.08 billion, and total shareholders' equity at $2.33 billion Key Balance Sheet Items (in millions) | Account | June 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $489.4 | $545.8 | | Total current assets | $1,459.1 | $1,407.6 | | Total assets | $5,907.8 | $5,968.5 | | Total current liabilities | $1,498.2 | $773.6 | | Long-term debt | $1,420.8 | $2,070.5 | | Total equity | $2,334.2 | $2,338.0 | [Consolidated Statements of Cash Flows](index=11&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the first six months of 2024, the company generated $63.1 million in cash from operating activities, a significant turnaround from a $24.7 million use of cash in the same period of 2023, with cash used in investing and financing activities at $54.5 million and $54.8 million, respectively, leading to a net decrease in cash of $56.4 million Six Months Ended June 30 Cash Flow Summary (in millions) | Activity | 2024 | 2023 | | :--- | :--- | :--- | | Net cash provided (used) by operating activities | $63.1 | $(24.7) | | Net cash used by investing activities | $(54.5) | $(38.6) | | Net cash used by financing activities | $(54.8) | $(48.3) | | **Decrease in cash and cash equivalents** | **$(56.4)** | **$(112.4)** | [Business Segment Performance](index=12&type=section&id=Business%20Segment%20Performance) In the second quarter of 2024, both of Avient's segments demonstrated year-over-year growth, with the Color, Additives and Inks segment's sales increasing to $542.0 million and operating income rising to $86.1 million, while the Specialty Engineered Materials segment also grew, with sales of $308.1 million and operating income of $42.8 million Q2 2024 Segment Performance vs. Q2 2023 (in millions) | Segment | Metric | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | :--- | | **Color, Additives and Inks** | Sales | $542.0 | $524.5 | | | Operating Income | $86.1 | $68.0 | | **Specialty Engineered Materials** | Sales | $308.1 | $300.8 | | | Operating Income | $42.8 | $39.7 | [Non-GAAP Reconciliations](index=7&type=section&id=Non-GAAP%20Reconciliations) The company's Q2 2024 adjusted EPS of $0.76 was reconciled from a GAAP EPS of $0.36 by excluding $0.24 per share in special items and $0.16 per share in amortization expense, with adjusted EBITDA for the quarter at $143.3 million, up from $131.3 million year-over-year, and an adjusted EBITDA margin of 16.9% Q2 2024 GAAP to Adjusted EPS Reconciliation | Item | Per Share Amount | | :--- | :--- | | GAAP Diluted EPS from continuing operations | $0.36 | | Special items, after-tax | $0.24 | | Amortization expense, after-tax | $0.16 | | **Adjusted EPS** | **$0.76** | Q2 2024 Adjusted EBITDA Reconciliation (in millions) | Item | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | EBITDA from continuing operations | $116.5 | $109.7 | | Special items, before tax | $28.1 | $21.7 | | Adjustments for Interest & D&A in special items | $(1.3) | $(0.1) | | **Adjusted EBITDA** | **$143.3** | **$131.3** | - Special items before tax in Q2 2024 totaled **$28.1 million**, primarily consisting of environmental remediation costs, restructuring charges, and legal costs[27](index=27&type=chunk)