[Executive Summary & Financial Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Financial%20Highlights) [First Quarter 2024 Performance](index=1&type=section&id=First%20Quarter%202024%20Performance) Avient reported strong first-quarter 2024 results, with adjusted EPS increasing 21% year-over-year to $0.76, exceeding guidance, driven by demand, lower raw material costs, and favorable mix First Quarter 2024 Key Financials | Metric | Q1 2024 | Q1 2023 | YoY Change | | :----- | :------ | :------ | :--------- | | GAAP EPS from continuing operations ($) | 0.54 | 0.23 | +134.8% | | Adjusted EPS ($) | 0.76 | 0.63 | +20.6% | | Sales ($M) | 829.0 | 845.7 | -2.0% | | Adjusted EBITDA Margin (%) | 17.3 | 15.8 | +150 bps | | Operating Income ($M) | 94.0 | 57.1 | +64.6% | | Net Income from continuing operations ($M) | 49.4 | 20.8 | +137.5% | - Adjusted EPS of **$0.76** exceeded guidance of **$0.68**, primarily due to strong demand from defense applications and lower raw material costs[1](index=1&type=chunk) - Adjusted EPS increased **21%** over the prior year, driven by improved margins from lower raw material costs and favorable mix, and lower net interest expense[1](index=1&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) CEO Dr. Ashish Khandpur highlighted positive performance from Dyneema® fiber demand and raw material deflation, noting resilience in the Americas and growth in Greater China - Performance was supported by strong demand for Dyneema® fiber technology used in personal protection applications and raw material deflation[2](index=2&type=chunk) - The Americas continues to be the most resilient, delivering year-over-year sales growth, and Greater China also saw year-over-year growth primarily from industrial and healthcare end markets, offsetting softer demand in Europe and Southeast Asia[2](index=2&type=chunk) [2024 Outlook](index=2&type=section&id=2024%20Outlook) [Second Quarter Guidance](index=2&type=section&id=Second%20Quarter%20Guidance) Avient expects adjusted EPS of $0.71 for the second quarter, a 13% year-over-year increase, driven by demand improvement and continued raw material deflation Second Quarter 2024 Guidance | Metric | Q2 2024 Guidance ($) | YoY Change | | :----- | :------------------- | :--------- | | Adjusted EPS | 0.71 | +13% | - Expected year-over-year demand improvement from consumer, packaging, and defense end markets, which make up roughly **half of the portfolio**[3](index=3&type=chunk) - Raw material deflation is expected to support margin expansion year-over-year, albeit to a lesser extent than in the first quarter[3](index=3&type=chunk) [Full-Year Guidance](index=2&type=section&id=Full-Year%20Guidance) Avient revised its full-year adjusted EPS guidance to $2.50-$2.65 and adjusted EBITDA to $510-$535 million, reflecting strong Q1 and improving demand, while acknowledging macro factors Full-Year 2024 Revised Guidance | Metric | Revised Guidance | Previous Guidance | YoY Growth (Revised) | | :----- | :--------------- | :---------------- | :------------------- | | Adjusted EPS ($) | 2.50 - 2.65 | 2.40 - 2.65 | 6% - 12% | | Adjusted EBITDA ($M) | 510 - 535 | 505 - 535 | N/A | - Revised guidance reflects a balanced view considering better-than-expected first quarter performance, while remaining mindful of a strengthening U.S. dollar, persistent macro inflation, and a higher-for-longer interest rate environment[3](index=3&type=chunk) [Strategic Focus](index=3&type=section&id=Strategic%20Focus) Dr. Khandpur emphasized Avient's focus on driving profitable organic top-line growth and expanding margins through innovation and investments in high-growth end markets - Focus on driving profitable, organic, top-line growth while expanding margins[3](index=3&type=chunk) - Amplify innovation by prioritizing investments in high-growth end markets with attractive secular trends, with a detailed strategy to be communicated later this year[3](index=3&type=chunk) [Company Information](index=2&type=section&id=Company%20Information) [Webcast Details](index=2&type=section&id=Webcast%20Details) Avient hosted a webcast on May 7, 2024, to discuss Q1 results and 2024 outlook, with recordings and presentations available on avient.com/investors - Avient hosted a webcast on Tuesday, **May 7, 2024**, at **8:00 a.m. EST** to provide additional details on its 2024 first quarter and 2024 outlook[3](index=3&type=chunk)[4](index=4&type=chunk) - A recording of the webcast and the slide presentation will be available at avient.com/investors/events-presentations immediately following the conference call and will be accessible for **one year**[4](index=4&type=chunk) [Non-GAAP Financial Measures](index=3&type=section&id=Non-GAAP%20Financial%20Measures) Avient utilizes non-GAAP measures like adjusted EPS and EBITDA to evaluate performance and allocate resources, but does not provide forward-looking GAAP reconciliations due to forecasting difficulties - The Company uses non-GAAP financial measures including adjusted EPS, adjusted operating income, adjusted EBITDA and adjusted EBITDA margins[5](index=5&type=chunk) - These measures are used by Avient's chief operating decision maker to monitor and evaluate the ongoing performance of the Company and each business segment and to allocate resources[5](index=5&type=chunk) - The Company does not provide reconciliations of forward-looking non-GAAP financial measures to GAAP due to the inherent difficulty of forecasting the timing and amount of certain items (e.g., environmental remediation costs, mark-to-market adjustments, acquisition related costs)[6](index=6&type=chunk) [About Avient](index=3&type=section&id=About%20Avient) Avient Corporation is a leading provider of specialized and sustainable materials solutions, offering products like Dyneema® fiber and technologies for recyclability, and is certified ACC Responsible Care® - Avient Corporation provides specialized and sustainable materials solutions that transform customer challenges into opportunities[8](index=8&type=chunk) - Key solutions include Dyneema® fiber for ballistic personal protection, technologies improving recyclability and enabling recycled content, lightweighting solutions, and sustainable infrastructure solutions[8](index=8&type=chunk) - Avient is certified ACC Responsible Care®, a founding member of the Alliance to End Plastic Waste and certified Great Place to Work®[8](index=8&type=chunk) [Forward-looking Statements](index=4&type=section&id=Forward-looking%20Statements) The report contains forward-looking statements subject to business risks and uncertainties, including market disruptions, currency fluctuations, and regulatory changes, which could cause actual results to differ - Statements that are not reported financial results or other historical information are 'forward-looking statements' subject to business risks and uncertainties that could cause actual results to differ materially[9](index=9&type=chunk) - Factors that could cause actual results to differ include disruptions in credit markets, currency fluctuations, supply chain issues, changes in laws and regulations, fluctuations in raw material and energy prices, demand for products, production outages, litigation, dividend policy, information systems failures and cyberattacks, restructuring costs, and ability to achieve strategic objectives and integrate acquisitions[9](index=9&type=chunk) - The company undertakes no obligation to publicly update forward-looking statements[10](index=10&type=chunk) [Financial Statements & Reconciliations](index=5&type=section&id=Financial%20Statements%20%26%20Reconciliations) [Condensed Consolidated Statements of Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) [Summary and Adjusted EPS Reconciliation](index=5&type=section&id=Summary%20and%20Adjusted%20EPS%20Reconciliation) This section summarizes condensed consolidated statements of income and reconciles GAAP net income and EPS to adjusted figures, excluding special items and intangible amortization Summary of Condensed Consolidated Statements of Income (Q1 2024 vs. Q1 2023) | Metric | Q1 2024 | Q1 2023 | | :----- | :------ | :------ | | Sales ($M) | 829.0 | 845.7 | | Operating income ($M) | 94.0 | 57.1 | | Net income from continuing operations attributable to Avient shareholders ($M) | 49.4 | 20.8 | | Diluted EPS from continuing operations attributable to Avient shareholders ($) | 0.54 | 0.23 | Reconciliation to Adjusted Net Income / EPS (Q1 2024 vs. Q1 2023) | Metric | Q1 2024 ($M) | Q1 2024 EPS ($) | Q1 2023 ($M) | Q1 2023 EPS ($) | | :----- | :----------- | :-------------- | :----------- | :-------------- | | Net income from continuing operations attributable to Avient shareholders | 49.4 | 0.54 | 20.8 | 0.23 | | Special items, after-tax | 5.5 | 0.06 | 22.3 | 0.24 | | Amortization expense, after-tax | 14.9 | 0.16 | 15.1 | 0.16 | | **Adjusted net income / EPS** | **69.8** | **0.76** | **58.2** | **0.63** | [Detailed Statement of Income](index=6&type=section&id=Detailed%20Statement%20of%20Income) This attachment presents detailed condensed consolidated statements of income for Q1 2024 and 2023, including cost of sales, gross margin, and earnings per share Condensed Consolidated Statements of Income (Q1 2024 vs. Q1 2023) | Metric | Q1 2024 | Q1 2023 | | :----- | :------ | :------ | | Sales ($M) | 829.0 | 845.7 | | Cost of sales ($M) | 550.8 | 598.1 | | Gross margin ($M) | 278.2 | 247.6 | | Selling and administrative expense ($M) | 184.2 | 190.5 | | Operating income ($M) | 94.0 | 57.1 | | Interest expense, net ($M) | (26.6) | (28.8) | | Income from continuing operations before income taxes ($M) | 66.5 | 29.0 | | Income tax expense ($M) | (16.8) | (7.7) | | Net income from continuing operations ($M) | 49.7 | 21.3 | | Net income attributable to Avient common shareholders ($M) | 49.4 | 19.9 | | Diluted EPS from continuing operations ($) | 0.54 | 0.23 | | Cash dividends declared per share ($) | 0.2575 | 0.2475 | [Summary of Special Items](index=7&type=section&id=Summary%20of%20Special%20Items) This section details the impact of special items, such as restructuring and acquisition-related costs, on Avient's financial results, which are excluded from adjusted non-GAAP measures Impact of Special Items on Net Income from Continuing Operations (Q1 2024 vs. Q1 2023) | Special Item Category | Q1 2024 | Q1 2023 | | :-------------------- | :------ | :------ | | Restructuring costs (Cost of sales) ($M) | 3.6 | (6.6) | | Environmental remediation costs (Cost of sales) ($M) | (4.0) | (1.4) | | Restructuring and employee separation costs (S&A) ($M) | (0.7) | (11.3) | | Legal and other (S&A) ($M) | (3.5) | (4.4) | | Acquisition related costs (S&A) ($M) | (1.6) | (3.4) | | **Total Impact on Operating Income ($M)** | **(6.2)** | **(27.1)** | | Income tax benefit on special items ($M) | 1.4 | 6.9 | | **Impact on Net Income from Continuing Operations ($M)** | **(5.5)** | **(22.3)** | | Diluted EPS impact ($) | (0.06) | (0.24) | - Special items include charges related to specific strategic initiatives or financial restructuring such as consolidation of operations, debt extinguishment costs, acquisition/divestiture costs, employee separation costs, asset impairments, pension adjustments, environmental remediation costs, and litigation results[19](index=19&type=chunk) [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This attachment presents condensed consolidated balance sheets as of March 31, 2024, and December 31, 2023, detailing assets, liabilities, and shareholders' equity, showing changes in cash and total assets Condensed Consolidated Balance Sheets (March 31, 2024 vs. December 31, 2023) | Metric | March 31, 2024 ($M) | December 31, 2023 ($M) | | :----- | :------------------ | :--------------------- | | **ASSETS** | | | | Cash and cash equivalents | 444.3 | 545.8 | | Accounts receivable, net | 475.3 | 399.9 | | Inventories, net | 354.0 | 347.0 | | Total current assets | 1,390.7 | 1,407.6 | | Total assets | 5,876.1 | 5,968.5 | | **LIABILITIES & EQUITY** | | | | Total current liabilities | 732.1 | 773.6 | | Long-term debt | 2,069.4 | 2,070.5 | | Total liabilities and equity | 5,876.1 | 5,968.5 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This attachment provides condensed consolidated statements of cash flows for Q1 2024 and 2023, showing increased net cash outflow from operating activities primarily due to accounts receivable Condensed Consolidated Statements of Cash Flows (Q1 2024 vs. Q1 2023) | Cash Flow Activity | Q1 2024 ($M) | Q1 2023 ($M) | | :----------------- | :----------- | :----------- | | Net cash used by operating activities | (42.8) | (22.2) | | Net cash used by investing activities | (24.5) | (13.0) | | Net cash used by financing activities | (28.1) | (25.6) | | Decrease in cash and cash equivalents | (101.5) | (58.4) | | Cash and cash equivalents at end of period | 444.3 | 582.7 | - The increase in accounts receivable significantly contributed to the higher net cash used by operating activities in **Q1 2024**[24](index=24&type=chunk) [Business Segment Operations](index=10&type=section&id=Business%20Segment%20Operations) This section breaks down sales, operating income, and EBITDA by business segment, showing improved operating income and EBITDA for both segments year-over-year Sales by Segment (Q1 2024 vs. Q1 2023) | Segment | Q1 2024 ($M) | Q1 2023 ($M) | YoY Change | | :------ | :----------- | :----------- | :--------- | | Color, Additives and Inks | 515.3 | 537.0 | -4.0% | | Specialty Engineered Materials | 314.4 | 309.7 | +1.5% | | **Total Sales** | **829.0** | **845.7** | **-2.0%** | Operating Income by Segment (Q1 2024 vs. Q1 2023) | Segment | Q1 2024 ($M) | Q1 2023 ($M) | YoY Change | | :------ | :----------- | :----------- | :--------- | | Color, Additives and Inks | 74.8 | 65.6 | +14.0% | | Specialty Engineered Materials | 53.4 | 43.1 | +23.9% | | **Total Operating Income** | **94.0** | **57.1** | **+64.6%** | Adjusted EBITDA by Segment (Q1 2024 vs. Q1 2023) | Segment | Q1 2024 ($M) | Q1 2023 ($M) | YoY Change | | :------ | :----------- | :----------- | :--------- | | Color, Additives and Inks | 96.7 | 91.4 | +5.8% | | Specialty Engineered Materials | 73.0 | 64.3 | +13.5% | | **Total Adjusted EBITDA** | **143.1** | **133.8** | **+6.9%** | [Reconciliation of Non-GAAP Financial Measures (Detailed)](index=11&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures%20(Detailed)) This attachment provides detailed reconciliations of GAAP to adjusted non-GAAP measures for gross margin, operating income, and EBITDA, along with full-year 2023 and Q2 2023 adjusted EPS reconciliations Reconciliation to Adjusted Gross Margin (Q1 2024 vs. Q1 2023) | Metric | Q1 2024 ($M) | Q1 2023 ($M) | | :----- | :----------- | :----------- | | Gross margin - GAAP | 278.2 | 247.6 | | Special items in gross margin | 0.4 | 8.0 | | **Adjusted gross margin** | **278.6** | **255.6** | | Adjusted gross margin as a percent of sales (%) | 33.6 | 30.2 | Reconciliation to Adjusted Operating Income (Q1 2024 vs. Q1 2023) | Metric | Q1 2024 ($M) | Q1 2023 ($M) | | :----- | :----------- | :----------- | | Operating income - GAAP | 94.0 | 57.1 | | Special items in operating income | 6.2 | 27.1 | | **Adjusted operating income** | **100.2** | **84.2** | | Adjusted operating income as a percent of sales (%) | 12.1 | 10.0 | Reconciliation to Adjusted EBITDA (Q1 2024 vs. Q1 2023) | Metric | Q1 2024 ($M) | Q1 2023 ($M) | | :----- | :----------- | :----------- | | EBITDA from continuing operations | 137.4 | 108.3 | | Special items, before tax | 6.2 | 27.3 | | Depreciation and amortization included in special items | (0.5) | (1.8) | | **Adjusted EBITDA** | **143.1** | **133.8** | Reconciliation of Full-Year 2023 Adjusted EPS | Metric | FY 2023 ($M) | FY 2023 EPS ($) | | :----- | :----------- | :-------------- | | Net income from continuing operations attributable to Avient shareholders | 75.8 | 0.83 | | Special items, after-tax | 79.3 | 0.86 | | Amortization expense, after-tax | 61.5 | 0.67 | | **Adjusted net income / EPS** | **216.6** | **2.36** | Reconciliation of Q2 2023 Adjusted EPS | Metric | Q2 2023 ($M) | Q2 2023 EPS ($) | | :----- | :----------- | :-------------- | | Net income from continuing operations attributable to Avient shareholders | 22.1 | 0.24 | | Special items, after-tax | 19.6 | 0.21 | | Amortization expense, after-tax | 16.2 | 0.18 | | **Adjusted net income / EPS** | **57.9** | **0.63** |

Wall Street analysts forecast that Avient (AVNT) will report quarterly earnings of $0.69 per share in its upcoming release, pointing to a year-over-year increase of 9.5%. It is anticipated that revenues will amount to $825.45 million, exhibiting a decline of 2.4% compared to the year-ago quarter.The consensus EPS estimate for the quarter has undergone an upward revision of 0.1% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their ...

The Zacks Chemicals Diversified industry is poised to benefit from a recovery in demand in certain key markets, including consumer durables and building & construction, as the prolonged customer inventory de-stocking that hurt the industry for most of 2023 has largely ended.Eastman Chemical Company (EMN) , Avient Corporation (AVNT) , Innospec Inc. (IOSP) and Kronos Worldwide, Inc. (KRO) are well-placed to benefit from the rebound in demand. Strategic measures, including operating cost reductions and aggress ...

Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yie ...

Company Performance - Avient (AVNT) has returned 0.5% year-to-date, outperforming the Basic Materials sector, which has returned an average of -3.3% [2] - Over the past 90 days, the Zacks Consensus Estimate for Avient's full-year earnings has increased by 0.1%, indicating improved analyst sentiment and earnings outlook [2] - Avient is currently ranked 2 (Buy) in the Zacks Rank system, suggesting it has characteristics that may allow it to beat the market in the near term [1] Industry Context - Avient is part of the Chemical - Diversified industry, which consists of 29 companies and currently ranks 170 in the Zacks Industry Rank [3] - The Chemical - Diversified industry has experienced an average loss of about 5.8% year-to-date, indicating that Avient is performing better than its peers in this specific industry [3] - Another company in the Basic Materials sector, Kronos Worldwide (KRO), has shown a year-to-date return of 13.8% and also holds a Zacks Rank of 2 (Buy) [2][3]

yoh4nnAvient Corporation (NYSE:AVNT) is a chemicals company that has a Color Additives and Inks business, and a Specialty Engineered Materials business. In 2023, Avient's Color Additives and Inks business accounted for around $358 million and the Specialty Engineered Materials accounted for $224 million of the company's total $502 million in EBITDA. The company, which was previously known as PolyOne, changed its name to Avient in 2020 after it acquired Clariant Masterbatch. In the past 10 years, Avient' ...

United States Securities and Exchange Commission Washington, DC 20549 FORM 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission file number 1-16091 Avient Corporation Ohio 34-1730488 (State or other jurisdiction (I.R.S. Employer Identification No.) of incorporation or organization) Avient C ...

Financial Data and Key Metrics Changes - The company reported fourth quarter adjusted EPS of $0.52, reflecting a 24% increase over the prior-year quarter [10][16] - Fourth quarter adjusted EBITDA margins were 15.9%, showing a 240 basis point improvement year-over-year [16] - Sales were down 9% year-over-year, primarily due to weaker demand, but EBITDA grew by 7% [17][20] Business Line Data and Key Metrics Changes - The Color, Additives and Inks segment grew EBITDA by 20% in the quarter, driven by improved demand in consumer and packaging markets [17] - The Specialty Engineered Materials segment saw a decline of $6 million in EBITDA, largely due to reduced demand in telecommunications [18] Market Data and Key Metrics Changes - The packaging and consumer markets, which account for over 40% of sales, experienced a slower pace of destocking, with declines of only 4% and 3% respectively from Q3 to Q4 [11] - Healthcare sales were down 9% year-over-year, but sequentially increased by 3% from Q3 to Q4, indicating steady underlying demand [12] - Telecommunications was the weakest end market, with expectations of continued softness in the first half of 2024 [13] Company Strategy and Development Direction - The company focuses on four key growth drivers: sustainable solutions, composites, healthcare, and emerging regions, which currently make up 60% of the business [9] - The new CEO emphasized the importance of a strong customer focus and innovation to drive profitable growth [9][25] - The company plans to prioritize organic growth and invest in R&D and operational capabilities while remaining open to smaller bolt-on acquisitions [35][36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about demand recovery in the US and Canada as destocking ends, while remaining cautious about the European market due to geopolitical issues [14][22] - The company anticipates adjusted earnings per share for 2024 to be between $2.40 to $2.65, with adjusted EBITDA of $505 million to $535 million [21][22] - Management highlighted the potential for growth in the healthcare sector as the population ages and self-care trends increase [10][12] Other Important Information - The company has paid down $300 million of debt over the last 15 months and aims to reduce leverage closer to 2 times over time [36][63] - Raw material costs are expected to continue deflating in the first half of 2024, providing a benefit to margins [22][39] Q&A Session Summary Question: What is the expected range of sales growth for 2024? - Management indicated that sales growth is expected to be in the low to mid-single digits, with most demand growth anticipated in the second half of the year [28][29] Question: What are the capital allocation priorities for this year? - The focus will be on organic growth, with investments in R&D and operational capabilities, while remaining open to smaller acquisitions [35][36] Question: Can you provide insights on destocking trends in packaging and consumer markets? - Destocking has slowed significantly, with expectations of continued improvement in demand as the year progresses [41][42] Question: What is the outlook for free cash flow in the context of returning to growth? - Free cash flow is expected to be impacted by working capital usage, with capital expenditures increasing to $140 million primarily for IT investments [54][55] Question: How will raw material cost deflation impact pricing? - The company has maintained pricing discipline, and any price decreases are expected to be minimal and isolated [48][49]

AVIENT CORPORATION F O U R T H Q UA R T E R 2 0 2 3 R E S U LT S A N D 2 0 2 4 F I N A N C I A L G U I DA N C E (NYSE: AVNT) F E B R UA RY 1 4 , 2 0 2 4 DISCLAIMER Forward-Looking Statements Certain statements contained in or incorporated by reference into this presentation constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give current expectations or forecasts of future events and are not guarantees of future perfo ...

For the quarter ended December 2023, Avient (AVNT) reported revenue of $719 million, down 9% over the same period last year. EPS came in at $0.52, compared to $0.39 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $709.35 million, representing a surprise of +1.36%. The company delivered an EPS surprise of +10.64%, with the consensus EPS estimate being $0.47.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they ...