Atmus Filtration Technologies (US:ATMU)2024-11-08 11:55Financial Performance - Net sales for Q3 2024 were $404 million, a 1.9% increase from $396 million in Q3 2023[3] - GAAP net income was $44 million, or $0.52 diluted earnings per share, compared to $38 million, or $0.45 diluted earnings per share in the same period last year[6] - Adjusted EBITDA was $79 million with an adjusted EBITDA margin of 19.6%, up from $73 million and 18.3% in Q3 2023[5] - Net income for the nine months ended September 30, 2024, was $145.5 million, compared to $136.5 million for the same period in 2023, reflecting an increase of 6.6%[29] - Basic earnings per share for the nine months ended September 30, 2024, were $1.75, up from $1.64 for the same period in 2023, an increase of 6.7%[31] - The company reported a net income margin of 11.5% for the nine months ended September 30, 2024, compared to 11.1% for the same period in 2023[32] Revenue Guidance - The company raised its 2024 revenue guidance to a range of $1,650 million to $1,675 million[2] - Adjusted earnings per share for 2024 is projected to be between $2.35 and $2.50[2] Cash Flow and Operating Activities - Cash provided by operating activities was $71 million, compared to $58 million in Q3 2023[7] - Cash provided by operating activities for the three months ended September 30, 2024, was $70.7 million, an increase of 21.0% compared to $58.3 million for the same period in 2023[35] - For the nine months ended September 30, 2024, cash provided by operating activities totaled $85.4 million, down 42.0% from $147.3 million in 2023[35] Free Cash Flow - Adjusted free cash flow increased to $65 million from $50 million in the same quarter last year[8] - Free cash flow for the three months ended September 30, 2024, was $54.3 million, up 13.6% from $47.8 million in the prior year[35] - The adjusted free cash flow for the nine months ended September 30, 2024, was $86.1 million, a decrease of 29.6% compared to $122.5 million in the same period of 2023[35] Capital Expenditures - The company incurred capital expenditures of $38.6 million for the nine months ended September 30, 2024, compared to $29.6 million for the same period in 2023, an increase of 30.2%[29] - Capital expenditures for the three months ended September 30, 2024, were $16.4 million, representing a 56.2% increase from $10.5 million in the prior year[35] - One-time separation capital expenditures amounted to $5.1 million for the three months ended September 30, 2024, compared to $2.2 million in the same period of 2023[35] Assets and Liabilities - Total assets increased to $1,218.1 million as of September 30, 2024, up from $1,088.6 million at December 31, 2023, representing a growth of 11.9%[26] - Total current liabilities decreased to $368.3 million as of September 30, 2024, from $375.0 million at December 31, 2023, a reduction of 1.8%[26] - Long-term debt decreased to $577.5 million as of September 30, 2024, down from $592.5 million at December 31, 2023, a decline of 2.5%[26] Stock Repurchase - The company repurchased $10 million of common stock under its $150 million share repurchase program[2] - The company repurchased $10.0 million of common stock during the nine months ended September 30, 2024[29] Tax and Margins - The effective tax rate for Q3 2024 was 18.4%[6] - Gross margin was $111 million, representing 27.6% of net sales, compared to 26.0% in Q3 2023[4] Other Costs - Other one-time separation related costs for the nine months ended September 30, 2024, were $26.9 million, with no comparable figure for the previous year[35] - The company experienced one-time working capital inefficiencies associated with the transition from intercompany settlement terms with Cummins to standalone practices[35]