Avient (US:AVNT)2025-05-06 10:02Financial Performance - First quarter 2025 sales were $826.6 million, a slight decrease of 0.3% compared to $829.0 million in the prior year quarter[2]. - First quarter GAAP EPS was ($0.22), down from $0.54 in the prior year quarter, impacted by special items totaling $0.82 related to an impairment[3][6]. - Adjusted EPS for the first quarter was $0.76, consistent with the prior year quarter, reflecting a 4% growth when excluding the unfavorable impact of foreign exchange[4][6]. - The company achieved 2% organic sales growth in the first quarter, excluding foreign exchange effects[6]. - For the second quarter, the company expects adjusted EPS of $0.79, representing a 4% growth over the prior year quarter[7]. - Full year adjusted EPS guidance remains unchanged at a range of $2.70 to $2.94[6][7]. - For the year ended December 31, 2024, net income attributable to Avient common shareholders was $169.5 million, resulting in an EPS of $1.84[37]. - Adjusted net income for the same period was $244.9 million, with an adjusted EPS of $2.66[37]. - For the three months ended June 30, 2024, net income attributable to Avient common shareholders was $33.6 million, leading to an EPS of $0.36[37]. - Adjusted net income for the second quarter was $70.2 million, with an adjusted EPS of $0.76[37]. Operational Metrics - Adjusted EBITDA margins expanded by 20 basis points to 17.5% in the first quarter[5]. - The adjusted EBITDA for the first quarter of 2025 was $144.7 million, up from $143.1 million in the same period last year, representing an adjusted EBITDA margin of 17.5%[36]. - The gross margin for the first quarter of 2025 was $263.2 million, down from $278.2 million in the first quarter of 2024, with an adjusted gross margin of $270.9 million[36]. - Operating income for the first quarter of 2025 was $0.7 million, significantly lower than $94.0 million in the same quarter of 2024[36]. - The company incurred special items impacting operating income totaling $99.5 million for the first quarter of 2025, compared to $6.2 million in the prior year[36]. Cash Flow and Debt Management - The company plans to pay down $100 to $200 million of debt by year-end, supported by a strong cash position and expected free cash flow[7]. - Cash and cash equivalents decreased to $456.0 million as of March 31, 2025, down from $544.5 million at the end of 2024[28]. - Accounts receivable increased to $489.6 million in the first quarter of 2025, compared to $399.5 million in the previous quarter[28]. - The total assets remained stable at $5,811.2 million as of March 31, 2025, compared to $5,811.1 million at the end of 2024[28]. Expense Management - The company reported a significant increase in selling and administrative expenses, totaling $262.5 million for the first quarter of 2025, compared to $184.2 million in the same period last year[34]. - Special items after-tax for the year totaled $15.9 million, contributing $0.17 to EPS[37]. - Amortization expense after-tax for the year was $59.5 million, impacting EPS by $0.65[37]. - Special items after-tax for the second quarter amounted to $21.8 million, adding $0.24 to EPS[37]. - Amortization expense after-tax for the second quarter was $14.8 million, affecting EPS by $0.16[37]. Market Performance - Organic sales growth was strong in Asia and Latin America, with increases of 9% and 17% respectively, while the U.S. and Canada saw a 3% decline[7]. - The company is focused on executing its strategy to grow organically above market rates while managing costs and enhancing margins[8].