Avient (US:AVNT)2022-04-22 21:42Q1 2022 Performance - Avient's Q1 2022 sales reached $1.294 billion, reflecting an 11% increase[13] - The adjusted operating income for Q1 2022 was $136 million[13] - Adjusted EPS for Q1 2022 stood at $0.99[17] Segment Performance - Color, Additives and Inks (CAI) sales were $650 million, a 7% increase (10% excluding FX)[12] with operating income of $95 million, a 7% increase (11% excluding FX)[12] - Specialty Engineered Materials (SEM) sales were $245 million, a 13% increase (17% excluding FX)[12] with operating income of $40 million, an 18% increase (20% excluding FX)[12] - Distribution sales were $433 million, a 19% increase[12], with operating income flat at $24 million[12] Dyneema Acquisition - Avient is acquiring Dyneema for $1.48 billion, which represents a 11.4x multiple of 2022 EBITDA[19, 54] - Dyneema is expected to contribute $415 million in sales with over 30% EBITDA margins[19] - The acquisition is expected to add $0.35 to Avient's pro forma 2022 EPS (excluding intangible amortization)[19, 21] - The composites platform revenue will increase from $261 million to $680 million and EBITDA from $49 million to $180 million[19] Distribution Divestiture - The Distribution business has grown its healthcare portfolio to over 25% of sales[52] - The Distribution business has 98% free cash flow conversion drives greater than 30% after-tax return on invested capital (ROIC)[52] - Potential divestiture allows us to remain modestly leveraged with net debt to adjusted EBITDA expected to be 2.9x[52] Pro Forma Modeling (with Dyneema Acquisition and Potential Distribution Divestiture) - Pro forma revenue with Dyneema acquisition is estimated at $5.515 billion, and with the potential divestiture of Distribution, it's estimated at $3.740 billion[64] - Pro forma adjusted EBITDA with Dyneema acquisition is estimated at $765 million, and with the potential divestiture of Distribution, it's estimated at $660 million[64] - Pro forma EPS (excluding amortization) with Dyneema acquisition is estimated at $4.31, and with the potential divestiture of Distribution, it's estimated at $3.75[64]