Form: 8-K

Current report filing

April 24, 2019

 
 
Exhibit 99.1
News Release
 
axaltalogoa54.jpg
Axalta Coating Systems
Two Commerce Square
2001 Market Street
Suite 3600
Philadelphia, PA 19103
Contact
Christopher Mecray
D +1 215 255 7970
Christopher.Mecray@axalta.com




SUPPLEMENTAL INFORMATION - 2018 ADJUSTED EBIT
The following table reconciles income from operations to adjusted EBIT for the periods presented (in millions):
 
 
Three Months Ended
 
Year Ended
 
 
March 31, 2018
 
June 30, 2018
 
September 30, 2018
 
December 31, 2018
 
December 31, 2018
Income from operations
 
$
120.0

 
$
146.5

 
$
47.8

 
$
127.8

 
$
442.1

Other (income) expense, net
 
(2.2
)
 
8.1

 
5.5

 
3.6

 
15.0

Total
 
122.2

 
138.4

 
42.3

 
124.2

 
427.1

Debt extinguishment and refinancing related costs (a)
 

 
8.4

 

 
1.1

 
9.5

Termination benefits and other employee related costs (b)
 
(1.3
)
 
(0.9
)
 
82.4

 
1.5

 
81.7

Offering and transactional costs (c)
 

 
0.1

 
0.8

 
0.1

 
1.0

Accelerated depreciation (d)
 

 

 
4.2

 
6.1

 
10.3

Indemnity losses (e)
 

 
0.9

 

 
3.4

 
4.3

Change in fair value of equity investments (f)
 
0.1

 
0.3

 

 
0.1

 
0.5

Step-up depreciation and amortization (g)
 
37.6

 
34.5

 
33.7

 
34.3

 
140.1

Adjusted EBIT
 
$
158.6

 
$
181.7

 
$
163.4

 
$
170.8

 
$
674.5

 
 
 
 
 
 
 
 
 
 
 
Segment Adjusted EBIT:
 
 
 
 
 
 
 
 
 
 
Performance Coatings
 
$
76.0

 
$
108.9

 
$
104.1

 
$
110.5

 
$
399.5

Transportation Coatings
 
45.0

 
38.3

 
25.6

 
26.0

 
134.9

Total
 
121.0

 
147.2

 
129.7

 
136.5

 
534.4

Step-up depreciation and amortization (g)
 
37.6

 
34.5

 
33.7

 
34.3

 
140.1

Adjusted EBIT
 
$
158.6

 
$
181.7

 
$
163.4

 
$
170.8

 
$
674.5

(a)
Represents expenses associated with the restructuring and refinancing of our indebtedness, which are not considered indicative of our ongoing operating performance.
 
 
(b)
Represents expenses and associated changes to estimates related to employee termination benefits and other employee-related costs, which includes Axalta CEO recruitment fees. Employee termination benefits are associated with Axalta Way initiatives. These amounts are not considered indicative of our ongoing operating performance.
 
 
(c)
Represents acquisition and divestiture-related expenses, all of which are not considered indicative of our ongoing operating performance.
 
 
(d)
Represents incremental depreciation expense resulting from truncated useful lives of the assets impacted by our manufacturing footprint assessments, which we do not consider indicative of our ongoing operating performance.
 
 
(e)
Represents indemnity losses associated with the acquisition by Axalta of the DuPont Performance Coatings business.
 
 
(f)
Represents mark to market impacts of our equity investments, which we do not consider to be indicative of our ongoing operating performance.
 
 
(g)
Represents the incremental step-up depreciation and amortization expense associated with the acquisition of DuPont Performance Coatings by Axalta. We believe this will assist investors in performing meaningful comparisons of past, present and future operating results and better highlight the results of our ongoing operating performance.


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