EXHIBIT 99.1
Published on April 24, 2019
Exhibit 99.1 |
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News Release |
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Axalta Coating Systems
Two Commerce Square
2001 Market Street
Suite 3600
Philadelphia, PA 19103
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Contact
Christopher Mecray
D +1 215 255 7970
Christopher.Mecray@axalta.com
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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 |
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March 31, 2018 |
June 30, 2018 |
September 30, 2018 |
December 31, 2018 |
December 31, 2018 |
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Income from operations |
$ |
120.0 |
$ |
146.5 |
$ |
47.8 |
$ |
127.8 |
$ |
442.1 |
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Other (income) expense, net |
(2.2 |
) |
8.1 |
5.5 |
3.6 |
15.0 |
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Total |
122.2 |
138.4 |
42.3 |
124.2 |
427.1 |
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Debt extinguishment and refinancing related costs (a)
|
— |
8.4 |
— |
1.1 |
9.5 |
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Termination benefits and other employee related costs (b)
|
(1.3 |
) |
(0.9 |
) |
82.4 |
1.5 |
81.7 |
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Offering and transactional costs (c)
|
— |
0.1 |
0.8 |
0.1 |
1.0 |
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Accelerated depreciation (d)
|
— |
— |
4.2 |
6.1 |
10.3 |
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Indemnity losses (e)
|
— |
0.9 |
— |
3.4 |
4.3 |
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Change in fair value of equity investments (f)
|
0.1 |
0.3 |
— |
0.1 |
0.5 |
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Step-up depreciation and amortization (g)
|
37.6 |
34.5 |
33.7 |
34.3 |
140.1 |
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Adjusted EBIT |
$ |
158.6 |
$ |
181.7 |
$ |
163.4 |
$ |
170.8 |
$ |
674.5 |
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Segment Adjusted EBIT: |
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Performance Coatings |
$ |
76.0 |
$ |
108.9 |
$ |
104.1 |
$ |
110.5 |
$ |
399.5 |
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Transportation Coatings |
45.0 |
38.3 |
25.6 |
26.0 |
134.9 |
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Total |
121.0 |
147.2 |
129.7 |
136.5 |
534.4 |
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Step-up depreciation and amortization (g)
|
37.6 |
34.5 |
33.7 |
34.3 |
140.1 |
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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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