powerpoint presentation · effective tax rate 675.2 % 124.4 % amounts in the table above may not...
TRANSCRIPT
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Source: June forecast one pagers from Natalia and cash from Board Ops Deck 6/22 & 6/23 emails from Amy
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Source: June forecast one pagers from Natalia and cash from Board Ops Deck 6/22 & 6/23 emails from Amy
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Larisa Ioana Muresan, Romania
Benedetta Giampietri from Italy
Rosana Pascoal from Brazil
Maricruz Rojas Bonifacio, Mexico
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This supplemental schedule provides adjusted Non-GAAP financial information and a quantitative reconciliation of the
difference between the Non -GAAP financial measure and the most directly comparable financial measure calculated and
reported in accordance with GAAP.
THREE MO NTHS ENDED JUNE 30, 2019
Reported (GAAP)
CTI restructuring
initiatives
Impairment loss on assets
and other items
2
Adjusted
(Non-GAAP)
Total revenue $ 1,174.8 $ — $ — $ 1,174.8
Cost of sales (497.5 ) 8.6 — (488.9 )
Selling, general and administrative expenses (646.8 ) 37.1
13.1 (596.6 )
Operating profit 30.5 45.7 13.1 89.3
Gain on sale of business 1 13.2 (13.2 ) — —
All other expenses (22.4 ) — — (22.4 )
Income from continuing operations, before income
taxes 21.3
32.5
13.1 66.9
Income taxes (27.2 ) (6.6 ) — (33.8 )
(Loss) income from continuing operations, net of
tax $ (5.9 ) $ 25.9
$ 13.1
$ 33.1
Diluted EPS from continuing operations $ (0.03 ) $ 0.06
Gross margin 57.7 % 0.7 — 58.4 %
SG&A as a % of revenue 55.1 % (3.2 ) (1.1 ) 50.8 %
Operating margin 2.6 % 3.9 1.1 7.6 %
Effective tax rate 127.7 % 50.5 %
1Gain relates to the sales of the Rye office and the Malaysia Maximin business.
2The Company recorded approximately $13 million of other expenses, primarily professional fees incurred in relation to the Nat ura
transaction, and other impairment losses on assets.
Amounts in the table above may not necessarily sum because the computations are made independently.
Note: The diluted EPS impact for each Non-GAAP item on the table above is not provided due to the participation rights of the Series C
convertible preferred stock. The Reported and Adjusted diluted EPS are calculated independently and factor in the participation rights of the
Series C convertible preferred stock, and, therefore, would cause the amounts not to sum to Adjusted diluted EPS.
Three Months Ended June 30,
2019
Net cash provided by operating activities of continuing operations $ 7.1
Net cash provided by investing activities of continuing operations 19.2
Free cash flow $ 26.3
Net cash used by financing activities of continuing operations $ (28.1 )
This supplemental schedule provides adjusted Non-GAAP financial information and a quantitative reconciliation of the
difference between the Non -GAAP financial measure and the most directly comparable financial measure calculated and
reported in accordance with GAAP.
THREE MO NTHS ENDED JUNE 30, 2018
Reported (GAAP)
CTI restructuring
initiatives
Special tax items
Adjusted (Non-GAAP)
Total revenue $ 1,351.9 $ — $ — $ 1,351.9
Cost of sales (539.7 ) 0.5 — (539.2 )
Selling, general and administrative expenses (759.2 ) 23.2 — (736.0 )
Operating profit 53.0 23.7 — 76.7
Income before income taxes (0.3 ) 23.7 — 23.4
Income taxes (36.7 ) — 5.5 (31.2 )
Net loss $ (37.0 ) $ 23.7 $ 5.5 $ (7.8 )
Diluted EPS $ (0.09 ) $ (0.03 )
Gross margin 60.1 % — — 60.1 %
SG&A as a % of revenue 56.2 % (1.8 ) — 54.4 %
Operating margin 3.9 % 1.8 — 5.7 %
Effective tax rate * 133.3 %
* Calculation not meaningful
Amounts in the table above may not necessarily sum because the computations are made independently.
Note: The diluted EPS impact for each Non-GAAP item on the table above is not provided due to the participation rights of the Series C
convertible preferred stock. The Reported and Adjusted diluted EPS are calculated independently and factor in the participation rights of the
Series C convertible preferred stock, and, therefore, would cause the amounts not to sum to Adjusted diluted EPS.
Three Months Ended June 30,
2018
Net cash used by operating activities of continuing operations $ (10.4 )
Net cash used by investing activities of continuing operations (22.9 )
Free cash flow $ (33.3 )
Net cash used by financing activities of continuing operations $ (252.7 )
This supplemental schedule provides adjusted Non-GAAP financial information and a quantitative reconciliation of the
difference between the Non-GAAP financial measure and the most directly comparable financial measure calculated and
reported in accordance with GAAP.
SIX MONTHS ENDED JUNE 30, 2019
Reported (GAAP)
CTI
restructuring initiatives
Impairment
loss on assets
and other items 2
Adjusted
(Non-GAAP)
Total revenue $ 2,361.7 $ — $ — $ 2,361.7
Cost of sales (1,014.5 ) 12.9 — (1,001.6 )
Selling, general and administrative expenses (1,320.6 ) 86.3
17.2 (1,217.1 )
Operating profit 26.6 99.2 17.2 143.0
Gain on sale of business / assets1 23.5 (23.5 ) — —
All other expenses (33.3 ) — — (33.3 )
Income from continuing operations, before income
taxes 16.8
75.7
17.2 109.7
Income taxes (46.7 ) (10.3 ) — (57.0 )
(Loss) income from continuing operations, net of
tax $ (29.9 ) $ 65.4
$ 17.2
$ 52.7
Diluted EPS from continuing operations $ (0.09 ) $ 0.09
Gross margin 57.0 % 0.6 — 57.6 %
SG&A as a % of revenue 55.9 % (3.6 ) (0.7 ) 51.5 %
Operating margin 1.1 % 4.2 0.7 6.1 %
Effective tax rate 278.0 % 52.0 %
1Gain relates to the sale of the China manufacturing facility in the first quarter of 2019 and to the sales of the Rye office and the Malaysia
Maximin business in the second quarter of 2019.
2The Company recorded approximately $17 million of other expenses, primarily professional fees incurred in relation to the Natura
transaction, and other impairment losses on assets.
Amounts in the table above may not necessarily sum because the computations are made independently.
Note: The diluted EPS impact for each Non-GAAP item on the table above is not provided due to the participation rights of the Series C
convertible preferred stock. The Reported and Adjusted diluted EPS are calculated independently and factor in the participation rights of the
Series C convertible preferred stock, and, therefore, would cause the amounts not to sum to Adjusted diluted EPS.
Six Months
Ended June 30,
2019
Net cash used by operating activities of continuing operations $ (135.6 )
Net cash provided by investing activities of continuing operations 44.8
Free cash flow $ (90.8 )
Net cash used by financing activities of continuing operations $ (10.1 )
This supplemental schedule provides adjusted Non-GAAP financial information and a quantitative reconciliation of the
difference between the Non-GAAP financial measure and the most directly comparable financial measure calc ulated and
reported in accordance with GAAP.
SIX MONTHS ENDED JUNE 30, 2018
Reported (GAAP)
CTI
restructuring initiatives
Special tax
items Adjusted
(Non-GAAP)
Total revenue $ 2,745.4 $ — $ — $ 2,745.4
Cost of sales (1,119.4 ) 1.1 — (1,118.3 )
Selling, general and administrative expenses (1,528.1 ) 33.5 — (1,494.6 )
Operating profit 97.9 34.6 — 132.5
Income before income taxes 10.1 34.6 — 44.7
Income taxes (68.2 ) (2.1 ) 14.7 (55.6 )
Net loss $ (58.1 ) $ 32.5 $ 14.7 $ (10.9 )
Diluted EPS $ (0.15 ) $ (0.05 )
Gross margin 59.2 % — — 59.3 %
SG&A as a % of revenue 55.7 % (1.2 ) — 54.4 %
Operating margin 3.6 % 1.2 — 4.8 %
Effective tax rate 675.2 % 124.4 %
Amounts in the table above may not necessarily sum because the computations are made independently.
Note: The diluted EPS impact for each Non-GAAP item on the table above is not provided due to the participation rights of the Series C
convertible preferred stock. The Reported and Adjusted diluted EPS are calculated independently and factor in the participation rights of the
Series C convertible preferred stock, and, therefore, would cause the amounts not to sum to Adjusted diluted EPS.
Six Months Ended
June 30,
2018
Net cash used by operating activities of continuing operations $ (106.7 )
Net cash used by investing activities of continuing operations (49.9 )
Free cash flow $ (156.6 )
Net cash used by financing activities of continuing operations $ (252.3 )
