Luxfer Reports Fourth-Quarter 2015 Results

March 15, 2016

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SALFORD, England–(BUSINESS WIRE)–Luxfer Group (NYSE:LXFR), a global materials technology company, today issued its unaudited financial results for the three-month and twelve-month periods ended December 31, 2015. To access a PDF of the complete fourth-quarter 2015 report, click here. The same document is also available at www.luxfer.com.

 
UNAUDITED FINANCIAL RESULTS FOR THE FOURTH QUARTER OF 2015
 
Results are summarized as follows:
   
Three-month periods

ended December 31,

Twelve-month periods

ended December 31,

    2015   2014   2015   2014

Net revenue (excluding surcharge below)

$107.4m

 

$123.1m

$460.3m

 

$487.3m

Rare earth chemical surcharge

$0.3m

$2.2m

Revenue   $107.4m   $123.4m   $460.3m   $489.5m

Trading profit

$9.5m $10.7m $42.3m $44.8m

Trading margin

8.8%

8.7%

9.2%

9.2%

Operating profit   $16.3m   $8.2m   $37.9m   $40.9m
Net income $7.4m

$11.8m

$16.1m $29.2m

Earnings per share – Basic (1) (2)

 

$0.28

 

$0.44

 

$0.60

 

$1.09

Adjusted net income (3)

$7.4m $8.6m $29.5m $30.9m

Adjusted earnings per share – Basic (2)

$0.28

$0.32

$1.10

$1.15

Adjusted earnings per share – Fully diluted (2)

 

$0.27

 

$0.31

 

$1.08

 

$1.11

Adjusted EBITDA (4)

$14.6m $15.8m $62.2m $64.8m

Adjusted EBITDA margin

 

13.6%

 

12.8%

 

13.5%

 

13.2%

Net cash flows from operating activities   $15.2m   $16.0m   $52.8m   $23.0m
Net debt (total debt less cash)   $94.7m   $106.8m   $94.7m   $106.8m
Total equity – book value (net assets) $169.7m $175.4m $169.7m $175.4m

£0.50 ordinary shares outstanding

 

26.9m

 

27.0m

 

26.9m

 

26.9m

 

(1)

  Basic earnings per share is calculated by dividing the profit attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding in the period.
 

(2)

Following the approval of a two-for-one share split at the Annual General Meeting on May 29, 2014 and change in ADR ratio on June 9, 2014, the nominal value of each ordinary share is £0.50 and now represents 1 American Depositary Share (ADS), resulting in the earnings per ordinary share being equivalent to the earnings per ADS. The ADSs are listed on the NYSE under the ticker “LXFR”. Under IAS 33, the number of shares used in the earnings per share calculations for the prior periods shown has been adjusted to achieve comparability.
 

(3)

Adjusted net income consists of net income for the period adjusted for the post tax impact of non-trading items, including IAS 19R retirement benefits finance charge, certain accounting charges relating to acquisitions and disposals of businesses (comprising other income / (expense) from acquisitions and disposals of businesses, the unwind of the discount on deferred contingent consideration from acquisitions and the amortization on acquired intangibles), changes to U.K. defined benefit pension plan, restructuring and other expense and other share based compensation charges. A reconciliation to net income is disclosed in Note 4 of this release “Reconciliation of non-GAAP measures”.
 

(4)

Adjusted EBITDA is defined as profit on operations before tax for the period, finance income (which comprises interest received) and costs (which comprises interest costs, IAS 19R retirement benefits finance charge and the unwind of the discount on deferred contingent consideration from acquisitions), other income / (expense) from acquisitions and disposals of businesses, changes to U.K. defined benefit pension plan, restructuring and other expense, other share based compensation charges, depreciation and amortization and loss on disposal of property, plant and equipment. A reconciliation to net income is disclosed in Note 4 of this release “Reconciliation of non-GAAP measures”.
 

ABOUT LUXFER GROUP

Luxfer Group is a global materials technology group specializing in the design and manufacture of high-performance materials, components and high-pressure gas-containment devices for environmental, healthcare, protection and specialty end-markets. Luxfer customers include both end-users of its products and manufacturers that incorporate Luxfer products into finished goods. For more information, visit www.luxfer.com.

Luxfer Group is listed on the New York Stock Exchange, and its American Depositary Shares (ADSs) trade under the ticker LXFR.

CONTACTS

Investor and news agency communications should initially be directed to Dan Stracner, Director of Investor Relations, U.S. telephone number: +1 951 341 2375; email: dan.stracner@luxfer.net.

FORWARD-LOOKING STATEMENTS

This release contains forward-looking statements.

Examples of such forward-looking statements include, but are not limited to:

(i) statements regarding the Group’s results of operations and financial condition;

(ii) statements of plans, objectives or goals of the Group or its management, including those related to financing, products or services;

(iii) statements of future economic performance; and

(iv) statements of assumptions underlying such statements. Words such as “believes”, “anticipates”, “expects”, “intends”, “forecasts” and “plans” and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements.

By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward-looking statements will not be achieved. The Group cautions that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors include, but are not limited to: (i) future revenues being lower than expected; (ii) increasing competitive pressures in the industry; (iii) general economic conditions or conditions affecting demand for the services offered by us in the markets in which we operate, both domestically and internationally, being less favorable than expected; (iv) worldwide economic and business conditions and conditions in the industries in which we operate; (v) fluctuations in the cost of raw materials and utilities; (vi) currency fluctuations and hedging risks; (vii) our ability to protect our intellectual property; and (viii) the significant amount of indebtedness we have incurred and may incur and the obligations to service such indebtedness and to comply with the covenants contained therein.

The Group cautions that the foregoing list of important factors is not exhaustive. These factors are more fully discussed in the sections “Forward-Looking Statements” and “Risk Factors” in our annual report on Form 20-F for the year ended December 31, 2014, filed with the U.S. Securities and Exchange Commission on March 19, 2015. When relying on forward-looking statements to make decisions with respect to the Group, investors and others should carefully consider the foregoing factors and other uncertainties and events. Such forward-looking statements speak only as of the date on which they are made, and the Group does not undertake any obligation to update or revise any of them, whether as a result of new information, future events or otherwise.

Category: Oil & Gas