Fourth Quarter E.P.S. of $0.92 (Adjusted E.P.S. of $0.87)
ALPHARETTA, Ga., Feb. 18, 2020 /PRNewswire/ -- Neenah, Inc. (NYSE: NP) today reported 2019 fourth quarter and full-year results.
Fourth Quarter Highlights
- Revenues of $213.6 million decreased 11 percent versus the fourth quarter of 2018 with a decline of approximately three percent due to the Company's sale of its Brattleboro mill in December 2018.
- Earnings per diluted share of $0.92 increased 21% compared with $0.76 in the fourth quarter of 2018.
- Adjusted earnings per share of $0.87 increased 64% compared with $0.53 in the prior year. Adjustments in 2019 were primarily to eliminate a pension plan curtailment gain, and in 2018 to remove favorable impacts related to the impairment loss and acquisition-related items. Details on all adjusting items are included later in this release.
- Operating margins increased 296 basis points (over 400 basis points on an adjusted basis) from the prior year.
- Quarterly cash dividends of $0.45 per share increased 10 percent compared with the prior year.
Full Year Highlights
- Revenues of $938.5 million decreased 9 percent versus 2018.
- Earnings per diluted share from continuing operations of $3.26 increased compared with earnings of $2.17 per share in 2018.
- Adjusted earnings per share from continuing operations of $3.47 in 2019 compared with $3.50 per share in 2018. Adjustments of $0.21 per share in 2019 consisted primarily of accelerated depreciation and other costs related to the idling of a fine paper machine, and in 2018 adjustments of $1.33 per share were primarily for the impairment loss on the Brattleboro mill.
- Free cash flow (cash from operations less capital spending) was a record $76.2 million.
- Debt was reduced by $38.3 million and cash returns to shareholders were $36.7 million.
"Adjusted earnings" is a non-GAAP measure and is used to improve comparability of year-on-year results. Adjusted figures are reconciled to GAAP later in this release.
"I'm pleased with what our teams accomplished in 2019, as they pursued the most important, long-term, strategic decisions that were within our control - redoubling safety efforts, rationalizing an under-performing distributor and shuttering higher cost manufacturing assets, all while continually paying close attention to cost and price management. While many global markets remain challenged for growth, the success of our focused efforts was evidenced by our record cash flows and improved margins, allowing Neenah to exit the year in a significantly better position than we began", said John O'Donnell, Chief Executive Officer. "Our strong financial condition and investments in product innovation, coupled with existing organic growth catalysts already in place, position us well to recommence our strong track record of capital-efficient growth by investing in strategies that will increase our portfolio of growing, profitable businesses."