B
$45.81
Barnes Group
$.57
1.26%
Earnings Details
3rd Quarter September 2021
Friday, October 29, 2021 6:30:00 AM
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Summary

Barnes Narrows Guidance

Barnes Group (B) reported 3rd Quarter September 2021 earnings of $0.55 per share on revenue of $325.1 million. The consensus earnings estimate was $0.50 per share on revenue of $321.7 million. Revenue grew 20.8% on a year-over-year basis.

The company said it now expects 2021 earnings of $1.83 to $1.93 per share and continues to expect revenue of $1.27 billion to $1.28 billion. The company's previous guidance was earnings of $1.83 to $1.98 per share and the current consensus earnings estimate is $1.87 per share on revenue of $1.27 billion for the year ending December 31, 2021.

Barnes Group Inc is an industrial and aerospace manufacturer and service provider, serving end markets and customers. Its engineered products and services are used in critical applications that provide transportation, manufacturing and technology.

Results
Reported Earnings
$0.55
Earnings Whisper
-
Consensus Estimate
$0.50
Reported Revenue
$325.1 Mil
Revenue Estimate
$321.7 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Barnes Group Inc. Reports Third Quarter 2021 Financial Results

  • Sales of $325 million, up 21% from last year; Organic Sales up 20%
  • Operating Income of $43.7 million; Adjusted Operating Income of $43.9 million, up 39% from last year
  • Operating Margin of 13.4%; Adjusted Operating Margin of 13.5%, up 180 bps from last year
  • GAAP EPS of $0.55; Adjusted EPS of $0.55, up 83% from last year’s $0.30
  • 2021 Organic Sales Growth Expectation of up 11% to 12%
  • 2021 Adjusted EPS Outlook of $1.83 to $1.93; Up 12% to 18% from 2020 Adjusted EPS
    of $1.64

BRISTOL, Conn.--(BUSINESS WIRE)--Barnes Group Inc. (NYSE: B), a global provider of highly engineered products, differentiated industrial technologies, and innovative solutions, today reported financial results for the third quarter of 2021.

“Barnes Group generated a strong quarter of year-over-year performance with solid organic sales growth, further margin expansion, and increased earnings per share. Sequentially, sales, margin, and earnings likewise improved,” said Patrick J. Dempsey, President and Chief Executive Officer of Barnes Group Inc. “Aerospace end markets continue to demonstrate solid recovery with improving flight activity. Industrial end markets, while seeing good customer demand, are experiencing some headwinds as supply chain issues remain a near-term challenge,” added Dempsey.

Third Quarter 2021 Highlights

Third quarter 2021 net sales of $325 million were up 21% from $269 million in the prior year period, with organic sales (1) increasing 20%. Each of the Company’s strategic business units generated double digit organic sales growth. Foreign exchange had a positive impact on sales of approximately 1%. On a sequential basis, sales improved 1% from the second quarter of 2021. Operating income was $43.7 million versus $31.2 million a year ago and operating margin was 13.4% versus 11.6% last year. Excluding restructuring charges of $0.2 million this year and $0.3 million in the prior year period, adjusted operating income was up 39% and adjusted operating margin was up 180 bps from a year ago.

Interest expense was $4.0 million, an increase of $0.3 million from the prior year quarter due to a higher average interest rate, offset in part by lower average borrowings.

The Company's effective tax rate for the third quarter of 2021 was 27.6% compared with 44.1% in the third quarter of 2020 and 37.6% for the full year 2020. The decrease in the third quarter 2021 effective tax rate from the full year 2020 rate is primarily due to the absence of tax expense related to the sale of the Seeger business in 2020, a benefit relating to the tax basis of goodwill at Automation, the positive resolution of a foreign tax matter in the current year quarter, and a favorable mix in earnings based on tax jurisdictions. These items were partially offset by a charge relating to UK legislative changes.

Net income for the third quarter was $27.9 million, or $0.55 per diluted share, compared to $15.4 million, or $0.30 per diluted share, a year ago.

Year-to-date 2021 cash provided by operating activities was $127.8 million versus $163.8 million in the prior year period. Free cash flow was $101.1 million compared to $133.7 million last year. Capital expenditures were $26.7 million, down $3.4 million from a year ago.

Segment Performance and End Market Outlook

Industrial

Third quarter sales were $232 million, up 18% from $197 million in the prior year period. Organic sales increased 17% reflecting strong sales performance across each of our businesses. Favorable foreign exchange increased sales by approximately $2 million, or 1%. On a sequential basis, total Industrial sales decreased slightly from the second quarter of 2021.

Operating profit in the third quarter was $30.1 million, up 23% from $24.4 million in the prior year period. The increase in operating profit was driven by the contribution of higher sales volumes, offset in part by higher personnel costs including incentive compensation, higher raw material and freight costs, and costs incurred in support of segment growth initiatives. Operating margin was 13.0%, up 60 bps from a year ago.

Aerospace

Third quarter sales were $94 million, up 30% from $72 million last year, benefitting from an improving aerospace end market. Aerospace original equipment manufacturing (“OEM”) sales increased 23%, while aftermarket sales increased 46%. On a sequential basis, Aerospace sales increased 8% from the second quarter of 2021.

Operating profit was $13.6 million, up 100% from $6.8 million in the prior year period. Excluding $0.2 million of restructuring costs this year and $0.3 million in the prior year period, adjusted operating profit was up 95% from a year ago. The increase in adjusted operating profit was driven by the contribution of higher sales volumes and favorable productivity, offset in part by higher compensation costs including incentive compensation. Adjusted operating margin was 14.8%, up 490 bps from 9.9% last year.

Aerospace OEM backlog ended the third quarter at $665 million, down 4% from June 2021. The Company expects to convert approximately 40% of this backlog to revenue over the next 12 months.

Balance Sheet and Liquidity

Barnes Group’s balance sheet and liquidity profile remain well-positioned and supportive of ongoing investments in growth initiatives. The Company has liquidity of $93 million in cash and approximately $477 million available under the revolving credit facility, subject to covenants which would have allowed $283 million under our current credit agreements. With respect to the balance sheet, our “Debt to EBITDA” ratio, as defined in our credit agreements, was approximately 2.6 times at quarter end, down from 2.9 times at the end of the second quarter 2021.

Updated 2021 Outlook

Barnes Group continues to expect 2021 organic sales to be up 11% to 12%. Foreign exchange is anticipated to have an approximate 2% favorable impact on 2021 sales, while divested revenues will have an approximate negative 1% impact. Operating margin is now forecasted to be approximately 12.5%, down from the prior outlook of approximately 13% as raw material and freight costs are forecasted to have an impact on our Industrial business. Adjusted earnings per share are now anticipated to be in the range of $1.83 to $1.93, up 12% to 18% from 2020’s adjusted earnings per share of $1.64 and lower at the top end of our prior range of $1.83 to $1.98. The Company expects capital expenditures of approximately $40 million and an effective tax rate of approximately 29% for 2021. Cash conversion in now expected to be approximately 120% of net income.

Conference Call Information

Barnes Group Inc. will conduct a conference call with investors to discuss third quarter 2021 results at 8:30 a.m. ET today, October 29, 2021. The public may access the conference through a live audio webcast available on the Investor Relations section of Barnes Group’s website at www.BGInc.com. The conference is also available by direct dial at (844) 884-8225 in the U.S. or (647) 689-4194 outside of the U.S.; Conference ID 8123687. Supplemental materials will be posted to the Investor Relations section of the Company's website prior to the conference call.

In addition, the call will be recorded and available for playback from 12:00 p.m. (ET) on Friday, October 29, 2021 until 11:59 p.m. (ET) on Friday, November 5, 2021, by dialing (416) 621-4642; Conference ID 8123687.

Note:
(1) Organic sales growth represents the total reported sales increase within the Company’s ongoing businesses less the impact of foreign currency translation and acquisition and divestitures completed in the preceding twelve months.

About Barnes Group

Barnes Group Inc. (NYSE: B) is a global provider of highly engineered products, differentiated industrial technologies, and innovative solutions, serving a wide range of end markets and customers. Its specialized products and services are used in far-reaching applications including aerospace, transportation, manufacturing, automation, healthcare, and packaging. The skilled and dedicated employees of Barnes Group around the globe are committed to the highest performance standards and achieving consistent, sustainable profitable growth. Barnes Group is committed to corporate accountability and furthering environmental, social and governance principles as evidenced by our listing as one of America’s Most Responsible Companies by Newsweek. For more information, visit www.BGInc.com.

Forward-Looking Statements

This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements often address our expected future operating and financial performance and financial condition, and often contain words such as "anticipate," "believe," "expect," "plan," "estimate," "project," "continue," "will," "should," "may," and similar terms. These forward-looking statements do not constitute guarantees of future performance and are subject to a variety of risks and uncertainties that may cause actual results to differ materially from those expressed in the forward-looking statements. These include, among others: difficulty maintaining relationships with employees, customers, distributors, suppliers, business partners or governmental entities; failure to successfully negotiate collective bargaining agreements or potential strikes, work stoppages or other similar events; difficulties leveraging market opportunities; changes in market demand for our products and services; rapid technological and market change; the ability to protect and avoid infringing upon intellectual property rights; introduction or development of new products or transfer of work; higher risks in global operations and markets; the impact of intense competition; acts of terrorism, cybersecurity attacks or intrusions that could adversely impact our businesses; the continuing impact of the COVID-19 pandemic on our business, including on demand, supply chains, operations and our ability to maintain sufficient liquidity; the failure to achieve anticipated cost savings and benefits associated with workforce reductions and restructuring actions; uncertainties relating to conditions in financial markets; currency fluctuations and foreign currency exposure; future financial performance of the industries or customers that we serve; our dependence upon revenues and earnings from a small number of significant customers; a major loss of customers; inability to realize expected sales or profits from existing backlog due to a range of factors, including changes in customer sourcing decisions, material changes, production schedules and volumes of specific programs; the impact of government budget and funding decisions; government tariffs, trade agreements and trade policies; the impact of new or revised tax laws and regulations; the adoption of laws, directives or regulations that impact the materials processed by our products or their end markets; fluctuations in the pricing, quality or availability of raw materials, supplies, freight, transportation, utilities and other items required by operations; labor shortages or other business interruptions at transportation centers, shipping ports, our suppliers’ facilities or our facilities; disruptions in information technology systems, including as a result of cybersecurity or data security breaches; the continuing impact of prior acquisitions and divestitures; and any other future strategic actions, including acquisitions, divestitures, restructurings, or strategic business realignments, and our ability to achieve the financial and operational targets set in connection with any such actions; the ability to achieve social and environmental performance goals; the outcome of pending and future legal, governmental, or regulatory proceedings and contingencies; the impact of actual, potential or alleged defects or failures of our products or third-party products within which our products are integrated, including product liabilities, product recall costs and uninsured claims; future repurchases of common stock; future levels of indebtedness; and numerous other matters of a global, regional or national scale, including those of a political, social, economic, business, competitive, environmental, regulatory and public health nature; and other risks and uncertainties described in documents filed with or furnished to the Securities and Exchange Commission ("SEC") by the Company, including, among others, those in the Management's Discussion and Analysis of Financial Condition and Results of Operations and Risk Factors sections of the Company's filings. The Company assumes no obligation to update its forward-looking statements.

 
BARNES GROUP INC.
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
 
Three months ended September 30,Nine months ended September 30,

 

2021

 

 

2020

 

% Change

 

2021

 

 

2020

 

% Change

 
Net sales

$

325,059

 

$

269,059

 

20.8

 

$

947,846

 

$

835,266

 

13.5

 

 
Cost of sales

 

205,079

 

 

176,908

 

15.9

 

 

602,943

 

 

532,214

 

13.3

 

Selling and administrative expenses

 

76,271

 

 

60,908

 

25.2

 

 

230,271

 

 

212,380

 

8.4

 

 

 

281,350

 

 

237,816

 

18.3

 

 

833,214

 

 

744,594

 

11.9

 

 
Operating income

 

43,709

 

 

31,243

 

39.9

 

 

114,632

 

 

90,672

 

26.4

 

 
Operating margin

 

13.4

%

 

11.6

%

 

12.1

%

 

10.9

%

 
Interest expense

 

4,027

 

 

3,701

 

8.8

 

 

12,443

 

 

11,924

 

4.4

 

Other expense (income), net

 

1,217

 

 

47

 

NM

 

 

3,952

 

 

2,700

 

46.4

 

 
Income before income taxes

 

38,465

 

 

27,495

 

39.9

 

 

98,237

 

 

76,048

 

29.2

 

 
Income taxes

 

10,602

 

 

12,137

 

(12.6

)

 

26,501

 

 

30,390

 

(12.8

)

 
Net income

$

27,863

 

$

15,358

 

81.4

 

$

71,736

 

$

45,658

 

57.1

 

 
Common dividends

$

8,099

 

$

8,097

 

0.0

 

$

24,293

 

$

24,302

 

(0.0

)

 
Per common share:
 
Net income:
Basic

$

0.55

 

$

0.30

 

83.3

 

$

1.41

 

$

0.90

 

56.7

 

Diluted

 

0.55

 

 

0.30

 

83.3

 

 

1.40

 

 

0.89

 

57.3

 

Dividends

 

0.16

 

 

0.16

 

-

 

 

0.48

 

 

0.48

 

-

 

 
Weighted average common shares outstanding:
Basic

 

50,905,202

 

 

50,833,157

 

0.1

 

 

50,925,702

 

 

50,886,094

 

0.1

 

Diluted

 

51,060,684

 

 

50,937,093

 

0.2

 

 

51,085,509

 

 

51,123,024

 

(0.1

)

 
NM - Not meaningful
 
BARNES GROUP INC.
OPERATIONS BY REPORTABLE BUSINESS SEGMENT
(Dollars in thousands)
(Unaudited)
 

Three months ended September 30,

 

Nine months ended September 30,

 

2021

 

 

 

2020

 

 

% Change

 

 

2021

 

 

 

2020

 

 

% Change

Net sales
 
Industrial

$

231,549

 

$

196,916

 

17.6

$

686,220

 

$

561,047

 

22.3

 

 
Aerospace

 

93,511

 

 

72,148

 

29.6

 

261,639

 

 

274,227

 

(4.6

)

 
Intersegment sales

 

(1

)

 

(5

)

 

(13

)

 

(8

)

 
Total net sales

$

325,059

 

$

269,059

 

20.8

$

947,846

 

$

835,266

 

13.5

 

 
Operating profit
 
Industrial

$

30,067

 

$

24,438

 

23.0

$

78,635

 

$

42,063

 

86.9

 

 
Aerospace

 

13,642

 

 

6,805

 

100.5

 

35,997

 

 

48,609

 

(25.9

)

 
Total operating profit

$

43,709

 

$

31,243

 

39.9

$

114,632

 

$

90,672

 

26.4

 

 
Operating marginChangeChange
 
Industrial

 

13.0

%

 

12.4

%

60

bps.

 

11.5

%

 

7.5

%

400

 

bps.
 
Aerospace

 

14.6

%

 

9.4

%

520

bps.

 

13.8

%

 

17.7

%

(390

)

bps.
 
Total operating margin

 

13.4

%

 

11.6

%

180

bps.

 

12.1

%

 

10.9

%

120

 

bps.
 
BARNES GROUP INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
(Unaudited)
 
 

September 30, 2021

 

December 31, 2020

Assets
Current assets
Cash and cash equivalents

$

93,475

$

79,145

Accounts receivable

 

260,146

 

251,460

Inventories

 

238,842

 

238,008

Prepaid expenses and other current assets

 

79,594

 

73,732

 
Total current assets

 

672,057

 

642,345

 
 
Deferred income taxes

 

21,153

 

22,092

Property, plant and equipment, net

 

347,541

 

370,947

Goodwill

 

967,481

 

1,011,580

Other intangible assets, net

 

517,324

 

564,132

Other assets

 

61,033

 

65,130

 
Total assets

$

2,586,589

$

2,676,226

 
Liabilities and Stockholders' Equity
Current liabilities
Notes and overdrafts payable

$

1,799

$

2,115

Accounts payable

 

124,603

 

112,428

Accrued liabilities

 

179,185

 

178,560

Long-term debt - current

 

1,969

 

2,276

 
Total current liabilities

 

307,556

 

295,379

 
Long-term debt

 

628,689

 

699,868

Accrued retirement benefits

 

91,685

 

98,171

Deferred income taxes

 

73,292

 

91,668

Long-term tax liability

 

52,114

 

59,063

Other liabilities

 

40,024

 

49,400

 
Total stockholders' equity

 

1,393,229

 

1,382,677

 
Total liabilities and stockholders' equity

$

2,586,589

$

2,676,226

 
BARNES GROUP INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
(Unaudited)
 
 
Nine months ended September 30,

 

2021

 

 

2020

 

Operating activities:
Net income

$

71,736

 

$

45,658

 

Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization

 

68,004

 

 

66,045

 

Gain on disposition of property, plant and equipment

 

(414

)

 

(303

)

Stock compensation expense

 

9,212

 

 

8,094

 

Seeger divestiture charges

 

-

 

 

6,620

 

Changes in assets and liabilities, net of the effects of divestitures:
Accounts receivable

 

(15,649

)

 

103,161

 

Inventories

 

(5,582

)

 

(11,616

)

Prepaid expenses and other current assets

 

(7,205

)

 

(10,168

)

Accounts payable

 

17,827

 

 

(24,476

)

Accrued liabilities

 

(1,051

)

 

(7,981

)

Deferred income taxes

 

(7,052

)

 

(5,032

)

Long-term retirement benefits

 

2,308

 

 

(2,517

)

Long-term tax liability

 

(6,949

)

 

(6,949

)

Other

 

2,605

 

 

3,296

 

 
Net cash provided by operating activities

 

127,790

 

 

163,832

 

 
Investing activities:
Proceeds from disposition of property, plant and equipment

 

1,204

 

 

580

 

Proceeds from the sale of businesses, net of cash sold

 

-

 

 

36,879

 

Capital expenditures

 

(26,735

)

 

(30,170

)

Other

 

2,107

 

 

-

 

 
Net cash (used) provided by investing activities

 

(23,424

)

 

7,289

 

 
Financing activities:
Net change in other borrowings

 

(226

)

 

6,794

 

Payments on long-term debt

 

(73,081

)

 

(219,279

)

Proceeds from the issuance of long-term debt

 

25,000

 

 

75,000

 

Proceeds from the issuance of common stock

 

464

 

 

1,661

 

Common stock repurchases

 

(5,229

)

 

(15,550

)

Dividends paid

 

(24,293

)

 

(24,302

)

Withholding taxes paid on stock issuances

 

(1,356

)

 

(3,177

)

Other

 

(9,835

)

 

(2,217

)

 
Net cash used by financing activities

 

(88,556

)

 

(181,070

)

 
Effect of exchange rate changes on cash flows

 

(2,923

)

 

675

 

 
Increase (decrease) in cash, cash equivalents and restricted cash

 

12,887

 

 

(9,274

)

 
Cash, cash equivalents and restricted cash at beginning of period

 

91,468

 

 

93,805

 

 
Cash, cash equivalents and restricted cash at end of period

 

104,355

 

 

84,531

 

 
Less: Restricted cash, included in Prepaid expenses and other current assets

 

(6,239

)

 

-

 

Less: Restricted cash, included in Other assets

 

(4,641

)

 

(7,046

)

 
Cash and cash equivalents at end of period

$

93,475

 

$

77,485

 

 
BARNES GROUP INC.
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW
(Dollars in thousands)
(Unaudited)
Nine months ended September 30,

 

2021

 

 

2020

 

Free cash flow:
Net cash provided by operating activities

$

127,790

 

$

163,832

 

Capital expenditures

 

(26,735

)

 

(30,170

)

Free cash flow(1)

$

101,055

 

$

133,662

 

Notes:
(1)  The Company defines free cash flow as net cash provided by operating activities less capital expenditures.  The Company believes that the free cash flow metric is useful to investors and management as a measure of cash generated by business operations that can be used to invest in future growth, pay dividends, repurchase stock and reduce debt.  This metric can also be used to evaluate the Company's ability to generate cash flow from business operations and the impact that this cash flow has on the Company's liquidity.  
 
BARNES GROUP INC.
NON-GAAP FINANCIAL MEASURE RECONCILIATION
(Dollars in thousands, except per share data)
(Unaudited)
 
Three months ended September 30,Nine months ended September 30,

 

2021

 

 

2020

 

% Change

 

2021

 

 

2020

 

% Change

SEGMENT RESULTS
Operating Profit - Industrial Segment (GAAP)

$

30,067

 

$

24,438

 

 

23.0

$

78,635

 

$

42,063

 

86.9

 

 
Restructuring/reduction in force charges

 

(59

)

 

-

 

 

246

 

 

15,766

 

Seeger divestiture adjustments

 

-

 

 

-

 

 

-

 

 

2,409

 

 
Operating Profit - Industrial Segment as adjusted (Non-GAAP) (1)

$

30,008

 

$

24,438

 

 

22.8

$

78,881

 

$

60,238

 

30.9

 

 
Operating Margin - Industrial Segment (GAAP)

 

13.0

%

 

12.4

%

 

60

bps.

 

11.5

%

 

7.5

%

400

 

bps.
Operating Margin - Industrial Segment as adjusted (Non-GAAP) (1)

 

13.0

%

 

12.4

%

 

60

bps.

 

11.5

%

 

10.7

%

80

 

bps.
 
Operating Profit - Aerospace Segment (GAAP)

$

13,642

 

$

6,805

 

 

100.5

$

35,997

 

$

48,609

 

(25.9

)

 
Restructuring/reduction in force charges

 

222

 

 

304

 

 

671

 

 

2,243

 

 
Operating Profit - Aerospace Segment as adjusted (Non-GAAP) (1)

$

13,864

 

$

7,109

 

 

95.0

$

36,668

 

$

50,852

 

(27.9

)

 
Operating Margin - Aerospace Segment (GAAP)

 

14.6

%

 

9.4

%

 

520

bps.

 

13.8

%

 

17.7

%

(390

)

bps.
Operating Margin - Aerospace Segment as adjusted (Non-GAAP) (1)

 

14.8

%

 

9.9

%

 

490

bps.

 

14.0

%

 

18.5

%

(450

)

bps.
 
 
CONSOLIDATED RESULTS
Operating Income (GAAP)

$

43,709

 

$

31,243

 

 

39.9

$

114,632

 

$

90,672

 

26.4

 

 
Restructuring/reduction in force charges

 

163

 

 

304

 

 

917

 

 

18,009

 

Seeger divestiture adjustments

 

-

 

 

-

 

 

-

 

 

2,409

 

 
Operating Income as adjusted (Non-GAAP) (1)

$

43,872

 

$

31,547

 

 

39.1

$

115,549

 

$

111,090

 

4.0

 

 
Operating Margin (GAAP)

 

13.4

%

 

11.6

%

 

180

bps.

 

12.1

%

 

10.9

%

120

 

bps.
Operating Margin as adjusted (Non-GAAP) (1)

 

13.5

%

 

11.7

%

 

180

bps.

 

12.2

%

 

13.3

%

(110

)

bps.
 
Diluted Net Income per Share (GAAP)

$

0.55

 

$

0.30

 

 

83.3

$

1.40

 

$

0.89

 

57.3

 

 
Foreign tax matters

 

-

 

 

-

 

 

(0.04

)

 

-

 

Restructuring/reduction in force charges

 

-

 

 

-

 

 

0.01

 

 

0.26

 

Seeger divestiture adjustments

 

-

 

 

-

 

 

-

 

 

0.13

 

 
Diluted Net Income per Share as adjusted (Non-GAAP) (1)

$

0.55

 

$

0.30

 

 

83.3

$

1.37

 

$

1.28

 

7.0

 

 
 

Full-Year 2020

Full-Year 2021 Outlook

Diluted Net Income per Share (GAAP)

$

1.24

 

$

1.85

 

to

$

1.95

 
Seeger divestiture adjustments

 

0.13

 

-

 

Restructuring/reduction in force charges

 

0.27

 

0.02

 

Foreign tax matters

 

-

 

(0.04

)

 
Diluted Net Income per Share as adjusted (Non-GAAP) (1)

$

1.64

 

$

1.83

 

to

$

1.93

 
Notes:
(1) The Company has excluded the following from its "as adjusted" financial measurements for 2021: 1) the impact of certain foreign tax matters including a benefit related to the Italy tax realignment, partially offset by a charge related to the UK tax rate and 2) charges related to restructuring actions at certain businesses. The Company has excluded the following from its "as adjusted" financial measurements for 2020: 1) adjustments related to the divestiture of the Seeger business, including $2.5M reflected within the Industrial segment's operating profit ($2.4M through the third quarter of 2020) and $4.2M of tax expense and 2) charges taken in 2020 related to restructuring and workforce reduction actions implemented across its businesses, including $18.2M reflected within operating profit ($18.0M through the third quarter) and $1.0M reflected within other expense (income), net ($0.5M through the third quarter). The tax charges resulting from the divestiture were recorded in the first quarter of 2020 following the completion of the sale. The tax effects of the restructuring actions were calculated based on the respective tax jurisdictions and approximated 20% and 30% for the 2021 and 2020 periods, respectively. Management believes that these adjustments provide the Company and its investors with an indication of our baseline performance excluding items that are not considered to be reflective of our ongoing results. Management does not intend results excluding the adjustments to represent results as defined by GAAP, and the reader should not consider it as an alternative measurement calculated in accordance with GAAP, or as an indicator of the Company's performance. Accordingly, the measurements have limitations depending on their use.

 

Barnes Group Inc.
William Pitts
Director, Investor Relations
860.583.7070

Source: Barnes Group Inc.