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Press Release: Knowles Reports Q4 & Full Year -2-

· 02/04/2021 16:05
INVESTOR SUPPLEMENT - FOURTH QUARTER 2020 ------------------------------------------------------------------------ KNOWLES CORPORATION CONSOLIDATED STATEMENTS OF EARNINGS (in millions, except share and per share amounts) (unaudited) Quarter Ended ---------------------------------------------------- December 31, September 30, December 31, 2020 2020 2019 ---------------- ---------------- ---------------- Revenues $ 243.2 $ 205.8 $ 233.9 Cost of goods sold 151.2 130.6 143.6 Restructuring charges - cost of goods sold - - 0.7 ------------ ------------ ------------ Gross profit 92.0 75.2 89.6 Research and development expenses 22.7 21.9 23.7 Selling and administrative expenses 32.2 32.0 34.6 Impairment charges - 7.6 - Restructuring charges (0.5) 0.1 0.5 ------------ ------------ ------------ Operating expenses 54.4 61.6 58.8 ------------ ------------ ------------ Operating earnings 37.6 13.6 30.8 Interest expense, net 3.9 4.7 3.6 Other expense, net 1.3 1.0 0.5 ------------ ------------ ------------ Earnings before income taxes and discontinued operations 32.4 7.9 26.7 Provision for income taxes 2.8 2.3 5.6 ------------ ------------ ------------ Earnings from continuing operations 29.6 5.6 21.1 Loss from discontinued operations, net - - (0.6) ------------ ------------ ------------ Net earnings $ 29.6 $ 5.6 $ 20.5 ============ ============ ============ Earnings per share from continuing operations: Basic $ 0.32 $ 0.06 $ 0.23 Diluted $ 0.32 $ 0.06 $ 0.22 Loss per share from discontinued operations: Basic $ - $ - $ (0.01) Diluted $ - $ - $ (0.01) Net earnings per share: Basic $ 0.32 $ 0.06 $ 0.22 Diluted $ 0.32 $ 0.06 $ 0.21 Weighted-average common shares outstanding: Basic 91,667,461 91,688,765 91,653,662 Diluted 92,957,686 92,473,318 95,742,308 KNOWLES CORPORATION CONSOLIDATED STATEMENTS OF EARNINGS (in millions, except share and per share amounts) (unaudited) Year Ended ---------------------------------------- December 31, 2020 December 31, 2019 ------------------- ------------------- Revenues $ 764.3 $ 854.8 Cost of goods sold 490.8 525.1 Restructuring charges - cost of goods sold 2.3 1.7 --------------- --------------- Gross profit 271.2 328.0 Research and development expenses 92.9 96.8 Selling and administrative expenses 131.5 145.7 Impairment charges 7.6 - Restructuring charges 10.0 4.3 --------------- --------------- Operating expenses 242.0 246.8 --------------- --------------- Operating earnings 29.2 81.2 Interest expense, net 16.4 14.5 Other expense, net 1.5 0.4 --------------- --------------- Earnings before income taxes and discontinued operations 11.3 66.3 Provision for income taxes 8.4 16.6 --------------- --------------- Earnings from continuing operations 2.9 49.7 Earnings (loss) from discontinued operations, net 3.7 (0.6) --------------- --------------- Net earnings $ 6.6 $ 49.1 =============== =============== Earnings per share from continuing operations: Basic $ 0.03 $ 0.55 Diluted $ 0.03 $ 0.53 Earnings (loss) per share from discontinued operations: Basic $ 0.04 $ (0.01) Diluted $ 0.04 $ - Net earnings per share: Basic $ 0.07 $ 0.54 Diluted $ 0.07 $ 0.53 Weighted-average common shares outstanding: Basic 91,701,004 91,156,124 Diluted 92,883,138 93,439,023 KNOWLES CORPORATION RECONCILIATION OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES (1) (in millions, except share and per share amounts) (unaudited) Quarter Ended Year Ended ------------------------------------------------- -------------------------------- December 31, September 30, December 31, December 31, December 31, 2020 2020 2019 2020 2019 --------------- --------------- --------------- --------------- --------------- Gross profit $ 92.0 $ 75.2 $ 89.6 $ 271.2 $ 328.0 Gross profit as % of revenues 37.8% 36.5% 38.3% 35.5% 38.4% Stock-based compensation expense 0.4 0.4 0.4 1.7 1.6 Restructuring charges - - 0.7 2.3 1.7 Production transfer costs (2) 0.1 - 0.2 0.2 2.3 ---------- ---------- ---------- ---------- ---------- Non-GAAP gross profit $ 92.5 $ 75.6 $ 90.9 $ 275.4 $ 333.6 ========== ========== ========== ========== ========== Non-GAAP gross profit as % of revenues 38.0% 36.7% 38.9% 36.0% 39.0% Research and development expenses $ 22.7 $ 21.9 $ 23.7 $ 92.9 $ 96.8 Stock-based compensation expense (1.2) (1.2) (1.7) (6.2) (7.6) Intangibles amortization expense (1.3) (1.4) - (5.5) -

competition and new entrants in the market for our products; our ability to develop new or enhanced products or technologies in a timely manner that achieve market acceptance; our reliance on third parties to manufacture, assemble, and test our products and sub-components; escalating international trade tensions, new or increased tariffs and trade wars among countries; financial risks, including risks relating to currency fluctuations, credit risks and fluctuations in the market value of the Company; market risk associated with fluctuations in commodity prices, particularly for various precious metals used in our manufacturing operation, and changes in tax laws, changes in tax rates and exposure to additional tax liabilities; and other risks, relevant factors, and uncertainties identified in our Annual Report on Form 10-K for the fiscal year ended December 31, 2019, subsequent Reports on Forms 10-Q and 8-K and our other filings we make with the U.S. Securities and Exchange Commission. Knowles disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

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February 04, 2021 16:05 ET (21:05 GMT)