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Press Release: Knowles Reports Q4 & Full Year -4-

· 02/04/2021 16:05
CONTACT: Financial Contact:actual coupon interest rate of the notes was 3.25%. The difference between the imputed interest expense and the coupon interest expense is excluded from management's assessment of the Company's operating performance because management believes that this non-cash expense is not indicative of its core, ongoing operating performance. (5) Income tax effects of non-GAAP reconciling adjustments are calculated using the applicable tax rates in the jurisdictions of the underlying adjustments. (6) The non-GAAP reconciling adjustments are those adjustments made to reconcile Earnings from continuing operations before interest and income taxes to Adjusted earnings from continuing operations before interest and income taxes. (7) The number of shares used in the diluted per share calculations on a non-GAAP basis excludes the impact of stock-based compensation expense expected to be incurred in future periods and not yet recognized in the financial statements, which would otherwise be assumed to be used to repurchase shares under the GAAP treasury stock method. In addition, the Company entered into convertible note hedge transactions to offset any potential dilution from the convertible notes. Although the anti-dilutive impact of the convertible note hedges is not reflected under GAAP, the Company includes the anti-dilutive impact of the convertible note hedges in non-GAAP diluted average shares outstanding, if applicable. KNOWLES CORPORATION CONSOLIDATED BALANCE SHEETS (in millions, except share and per share amounts) (unaudited) December 31, 2020 December 31, 2019 ------------------- --------------------- Current assets: Cash and cash equivalents $ 147.8 $ 78.4 Receivables, net of allowances of $1.6 and $0.8 131.4 159.6 Inventories, net 130.1 141.8 Prepaid and other current assets 10.3 8.6 -------------- -------------- Total current assets 419.6 388.4 -------------- -------------- Property, plant, and equipment, net 191.5 206.5 Goodwill 910.0 909.9 Intangible assets, net 78.7 91.7 Operating lease right-of-use assets 23.3 33.6 Other assets and deferred charges 31.8 24.5 -------------- -------------- Total assets $ 1,654.9 $ 1,654.6 ============== ============== Current liabilities: Current maturities of long-term debt $ 165.1 $ - Accounts payable 70.3 87.7 Accrued compensation and employee benefits 30.4 32.1 Operating lease liabilities 10.2 9.3 Other accrued expenses 18.6 16.5 Federal and other taxes on income 2.7 5.9 -------------- -------------- Total current liabilities 297.3 151.5 -------------- -------------- Long-term debt - 156.8 Deferred income taxes 2.0 2.2 Long-term operating lease liabilities 18.7 25.1 Other liabilities 32.8 29.9 Liabilities of discontinued operations 0.6 0.6 Commitments and contingencies Stockholders' equity: Preferred stock - $0.01 par value; 10,000,000 shares authorized; none issued - - Common stock - $0.01 par value; 400,000,000 shares authorized; 92,689,912 and 91,611,549 shares issued and outstanding at December 31, 2020, respectively, and 91,701,745 shares issued and outstanding at December 31, 2019 0.9 0.9 Treasury stock - at cost; 1,078,363 shares at December 31, 2020 (16.2) - Additional paid-in capital 1,587.8 1,574.7 Accumulated deficit (168.5) (175.1) Accumulated other comprehensive loss (100.5) (112.0) -------------- -------------- Total stockholders' equity 1,303.5 1,288.5 -------------- -------------- Total liabilities and stockholders' equity $ 1,654.9 $ 1,654.6 ============== ============== KNOWLES CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) (unaudited) Years Ended December 31, ------------------------------ 2020 2019 -------------- ---------- Operating Activities Net earnings $ 6.6 $ 49.1 Adjustments to reconcile net earnings to cash from operating activities: Depreciation and amortization 60.6 54.4 Stock-based compensation 17.3 25.2 Impairment charges 7.6 - Non-cash interest expense and amortization of debt issuance costs 8.9 8.1 Write-off of fixed assets 1.7 - Loss on disposal of fixed assets 0.3 0.2 Deferred income taxes (2.6) (0.7) Other, net 5.0 1.3 Changes in assets and liabilities (excluding effects of foreign exchange): Receivables, net 29.0 (17.8) Inventories, net 16.7 (0.3) Prepaid and other current assets (0.1) 2.7 Accounts payable (17.5) 12.1 Accrued compensation and employee benefits (2.1) (8.1) Other accrued expenses 2.6 (0.6) Accrued taxes (5.8) 2.7 Other non-current assets and non-current liabilities (0.1) (4.4) ---------- --------- Net cash provided by operating activities 128.1 123.9 ---------- --------- Investing Activities Additions to property, plant, and equipment (31.9) (41.2) Acquisitions of business (net of cash acquired) - (69.3) Purchase of investments (3.5) - Proceeds from the sale of property, plant, and equipment 0.3 - ---------- --------- Net cash used in investing activities (35.1) (110.5) ---------- --------- Financing Activities Payments under revolving credit facility (100.0) (19.0) Borrowings under revolving credit facility 100.0 10.0 Repurchase of common stock (16.2) - Payments of debt issuance costs (1.4) - Tax on restricted and performance stock unit vesting (6.1) (6.4) Payments of finance lease obligations (2.0) (1.7) Payment of consideration owed for acquisitions - (1.2) Net proceeds from exercise of stock-based awards 1.8 9.8 ---------- --------- Net cash used in financing activities (23.9) (8.5) ---------- --------- Effect of exchange rate changes on cash and cash equivalents 0.3 - ---------- --------- Net increase in cash and cash equivalents 69.4 4.9 Cash and cash equivalents at beginning of period 78.4 73.5 ---------- --------- Cash and cash equivalents at end of period $ 147.8 $ 78.4 ========== =========

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Mike Knapp

(MORE TO FOLLOW) Dow Jones Newswires

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