Kentucky | 001-37884 | 30-0939371 | ||||||||||||
(State or other jurisdiction
of incorporation)
|
(Commission
File Number)
|
(I.R.S. Employer
Identification No.)
|
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||||
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||||
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||||
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
|||||||
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Common stock, par value $0.01 per share | VVV | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). | |||||||||||
Emerging growth company | ☐ | ||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ☐ |
Item 2.02. | Results of Operations and Financial Condition |
Item 7.01. | Regulation FD Disclosure |
Item 9.01. | Financial Statements and Exhibits | |||||||
(d) | Exhibits | |||||||
99.1 | ||||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
VALVOLINE INC. | ||||||||
Date: November 9, 2023 |
By: | /s/ Mary E. Meixelsperger | ||||||
Mary E. Meixelsperger | ||||||||
Chief Financial Officer |
PRESS RELEASE |
(In millions, except store counts) | Q4 results |
YoY growth | FY results | YoY growth | ||||||||||||||||
Net revenues | $ | 390.0 | 16 | % | $ | 1,443.5 | 17 | % | ||||||||||||
Operating income | $ | 70.2 | 4 | % | $ | 247.2 | 12 | % | ||||||||||||
Income from continuing operations (a) |
$ | 75.0 | 505 | % | $ | 199.4 | 82 | % | ||||||||||||
EPS (a) |
$ | 0.53 | 657 | % | $ | 1.23 | 102 | % | ||||||||||||
Adjusted EPS (b) |
$ | 0.39 | 86 | % | $ | 1.18 | 62 | % | ||||||||||||
Adjusted EBITDA (b) |
$ | 109.2 | 25 | % | $ | 380.0 | 20 | % | ||||||||||||
System-wide store sales (b) |
$ | 738.3 | 15 | % | $ | 2,761.8 | 17 | % | ||||||||||||
Q4 results |
Quarter change | FY results | YoY change |
|||||||||||||||||
System-wide stores (b) |
1,852 | +48 | 1,852 | +137 | ||||||||||||||||
Company-operated stores | 876 | +22 | 876 | +86 | ||||||||||||||||
Franchised stores (b) |
976 | +26 | 976 | +51 | ||||||||||||||||
Q4 - YoY growth |
FY - YoY growth |
|||||||||||||||||||
System-wide SSS (b) |
10.0% | 11.9% | ||||||||||||||||||
(a) |
Includes the effects of certain unusual, infrequent or non-operational activity not directly attributable to the underlying business, which management believes impacts the comparability of operational results between periods (“key items”). These key items are delineated within Table 6 - Non-GAAP Reconciliation - Income from Continuing Operations and Diluted Earnings per Share. |
||||
(b) |
Refer to Key Business Measures, Use of Non-GAAP Measures, Table 4 - Retail Stores Operating Information, Table 6 - Non-GAAP Reconciliation - Income from Continuing Operations and Diluted Earnings per Share, and Table 7 - Non-GAAP Reconciliation - Adjusted Net Revenues and EBITDA from Continuing Operations for management’s definitions of the metrics presented above and reconciliation to the corresponding GAAP measures, where applicable. |
Outlook | |||||||||||
System-wide SSS growth | 6 | — | 9% | ||||||||
System-wide store additions |
140 | — | 170 | ||||||||
Net revenues | $1.6 | — | $1.7 billion | ||||||||
Adjusted EBITDA | $420 | — | $460 million | ||||||||
Capital expenditures | $185 | — | $215 million | ||||||||
Adjusted EPS | $1.40 | — | $1.65 | ||||||||
Valvoline Inc. and Consolidated Subsidiaries | Table 1 | ||||||||||||||||||||||||||||
Statements of Consolidated Income | |||||||||||||||||||||||||||||
(In millions, except per share amounts - preliminary and unaudited) | |||||||||||||||||||||||||||||
Three months ended September 30 |
Year ended | ||||||||||||||||||||||||||||
September 30 | |||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||
Net revenues | $ | 390.0 | $ | 335.4 | $ | 1,443.5 | $ | 1,236.1 | |||||||||||||||||||||
Cost of sales | 241.7 | 206.3 | 899.0 | 759.7 | |||||||||||||||||||||||||
Gross profit | 148.3 | 129.1 | 544.5 | 476.4 | |||||||||||||||||||||||||
Selling, general and administrative expenses | 70.3 | 62.1 | 264.5 | 244.7 | |||||||||||||||||||||||||
Net legacy and separation-related expenses | 2.0 | 1.6 | 32.8 | 20.5 | |||||||||||||||||||||||||
Other loss (income), net | 5.8 | (1.8) | — | (9.1) | |||||||||||||||||||||||||
Operating income | 70.2 | 67.2 | 247.2 | 220.3 | |||||||||||||||||||||||||
Net pension and other postretirement plan (income) expenses | (38.6) | 34.6 | (27.6) | 6.9 | |||||||||||||||||||||||||
Net interest and other financing expenses | 10.9 | 18.1 | 38.3 | 69.3 | |||||||||||||||||||||||||
Income before income taxes | 97.9 | 14.5 | 236.5 | 144.1 | |||||||||||||||||||||||||
Income tax expense | 22.9 | 2.1 | 37.1 | 34.7 | |||||||||||||||||||||||||
Income from continuing operations | 75.0 | 12.4 | 199.4 | 109.4 | |||||||||||||||||||||||||
(Loss) income from discontinued operations, net of tax | (29.8) | 145.3 | 1,216.6 | 314.9 | |||||||||||||||||||||||||
Net income | $ | 45.2 | $ | 157.7 | $ | 1,416.0 | $ | 424.3 | |||||||||||||||||||||
Net earnings per share | |||||||||||||||||||||||||||||
Basic earnings (loss) per share | |||||||||||||||||||||||||||||
Continuing operations | $ | 0.54 | $ | 0.07 | $ | 1.23 | $ | 0.61 | |||||||||||||||||||||
Discontinued operations | (0.21) | 0.82 | 7.53 | 1.76 | |||||||||||||||||||||||||
Basic earnings per share | $ | 0.33 | $ | 0.89 | $ | 8.76 | $ | 2.37 | |||||||||||||||||||||
Diluted earnings (loss) per share | |||||||||||||||||||||||||||||
Continuing operations | $ | 0.53 | $ | 0.07 | $ | 1.23 | $ | 0.61 | |||||||||||||||||||||
Discontinued operations | (0.21) | 0.81 | 7.48 | 1.74 | |||||||||||||||||||||||||
Diluted earnings per share | $ | 0.32 | $ | 0.88 | $ | 8.71 | $ | 2.35 | |||||||||||||||||||||
Weighted average common shares outstanding | |||||||||||||||||||||||||||||
Basic | 138.2 | 177.4 | 161.6 | 179.1 | |||||||||||||||||||||||||
Diluted | 139.2 | 178.6 | 162.6 | 180.4 |
Valvoline Inc. and Consolidated Subsidiaries | Table 2 | ||||||||||||||||||||||
Condensed Consolidated Balance Sheets | |||||||||||||||||||||||
(In millions - preliminary and unaudited) | |||||||||||||||||||||||
September 30 | September 30 | ||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Current assets | |||||||||||||||||||||||
Cash and cash equivalents | $ | 409.1 | $ | 23.4 | |||||||||||||||||||
Receivables, net | 81.3 | 66.1 | |||||||||||||||||||||
Inventories, net | 33.3 | 29.4 | |||||||||||||||||||||
Prepaid expenses and other current assets | 65.5 | 38.0 | |||||||||||||||||||||
Short-term investments | 347.5 | — | |||||||||||||||||||||
Current assets held for sale | — | 1,464.2 | |||||||||||||||||||||
Total current assets | 936.7 | 1,621.1 | |||||||||||||||||||||
Noncurrent assets | |||||||||||||||||||||||
Property, plant and equipment, net | 818.3 | 668.6 | |||||||||||||||||||||
Operating lease assets | 266.5 | 248.1 | |||||||||||||||||||||
Goodwill and intangibles, net | 680.6 | 663.1 | |||||||||||||||||||||
Other noncurrent assets | 187.8 | 215.9 | |||||||||||||||||||||
Total assets | $ | 2,889.9 | $ | 3,416.8 | |||||||||||||||||||
Liabilities and Stockholders' Equity | |||||||||||||||||||||||
Current liabilities | |||||||||||||||||||||||
Current portion of long-term debt | $ | 23.8 | $ | 162.5 | |||||||||||||||||||
Trade and other payables | 118.7 | 45.0 | |||||||||||||||||||||
Accrued expenses and other liabilities | 215.9 | 172.6 | |||||||||||||||||||||
Current liabilities held for sale | 3.9 | 539.3 | |||||||||||||||||||||
Total current liabilities | 362.3 | 919.4 | |||||||||||||||||||||
Noncurrent liabilities | |||||||||||||||||||||||
Long-term debt | 1,562.3 | 1,525.1 | |||||||||||||||||||||
Employee benefit obligations | 168.0 | 199.4 | |||||||||||||||||||||
Operating lease liabilities | 247.3 | 229.2 | |||||||||||||||||||||
Other noncurrent liabilities | 350.5 | 237.1 | |||||||||||||||||||||
Total noncurrent liabilities | 2,328.1 | 2,190.8 | |||||||||||||||||||||
Stockholders' equity | 199.5 | 306.6 | |||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 2,889.9 | $ | 3,416.8 |
Valvoline Inc. and Consolidated Subsidiaries | Table 3 | |||||||||||||||||||
Condensed Consolidated Statements of Cash Flows | ||||||||||||||||||||
(In millions - preliminary and unaudited) | ||||||||||||||||||||
Year ended | ||||||||||||||||||||
September 30 | ||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||
Cash flows from operating activities | ||||||||||||||||||||
Net income | $ | 1,416.0 | $ | 424.3 | ||||||||||||||||
Adjustments to reconcile net income to cash flows from operating activities: | ||||||||||||||||||||
Income from discontinued operations | (1,216.6) | (314.9) | ||||||||||||||||||
Depreciation and amortization | 88.8 | 71.4 | ||||||||||||||||||
Deferred income taxes | 33.6 | 18.0 | ||||||||||||||||||
(Gain) loss on pension and other postretirement plan remeasurements | (41.6) | 43.9 | ||||||||||||||||||
Stock-based compensation expense | 12.2 | 14.4 | ||||||||||||||||||
Other, net | 11.9 | 4.2 | ||||||||||||||||||
Change in operating assets and liabilities | 48.7 | (126.9) | ||||||||||||||||||
Operating cash flows from continuing operations | 353.0 | 134.4 | ||||||||||||||||||
Operating cash flows from discontinued operations | (393.8) | 149.8 | ||||||||||||||||||
Total cash (used in) provided by operating activities | (40.8) | 284.2 | ||||||||||||||||||
Cash flows from investing activities | ||||||||||||||||||||
Additions to property, plant and equipment | (180.5) | (132.0) | ||||||||||||||||||
Acquisitions of businesses | (36.3) | (50.7) | ||||||||||||||||||
Purchases of investments | (440.4) | — | ||||||||||||||||||
Proceeds from maturities of short-term investments | 80.0 | — | ||||||||||||||||||
Other investing activities, net | — | 11.8 | ||||||||||||||||||
Investing cash flows from continuing operations | (577.2) | (170.9) | ||||||||||||||||||
Investing cash flows from discontinued operations | 2,620.9 | (36.7) | ||||||||||||||||||
Total cash provided by (used in) investing activities | 2,043.7 | (207.6) | ||||||||||||||||||
Cash flows from financing activities | ||||||||||||||||||||
Proceeds from borrowings, net of issuance costs | 921.0 | 23.0 | ||||||||||||||||||
Repayments on borrowings | (920.9) | (38.1) | ||||||||||||||||||
Repurchases of common stock | (1,524.8) | (142.6) | ||||||||||||||||||
Cash dividends paid | (21.8) | (89.2) | ||||||||||||||||||
Other financing activities | (19.0) | (16.0) | ||||||||||||||||||
Financing cash flows from continuing operations | (1,565.5) | (262.9) | ||||||||||||||||||
Financing cash flows from discontinued operations | (108.1) | 44.0 | ||||||||||||||||||
Total cash used in financing activities | (1,673.6) | (218.9) | ||||||||||||||||||
Effect of currency exchange rate changes on cash, cash equivalents and restricted cash | (0.1) | (5.2) | ||||||||||||||||||
Increase (decrease) in cash, cash equivalents and restricted cash | 329.2 | (147.5) | ||||||||||||||||||
Cash, cash equivalents and restricted cash - beginning of period | 83.9 | 231.4 | ||||||||||||||||||
Cash, cash equivalents and restricted cash - end of period | $ | 413.1 | $ | 83.9 |
Valvoline Inc. and Consolidated Subsidiaries | Table 4 | |||||||||||||||||||||||||||||||
Retail Stores Operating Information | ||||||||||||||||||||||||||||||||
(Preliminary and unaudited) | ||||||||||||||||||||||||||||||||
Three months ended September 30 |
Year ended | |||||||||||||||||||||||||||||||
September 30 | ||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||
Sales information | ||||||||||||||||||||||||||||||||
System-wide store sales - in millions (a) |
$ | 738.3 | $ | 641.9 | $ | 2,761.8 | $ | 2,360.2 | ||||||||||||||||||||||||
Year-over-year growth (a) |
15.0 | % | 15.7 | % | 17.0 | % | 19.8 | % | ||||||||||||||||||||||||
Same-store sales growth (b) |
||||||||||||||||||||||||||||||||
Company-operated | 9.1 | % | 8.5 | % | 11.9 | % | 11.4 | % | ||||||||||||||||||||||||
Franchised (a) |
10.8 | % | 9.8 | % | 11.9 | % | 15.5 | % | ||||||||||||||||||||||||
System-wide (a) |
10.0 | % | 9.2 | % | 11.9 | % | 13.7 | % |
Number of stores at end of period | |||||||||||||||||||||||||||||||||||
Fourth Quarter 2023 |
Third Quarter 2023 |
Second Quarter 2023 |
First Quarter 2023 |
Fourth Quarter 2022 |
|||||||||||||||||||||||||||||||
Company-operated | 876 | 854 | 832 | 813 | 790 | ||||||||||||||||||||||||||||||
Franchised (a) |
976 | 950 | 949 | 933 | 925 | ||||||||||||||||||||||||||||||
September 30 | |||||||||||||||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||||||||||||||
System-wide store count (a) |
1,852 | 1,715 | |||||||||||||||||||||||||||||||||
Year-over-year growth (a) |
8.0 | % | 7.6 | % | |||||||||||||||||||||||||||||||
(a) | Measures include Valvoline franchisees, which are independent legal entities. Valvoline does not consolidate the results of operations of its franchisees. | ||||||||||||||||||||||||||||||||||
(b) | Valvoline determines SSS growth as sales by U.S. stores, with new stores, including franchised conversions, excluded from the metric until the completion of their first full fiscal year in operation. |
Valvoline Inc. and Consolidated Subsidiaries | Table 5 | ||||||||||||||||||||||||||||||||||
System-wide Retail Stores | |||||||||||||||||||||||||||||||||||
(Preliminary and unaudited) | |||||||||||||||||||||||||||||||||||
Company-operated | |||||||||||||||||||||||||||||||||||
Fourth Quarter 2023 |
Third Quarter 2023 |
Second Quarter 2023 |
First Quarter 2023 |
Fourth Quarter 2022 |
|||||||||||||||||||||||||||||||
Beginning of period | 854 | 832 | 813 | 790 | 772 | ||||||||||||||||||||||||||||||
Opened | 14 | 12 | 13 | 17 | 12 | ||||||||||||||||||||||||||||||
Acquired | 8 | 8 | 6 | 5 | 3 | ||||||||||||||||||||||||||||||
Net conversions between company-operated and franchised | — | 2 | — | 2 | 3 | ||||||||||||||||||||||||||||||
Closed | — | — | — | (1) | — | ||||||||||||||||||||||||||||||
End of period | 876 | 854 | 832 | 813 | 790 | ||||||||||||||||||||||||||||||
Franchised (a) |
|||||||||||||||||||||||||||||||||||
Fourth Quarter 2023 |
Third Quarter 2023 |
Second Quarter 2023 |
First Quarter 2023 |
Fourth Quarter 2022 |
|||||||||||||||||||||||||||||||
Beginning of period | 950 | 949 | 933 | 925 | 918 | ||||||||||||||||||||||||||||||
Opened | 26 | 3 | 16 | 11 | 10 | ||||||||||||||||||||||||||||||
Acquired | — | — | — | — | — | ||||||||||||||||||||||||||||||
Net conversions between company-operated and franchised | — | (2) | — | (2) | (3) | ||||||||||||||||||||||||||||||
Closed | — | — | — | (1) | — | ||||||||||||||||||||||||||||||
End of period | 976 | 950 | 949 | 933 | 925 | ||||||||||||||||||||||||||||||
Total system-wide stores (a) |
1,852 | 1,804 | 1,781 | 1,746 | 1,715 | ||||||||||||||||||||||||||||||
(a) | Measures include Valvoline franchisees, which are independent legal entities. Valvoline does not consolidate the results of operations of its franchisees. |
Valvoline Inc. and Consolidated Subsidiaries | Table 6 | ||||||||||||||||||||||||||||
Non-GAAP Reconciliation - Income from Continuing Operations and Diluted Earnings per Share | |||||||||||||||||||||||||||||
(In millions, except per share amounts - preliminary and unaudited) | |||||||||||||||||||||||||||||
Three months ended September 30 |
Year ended | ||||||||||||||||||||||||||||
September 30 | |||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||
Reported income from continuing operations | $ | 75.0 | $ | 12.4 | $ | 199.4 | $ | 109.4 | |||||||||||||||||||||
Adjustments: | |||||||||||||||||||||||||||||
Net pension and other postretirement plan (income) expense (a) |
(38.6) | 34.6 | (27.6) | 6.9 | |||||||||||||||||||||||||
Net legacy and separation-related expenses | 2.0 | 1.6 | 32.8 | 20.5 | |||||||||||||||||||||||||
Information technology transition costs | 1.2 | — | 3.0 | 2.6 | |||||||||||||||||||||||||
Suspended operations | 7.6 | (0.6) | 7.1 | 0.9 | |||||||||||||||||||||||||
Investment and divestiture-related costs | 0.1 | — | 1.1 | — | |||||||||||||||||||||||||
Debt extinguishment and modification costs | 0.1 | — | 1.1 | — | |||||||||||||||||||||||||
Total adjustments, pre-tax | (27.6) | 35.6 | 17.5 | 30.9 | |||||||||||||||||||||||||
Income tax expense (benefit) of adjustments | 6.2 | (10.3) | (25.6) | (8.5) | |||||||||||||||||||||||||
Total adjustments, after tax | (21.4) | 25.3 | (8.1) | 22.4 | |||||||||||||||||||||||||
Adjusted income from continuing operations (b)(c) |
$ | 53.6 | $ | 37.7 | $ | 191.3 | $ | 131.8 | |||||||||||||||||||||
Reported diluted earnings per share from continuing operations | $ | 0.53 | $ | 0.07 | $ | 1.23 | $ | 0.61 | |||||||||||||||||||||
Adjusted diluted earnings per share from continuing operations (c)(d) |
$ | 0.39 | $ | 0.21 | $ | 1.18 | $ | 0.73 | |||||||||||||||||||||
Weighted average diluted common shares outstanding | 139.2 | 178.6 | 162.6 | 180.4 | |||||||||||||||||||||||||
(a) | Includes remeasurement adjustments recorded in the fourth quarter, which resulted in a gain of $41.6 million and a loss of $43.9 million in fiscal 2023 and 2022, respectively. |
||||||||||||||||||||||||||||
(b) |
Adjusted income from continuing operations is defined as income from continuing operations adjusted for the effects of key items. |
||||||||||||||||||||||||||||
(c) |
Represents a non-GAAP measure. Refer to “Use of Non-GAAP Measures” and the Appendix for additional details. |
||||||||||||||||||||||||||||
(d) |
Adjusted diluted earnings per share from continuing operations is defined as diluted earnings per share calculated using adjusted income from continuing operations. |
Valvoline Inc. and Consolidated Subsidiaries | Table 7 | |||||||||||||||||||||||||
Non-GAAP Reconciliation - Adjusted Net Revenues and EBITDA from Continuing Operations | ||||||||||||||||||||||||||
(In millions - preliminary and unaudited) | ||||||||||||||||||||||||||
Three months ended September 30 |
Year ended | |||||||||||||||||||||||||
September 30 | ||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Reported net revenues | $ | 390.0 | $ | 335.4 | $ | 1,443.5 | $ | 1,236.1 | ||||||||||||||||||
Key items: | ||||||||||||||||||||||||||
Suspended operations | — | (0.2) | (0.2) | (11.6) | ||||||||||||||||||||||
Adjusted net revenues (a) (b) |
$ | 390.0 | $ | 335.2 | $ | 1,443.3 | $ | 1,224.5 | ||||||||||||||||||
Income from continuing operations | $ | 75.0 | $ | 12.4 | $ | 199.4 | $ | 109.4 | ||||||||||||||||||
Add: | ||||||||||||||||||||||||||
Income tax expense | 22.9 | 2.1 | 37.1 | 34.7 | ||||||||||||||||||||||
Net interest and other financing expenses | 10.9 | 18.1 | 38.3 | 69.3 | ||||||||||||||||||||||
Depreciation and amortization | 28.1 | 19.3 | 88.8 | 71.4 | ||||||||||||||||||||||
EBITDA from continuing operations (b) (c) |
136.9 | 51.9 | 363.6 | 284.8 | ||||||||||||||||||||||
Key items: |
||||||||||||||||||||||||||
Net pension and other postretirement plan (income) expense | (38.6) | 34.6 | (27.6) | 6.9 | ||||||||||||||||||||||
Net legacy and separation-related expenses | 2.0 | 1.6 | 32.8 | 20.5 | ||||||||||||||||||||||
Information technology transition costs | 1.2 | — | 3.0 | 2.6 | ||||||||||||||||||||||
Suspended operations | 7.6 | (0.6) | 7.1 | 0.9 | ||||||||||||||||||||||
Investment and divestiture-related costs | 0.1 | — | 1.1 | — | ||||||||||||||||||||||
Key items - subtotal | (27.7) | 35.6 | 16.4 | 30.9 | ||||||||||||||||||||||
Adjusted EBITDA from continuing operations (b) (c) |
$ | 109.2 | $ | 87.5 | $ | 380.0 | $ | 315.7 | ||||||||||||||||||
Net profit margin (d) |
19.2 | % | 3.7 | % | 13.8 | % | 8.9 | % | ||||||||||||||||||
Adjusted EBITDA margin (b) (e) |
28.0 | % | 26.1 | % | 26.3 | % | 25.8 | % | ||||||||||||||||||
(a) | Adjusted net revenues are reported net revenues adjusted for key items. | ||||
(b) | Represents a non-GAAP measure. Refer to “Use of Non-GAAP Measures” and the Appendix for additional details. |
||||
(c) | EBITDA from continuing operations is defined as income from continuing operations, plus income tax expense, net interest and other financing expenses, and depreciation and amortization attributable to continuing operations. Adjusted EBITDA from continuing operations is EBITDA adjusted for key items attributable to continuing operations. |
||||
(d) | Net profit margin is defined as reported income from continuing operations divided by reported net revenues. | ||||
(e) | Adjusted EBITDA margin is defined as Adjusted EBITDA from continuing operations divided by adjusted net revenues. |
Valvoline Inc. and Consolidated Subsidiaries | Table 8 | |||||||||||||
Non-GAAP Reconciliation - Free Cash Flows from Continuing Operations | ||||||||||||||
(In millions - preliminary and unaudited) | ||||||||||||||
Free cash flow (a) |
Year ended | |||||||||||||
September 30 | ||||||||||||||
2023 | 2022 | |||||||||||||
Total cash flows provided by operating activities from continuing operations | $ | 353.0 | $ | 134.4 | ||||||||||
Adjustments: | ||||||||||||||
Additions to property, plant and equipment from continuing operations | (180.5) | (132.0) | ||||||||||||
Free cash flow from continuing operations (b) |
$ | 172.5 | $ | 2.4 | ||||||||||
Discretionary free cash flow (c) |
Year ended | |||||||||||||
September 30 | ||||||||||||||
2023 | 2022 | |||||||||||||
Total cash flows provided by operating activities from continuing operations | $ | 353.0 | $ | 134.4 | ||||||||||
Adjustments: | ||||||||||||||
Maintenance additions to property, plant and equipment from continuing operations | (29.5) | (19.3) | ||||||||||||
Discretionary free cash flow from continuing operations (b) |
$ | 323.5 | $ | 115.1 | ||||||||||
(a) | Free cash flow from continuing operations is defined as operating cash flows from continuing operations less capital expenditures of the continuing operations and certain other adjustments attributable to continuing operations, as applicable. | ||||
(b) | Represents a non-GAAP measure. Refer to “Use of Non-GAAP Measures” and the Appendix for additional details. |
||||
(c) | Discretionary free cash flow from continuing operations is defined as operating cash flows from continuing operations less maintenance capital expenditures of the continuing operations and certain other adjustments attributable to continuing operations, as applicable. | ||||
Valvoline Inc. and Consolidated Subsidiaries | ||||||||||||||
Appendix - Description of Non-GAAP Measures and Adjustments |