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Mar 31, 2020

Avient Q1 2020 Earnings Report

Reported a decrease in sales but an increase in operating income and EPS due to improved margins and cost containment.

Key Takeaways

PolyOne reported a decrease in sales by 5% due to the COVID-19 pandemic, but an increase in operating income by 5% due to improved margins and cost containment actions. GAAP EPS from continuing operations increased to $0.38, and adjusted EPS (excluding the impact of additional shares) improved to $0.53.

GAAP EPS from continuing operations was $0.38 compared to $0.29 in the prior year first quarter.

Adjusted EPS from continuing operations (excluding the impact of additional shares) improved 23% to $0.53 compared to $0.43 in the prior year first quarter.

Operating income increased 5% as improved margins in all segments and cost containment actions offset a 5% sales decline related to the COVID-19 pandemic

Liquidity remains strong as the company finished the quarter with $1.28 billion in cash.

Total Revenue
$712M
Previous year: $900M
-20.9%
EPS
$0.48
Previous year: $0.64
-25.0%
Adjusted Gross margin
24.1%
Previous year: 22.9%
+5.2%
Adjusted Operating income
8.8%
Previous year: 7.9%
+11.4%
Gross Profit
$172M
Previous year: $196M
-12.6%
Cash and Equivalents
$1.28B
Previous year: $108M
+1082.1%
Free Cash Flow
-$23.9M
Previous year: -$34.6M
-30.9%
Total Assets
$3.74B
Previous year: $2.96B
+26.4%

Avient

Avient

Avient Revenue by Segment

Forward Guidance

Given the uncertainty in global markets, the company does not plan to provide specific guidance for the second quarter or the balance of the year at this time.

Revenue & Expenses

Visualization of income flow from segment revenue to net income