ALPHARETTA, Ga.- Neenah, Inc. (NYSE:NP) today reported first quarter 2021 results.
First Quarter Highlights
- Net sales of $227.0 million were up 10 percent from the fourth quarter of 2020, continuing the sequential growth since the second quarter of 2020, with strong rebounds in each segment.
- Net sales in Technical Products were up 10 percent from prior year; with record quarterly sales and profits in filtration.
- Adjusted operating margins for both segments returned to the mid-teens.
- Cash generated from operations of $20.7 million increased from $14.2 million in the prior year.
- Liquidity of $197 million as of March 31, 2021 increased from $176 million as of December 31, 2020.
- On April 6, 2021, completed the acquisition of ITASA, which is highly aligned with Neenah's growth strategy and expands Neenah's presence in specialty coatings.
- In connection with the acquisition of ITASA, refinanced our Term Loan B from $200 million to $450 million with more favorable terms, including a reduction in interest rate of approximately 150 basis points.
Adjusted earnings is a non-GAAP measure used to enhance understanding and comparability of year-on-year results. Details on adjusting items and a reconciliation to comparable GAAP measures are included later in this release.
“Neenah's strong momentum continued through the first quarter, with Technical Products sales up 10% over prior year behind record filtration performance and operating margins expanding to mid-teen levels in both segments. With increasing input costs, we have accelerated our pricing and cost actions to offset these increases, consistent with our historical performance," said Julie Schertell, Chief Executive Officer. “Our cash generation and balance sheet remain strong, providing the opportunity to execute strategies to expand in targeted growth platforms and increase our sales trajectory and margins. The recent acquisition of ITASA further builds out our specialty coatings platform and represents an additional meaningful avenue for accelerating profitable growth."
Source: Neenah
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