Delaware
|
File No. 1-3285
|
41-0417775
|
||
(State or other jurisdiction of incorporation)
|
(Commission File Number)
|
(IRS Employer Identification No.)
|
3M Center, St. Paul, Minnesota
|
55144-1000
|
|||
(Address of Principal Executive Offices)
|
(Zip Code)
|
☒ |
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))
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☐ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
||
Common Stock, Par Value $.01 Per Share
|
MMM
|
New York Stock Exchange
|
||
MMM
|
Chicago Stock Exchange, Inc.
|
|||
0.950% Notes due 2023
|
MMM23
|
New York Stock Exchange
|
||
1.500% Notes due 2026
|
MMM26
|
New York Stock Exchange
|
||
1.750% Notes due 2030
|
MMM30
|
New York Stock Exchange
|
||
1.500% Notes due 2031
|
MMM31
|
New York Stock Exchange
|
Exhibit
Number
|
Description
|
|
Summary Historical Combined Financial Information of the Food Safety Business (furnished pursuant to Item 7.01 hereof).
|
||
Unaudited interim combined financial statements of the Food Safety Business as of June 30, 2022 and for the three and six months ended June 30, 2022 and June 30,
2021 (furnished pursuant to Item 7.01 hereof).
|
||
Management’s Discussion and Analysis of Financial Condition and Results of Operations of the Food Safety Business for the three and six months ended June 30, 2022 (furnished pursuant to Item 7.01 hereof).
|
||
104
|
Cover Page Interactive Data File (the cover page XBRL tags are embedded in the Inline XBRL document).
|
3M COMPANY
|
||
By:
|
/s/ Michael M. Dai
|
|
Michael M. Dai,
|
||
Vice President, Associate General Counsel & Secretary
|
Years Ended December 31,
|
Six Months
Ended June 30,
|
Twelve Months
Ended
March 31,
|
||||||||||||||||||||||
(In thousands of U.S. dollars, except as specified)
|
2021
|
2020
|
2019
|
2022
|
2021
|
2022
|
||||||||||||||||||
Statement of Income Data:
|
||||||||||||||||||||||||
Net sales
|
$
|
368,388
|
$
|
336,764
|
$
|
337,088
|
$
|
180,973
|
$
|
178,958
|
$
|
374,492
|
||||||||||||
Cost of sales
|
143,348
|
127,027
|
121,302
|
74,707
|
66,382
|
147,461
|
||||||||||||||||||
Selling, general and administrative expenses
|
82,403
|
71,698
|
78,776
|
42,846
|
40,345
|
84,550
|
||||||||||||||||||
Research, development and related expenses
|
25,185
|
20,830
|
20,727
|
12,372
|
12,233
|
25,484
|
||||||||||||||||||
Total operating expenses
|
250,936
|
219,555
|
220,805
|
129,925
|
118,960
|
257,495
|
||||||||||||||||||
Income before income taxes
|
117,452
|
117,209
|
116,283
|
51,048
|
59,998
|
116,997
|
||||||||||||||||||
Provision for income taxes
|
23,720
|
25,237
|
24,505
|
10,447
|
12,508
|
23,812
|
||||||||||||||||||
Net income
|
$
|
93,732
|
$
|
91,972
|
$
|
91,778
|
$
|
40,601
|
$
|
47,490
|
$
|
93,185
|
||||||||||||
Net income margin(a)
|
25.4
|
%
|
27.3
|
%
|
27.2
|
%
|
22.4
|
%
|
26.5
|
%
|
24.9
|
%
|
(a)
|
Management of the Food Safety Business defines net income margin as net income as a percentage of net sales.
|
|
As of December 31,
|
As of June 30,
|
||||||||||
(In thousands of U.S. dollars)
|
2021
|
2020
|
2022
|
|||||||||
Balance Sheet Data:
|
||||||||||||
Total assets
|
$
|
202,516
|
$
|
195,853
|
$
|
208,211
|
||||||
Total equity
|
185,017
|
180,012
|
189,586
|
Years Ended December 31,
|
Six Months
Ended June 30,
|
|||||||||||||||||||
(In thousands of U.S. dollars)
|
2021
|
2020
|
2019
|
2022
|
2021
|
|||||||||||||||
Statement of Cash Flow Data:
|
||||||||||||||||||||
Net cash provided by operating activities
|
$
|
89,780
|
$
|
100,417
|
$
|
100,044
|
$
|
34,280
|
$
|
40,665
|
||||||||||
Purchases of property, plant and equipment (PP&E)
|
(5,088
|
)
|
(4,359
|
)
|
(4,125
|
)
|
(1,918
|
)
|
(2,963
|
)
|
||||||||||
Net cash used in investing activities
|
(5,088
|
)
|
(4,359
|
)
|
(4,125
|
)
|
(1,918
|
)
|
(2,963
|
)
|
||||||||||
Net cash used in financing activities
|
(84,692
|
)
|
(96,058
|
)
|
(95,919
|
)
|
(32,362
|
)
|
(37,702
|
)
|
Years Ended December 31,
|
Six Months
Ended June 30,
|
Twelve Months
Ended
March 31,
|
||||||||||||||||||||||
(In thousands of U.S. dollars, except as specified)
|
2021
|
2020
|
2019
|
2022
|
2021
|
2022
|
||||||||||||||||||
Other Financial Information:
|
||||||||||||||||||||||||
EBITDA(1)
|
$
|
122,091
|
$
|
121,746
|
$
|
120,496
|
$
|
54,238
|
$
|
62,856
|
$
|
121,931
|
||||||||||||
Adjusted EBITDA(1)
|
123,274
|
122,968
|
121,782
|
55,272
|
63,666
|
123,254
|
||||||||||||||||||
Adjusted EBITDA margin (%)(1)
|
33.5
|
%
|
36.5
|
%
|
36.1
|
%
|
30.5
|
%
|
35.6
|
%
|
32.9
|
%
|
||||||||||||
Free cash flow(2)
|
84,692
|
96,058
|
95,919
|
32,362
|
37,702
|
83,601
|
||||||||||||||||||
Free cash flow conversion (%)(2)
|
94.3
|
%
|
95.7
|
%
|
95.9
|
%
|
94.4
|
%
|
92.7
|
%
|
94.7
|
%
|
(1)
|
Management of the Food Safety Business defines EBITDA as net income before interest expense, income taxes, and depreciation and
amortization. Management of the Food Safety Business defines Adjusted EBITDA as EBITDA, adjusted for stock-based compensation. A reconciliation between net income, on one hand, and EBITDA and Adjusted EBITDA, on the other hand, is as follows:
|
Years Ended December 31,
|
Six Months
Ended June 30,
|
Twelve Months
Ended
March 31,
|
||||||||||||||||||||||
(In thousands of U.S. dollars, except as specified)
|
2021
|
2020
|
2019
|
2022
|
2021
|
2022
|
||||||||||||||||||
Net income
|
$
|
93,732
|
$
|
91,972
|
$
|
91,778
|
$
|
40,601
|
$
|
47,490
|
$
|
93,185
|
||||||||||||
Net income margin (%)(a)
|
25.4
|
%
|
27.3
|
%
|
27.2
|
%
|
22.4
|
%
|
26.5
|
%
|
24.9
|
%
|
||||||||||||
Provision for income taxes
|
23,720
|
25,237
|
24,505
|
10,447
|
12,508
|
23,813
|
||||||||||||||||||
Interest expenses
|
—
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Depreciation and amortization
|
4,639
|
4,537
|
4,213
|
3,190
|
2,858
|
4,934
|
||||||||||||||||||
EBITDA
|
122,091
|
121,746
|
120,496
|
54,238
|
62,856
|
121,931
|
||||||||||||||||||
Stock-based compensation(b)
|
1,183
|
1,222
|
1,286
|
1,034
|
810
|
1,323
|
||||||||||||||||||
Adjusted EBITDA
|
$
|
123,274
|
$
|
122,968
|
$
|
121,782
|
$
|
55,272
|
$
|
63,666
|
$
|
123,254
|
||||||||||||
Adjusted EBITDA margin (%)(c)
|
33.5
|
%
|
36.5
|
%
|
36.1
|
%
|
30.5
|
%
|
35.6
|
%
|
32.9
|
%
|
(a)
|
Management of the Food Safety Business defines net income margin as net income as a percentage of net sales.
|
|
(b)
|
The Food Safety Business’s stock-based compensation expense is reflected in cost of sales, selling, general and administrative expense
and research, development and related expenses in its combined statements of income.
|
|
(c)
|
Management of the Food Safety Business defines Adjusted EBITDA margin as Adjusted EBITDA as a percentage of net sales.
|
(2)
|
Management of the Food Safety Business defines free cash flow as net cash provided by operating activities less purchases of property,
plant and equipment provided by (PP&E). Management of the Food Safety Business defines free cash flow conversion as free cash flow as a percentage of net cash provided by operating activities. A reconciliation between net cash flow provided
by operating activities and free cash flow, and the calculation of free cash flow conversion, is as follows:
|
|
Years Ended December 31,
|
Six Months
Ended June 30,
|
Twelve Months
Ended
March 31,
|
|||||||||||||||||||||
(In thousands of U.S. dollars, except as specified)
|
2021
|
2020
|
2019
|
2022
|
2021
|
2022
|
||||||||||||||||||
Net cash provided by operating activities
|
$
|
89,780
|
$
|
100,417
|
$
|
100,044
|
$
|
34,280
|
$
|
40,665
|
$
|
88,270
|
||||||||||||
Purchases of property, plant and equipment (PP&E)
|
(5,088
|
)
|
(4,359
|
)
|
(4,125
|
)
|
(1,918
|
)
|
(2,963
|
)
|
(4,669
|
)
|
||||||||||||
Free cash flow
|
$
|
84,692
|
$
|
96,058
|
$
|
95,919
|
$
|
32,362
|
$
|
37,702
|
$
|
83,601
|
||||||||||||
Free cash flow conversion (%)
|
94.3
|
%
|
95.7
|
%
|
95.9
|
%
|
94.4
|
%
|
92.7
|
%
|
94.7
|
%
|
•
|
Management of the Food Safety Business defines EBITDA as net income before interest expense, income taxes, and depreciation and
amortization. Management the Food Safety Business presents EBITDA as a performance measure because it may allow for a comparison of results across periods and results across companies in the industry in which the Food Safety Business operates
on a consistent basis, by removing the effects on operating performance of (a) capital structure (such as the varying levels of interest expense and interest income), (b) asset base and capital investment cycle (such as depreciation and
amortization) and (c) items largely outside the control of management (such as income taxes). EBITDA also forms the basis for the measurement of Adjusted EBITDA (discussed below).
|
|
•
|
Management of the Food Safety Business defines Adjusted EBITDA as a performance measure, as EBITDA, adjusted for stock-based
compensation. Management of the Food Safety Business presents Adjusted EBITDA because it provides an understanding of underlying business performance by excluding the following:
|
|
•
|
Stock-based compensation.
Management of the Food Safety Business believes it is useful to exclude stock-based compensation in order to better understand the long-term performance of the core business and to facilitate comparison with the results of peer companies.
|
•
|
Management of the Food Safety Business defines Adjusted EBITDA margin as Adjusted EBITDA as a percentage of net sales. Management of the
Food Safety Business presents Adjusted EBITDA margin as a performance measure to analyze the level of Adjusted EBITDA generated from total revenue and net sales.
|
•
|
Management of the Food Safety Business define free cash flow as net cash provided by operating activities less purchases of property,
plant and equipment. Management of the Food Safety Business believes that free cash flow provides supplemental information to assist management and investors in analyzing the Food Safety Business’s, and, going forward, the combined company’s
ability to generate liquidity from its operating activities to fund discretionary capital expenditures and service debt.
|
•
|
Management of the Food Safety Business defines free cash flow conversion as free cash flow as a percentage of net cash provided by
operating activities. Management of the Food Safety Business presents free cash flow conversion as a liquidity measure to analyze the level of free cash flow generated from net cash from operating activities.
|
•
|
they do not reflect changes in, or cash requirements for the Food Safety Business’s working capital needs;
|
•
|
they do not reflect the Food Safety Business’s interest expense or cash requirements necessary to service interest or principal payments
on its indebtedness;
|
•
|
they do not reflect the Food Safety Business’s tax expense or the cash requirements to pay its taxes;
|
•
|
they do not reflect the historical cash expenditures or future requirements for capital expenditures or contractual commitments;
|
•
|
they do not reflect the effect on earnings or changes resulting from matters the Food Safety Business considers not to be indicative of
its future operations;
|
•
|
they do not reflect any cash requirements for future replacements of assets that are being depreciated and amortized; and
|
•
|
they may be calculated differently from other companies in the Food Safety Business’s industry limiting their usefulness as comparative
measures.
|
•
|
the definition of free cash flow is limited and does not represent residual cash flows available for discretionary expenditures; and
|
•
|
the measure of free cash flow does not take into consideration mandatory principal payments on the combined company’s long-term debt.
|
Beginning
Page
|
|
Combined Statement of Income
|
F-2
|
Combined Statement of Comprehensive Income
|
F-3
|
Combined Balance Sheet
|
F-4
|
Combined Statement of Cash Flows
|
F-5
|
Combined Statement of Changes in Equity
|
F-6
|
Notes to Combined Financial Statements
|
F-8
|
Note 1 – Significant Accounting Policies
|
F-8
|
Note 2 – New Accounting Pronouncements
|
F-8
|
Note 3 – Revenues
|
F-9
|
Note 4 – Property, Plant, and Equipment, Net
|
F-10
|
Note 5 – Goodwill and Intangible Assets
|
F-10
|
Note 6 – Related Party Transactions, Corporate Allocations, and Net 3M Investment
|
F-11
|
Note 7 – Commitments and Contingencies
|
F-12
|
Note 8 – Subsequent Events
|
F-12
|
Three months ended
June 30,
|
Six months ended
June 30,
|
|||||||||||||||
(In thousands of U.S. dollars)
|
2022
|
2021
|
2022
|
2021
|
||||||||||||
Net sales
|
$
|
89,352
|
$
|
93,441
|
$
|
180,973
|
$
|
178,958
|
||||||||
Operating expenses
|
||||||||||||||||
Cost of sales
|
38,478
|
34,267
|
74,707
|
66,382
|
||||||||||||
Selling, general and administrative expenses
|
20,736
|
20,380
|
42,846
|
40,345
|
||||||||||||
Research, development and related expenses
|
6,037
|
6,197
|
12,372
|
12,233
|
||||||||||||
Total operating expenses
|
65,251
|
60,844
|
129,925
|
118,960
|
||||||||||||
Income before income taxes
|
24,101
|
32,597
|
51,048
|
59,998
|
||||||||||||
Provision for income taxes
|
4,797
|
6,950
|
10,447
|
12,508
|
||||||||||||
Net income
|
$
|
19,304
|
$
|
25,647
|
$
|
40,601
|
$
|
47,490
|
Three months ended
June 30,
|
Six months ended
June 30,
|
|||||||||||||||
(In thousands of U.S. dollars)
|
2022
|
2021
|
2022
|
2021
|
||||||||||||
Net income
|
$
|
19,304
|
$
|
25,647
|
$
|
40,601
|
$
|
47,490
|
||||||||
Other comprehensive income (loss), net of tax:
|
||||||||||||||||
Cumulative translation adjustment
|
(4,760
|
)
|
1,369
|
(4,494
|
)
|
(1,298
|
)
|
|||||||||
Total other comprehensive income (loss), net of tax
|
(4,760
|
)
|
1,369
|
(4,494
|
)
|
(1,298
|
)
|
|||||||||
Comprehensive income (loss)
|
$
|
14,544
|
$
|
27,016
|
$
|
36,107
|
$
|
46,192
|
(In thousands of U.S. dollars)
|
June 30,
2022
|
December 31,
2021
|
||||||
Assets
|
||||||||
Current assets
|
||||||||
Cash
|
$
|
—
|
$
|
—
|
||||
Accounts receivable — net of allowances of $921 and $882
|
51,686
|
47,781
|
||||||
Inventories
|
||||||||
Finished goods
|
21,508
|
21,632
|
||||||
Work in process
|
7,454
|
5,614
|
||||||
Raw materials and supplies
|
8,741
|
7,876
|
||||||
Total inventories
|
37,703
|
35,122
|
||||||
Other current assets
|
5,206
|
5,227
|
||||||
Total current assets
|
94,595
|
88,130
|
||||||
Property, plant and equipment
|
53,060
|
54,594
|
||||||
Less: Accumulated depreciation
|
(31,299
|
)
|
(31,032
|
)
|
||||
Property, plant and equipment — net
|
21,761
|
23,562
|
||||||
Operating lease right of use assets
|
1,012
|
1,403
|
||||||
Goodwill
|
79,983
|
81,046
|
||||||
Intangible assets — net
|
2,934
|
3,250
|
||||||
Deferred tax assets — non-current
|
6,645
|
3,836
|
||||||
Other assets
|
1,281
|
1,289
|
||||||
Total assets
|
$
|
208,211
|
$
|
202,516
|
||||
Liabilities
|
||||||||
Current liabilities
|
||||||||
Accounts payable
|
$
|
12,083
|
$
|
8,497
|
||||
Accrued payroll
|
1,609
|
3,641
|
||||||
Operating lease liabilities — current
|
287
|
357
|
||||||
Other current liabilities
|
3,930
|
3,979
|
||||||
Total current liabilities
|
17,909
|
16,474
|
||||||
Operating lease liabilities — non-current
|
708
|
1,017
|
||||||
Deferred income taxes — non-current
|
8
|
8
|
||||||
Total liabilities
|
$
|
18,625
|
$
|
17,499
|
||||
Commitments and contingencies (Note 7)
|
||||||||
Equity
|
||||||||
3M net investment
|
$
|
237,984
|
$
|
228,921
|
||||
Accumulated other comprehensive income (loss)
|
(48,398
|
)
|
(43,904
|
)
|
||||
Total equity
|
$
|
189,586
|
$
|
185,017
|
||||
Total liabilities and equity
|
$
|
208,211
|
$
|
202,516
|
Six months ended
June 30,
|
||||||||
(In thousands of U.S. dollars)
|
2022
|
2021
|
||||||
Cash Flows from Operating Activities
|
||||||||
Net income
|
$
|
40,601
|
$
|
47,490
|
||||
Adjustments to reconcile net income to net cash provided by operating activities
|
||||||||
Depreciation and amortization
|
3,190
|
2,858
|
||||||
Stock-based compensation expense
|
1,034
|
810
|
||||||
Deferred income taxes
|
(2,808
|
)
|
-
|
|||||
Changes in operating assets and liabilities
|
||||||||
Accounts receivable
|
(5,653
|
)
|
(2,677
|
)
|
||||
Inventories
|
(3,588
|
)
|
(10,784
|
)
|
||||
Accounts payable
|
4,290
|
3,315
|
||||||
Accrued payroll
|
(1,972
|
)
|
(88
|
)
|
||||
Other — net
|
(814
|
)
|
(259
|
)
|
||||
Net cash provided by (used in) operating activities
|
$
|
34,280
|
$
|
40,665
|
||||
Cash Flows from Investing Activities
|
||||||||
Purchases of property, plant and equipment
|
(1,918
|
)
|
(2,963
|
)
|
||||
Net cash provided by (used in) investing activities
|
$
|
(1,918
|
)
|
$
|
(2,963
|
)
|
||
Cash Flows from Financing Activities
|
||||||||
Net transfers to 3M
|
(32,572
|
)
|
(37,483
|
)
|
||||
Other — net
|
210
|
(219
|
)
|
|||||
Net cash provided by (used in) financing activities
|
$
|
(32,362
|
)
|
$
|
(37,702
|
)
|
||
Net increase (decrease) in cash and cash equivalents
|
—
|
—
|
(In thousands of U.S. dollars)
|
3M Net
Investment
|
Accumulated
Other
Comprehensive
Income (Loss)
|
Total
Equity
|
|||||||||
Balance at March 31, 2021
|
$
|
222,875
|
$
|
(41,539
|
)
|
$
|
181,336
|
|||||
Net income
|
25,647
|
—
|
25,647
|
|||||||||
Other comprehensive income (loss), net of tax
|
—
|
1,369
|
1,369
|
|||||||||
Stock-based compensation
|
187
|
—
|
187
|
|||||||||
Net transfers to 3M
|
(19,008
|
)
|
—
|
(19,008
|
)
|
|||||||
Balance at June 30, 2021
|
$
|
229,701
|
$
|
(40,170
|
)
|
$
|
189,531
|
|||||
Balance at March 31, 2022
|
$
|
233,561
|
$
|
(43,638
|
)
|
$
|
189,923
|
|||||
Net income
|
19,304
|
—
|
19,304
|
|||||||||
Other comprehensive income (loss), net of tax
|
—
|
(4,760
|
)
|
(4,760
|
)
|
|||||||
Stock-based compensation
|
271
|
—
|
271
|
|||||||||
Net transfers to 3M
|
(15,152
|
)
|
—
|
(15,152
|
)
|
|||||||
Balance at June 30, 2022
|
$
|
237,984
|
$
|
(48,398
|
)
|
$
|
189,586
|
(In thousands of U.S. dollars)
|
3M Net
Investment
|
Accumulated
Other
Comprehensive
Income (Loss)
|
Total Equity
|
|||||||||
Balance at December 31, 2020
|
$
|
218,884
|
$
|
(38,872
|
)
|
$
|
180,012
|
|||||
Net income
|
47,490
|
—
|
47,490
|
|||||||||
Other comprehensive income (loss), net of tax
|
—
|
(1,298
|
)
|
(1,298
|
)
|
|||||||
Stock-based compensation
|
810
|
—
|
810
|
|||||||||
Net transfers to 3M
|
(37,483
|
)
|
—
|
(37,483
|
)
|
|||||||
Balance at June 30, 2021
|
$
|
229,701
|
$
|
(40,170
|
)
|
$
|
189,531
|
|||||
Balance at December 31, 2021
|
$
|
228,921
|
$
|
(43,904
|
)
|
$
|
185,017
|
|||||
Net income
|
40,601
|
—
|
40,601
|
|||||||||
Other comprehensive income (loss), net of tax
|
—
|
(4,494
|
)
|
(4,494
|
)
|
|||||||
Stock-based compensation
|
1,034
|
—
|
1,034
|
|||||||||
Net transfers to 3M
|
(32,572
|
)
|
—
|
(32,572
|
)
|
|||||||
Balance at June 30, 2022
|
$
|
237,984
|
$
|
(48,398
|
)
|
$
|
189,586
|
Three months ended
June 30,
|
Six months ended
June 30,
|
|||||||||||||||
Net sales (In thousands of U.S. dollars)
|
2022
|
2021
|
2022
|
2021
|
||||||||||||
Indicator Testing
|
$
|
48,080
|
$
|
50,795
|
$
|
97,100
|
$
|
96,919
|
||||||||
Hygiene Monitoring
|
14,354
|
16,174
|
28,768
|
30,575
|
||||||||||||
Sample Handling
|
13,859
|
14,309
|
28,137
|
28,091
|
||||||||||||
Pathogen Detection
|
11,279
|
10,410
|
23,448
|
19,791
|
||||||||||||
Allergen Testing
|
1,780
|
1,753
|
3,520
|
3,582
|
||||||||||||
Total Food Safety
|
$
|
89,352
|
$
|
93,441
|
$
|
180,973
|
$
|
178,958
|
Three months ended
June 30,
|
Six months ended
June 30,
|
|||||||||||||||
Net sales (In thousands of U.S. dollars)
|
2022
|
2021
|
2022
|
2021
|
||||||||||||
Americas
|
$
|
52,475
|
$
|
51,437
|
$
|
104,008
|
$
|
99,677
|
||||||||
Asia Pacific
|
25,550
|
28,607
|
53,565
|
53,495
|
||||||||||||
Europe, Middle East, and Africa
|
11,327
|
13,397
|
23,400
|
25,786
|
||||||||||||
Total Food Safety
|
$
|
89,352
|
$
|
93,441
|
$
|
180,973
|
$
|
178,958
|
(In thousands of U.S. dollars)
|
June 30,
2022
|
December 31,
2021
|
||||||
Property, plant and equipment - at cost
|
||||||||
Buildings and leasehold improvements
|
$
|
4,790
|
$
|
5,108
|
||||
Machinery and equipment
|
42,282
|
42,572
|
||||||
Construction in progress
|
2,966
|
3,515
|
||||||
Other fixed assets
|
3,022
|
3,399
|
||||||
Gross property, plant and equipment
|
53,060
|
54,594
|
||||||
Accumulated depreciation
|
(31,299
|
)
|
(31,032
|
)
|
||||
Property, plant and equipment – net
|
$
|
21,761
|
$
|
23,562
|
(In thousands of U.S. dollars)
|
||||
Balance at December 31, 2021
|
$
|
81,046
|
||
Translation impact
|
(1,063
|
)
|
||
Balance at June 30, 2022
|
$
|
79,983
|
(In thousands of U.S. dollars)
|
June 30,
2022
|
December 31,
2021
|
||||||
Customer related intangible assets
|
$
|
3,070
|
$
|
3,070
|
||||
Other technology-based intangible assets
|
2,373
|
2,373
|
||||||
Other amortizable intangible assets
|
538
|
538
|
||||||
Total gross carrying amount
|
$
|
5,981
|
$
|
5,981
|
||||
Accumulated amortization — customer related
|
$
|
(1,484
|
)
|
$
|
(1,330
|
)
|
||
Accumulated amortization — other technology-based
|
(1,043
|
)
|
(935
|
)
|
||||
Accumulated amortization — other
|
(520
|
)
|
(466
|
)
|
||||
Total accumulated amortization
|
(3,047
|
)
|
$
|
(2,731
|
)
|
|||
Total intangible assets — net
|
$
|
2,934
|
$
|
3,250
|
Three months ended
June 30,
|
Six months ended
June 30,
|
|||||||||||||||
(In thousands of U.S. dollars)
|
2022
|
2021
|
2022
|
2021
|
||||||||||||
Amortization expense
|
$
|
158
|
$
|
158
|
$
|
315
|
$
|
315
|
(In thousands of U.S. dollars)
|
Remainder of
2022
|
2023
|
2024
|
2025
|
2026
|
After
2026
|
||||||||||||||||||
Amortization expense
|
$
|
279
|
$
|
523
|
$
|
523
|
$
|
523
|
$
|
523
|
$
|
563
|
Three months ended
June 30,
|
Six months ended
June 30,
|
|||||||||||||||
(In thousands of U.S. dollars)
|
2022
|
2021
|
2022
|
2021
|
||||||||||||
Cost of sales
|
$
|
224
|
$
|
243
|
$
|
453
|
$
|
585
|
||||||||
Selling, general and administrative expenses
|
8,599
|
9,510
|
18,445
|
19,193
|
||||||||||||
Research, development and related expenses
|
1,834
|
1,863
|
3,800
|
3,848
|
||||||||||||
Total
|
$
|
10,657
|
$
|
11,616
|
$
|
22,698
|
$
|
23,626
|
•
|
Overview
|
•
|
Results of Operations
|
•
|
Financial Condition and Liquidity
|
•
|
Quantitative and Qualitative Disclosures About Market Risk
|
Three months ended,
|
Six months ended,
|
|||||||||||||||||||||||
(In thousands of U.S. dollars)
|
June 30,
2022
|
June 30,
2021
|
Change |
June 30,
2022
|
June 30,
2021
|
Change
|
||||||||||||||||||
Net sales
|
$
|
89,352
|
$
|
93,441
|
(4.4)%
|
|
$
|
180,973
|
$
|
178,958
|
1.1%
|
|
Three months ended,
|
Six months ended,
|
|||||||||||||||||||||||
(In thousands of U.S. dollars)
|
June 30,
2022
|
June 30,
2021
|
Change
|
June 30,
2022
|
June 30,
2021
|
Change
|
||||||||||||||||||
Cost of sales
|
$
|
38,478
|
$
|
34,267
|
12.3%
|
|
$
|
74,707
|
$
|
66,382
|
12.5%
|
|
||||||||||||
Selling, general and administrative expenses (SG&A)
|
20,736
|
20,380
|
1.7%
|
|
42,846
|
40,345
|
6.2%
|
|
||||||||||||||||
Research, development and related expenses (R&D)
|
6,037
|
6,197
|
(2.6)%
|
|
12,372
|
12,233
|
1.1%
|
|
||||||||||||||||
Total operating expenses
|
$
|
65,251
|
$
|
60,844
|
7.2%
|
|
$
|
129,925
|
$
|
118,960
|
9.2%
|
|
Three months ended,
|
Six months ended,
|
|||||||||||||||||||||||
(In thousands of U.S. dollars)
|
June 30,
2022
|
June 30,
2021
|
Change
|
June 30,
2022
|
June 30,
2021
|
Change
|
||||||||||||||||||
Operating income
|
$
|
24,101
|
$
|
32,597
|
(26.1)%
|
|
$
|
51,048
|
$
|
59,998
|
(14.9)%
|
|
Three months ended,
|
Six months ended,
|
|||||||||||||||
(In thousands of U.S. dollars)
|
June 30,
2022
|
June 30,
2021
|
June 30,
2022
|
June 30,
2021
|
||||||||||||
Effective tax rate
|
19.9%
|
|
21.3%
|
|
20.5%
|
|
20.8%
|
|
Six months ended
June 30,
|
||||||||
(In thousands of U.S. dollars)
|
2022
|
2021
|
||||||
Net cash provided by (used in) operating activities
|
34,280
|
40,665
|
||||||
Net cash provided by (used in) investing activities
|
(1,918
|
)
|
(2,963
|
)
|
||||
Net cash provided by (used in) financing activities
|
(32,362
|
)
|
(37,702
|
)
|