investor presentation · 2020-05-18 · this presentation contains “forward-looking statements”...
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Thermal Acoustical SolutionsPerformance Materials Technical Nonwovens
May 2020
Investor Presentation
THIS DOCUMENT, OR AN EMBODIMENT OF IT IN ANY MEDIA, DISCLOSES INFORMATION THAT IS PROPRIETARY, IS THE PROPERTY OF LYDALL, INC. AND/OR ITS AFFILIATE (COLLECTIVELY, “LYDALL”), IS AN UNPUBLISHED WORK PROTECTEDUNDER APPLICABLE COPYRIGHT LAWS AND IS DELIVERED ON THE EXPRESS CONDITION THAT IT IS NOT TO BE USED, DISCLOSED, OR REPRODUCED, IN WHOLE OR IN PART (INCLUDING REPRODUCTION AS A DERIVATIVE WORK), OR USEDFOR MANUFACTURE FOR ANYONE OTHER THAN LYDALL WITHOUT ITS WRITTEN CONSENT. NO RIGHT IS GRANTED TO DISCLOSE OR SO USE ANY INFORMATION CONTAINED HEREIN. ALL RIGHTS RESERVED. © LYDALL, INC. 2019
Forward-Looking Statements
This presentation contains “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are intended to provide management’s current expectations for the future operating and financial performance of the Company based on current expectations and assumptions relating to the Company’s business, the economy and other future conditions, and generally can be identified through the use of words such as “believes,” “anticipates,” “may,” “should,” “will,” “plans,” “projects,” “expects,” “estimates,” “forecasts,” “predicts,” “targets,” “prospects,” “strategy,” “signs,” and other words of similar meaning. These forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause actual results to differ materially and adversely from those expressed in any forward-looking statement. Investors, therefore, are cautioned against relying on any of these forward-looking statements. Lydall’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and other Securities and Exchange Commission filings discuss important risk factors that could affect the Company’s business, results of operations and financial condition.
These forward-looking statements speak only as of the date of this presentation, and Lydall does not assume any obligation to update or revise any forward-looking statement made in this presentation.
This presentation contains non-GAAP financial measures as defined by SEC regulations. The Appendix of this presentation includes a reconciliation to the most comparable GAAP measures.
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POSITIONINGNiche solutions in diverse segments
EXECUTIONOperational excellence
to enhance margins and cash flow
GROWTHClear, consistent
strategy for profitable growth
LIQUIDITYStrong balance sheet provides
flexibility
DISCIPLINEDCapital allocation to
fund additional strategic opportunities
Leading Provider of Engineered Customer Solutions
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Serving Attractive End Markets Driven by Strong Secular Trends
Lydall at a Glance (NYSE: LDL)
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Global Manufacturer of Specialty Engineered Products
Key StatisticsFounded 1869Headquarters Manchester, CTRegions Served GlobalGlobal Employees ~3,300
2019 Financial HighlightsRevenue $837M
Technical Nonwovens Performance MaterialsThermal Acoustical Solutions
30%28%42%
Adj. EBITDA Margin1 9.6%Free Cash Flow2 $51.0M
1 Reference Appendix for reconciliation between adjusted financials and GAAP financials; 2 FCF = Cash flow from operations less capex.
Global Footprint | 2019 Revenue by Region & Locations
Technical Nonwovens Performance Materials Thermal Acoustical Solutions
Filtration & Engineered Materials Automotive
10%Asia
27%EMEA
63%N. America
Vision for Profitable Growth1
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Focused on Profitable Expansion and Diversifying Automotive Exposure
Sales
EBITDA Margin
2012
$362M
10.0%
2019
$837M14% CAGR
9.6%
Vision
GDP+
MarginExpansion
Filtration & Engineered Materials Automotive
1 Reflects continuing operations; reference Appendix for reconciliation between adjusted financials and GAAP financials.
CLEAR PRIORITIES
Margin expansion driven by Lean, innovation, and scale
Expansion into new verticals through innovation
Focused on adjacent markets and strategic acquisitions in Filtration and Engineered Materials
12.9%13.3%
14.2% 9.7%
Estimated Share of Segment Served 2019 Sales by ApplicationIndustrial Filtration2 Advanced Materials3
Technical Nonwovens at a Glance
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Business Highlights Leading industrial air filtration
media for dust and pollution control
Advanced materials serves a broad set of applications and multiple sectors
Combination of 3 market leading businesses Andrew Filtration (Feb 2014) Texel (Jul 2016) Gutsche (Dec 2016)
Competitive Advantages Global brands renowned for
quality and innovation Manufacturing scale and
operational efficiency Diversified end markets and
geographies
Financial Performance1 2019 Sales by Region
$139 $156
$269 $277 $255 $247
13% 16% 15% 14% 14% 14%
0%
10%
20%
30%
40%
50%
60%
70%
$-
$50
$100
$150
$200
$250
$300
2015 2016 2017 2018 2019 TTMQ1-20
Revenue EBITDA Margin
62%27%
11%
North AmericaEMEAAsia
57%43% Industrial Filtration
Advanced Materials
($M)
25%9%
1 Reference Appendix for reconciliation between adjusted and GAAP financials; 2 Competitors: BWF Envirotec, Savings, and Testori; 3 Competitors: Propex, TexTech, TenCate, and Sandler.
Performance Materials at a Glance
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Financial Performance1 2019 Sales by Region
Estimated Share of Segment Served 2019 Sales by ApplicationFiltration2 Sealing & Advanced
Solutions3
$102 $111 $117 $169
$245 $246
13% 15% 14% 14% 12% 13%
0%
10%
20%
30%
40%
50%
60%
70%
$-
$50
$100
$150
$200
$250
$300
2015 2016 2017 2018 2019 TTMQ1-20
Revenue EBITDA Margin
58%26%
16%
North AmericaEMEAAsia
1 Reference Appendix for reconciliation between adjusted and GAAP financials; 2 Competitors: Hollingsworth & Vose, Ahlstrom Munksjo, Hokuetsu, and Neenah Paper; 3 Competitors: Unifrax, Owens Corning, Neenah Paper, EnPro, and Frenzelit
38%
62%
Filtration
Sealing &Advanced Solutions
($M)
Business Highlights Comprehensive filtration media
portfolio serving air, liquid, and life sciences sectors
Complete sealing solutions with preeminent fiber technology
New product development in air and liquid filtration is a key element to profitable growth
Competitive Advantages Expertise in organic, polymer, and
nano-fibers Providing complete portfolio of
filtration media from residential to high efficiency HEPA/ULPA clean room applications
Flexibility to accommodate various run sizes providing technical solutions and niche innovation
Leadership in fiber-based wetlaid production
21% 6%
Thermal Acoustical Solutions at a Glance
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Business Highlights Fabricated thermal and acoustical
barriers Margin enhancement with dual
wall encapsulation applications Expanding product portfolio and
geographic diversity Sole sourced for awarded
applications; material pass through exists for approximately half of heat shield business
Competitive Advantages Highly engineered solutions for
customer requirements Vertical integration (insulation
material and fibers) Rapid solution provider with global
presence World-class manufacturing
Financial Performance1 2019 Sales by Region
Estimated Share of Segment Served CustomersHeat Shield (Global)2 Acoustical (U.S.)3 Light Vehicle Heavy Truck/Other
$292 $298 $321 $342 $365 $362 $351
18% 20% 20% 19%13% 10% 9%
0%
10%
20%
30%
40%
50%
60%
70%
$-
$50
$100
$150
$200
$250
$300
$350
$400
2014 2015 2016 2017 2018 2019 TTMQ1-20 Revenue EBITDA Margin
68%
27%
5%
North AmericaEMEAAsia
12% 15%
1 Reference Appendix for reconciliation between adjusted and GAAP financials; 2 Competitors: ElringKlinger, Federal Mogul, Dana, and Autoneum; 3 Competitors: Autoneum, Borgers, HP Pelzer Group, and IAC.
($M)
Key Products and Applications by Business
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TECHNICAL NONWOVENS PERFORMANCE MATERIALS THERMAL ACOUSTICAL SOLUTIONS
PRO
DU
CTS
Nonwoven needled felt designed and manufactured for Industrial Filtration and a diverse selection of demanding material applications
Wide range of nonwoven engineered materials for Filtration, Insulation, and Sealing Solution markets
Portfolio of engineered heat shields providing heat and noise abatement to sensitive components and passengers in high temp transportation applications
Full range of engineered nonwoven products to assist in noise, heat management, and weight reduction within the transportation sector
APP
LIC
ATIO
NS
Industrial Filtration Fabrics and filter bags for filtration of particulate
and emission control for incineration, food/ pharma/chemical, power generation, and cement/asphalt/steel
Advanced Materials High performance for demanding applications
including geosynthetics, acoustics, pipe rehabilitation, and medical applications
Filtration Specialty filtration medias engineered for specific
performance air and liquid applications, including media used in N95 respirators, surgical/medical masks, and critical environments
Sealing and Advanced Solutions Sealing material used in equipment to keep fluids
in and contaminants out, applications include drivetrain, transmission, axels, compressors
Advanced solutions are materials in niche areas such as cryogenic insulation, thermal insulation, electrical papers, and aerospace papers
Thermal Acoustical Solutions Shielding for heat and component protection
including turbocharger wrap, fuel tank, hybrid electric accessories, and EV motor
Acoustic components for sound attenuation and thermal protection including aero shield, battery, integrated floor liners, and wheel arch liners
Attractive End Markets with Secular Growth Drivers
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Well Positioned to Take Advantage of Multiple Trends Driving Above GDP Growth
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FILTRATION & ENGINEERED MATERIALS
AUTOMOTIVE
Sustainability & RegulationGlobal air and water standards improving
InfrastructureAging systems in US, EU, and Asia
EnergyAvailability, management, and efficiency
Localization of mission critical filtration media and engineered materials to support COVID-19 pandemic requirements
Conversion to higher efficiency particulate capture technologies Filtration in industrial, commercial, and residential growing at 2x
GDP Increased civil construction repair and replace projects Increasingly converting waste to energy and reducing landfills
Emission & Noise RegulationIncreasing global standards
ElectrificationGrowth of hybrid and battery vehicles
Connected VehiclesContinuous electronics introductions
Lightweighting secular themes Smaller engines with turbochargers for economy, weight, and performance Material technology shifts: metal plastic and plastic fiber
Higher use of Noise, Vibration, and Harshness (NVH) products Battery and electric motors creating new types of thermal,
electrical, and noise requirements Increased content (hybrids and electrical components) driving need for
thermal shielding
HOW LYDALL CAPITALIZES
Engineered filtration solutions with global footprint positioned for improved standards and stringent requirements
Leading position in geosynthetics and growth position in pipe rehabilitation
Best-in-class thermal insulation Wide installed based for incineration
filtration
Suite of thermal shields that can be acoustically tuned
Battery insulators to manage thermal environments
Turbo wraps designed to reduce noise and improve performance
Fiber technology displacing plastics in multiple locations
RF Shields to protect sensitive electronics
Clear, Consistent Strategy for Profitable Growth
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Develop and quickly deploy next generation product
offerings
Execute disciplined M&A for Filtration & Engineered
Materials
Drive revenue and margin expansion through operational excellence
Evaluate opportunities to further strengthen global footprint
Key Competitive Differentiators
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Providing Complete Engineered Solutions
to Solve Customer Problems
Lydall Lean Six Sigma Embraced by All
Businesses
Synergistic Segments
Market Leadership
UnmatchedTechnologies
Robust design, testing, and simulation capabilities
Quick turnaround on new product deployment
Quality is a cornerstone
Improved quality, service, and on-time delivery
Capacity optimization Significant opportunity to
improve acquired businesses
Engineered materials expertise enables innovative automotive products and vertical integration Polyester rolled good
media converted to acoustical barriers
Microglass insulation media dual wall heat shields
Top 10 global nonwovens company
#1 industrial air filtration media globally
#1 geotextile producer in Canada
Only filtration media company providing industrial, commercial, and residential solutions
Suite of nonwoven technologies
Deep materials science expertise in both design and production
Engineering and R&D expertise to deliver innovation
Continuous Improvement Mindset with Deep Customer Relationships
$378
$516 $523 $567
$698
$786 $837
2013 2014 2015 2016 2017 2018 2019
20.7% 21.5%23.3%
24.8%23.7%
19.9%18.3%
2013 2014 2015 2016 2017 2018 2019
$42
$64 $72
$85
$95 $90
$80
2013 2014 2015 2016 2017 2018 2019
Execution of Strategy Driving Solid Financial Performance1
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Strong Long-term Growth Profile
Revenue Growth ($M) Gross Margin Profile EBITDA Growth ($M)
6-yr CAGR: 14% Overall, 4% Organic Commodity Headwinds in 2018 and Operational Issues in 2019 6-yr CAGR: 11%
1 Reflects continuing operations; reference Appendix for reconciliation between adjusted and GAAP financials.
Clear Capital Allocation Strategy and Strong Liquidity Position
Capital Allocation Strategy Support organic growth programs with capital investments Pursue attractive acquisitions fueled by operating cash flows and paydown debt to ensure appropriate leverage Long term leverage ratio target <2.5x Buyback is secondary consideration to offset dilution
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Flexible Balance Sheet Provides Liquidity to Fund Organic Growth
Summary Balance Sheet1 ($M)
Total Current Assets $325
Working Capital $176
PPE, Net $205
Total Assets $751
Total Debt $288
Debt to Total Capitalization 53%
Liquidity Position ($M)
$62 $76 $72 $60 $49 $48 $43 $49 $51 $88
$41 $21
$129 $77
$325 $318 $300 $287 $273 $288
2014 2015 2016 2017 2018 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Target
Cash/ST Investments Debt
Net Leverage:
Acquisitions:
0.7x 0.2x 2.8x 3.0x
1 As of March 31, 2020.
2.9x 2.8x 3.0x 2.9x <2.5x
Strategic Approach to M&A | Recent Acquisitions
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Date 2018 2016 2016Purchase Price $265M $58M $96MEBITDA Acquisition Multiple (Pre | Post
Synergies) 9.0x | 8.0x 9.5x | 6.5x 8.3x | 6.9x
Adjacent to Existing Products and Markets Provides Complementary/New Technologies Deepens Focus on Engineered Materials Expands Global Footprint Meaningful Scale Accretive to Shareholders
KEY RATIONALE Strengthens engineered materials
offering with a leading globally-recognized brand
Leverages existing manufacturing capabilities and know-how
Enhances portfolio with meaningful scale and margin profile
Strengthens position as an industry leader in engineered materials
Further diversifies into attractive adjacent markets with a leading brand
Provides opportunity to leverage existing manufacturing capabilities and expertise
Solidifies Lydall as a global leader in industrial filtration markets
Further diversifies into complementary geographies and attractive adjacent markets with a leading brand
Combination creates further scale and unlocks operational synergies
Background Information
Strategic Filters
$-
$100
$200
$300
$400
$500
$600
$700
$800
$900
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
1 Reflects estimated pro-forma impact in year of acquisition; 2 Reflects sale of a product line.
Strategic Portfolio Management
Technical Nonwovens Profitable growth opportunities
in advance materials supported by scale and operational efficiency
Performance Materials Profitable growth opportunities
with new product development in air/liquid filtration and adjacent markets
Thermal Acoustical Consistent cash flow generation
to support organic activity and power strategic transformation at group level
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Transform Business by Growing Filtration & Engineered Materials Segment
DIV
ESTI
TUR
ESA
CQ
UIS
ITIO
NS
Lydall TransportTrucking$30M
Electrical Papers2
Insulation$12M
AffinityChillers$25M
Charter MedicalLife Sciences$20M
Andrew FiltrationTNW$130M
TNW$50M
TNW$70M
Perf. Matl.$150M
Business SegmentEst. Sales1
($M)
Strong Corporate Governance
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BOARD COMPOSITION Independent Chairman Outside Directors: 7 Diversity: 38% Female Average Age: 59 Years Average Tenure: 11 Years
GOVERNANCE HIGHLIGHTS Proxy Access Annual Say-on-Pay Vote Majority Voting Standard Code of Ethics and Business Conduct Directors/Senior Executive Ownership
Guidelines (CEO: Min. 4x Base Salary)
1 2019 Pro-Forma Compensation for Chief Executive Officer (Lydall 2020 Proxy Statement).
23%
23%
54%
Annual Incentive Salary Long-term Incentive
Annual incentive awards tied to the achievement of financial targets – evenly split between operating income and working capital
Performance-based Incentives Support Long-term Objectives1
Long-term incentive awards in the form of performance-based (50%) and stock options (50%)
POSITIONINGNiche solutions in diverse segments
GROWTHStrong secular trends in attractive end markets
EXECUTIONOperational excellence to enhance margin growth and cash flow
LIQUIDITYStrong balance sheet to fuel profitable growth
DISCIPLINEDCapital allocation to fund additional growth
Looking Ahead | Execute and Deliver on Our Long-term Strategic Initiatives
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Clear, Consistent Strategy for Profitable Growth
Appendix
EBITDA Reconciliation to Reported Financials
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EBITDA is reported for Consolidated Lydall data and defined as Net Income before interest, taxes, depreciation, and amortizationSegment EBITDA is reported for each operating segment (Thermal Acoustical Solutions, Technical Nonwovens, and Performance Materials) and is defined as Operating Income net of depreciation and amortization expenses, plus income/loss from equity method investments
Q1-2019 EBITDAQ1-2020 EBITDA
For the Quarter Ended March 31, 2020Segments
($ in 000) PerformanceMaterials
TechnicalNonwovens
Thermal Acoustical Solutions Total
Corporate Office
Consolidated Lydall
Net loss $ (56,421)Employee benefit plans settlement income 385Interest expense 2,857Income tax benefit (2,015)Other income, net (418)Loss from equity method investment 44Operating (loss) income $ (56,941) $ 3,813 $ 5,628 $ (47,500) $ (8,068) $ (55,568)Depreciation and amortization 6,255 3,038 2,717 12,010 135 12,145Employee benefits plan settlement expense — — — — 385 385Other income, net — — — — (418) (418)Loss from equity method investment — 44 — 44 — 44EBITDA $ (50,686) $ 6,807 $ 8,345 $ (35,534) $ (7,900) $ (43,434)% of net sales (77.7)% 11.9% 10.0% (17.2)% (21.7)%
Strategic initiatives expenses $ — $ — $ — $ — $ 1,908 $ 1,908Impairment of long-lived assets 61,109 — — 61,109 — 61,109Employee benefits plans settlement expense — — — — 385 385EBITDA, adjusted $ 10,423 $ 6,807 $ 8,345 $ 25,575 $ (5,607) $ 19,968% of net sales 16.0% 11.9% 10.0% 12.4% 10.0%
For the Quarter Ended March 31, 2019Segments
($ in 000) PerformanceMaterials
TechnicalNonwovens
Thermal Acoustical Solutions Total
Corporate Office
Consolidated Lydall
Net income $ 3,890Interest expense 3,628Income tax expense 1,106Other expense, net 399Loss from equity method investment 27Operating income (loss) $ 1,459 $ 4,734 $ 9,491 $ 15,684 $ (6,634) $ 9,050Depreciation and amortization 6,170 3,143 2,432 11,745 173 11,918Other expense, net — — — — 399 399Loss from equity method investment — 27 — 27 — 27EBITDA $ 7,629 $ 7,850 $ 11,923 $ 27,402 $ (6,860) $ 20,542% of net sales 11.8% 12.0% 12.6% 12.2% 9.4%
Strategic initiatives expenses $ — $ — $ — $ — $ 841 $ 841TNW restructuring expenses — 376 — 376 — 376EBITDA, adjusted $ 7,629 $ 8,226 $ 11,923 $ 27,778 $ (6,019) $ 21,759% of net sales 11.8% 12.5% 12.6% 12.4% 10.0%
Reconciliation Between Adjusted and Reported GAAP Financials
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(a) Exclude the corporate strategic initiatives expenses of $1.9 million.(b) Exclude the impairment of goodwill and other long-lived assets expense of $61.1 million.(c) Exclude the employee benefit plans settlement expense of $0.4 million.(d) Excludes the tax benefits and expenses realized on the adjustments in (a), (b), and (c) of $3.5 million.(e) Exclude the restructuring expenses of $0.4 million related to the Technical Nonwovens segment.(f) Exclude the strategic initiatives expenses of $0.8 million and Technical Nonwovens restructuring expenses of $0.1 million.(g) Exclude the tax benefits realized on the adjustments in (a) and (b) of $0.2 million.
For the Quarter Ended March 31, 2020 For the Quarter Ended March 31, 2019
In thousands except per share dataAs Reported, Lydall, Inc Adjustments
Adjusted Results
As Reported, Lydall, Inc Adjustments
Adjusted Results
Net sales $ 200,527 $ — $ 200,527 $ 218,025 — $ 218,025Cost of sales 161,959 — 161,959 175,969 (351) (e) 175,618Gross profit 38,568 — 38,568 42,056 351 42,407Gross margin 19.2% 19.2% 19.3% 19.5%Selling, product development and administrative expenses 33,027 (1,908) (a) 31,119 33,006 (866) (f) 32,140Impairment of goodwill and other long-lived assets 61,109 (61,109) (b) — — — —Operating (loss) income (55,568) 63,017 7,449 9,050 1,217 10,267Operating margin (27.7)% 3.7% 4.2% 4.7%Employee benefit plans settlement expense 385 (385) (c) — — — —Interest expense 2,857 — 2,857 3,628 — 3,628Other (income) expense, net (418) — (418) 399 — 399(Loss) income before income taxes (58,392) 63,402 5,010 5,023 1,217 6,240Income tax (benefit) expense (2,015) 3,494 (d) 1,479 1,106 203 (g) 1,309Loss from equity method investment 44 — 44 27 — 27Net (loss) income $ (56,421) $ 59,908 $ 3,487 $ 3,890 1,014 $ 4,904(Loss) earnings per share:Basic $ (3.25) $ 0.20 $ 0.23 $ 0.28Diluted $ (3.25) $ 0.20 $ 0.22 $ 0.28Weighted average number of common shares outstanding:Basic 17,336 17,336 17,254 17,254Diluted 17,336 17,363 17,318 17,318
Reconciliation Between Adjusted and Reported GAAP Financials
22
($ in 000)Quarter Ended
March 31,2020 2019
Performance MaterialsOperating income, as reported $ (56,941) $ 1,459Impairment of long-lived assets 61,109 —Operating income, adjusted $ 4,168 $ 1,459
Operating margin, as reported (87.3)% 2.3%Operating margin, adjusted 6.4% 2.3%
Technical NonwovensOperating income, as reported $ 3,813 $ 4,734TNW restructuring expenses — 376Operating income, adjusted $ 3,813 $ 5,110
Operating margin, as reported 6.6% 7.2%Operating margin, adjusted 6.6% 7.8%
Reconciliation Between Adjusted and Reported GAAP Financials
23
2013 2014 2015 2016 2017 2018 Q1-19 Q2-19 Q3-19 Q4-19 FY-2019 Q1-20
Reported EPS 1.14$ $ 1.28 2.71$ 2.16$ 2.85$ 2.02$ 0.22$ (0.40)$ 0.17$ (4.07)$ (4.08)$ (3.25)$ Gain on sale of divested business -$ $ - (0.69)$ -$ -$ -$ -$ (0.07)$ -$ -$ (0.07)$ -$ Long-lived asset impairment charge -$ $ - 0.08$ -$ -$ -$ -$ -$ -$ 3.71$ 3.71$ 3.35$ Divested business (0.03)$ $ (0.06) -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Pension settlement expense -$ $ 0.18 -$ -$ -$ -$ -$ 0.86$ 0.01$ (0.02)$ 0.85$ 0.01$ Sales commission settlement expense -$ $ 0.12 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Strategic initiatives expenses 0.05$ $ 0.14 -$ 0.17$ 0.03$ 0.19$ 0.04$ 0.01$ -$ 0.01$ 0.07$ 0.09$ Inventory step-up purchase accounting adjustment -$ $ 0.08 -$ 0.08$ 0.04$ 0.09$ -$ -$ -$ -$ -$ -$ Discrete tax adjustments (0.10)$ -$ -$ -$ (0.04)$ 0.02$ -$ -$ -$ -$ -$ -$ Non-recurring customer project (0.07)$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ German Cartel settlement -$ -$ -$ 0.20$ -$ -$ -$ -$ -$ -$ -$ -$ Severance expenses -$ -$ -$ -$ 0.05$ -$ -$ -$ -$ 0.09$ 0.09$ -$ Restructuring expenses -$ -$ -$ -$ 0.03$ 0.11$ 0.02$ 0.01$ 0.01$ 0.01$ 0.04$ -$ CEO Transition Expenses -$ -$ -$ -$ -$ -$ -$ -$ -$ 0.10$ 0.10$ -$ Automotive segments consolidation expenses -$ -$ -$ -$ 0.06$ -$ -$ -$ -$ -$ -$ -$ Tax reform adjustments -$ -$ -$ -$ (0.22)$ -$ -$ -$ -$ -$ -$ -$ Adjusted EPS $ 0.99 $ 1.74 $ 2.10 $ 2.61 $ 2.80 $ 2.43 $ 0.28 $ 0.41 $ 0.19 $ (0.17) $ 0.72 $ 0.20
For the year ended December 31,