EX-99.1 2 q32024earningspressrelease.htm EX-99.1 Document

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ESAb 公司宣布 2024 年第三季度业绩

•积极的核心有机增长
•新设备正获得更多关注
•EBX驾驶记录边际
•提高了2024年前景的中间点

2024年10月29日，马里兰州北贝塞斯达--ESAb公司（“ESAB”或“公司”）（纽交所：ESAB），一家专注于优质工业化合物生产的公司，今天宣布了2024年第三季度的财务业绩。

eSab报告第三季度销售额为6.73亿美元，与去年同期相比下降了1％，或在收购和货币折算前的核心有机增长基础上增长了1％。eSab还报告了归属于eSab的第三季度持续经营业务净收入 6900 万美元 或摊薄后每股收益1.13美元，核心调整后净收益为7700万美元，摊薄后每股收益为1.25美元。核心调整后息税折旧摊销前利润增长1.25亿美元 6% 而且利润率扩大了 130 与上一季度相比，基点均为19.6％。

ESAb在具有挑战性的最终市场环境中取得了另一个强劲的季度，以正面的成交量增长、创纪录的利润率和强劲的现金流为特点，ESAb的总裁兼首席执行官Shyam P. Kambeyanda表示。我们的增长受到我们无与伦比的地理覆盖范围、推出的新获奖产品以及在商业转型和并购上的战略投资的推动。ESAb继续通过使用EBX来提升利润率和现金流，进一步增强了我们在2028年实现长期目标的信心。

更新后的2024年全年展望

ESAb现预计2024全年总核心销售增长率为(1.5)%至(0.5)%，核心有机销售增长率为0.0%至1.0%，并购为1.0%，外汇期货为约(2.5)%，较之前的指导总核心销售增长率为(2.5)%至(0.5)%，核心有机销售增长率为(1.0)%至1.0%，并购为1.0%，外汇期货为约(2.5)%。 ESAb将2024全年核心调整后的EBITDA预估调整为5亿美元至51500万美元，核心调整后的每股收益调整为4.80美元至4.95美元，较之前指导的核心调整后的EBITDA为4.95亿美元至5.15亿美元，核心调整后的每股收益为4.75美元至4.95美元。

关于ESAb Corporation

成立于1904年，ESAb Corporation是一家专注于工业化合物的首要供应商。公司拥有创新产品、工作流解决方案以及其业务系统ESAb商业卓越（"EBX"）的丰富历史，有助于实现公司的宗旨 塑造我们想象中的世界此款超便携式投影仪使用了最新的 Android TV 界面，而且遥控器还内置了 Google AssistantTM 功能，用户可以非常方便地使用它。。ESAb Corporation总部设在马里兰州北贝塞斯达，并雇佣约9,000名员工，在约150个国家为客户提供服务。欲了解更多，请访问 www.ESABcorporation.com。

电话会议和网络直播

公司将于2024年第三季度开始电话会议，讨论结果，时间为2024年10月29日星期二上午8:00，公众可以通过拨打+1-888-550-5302（美国投资者）和+1-646-960-0685（国际投资者）参与，会议ID号码为4669992，并通过ESAB官网进行网络直播 www.ESABcorporation.com 位于“投资者”部分，ESAB网站上也可以找到补充幻灯片演示。本次电话会议的音频和幻灯片演示将于今天稍后存档在网站上，并可在下一季度电话会议之前提供。 截至2024年9月27日的财务季度的公司10-Q报告，已于2024年10月29日提交，并可在ESAB网站的“投资者”部分找到。 截至2024年9月27日的财务季度的公司10-Q报告，已于2024年10月29日提交，并可在ESAB网站的“投资者”部分找到。

非GAAP财务指标和其他调整

ESAb在本新闻稿中提供了一些未按照美国通用会计原则准备的财务信息（“非GAAP”）。ESAb提供了一些这些非GAAP财务指标，包括和不包括俄罗斯。由于乌克兰战争引起的经济和政治不稳定性，导致投资者对这些信息产生了更大的兴趣。核心非GAAP财务指标不包括俄罗斯，截至2024年9月27日的九个月。 2023年9月29日. T这些非GAAP财务指标可能包括以下一项或多项：
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经常经营活动调整净利润、核心经常经营活动调整净利润、调整后息税折旧摊销前利润（利息、税收、养老金结算损失、重组及其他相关费用、收购摊销及其他相关费用，折旧及其他摊销）、核心调整后息税折旧摊销前利润、有机销售增长、核心有机销售增长、调整后的自由现金流和基于上述指标的比率。ESAb还提供按部门基础调整后息税折旧摊销前利润和调整后息税折旧摊销前利润率，以及按部门基础的核心调整后息税折旧摊销前利润和核心调整后息税折旧摊销前利润率。

调整后的持续运营净利润代表了归属ESAb Corporation的持续运营净利润，不包括重组及其他相关费用、收购摊销及其他相关费用以及养老金结算损失。调整后的净利润包括适用税率下非GAAP调整项目的税收影响，并排除每期的离散税收费用或收益影响。ESAb还展示了持续运营的调整后的净利润率，其调整方式与调整后的持续运营净利润相同。持续运营每股摊薄调整后的净利润是持续运营的调整后的净利润除以加权平均摊薄股份。ESAb还展示了核心调整后的持续运营净利润和每股核心调整后的净利润-摊薄的持续运营净利润，其调整方式与持续运营的调整后的净利润和每股摊薄调整后的净利润相同s，进一步去除俄罗斯在2024年9月27日结束的九个月中的影响 2023年9月29日.
调整后的EBITDA从持续经营净利润中排除了所得税费用、利息费用（收入）和其他、净额、重组及其他相关费用、收购摊销和其他相关费用、养老金结算损失和折旧及其他摊销。ESAb提供调整后的EBITDA利润率，这些利润率受到与调整后的EBITDA相同的调整。此外，ESAb按段报告这些非GAAP绩效指标，其中排除了重组及其他相关费用、分拆成本、收购摊销和其他相关费用、养老金结算损失和折旧及其他摊销对营业利润的影响。ESAb还提供核心调整后的EBITDA和核心调整后的EBITDA利润率，这些利润率受到与调整后的EBITDA和调整后的EBITDA利润率相同的调整。分别为调整后的EBITDA和调整后的EBITDA利润率，进一步剔除了截至2024年9月27日的九个月俄罗斯的影响 2023年9月29日.

ESAb呈现有机销售增长，其中不包括收购和汇率波动的影响，并展示核心有机销售增长，进一步排除截至2024年9月27日的俄罗斯业务的影响和页面。2023年9月29日 从核心有机销售增长中。

Adjusted free cash flow represents cash flows from operating activities excluding cash outflows related to the Company’s separation from Enovis Corporation and discontinued operations, less Purchases of property, plant and equipment net of proceeds from sale of certain properties. Cash conversion represents Adjusted free cash flow divided by Adjusted net income from continuing operations.

These non-GAAP financial measures assist ESAB management in comparing its operating performance over time because certain items may obscure underlying business trends and make comparisons of long-term performance difficult, as they are of a nature and/or size that occur with inconsistent frequency or relate to unusual events or discrete restructuring plans and other initiatives that are fundamentally different from the ongoing productivity and core business of the Company.

ESAB management also believes that presenting these measures allows investors to view its performance using the same measures that the Company uses in evaluating its financial and business performance and trends.

Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information calculated in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures. A reconciliation of non-GAAP financial measures presented above to GAAP results has been provided in the financial tables included in this press release.

Forward Looking Statements

This press release includes forward-looking statements, including forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements concerning the Company’s plans, goals, objectives, outlook, expectations, and intentions, and other statements that are not historical or current fact. Forward-looking statements are based on the Company’s current expectations and involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such forward-looking statements, including general risks and uncertainties such as market conditions, economic conditions, geopolitical events, changes in laws, regulations or accounting rules, fluctuations in interest rates, terrorism, wars or conflicts, major health
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concerns, natural disasters or other disruptions of expected business conditions. Factors that could cause the Company’s results to differ materially from current expectations include, but are not limited to, risks related to the impact of the wars in Ukraine and Middle East and the resulting escalating geopolitical tensions; impact of supply chain disruptions; the impact of creditworthiness and financial viability of customers; impact of inflationary pressures, foreign exchange fluctuations and commodity prices; other impacts on the Company’s business and ability to execute business continuity plans; and the other factors detailed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the U.S. Securities and Exchange Commission (“SEC”) on February 29, 2024, as well as other risks discussed in the Company’s filings with the SEC. In addition, these statements are based on assumptions that are subject to change. This press release speaks only as of the date hereof. The Company disclaims any duty to update the information herein.

Investor Relations Contact:
Mark Barbalato
Vice President, Investor Relations
E-mail: investorrelations@esab.com
Phone: 1-301-323-9098

Media Contact:
Tilea Coleman
Vice President, Corporate Communications
E-mail: mediarelations@esab.com
Phone: 1-301-323-9092
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ESAB CORPORATION
CONSOLIDATED AND CONDENSED STATEMENTS OF OPERATIONS
Dollars in thousands, except per share data
(Unaudited)

Three Months EndedNine Months Ended
September 27, 2024September 29, 2023September 27, 2024September 29, 2023
Net sales$673,250 $680,996 $2,070,047 $2,085,418 
Cost of sales419,460 431,282 1,290,915 1,324,392 
Gross profit253,790 249,714 779,132 761,026 
Selling, general and administrative expense145,900 145,439 434,537 442,836 
Restructuring and other related charges1,875 3,129 8,572 17,742 
Operating income106,015 101,146 336,023 300,448 
Pension settlement loss— — 12,155 — 
Interest expense and other, net16,894 20,502 49,925 58,831 
Income from continuing operations before income taxes89,121 80,644 273,943 241,617 
Income tax expense18,074 19,808 54,463 77,806 
Net income from continuing operations71,047 60,836 219,480 163,811 
Loss from discontinued operations, net of taxes(1,214)(1,723)(3,684)(4,259)
Net income69,833 59,113 215,796 159,552 
Income attributable to noncontrolling interest, net of taxes(1,593)(1,543)(4,698)(4,506)
Net income attributable to ESAB Corporation$68,240 $57,570 $211,098 $155,046 
Earnings (loss) per share – basic
Income from continuing operations$1.14 $0.98 $3.54 $2.63 
Loss on discontinued operations$(0.02)$(0.03)$(0.06)$(0.07)
Net income per share – basic$1.12 $0.95 $3.48 $2.56 
Earnings (loss) per share – diluted
Income from continuing operations$1.13 $0.97 $3.50 $2.61 
Loss on discontinued operations$(0.02)$(0.03)$(0.06)$(0.07)
Net income per share – diluted$1.11 $0.94 $3.44 $2.54 
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ESAB CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
Dollars in millions, except per share data
(Unaudited)

Three Months Ended(1)
Nine Months Ended(1)
September 27, 2024September 29, 2023September 27, 2024September 29, 2023
Adjusted Net Income
Net income from continuing operations (GAAP)$71.0 $60.8 $219.5 $163.8 
Less: Income attributable to noncontrolling interest, net of taxes1.6 1.5 4.7 4.5 
Net income from continuing operations attributable to ESAB Corporation (GAAP)$69.4 $59.3 214.8 159.3 
Restructuring and other related charges – pretax(2)
1.9 3.1 8.6 17.7 
Acquisition-amortization and other related charges – pretax(3)
10.0 9.3 25.5 27.8 
Pension settlement loss – pretax— — 12.2 — 
Tax effect on above items(4)
(2.8)(3.2)(11.3)(11.0)
Discrete tax adjustments(5)
0.1 0.5 (6.5)20.1 
Adjusted net income from continuing operations (non-GAAP)$78.6 $69.0 $243.3 $213.9 
Adjusted net income from continuing operations attributable to Russia (non-GAAP)(6)
1.9 3.2 11.3 10.8 
Core adjusted net income from continuing operations (non-GAAP)$76.7 $65.8 $232.0 $203.1 
Adjusted net income margin from continuing operations11.7 %10.2 %11.8 %10.3 %
Adjusted Net Income Per Share
Net income per share – diluted from continuing operations (GAAP)$1.13 $0.97 $3.50 $2.61 
Restructuring and other related charges – pretax(2)
0.03 0.05 0.14 0.29 
Acquisition-amortization and other related charges – pretax(3)
0.16 0.15 0.42 0.46 
Pension settlement loss – pretax— — 0.20 — 
Tax effect on above items(4)
(0.05)(0.05)(0.19)(0.18)
Discrete tax adjustments(5)
— 0.01 (0.11)0.33 
Adjusted net income per share – diluted from continuing operations (non-GAAP)$1.28 $1.13 $3.96 $3.51 
Adjusted net income per share – diluted from continuing operations attributable to Russia (non-GAAP)(6)
0.03 0.05 0.19 0.17 
Core adjusted net income per share – diluted from continuing operations (non-GAAP)$1.25 $1.08 $3.78 $3.34 
__________
(1) Numbers may not sum due to rounding.
(2) Includes severance and other termination benefits, including outplacement services as well as the cost of relocating associates, relocating equipment, lease termination expenses, impairment of long-lived assets and other costs in connection with the closure and optimization of facilities and product lines.
(3) Includes transaction expenses, amortization of intangibles, fair value charges on acquired inventories and integration expenses.
(4) This line item reflects the aggregate tax effect of all non-tax adjustments reflected in the proceeding line items of the table. ESAB estimates the tax effect of each adjustment item by applying ESAB’s overall estimated effective tax rate to the pretax amount, unless the nature of the item and/or tax jurisdiction in which the item has been recorded requires application of a specific tax rate or tax treatment, in which case the tax effect of such item is estimated by applying such specific tax rate or tax treatment.
(5) For 2024, discrete adjustments relate to a favorable final ruling in the 2023 tax case in a foreign jurisdiction mentioned below. For 2023, discrete tax adjustments include the impact of net discrete tax expenses related to dividend withholding tax and the impact of an uncertain tax position due to an adverse court ruling in a foreign jurisdiction.
(6) Represents Russia contribution for the three and nine months ended September 27, 2024 and September 29, 2023.

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ESAB CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
Dollars in millions
(Unaudited)

Three Months Ended September 27, 2024(1)
Nine Months Ended September 27, 2024(1)
AmericasEMEA & APACTotalAmericasEMEA & APACTotal
Net income from continuing operations (GAAP)$71.0 $219.5 
Income tax expense18.1 54.5 
Interest expense and other, net16.9 49.9 
Pension settlement loss— 12.2 
Operating income (GAAP)$49.9 $56.1 $106.0 151.8 184.3 336.0 
Adjusted to add
Restructuring and other related charges(2)
0.9 1.0 1.9 2.0 6.6 8.6 
Acquisition-amortization and other related charges(3)
4.8 5.2 10.0 13.5 12.1 25.6 
Depreciation and other amortization3.8 5.7 9.5 10.9 16.5 27.4 
Adjusted EBITDA (non-GAAP)$59.4 $68.1 $127.4 $178.2 $219.4 $397.5 
Adjusted EBITDA attributable to Russia (non-GAAP)(4)
— 2.6 2.6 — 15.5 15.5 
Core adjusted EBITDA (non-GAAP)$59.4 $65.5 $124.8 $178.2 $203.9 $382.1 
Adjusted EBITDA margin (non-GAAP)20.6 %17.7 %18.9 %19.9 %18.7 %19.2 %
Core adjusted EBITDA margin (non-GAAP)(5)
20.6 %18.9 %19.6 %19.9 %19.2 %19.5 %
__________
(1) Numbers may not sum due to rounding.
(2) Includes severance and other termination benefits, including outplacement services as well as the cost of relocating associates, relocating equipment, lease termination expenses, impairment of long-lived assets and other costs in connection with the closure and optimization of facilities and product lines.
(3) Includes transaction expenses, amortization of intangibles, fair value charges on acquired inventories and integration expenses.
(4) Numbers calculated following the same definition as Adjusted EBITDA for total Company.
(5) Net sales were $37.7 million and $112.0 million relating to Russia for the three and nine months ended September 27, 2024, respectively.

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ESAB CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
Dollars in millions
(Unaudited)

Three Months Ended September 29, 2023(1)
Nine Months Ended September 29, 2023(1)
AmericasEMEA & APACTotalAmericasEMEA & APACTotal
Net income from continuing operations (GAAP)$60.8 $163.8 
Income tax expense19.8 77.8 
Interest expense and other, net20.5 58.8 
Operating income (GAAP)$46.5 $54.7 $101.1 $132.4 $168.0 $300.4 
Adjusted to add
Restructuring and other related charges(2)
1.6 1.6 3.1 5.4 12.3 17.7 
Acquisition-amortization and other related charges(3)
5.2 4.0 9.3 16.0 11.9 27.8 
Depreciation and other amortization3.9 5.0 9.0 11.1 15.5 26.6 
Adjusted EBITDA (non-GAAP)$57.2 $65.3 $122.5 $164.9 $207.7 $372.6 
Adjusted EBITDA attributable to Russia (non-GAAP)(4)
— 4.7 4.7 — 15.7 15.7 
Core adjusted EBITDA (non-GAAP)$57.2 $60.6 $117.8 $164.9 $192.0 $356.9 
Adjusted EBITDA margin (non-GAAP)18.7 %17.4 %18.0 %18.2 %17.6 %17.9 %
Core adjusted EBITDA margin (non-GAAP)(5)
18.7 %17.9 %18.3 %18.2 %18.1 %18.1 %
(1) Numbers may not sum due to rounding.
(2) Includes severance and other termination benefits, including outplacement services as well as the cost of relocating associates, relocating equipment, lease termination expenses, impairment of long-lived assets and other costs in connection with the closure and optimization of facilities and product lines.
(3) Includes transaction expenses, amortization of intangibles, fair value charges on acquired inventories and integration expenses.
(4) Numbers calculated following the same definition as Adjusted EBITDA for total Company.
(5) Net sales were $36.9 million and $114.4 million relating to Russia for the three and nine months ended September 29, 2023, respectively.
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ESAB CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
Change in Sales
Dollars in millions
(Unaudited)
Sales Growth(1)
AmericasEMEA & APACTotal ESAB
$Change %$Change %$Change %
For the three months ended September 29, 2023
$305.8 $375.2 $681.0 
Components of Change:
Existing businesses (organic sales growth)(2)
6.2 2.0 %0.4 0.1 %6.6 1.0 %
Acquisitions(3)
2.8 0.9 %3.8 1.0 %6.6 1.0 %
Foreign Currency translation(4)
(26.0)(8.5)%5.1 1.4 %(20.9)(3.1)%
Total sales growth(17.0)(5.6)%9.3 2.5 %(7.7)(1.1)%
For the three months ended September 27, 2024
$288.8 $384.4 $673.3 
(1) Numbers may not sum due to rounding.
(2) Excludes the impact of acquisitions and foreign exchange rate fluctuations, thus providing a measure of change due to organic growth factors such as price, product mix and volume.
(3) Represents the incremental sales in comparison to the portion of the prior period during which we did not own the business.
(4) Represents the difference between prior year sales valued at the actual prior year foreign exchange rates and prior year sales valued at current year foreign exchange rates.

Core Sales Growth(1)(5)
AmericasEMEA & APACESAB
$Change %$Change %$Change %
For the three months ended September 29, 2023
$305.8 $338.3 $644.1 
Components of Change:
Existing businesses (core organic sales growth)(2)
6.2 2.0 %1.8 0.5 %8.0 1.2 %
Acquisitions(3)
2.8 0.9 %3.8 1.1 %6.6 1.0 %
Foreign Currency translation(4)
(26.0)(8.5)%2.9 0.9 %(23.1)(3.6)%
Total core sales growth(17.0)(5.6)%8.5 2.5 %(8.5)(1.3)%
For the three months ended September 27, 2024
$288.8 $346.8 $635.6 
(1) Numbers may not sum due to rounding.
(2) Excludes the impact of acquisitions and foreign exchange rate fluctuations, thus providing a measure of change due to organic growth factors such as price, product mix and volume.
(3) Represents the incremental sales in comparison to the portion of the prior period during which we did not own the business.
(4) Represents the difference between prior year sales valued at the actual prior year foreign exchange rates and prior year sales valued at current year foreign exchange rates.
(5) Represents sales excluding Russia for the three months ended September 27, 2024 and September 29, 2023.




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ESAB CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
Change in Sales
Dollars in millions
(Unaudited)
Sales Growth(1)
AmericasEMEA & APACTotal ESAB
$Change %$Change %$Change %
For the nine months ended September 29, 2023
$907.7 $1,177.8 $2,085.4 
Components of Change:
Existing businesses (organic sales growth)(2)
27.6 3.0 %4.0 0.3 %31.6 1.5 %
Acquisitions(3)
6.4 0.7 %3.9 0.3 %10.3 0.5 %
Foreign Currency translation(4)
(47.0)(5.2)%(10.3)(0.9)%(57.3)(2.7)%
Total sales growth(13.0)(1.4)%(2.4)(0.2)%(15.4)(0.7)%
For the nine months ended September 27, 2024
$894.6 $1,175.4 $2,070.0 
(1) Numbers may not sum due to rounding.
(2) Excludes the impact of acquisitions and foreign exchange rate fluctuations, thus providing a measure of change due to organic growth factors such as price, product mix and volume.
(3) Represents the incremental sales in comparison to the portion of the prior period during which we did not own the business.
(4) Represents the difference between prior year sales valued at the actual prior year foreign exchange rates and prior year sales valued at current year foreign exchange rates.

Core Sales Growth(1)(5)
AmericasEMEA & APACESAB
$Change %$Change %$Change %
For the nine months ended September 29, 2023
$907.7 $1,063.3 $1,971.0 
Components of Change:
Existing businesses (core organic sales growth)(2)
27.6 3.0 %(2.7)(0.3)%24.9 1.3 %
Acquisitions(3)
6.4 0.7 %3.9 0.4 %10.3 0.5 %
Foreign Currency translation(4)
(47.0)(5.2)%(1.3)(0.1)%(48.3)(2.5)%
Total core sales growth(13.0)(1.4)%(0.1)— %(13.1)(0.7)%
For the nine months ended September 27, 2024
$894.6 $1,063.4 $1,958.0 
(1) Numbers may not sum due to rounding.
(2) Excludes the impact of acquisitions and foreign exchange rate fluctuations, thus providing a measure of change due to organic growth factors such as price, product mix and volume.
(3) Represents the incremental sales in comparison to the portion of the prior period during which we did not own the business.
(4) Represents the difference between prior year sales valued at the actual prior year foreign exchange rates and prior year sales valued at current year foreign exchange rates.
(5) Represents sales excluding Russia for the nine months ended September 27, 2024 and September 29, 2023.


9

ESAB CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
Adjusted Free Cash Flow
Dollars in millions
(Unaudited)

Three Months Ended
Nine Months Ended
September 27, 2024September 29, 2023September 27, 2024September 29, 2023
Net cash provided by operating activities (GAAP)$101.0 $107.4 $228.5 $208.1 
Purchases of property, plant and equipment (GAAP)(10.7)(11.9)(27.1)(28.9)
Proceeds from the sale of certain properties(1)
1.9 1.9 1.9 2.8 
Payments related to the Separation(2)
— — — 4.4 
Payments related to discontinued operations3.6 2.5 12.1 12.2 
Adjusted free cash flow (non-GAAP)$95.8 $99.9 $215.4 $198.6 
(1) Includes proceeds from the sale of certain properties related to restructuring efforts for which previous cash outlays were included in Net cash provided by operating activities.
(2) Separation payments relate to one-time non-recurring professional fees and employee costs incurred in the planning and execution of the Company’s separation from Enovis Corporation.
10

ESAB CORPORATION
2024 Outlook
Dollars in millions, except per share amounts
(Unaudited)

ESAB 2024 Outlook
Previous GuidanceNew Guidance
2023 Core net sales$2.62B$2.62B
Organic growth (1.0)%-1.0%0.0%-1.0%
Acquisitions
1.0%1.0%
Currency
(2.5)%~(2.5)%
2024 Core net sales growth range(2.5)%-(0.5)%(1.5)%-(0.5)%
2023 Core adjusted EBITDA $482.7 $482.7 
2024 Core adjusted EBITDA range$495-$515$500-$515
2023 Core adjusted EPS$4.46 $4.46 
2024 Core adjusted EPS range$4.75-$4.95$4.80-$4.95
11

ESAB CORPORATION
CONSOLIDATED AND CONDENSED BALANCE SHEETS
Dollars in thousands, except share and per share amounts
(Unaudited)

September 27, 2024December 31, 2023
ASSETS
CURRENT ASSETS:
Cash and cash equivalents$253,670 $102,003 
Trade receivables, less allowance for credit losses of $24,637 and $25,477
420,938 385,198 
Inventories, net422,654 392,858 
Prepaid expenses58,732 61,771 
Other current assets65,517 55,890 
Total current assets1,221,511 997,720 
Property, plant and equipment, net296,437 294,305 
Goodwill1,667,878 1,588,331 
Intangible assets, net499,789 499,535 
Lease assets - right of use94,413 95,607 
Other assets304,506 353,131 
Total assets$4,084,534 $3,828,629 
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Accounts payable$320,252 $306,593 
Accrued liabilities316,819 313,489 
Total current liabilities637,071 620,082 
Long-term debt1,080,182 1,018,057 
Other liabilities489,556 542,833 
Total liabilities2,206,809 2,180,972 
Equity:
Common stock - $0.001 par value - Authorized 600,000,000, 60,444,246 and 60,295,634 shares outstanding as of September 27, 2024 and December 31, 2023, respectively    
60 60 
Additional paid-in capital1,893,665 1,881,054 
Retained earnings548,300 350,557 
Accumulated other comprehensive loss(604,900)(624,272)
Total ESAB Corporation equity1,837,125 1,607,399 
Noncontrolling interest40,600 40,258 
Total equity1,877,725 1,647,657 
Total liabilities and equity$4,084,534 $3,828,629 






12

ESAB CORPORATION
CONSOLIDATED AND CONDENSED STATEMENTS OF CASH FLOWS
Dollars in thousands
(Unaudited)
Nine Months Ended
September 27, 2024September 29, 2023
Cash flows from operating activities:
Net income$215,796 $159,552 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and other impairment charges50,028 57,090 
Stock-based compensation expense14,473 11,150 
Deferred income tax2,394 756 
Non-cash interest expense2,259 896 
Pension settlement loss12,155 — 
Changes in operating assets and liabilities:
Trade receivables, net(39,075)(15,170)
Inventories, net(31,651)(16,212)
Accounts payable16,895 (17,746)
Other operating assets and liabilities(14,751)27,783 
Net cash provided by operating activities228,523 208,099 
Cash flows from investing activities:
Purchases of property, plant and equipment(27,071)(28,865)
Proceeds from sale of property, plant and equipment3,452 5,171 
Acquisitions, net of cash received(86,537)(18,665)
Other investing(4,058)— 
Net cash used in investing activities(114,214)(42,359)
Cash flows from financing activities:
Proceeds from borrowings on Senior Notes700,000 — 
Proceeds from borrowings on revolving credit facilities and other205,000 454,671 
Repayments of borrowings on Term Loans(597,500)(6,250)
Repayments of borrowings on revolving credit facilities and other(236,623)(578,623)
Payment of debt issuance costs and other(15,522)— 
Payment of dividends(12,135)(9,702)
Distributions to noncontrolling interest holders(2,644)(2,279)
Net cash provided by (used in) financing activities40,576 (142,183)
Effect of foreign exchange rates on Cash and cash equivalents(3,218)(12,748)
Increase in Cash and cash equivalents 151,667 10,809 
Cash and cash equivalents, beginning of period102,003 72,024 
Cash and cash equivalents, end of period$253,670 $82,833 
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