NASHVILLE - Atmus Filtration Technologies Inc. (Atmus; NYSE: ATMU), a global leader in filtration and media solutions, today reported financial results for its third quarter that ended September 30, 2023.
Third Quarter Highlights
Net sales of $396 million
GAAP net income of $38 million
Diluted earnings per share of $0.45
Adjusted earnings per share of $0.52
Adjusted EBITDA of $73 million and adjusted EBITDA margin of 18.3 percent
Cash provided by operating activities was $58 million
Adjusted free cash flow was $50 million
During the third quarter, Atmus repaid the $50 million borrowed under the Revolving Credit Facility at the May 30 IPO launch. Atmus now has full availability under the $400 million facility, and when combined with $139 million of cash on hand, Atmus had $539 million of liquidity on September 30.
'Atmus continues to deliver solid operating results and robust cash generation,' said Steph Disher, Chief Executive Officer of Atmus. 'The financial flexibility provided by our strong cash and liquidity positions us well to execute on both organic and inorganic growth opportunities.'
Third Quarter Results
For the third quarter of 2023, Atmus posted net sales of $396 million, compared to $401 million in the third quarter of 2022, a decrease of approximately 1 percent. The decrease in sales was primarily driven by a decrease in volume partially offset by increases in pricing and the favorable impacts of currency.
Gross margin was $103 million, compared to $100 million in the third quarter of fiscal year 2022, an increase of approximately 3 percent. Gross margin as a percent of net sales was 26.0% compared to 24.9% in the same period last year. The increase in gross margin and gross margin as a percent of net sales was driven by an increase in pricing, favorable freight and commodities costs, partially offset by lower volumes and unfavorable manufacturing and other costs.
Adjusted EBITDA was $73 million, compared to $72 million in the third quarter of 2022. Adjusted EBITDA margin was 18.3% compared to 17.9% in the same period last year. Adjusted EBITDA in the third quarter of 2023 excludes $7 million of one-time costs associated with the separation of our business from Cummins Inc. compared to the prior year quarter which excludes $2 million of one-time costs.
Net income was $38 million, or $0.45 of diluted earnings per share in the third quarter of 2023, compared to $50 million, or $0.61 of diluted earnings per share in the same period last year.
Adjusted earnings per share was $0.52 in the third quarter of 2023, compared to $0.62 of adjusted earnings per share in the same period last year.
The effective tax rate for the third quarter was 23.1%.
Cash provided by operating activities was $58 million in the third quarter of 2023, compared to cash provided by operating activities of $48 million in the third quarter of 2022.
2023 Outlook
The company's guidance for year 2023 is as follows:
Revenue to be in the range of $1,600 million to $1,625 million, previous guidance was in a range of $1,580 million to $1,630 million
Adjusted EBITDA margin to be in the range of 18.00 percent to 18.50 percent, previous guidance was in a range of 17.25 percent to 18.25 percent
Adjusted earnings per share in the range of $2.20 to $2.30, previous guidance was in a range of $2.05 to $2.25
About Atmus Filtration Technologies Inc.
Atmus Filtration Technologies Inc. is a global leader in filtration and media solutions. For more than 65 years, the company has combined its culture of innovation with a rich history of designing and manufacturing filtration solutions. With a presence in more than 150 countries on six continents, Atmus serves customers across truck, bus, agriculture, construction, mining, marine and power generation vehicle and equipment markets, along with providing comprehensive aftermarket support and solutions.
Forward-looking disclosure statement
This press release contains forward-looking statements within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995, including, without limitation, those that are based on current expectations, estimates and projections about the industries in which we operate and management's views, plans, objectives, projections, beliefs and assumptions. Forward-looking statements may be identified by the use of words such as 'anticipates,' 'expects,' 'forecasts,' 'intends,' 'plans,' 'believes,' 'seeks,' 'estimates,' 'could,' 'should,' 'may' or words of similar meaning. All statements other than statements of historical fact are forward-looking statements, including, without limitation, statements regarding the outlook for our future business and financial performance, discussions of future operations, our strategy for growth and market position. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions, which are difficult to predict. If the underlying assumptions prove correct, or known or unknown risks or uncertainties materialize, our actual outcomes, results and financial condition may differ materially from what is expressed, implied or forecasted in such forward-looking statements. Risks and uncertainties include, but are not limited to, those reflected in the section titled 'Risk Factors' in our final prospectus relating to our initial public offering, as filed with the Securities and Exchange Commission (the 'SEC') on May 26, 2023, relating to our Registration Statement on Form S-1, our Quarterly Report on Form 10-Q for the quarter ended September 30, 2023, and those reflected elsewhere in our other filings with the SEC. You are cautioned not to place undue reliance on forward-looking statements. The forward-looking statements made herein are made only as of the date hereof and we undertake no obligation to publicly update or to revise any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.
Contact:
Todd Chirillo
Email: investor.relations@atmus.com
Keri Moenssen
Email: media.inquiries@atmus.com
ATMUS FILTRATION TECHNOLOGIES INC. 
