2021 Q4 Form 10-K Financial Statement

#000155837022001688 Filed on February 23, 2022

View on sec.gov

Income Statement

Concept 2021 Q4 2021 Q3 2021 Q2
Revenue $1.299B $1.269B $1.274B
YoY Change 69.05% 86.88% 138.39%
Cost Of Revenue $1.177B $1.101B $1.054B
YoY Change 65.62% 92.18% 106.24%
Gross Profit $121.6M $168.3M $220.0M
YoY Change -9.05% 58.33% 840.17%
Gross Profit Margin 9.36% 13.26% 17.27%
Selling, General & Admin $93.00M $76.40M $97.30M
YoY Change 48.09% 65.01% 83.93%
% of Gross Profit 76.48% 45.4% 44.23%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $56.50M $49.80M $28.30M
YoY Change 73.85% 62.21% -18.68%
% of Gross Profit 46.46% 29.59% 12.86%
Operating Expenses $93.00M $76.40M $97.30M
YoY Change 48.09% 65.01% 83.93%
Operating Profit $47.20M $107.8M $151.0M
YoY Change -53.63% 37.68% -1100.0%
Interest Expense -$300.0K -$23.00M -$21.60M
YoY Change -102.33% 130.0% 84.62%
% of Operating Profit -0.64% -21.34% -14.3%
Other Income/Expense, Net -$1.100M $100.0K -$5.600M
YoY Change -147.83% -108.33% 1300.0%
Pretax Income $23.40M $84.90M $156.2M
YoY Change -74.76% 26.53% -674.26%
Income Tax $22.00M $5.500M $23.30M
% Of Pretax Income 94.02% 6.48% 14.92%
Net Earnings $123.8M $93.10M $151.6M
YoY Change 85.61% -12.0% -218.07%
Net Earnings / Revenue 9.53% 7.33% 11.9%
Basic Earnings Per Share $3.20 $2.39 $3.91
Diluted Earnings Per Share $3.14 $2.36 $3.82
COMMON SHARES
Basic Shares Outstanding 38.84M 38.80M 38.80M
Diluted Shares Outstanding 39.50M 39.60M

Balance Sheet

Concept 2021 Q4 2021 Q3 2021 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $573.0M $207.5M $367.0M
YoY Change -2.67% -58.77% -36.92%
Cash & Equivalents $573.0M $207.5M $367.0M
Short-Term Investments
Other Short-Term Assets $44.30M $40.00M $30.20M
YoY Change 193.38% 93.24% 147.54%
Inventory $621.0M $617.3M $562.9M
Prepaid Expenses
Receivables $740.2M $762.7M $769.0M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $1.979B $2.007B $2.112B
YoY Change 30.41% 47.23% 57.68%
LONG-TERM ASSETS
Property, Plant & Equipment $804.3M $795.5M $722.5M
YoY Change 18.33% 21.1% 25.98%
Goodwill $710.1M $719.9M $623.5M
YoY Change 1043.48% 918.25% 820.97%
Intangibles
YoY Change
Long-Term Investments $247.8M $250.3M $253.2M
YoY Change 3.21% 8.54% 19.27%
Other Assets $147.7M $150.2M $144.0M
YoY Change -2.38% 5.55% 5.49%
Total Long-Term Assets $2.734B $2.757B $2.393B
YoY Change 105.84% 114.79% 91.45%
TOTAL ASSETS
Total Short-Term Assets $1.979B $2.007B $2.112B
Total Long-Term Assets $2.734B $2.757B $2.393B
Total Assets $4.712B $4.764B $4.505B
YoY Change 65.62% 79.99% 73.98%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $590.3M $507.9M $495.1M
YoY Change 66.09% 84.69% 131.79%
Accrued Expenses $253.5M $234.5M $187.1M
YoY Change 62.92% 43.25% 23.66%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $18.50M $149.1M $19.10M
YoY Change 51.64% 1092.8% 63.25%
Total Short-Term Liabilities $914.4M $1.005B $814.0M
YoY Change 71.46% 119.55% 86.87%
LONG-TERM LIABILITIES
Long-Term Debt $2.306B $2.308B $2.310B
YoY Change 99.08% 99.01% 83.15%
Other Long-Term Liabilities $306.7M $365.7M $394.6M
YoY Change -22.35% 1.56% 22.39%
Total Long-Term Liabilities $2.785B $2.837B $2.861B
YoY Change 61.75% 72.84% 68.8%
TOTAL LIABILITIES
Total Short-Term Liabilities $914.4M $1.005B $814.0M
Total Long-Term Liabilities $2.785B $2.837B $2.861B
Total Liabilities $3.699B $3.842B $3.675B
YoY Change 64.05% 83.03% 72.5%
SHAREHOLDERS EQUITY
Retained Earnings $741.8M $1.036B $955.8M
YoY Change 0.35% 53.4% 63.27%
Common Stock $468.5M $582.7M $579.2M
YoY Change -19.24% 0.6% 0.42%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $1.013B $922.0M $829.8M
YoY Change
Total Liabilities & Shareholders Equity $4.712B $4.764B $4.505B
YoY Change 65.62% 79.99% 73.98%

Cashflow Statement

Concept 2021 Q4 2021 Q3 2021 Q2
OPERATING ACTIVITIES
Net Income $123.8M $93.10M $151.6M
YoY Change 85.61% -12.0% -218.07%
Depreciation, Depletion And Amortization $56.50M $49.80M $28.30M
YoY Change 73.85% 62.21% -18.68%
Cash From Operating Activities $214.5M $208.2M -$21.00M
YoY Change 67.97% 301.16% -125.74%
INVESTING ACTIVITIES
Capital Expenditures -$53.00M -$34.70M -$17.40M
YoY Change 147.66% 173.23% -27.2%
Acquisitions
YoY Change
Other Investing Activities $402.4M -$448.9M -$1.376B
YoY Change -7416.36% -687850.0%
Cash From Investing Activities $349.4M -$483.6M -$1.393B
YoY Change -1398.88% 3707.87% 5777.22%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -197.1M 117.9M 704.1M
YoY Change 926.56% -198.66% 768.19%
NET CHANGE
Cash From Operating Activities 214.5M 208.2M -21.00M
Cash From Investing Activities 349.4M -483.6M -1.393B
Cash From Financing Activities -197.1M 117.9M 704.1M
Net Change In Cash 366.8M -157.5M -709.8M
YoY Change 349.51% 96.14% -610.65%
FREE CASH FLOW
Cash From Operating Activities $214.5M $208.2M -$21.00M
Capital Expenditures -$53.00M -$34.70M -$17.40M
Free Cash Flow $267.5M $242.9M -$3.600M
YoY Change 79.41% 276.01% -103.41%

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<p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:18pt 0pt 0pt 0pt;"><b style="font-weight:bold;">NOTE 1—ORGANIZATION AND BUSINESS ACTIVITIES </b></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:6pt 0pt 0pt 0pt;"><i style="font-style:italic;">Organization </i></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-indent:24.5pt;margin:6pt 0pt 6pt 0pt;">Trinseo PLC (“Trinseo,” and together with its subsidiaries, the “Company”) is a public limited company existing under the laws of Ireland. On October 8, 2021, the Company’s former publicly-traded parent entity, Trinseo S.A., was merged with and into Trinseo PLC, with Trinseo PLC as the surviving entity (the “Redomiciliation”). The Redomiciliation was completed pursuant to the Common Draft Terms of Merger dated as of April 23, 2021 and was approved by shareholders at Trinseo S.A.’s 2021 annual general meeting held on June 10, 2021. As a result of the Redomiciliation, all of Trinseo S.A.’s outstanding ordinary shares, excluding treasury shares, were exchanged on a one-for-one basis for newly issued ordinary shares, par value $0.01 per share, of Trinseo PLC. </p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-indent:24.5pt;margin:6pt 0pt 6pt 0pt;">Prior to the formation of Trinseo S.A., the Company’s business was wholly owned by the Dow Chemical Company (together with its affiliates, “Dow”). In 2010, the Styron business was sold by Dow to investment funds advised or managed by affiliates of Bain Capital Partners, LP (the “Dow Separation”). In 2016, Bain Capital fully divested its ownership in the Company.</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:6pt 0pt 6pt 0pt;"><i style="font-style:italic;">Business Activities </i></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-indent:24.5pt;margin:6pt 0pt 0pt 0pt;">The Company is a leading global materials company and manufacturer of plastics and latex binders, with a focus on delivering innovative, sustainable, and value-creating products that are intrinsic to daily life. The Company has leading market positions in many of the markets in which it competes. The Company’s products are incorporated into a wide range of its customers’ products throughout the world, including products for automotive applications, consumer electronics, appliances, medical devices, packaging, footwear, carpet, paper and board, and building and construction applications, among others. </p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-indent:24.5pt;margin:6pt 0pt 0pt 0pt;">The Company’s operations are located in Europe, North America, and Asia Pacific, supplemented by Americas Styrenics, a styrenics joint venture with Chevron Phillips Chemical Company LP. Refer to Note 6 for further information regarding the Company’s investment in Americas Styrenics.</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-indent:24.5pt;margin:6pt 0pt 6pt 0pt;">The Company has significant manufacturing and production operations around the world, which allow service to its global customer base. As of December 31, 2021, the Company’s production facilities included 40 manufacturing plants (which included a total of 81 production units) at 33 sites across 15 countries, including its joint venture. Additionally, as of December 31, 2021, the Company operated 11 research and development (“R&amp;D”) facilities globally, including mini plants, development centers, and pilot coaters.</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-indent:24.5pt;margin:14pt 0pt 0pt 0pt;">The Company’s Chief Executive Officer, who is the chief operating decision maker, manages the Company’s operations under six segments, Engineered Materials, Latex Binders, Base Plastics, Polystyrene, Feedstocks, and Americas Styrenics, as described in Note 20. Beginning in the second quarter of 2021, the Company reported the results of its Synthetic Rubber business as discontinued operations in the consolidated statements of operations for all periods presented, and therefore it is no longer presented as a separate reportable segment. The sale of the Synthetic Rubber business was completed on December 1, 2021. Refer to Note 5 for further information.</p>
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<p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-indent:24.5pt;margin:6pt 0pt 0pt 0pt;">Certain prior year amounts have been reclassified to conform to the current year presentation. These reclassifications pertain primarily to the Company’s entry into an agreement during the second quarter of 2021 to sell its Synthetic Rubber business, as a result of which the Company reclassified its Synthetic Rubber assets and liabilities as held-for-sale and reclassified the operating results of its Synthetic Rubber business, net of taxes, as discontinued operations for all periods presented. Throughout this Annual Report, unless otherwise indicated, amounts and activity are presented on a continuing operations basis. Refer to Note 5 for further information. Additionally, the results herein reflect the impacts of the equity transactions completed in connection with the Redomiciliation on October 8, 2021, described in Note 1 above, including the exchange of Trinseo S.A.’s outstanding ordinary shares on a one-for-one basis for newly issued ordinary shares of Trinseo PLC and the cancellation of Trinseo S.A.’s treasury shares.</p>
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<p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:14pt 0pt 6pt 0pt;"><i style="font-style:italic;">Use of Estimates in Financial Statement Preparation </i></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-indent:24.5pt;margin:6pt 0pt 0pt 0pt;">The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual amounts could differ from these estimates.</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-indent:24.5pt;margin:6pt 0pt 0pt 0pt;"><span style="font-size:1pt;margin-bottom:5pt;margin-top:5pt;visibility:hidden;">​</span></p>
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763000000.0
CY2020Q2 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
534300000
CY2020Q3 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
679200000
CY2020Q4 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
768100000
CY2020Q1 us-gaap Gross Profit
GrossProfit
57700000
CY2020Q2 us-gaap Gross Profit
GrossProfit
23400000
CY2020Q3 us-gaap Gross Profit
GrossProfit
106300000
CY2020Q4 us-gaap Gross Profit
GrossProfit
133700000
CY2020Q1 us-gaap Income Loss From Equity Method Investments
IncomeLossFromEquityMethodInvestments
9800000
CY2020Q2 us-gaap Income Loss From Equity Method Investments
IncomeLossFromEquityMethodInvestments
14400000
CY2020Q3 us-gaap Income Loss From Equity Method Investments
IncomeLossFromEquityMethodInvestments
18300000
CY2020Q4 us-gaap Income Loss From Equity Method Investments
IncomeLossFromEquityMethodInvestments
24600000
CY2020Q1 us-gaap Operating Income Loss
OperatingIncomeLoss
-15400000
CY2020Q2 us-gaap Operating Income Loss
OperatingIncomeLoss
-15100000
CY2020Q3 us-gaap Operating Income Loss
OperatingIncomeLoss
78300000
CY2020Q4 us-gaap Operating Income Loss
OperatingIncomeLoss
101800000
CY2020Q2 us-gaap Income Loss From Discontinued Operations Net Of Tax Per Basic Share
IncomeLossFromDiscontinuedOperationsNetOfTaxPerBasicShare
-4.04
CY2020Q3 us-gaap Income Loss From Discontinued Operations Net Of Tax Per Basic Share
IncomeLossFromDiscontinuedOperationsNetOfTaxPerBasicShare
1.72
CY2020Q4 us-gaap Income Loss From Discontinued Operations Net Of Tax Per Basic Share
IncomeLossFromDiscontinuedOperationsNetOfTaxPerBasicShare
0.01
CY2020Q1 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
-0.94
CY2020Q2 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
-27200000
CY2020Q3 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
67100000
CY2020Q4 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
92700000
CY2020Q1 us-gaap Income Loss From Continuing Operations
IncomeLossFromContinuingOperations
-69400000
CY2020Q2 us-gaap Income Loss From Continuing Operations
IncomeLossFromContinuingOperations
25800000
CY2020Q3 us-gaap Income Loss From Continuing Operations
IncomeLossFromContinuingOperations
40200000
CY2020Q4 us-gaap Income Loss From Continuing Operations
IncomeLossFromContinuingOperations
66200000
CY2020Q1 us-gaap Income Loss From Discontinued Operations Net Of Tax Attributable To Reporting Entity
IncomeLossFromDiscontinuedOperationsNetOfTaxAttributableToReportingEntity
33200000
CY2020Q2 us-gaap Income Loss From Discontinued Operations Net Of Tax Attributable To Reporting Entity
IncomeLossFromDiscontinuedOperationsNetOfTaxAttributableToReportingEntity
-154200000
CY2020Q3 us-gaap Income Loss From Discontinued Operations Net Of Tax Attributable To Reporting Entity
IncomeLossFromDiscontinuedOperationsNetOfTaxAttributableToReportingEntity
65600000
CY2020Q4 us-gaap Income Loss From Discontinued Operations Net Of Tax Attributable To Reporting Entity
IncomeLossFromDiscontinuedOperationsNetOfTaxAttributableToReportingEntity
500000
CY2020Q1 us-gaap Net Income Loss
NetIncomeLoss
-36300000
CY2020Q2 us-gaap Net Income Loss
NetIncomeLoss
-128400000
CY2020Q3 us-gaap Net Income Loss
NetIncomeLoss
105800000
CY2020Q4 us-gaap Net Income Loss
NetIncomeLoss
66700000
CY2020Q1 us-gaap Income Loss From Continuing Operations Per Basic Share
IncomeLossFromContinuingOperationsPerBasicShare
-1.80
CY2020Q2 us-gaap Income Loss From Continuing Operations Per Basic Share
IncomeLossFromContinuingOperationsPerBasicShare
0.68
CY2020Q3 us-gaap Income Loss From Continuing Operations Per Basic Share
IncomeLossFromContinuingOperationsPerBasicShare
1.05
CY2020Q4 us-gaap Income Loss From Continuing Operations Per Basic Share
IncomeLossFromContinuingOperationsPerBasicShare
1.73
CY2020Q1 us-gaap Income Loss From Discontinued Operations Net Of Tax Per Basic Share
IncomeLossFromDiscontinuedOperationsNetOfTaxPerBasicShare
0.86
CY2020Q2 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
-3.36
CY2020Q3 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
2.77
CY2020Q4 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
1.74
CY2020Q1 us-gaap Income Loss From Continuing Operations Per Diluted Share
IncomeLossFromContinuingOperationsPerDilutedShare
-1.80
CY2020Q2 us-gaap Income Loss From Continuing Operations Per Diluted Share
IncomeLossFromContinuingOperationsPerDilutedShare
0.67
CY2020Q3 us-gaap Income Loss From Continuing Operations Per Diluted Share
IncomeLossFromContinuingOperationsPerDilutedShare
1.04
CY2020Q4 us-gaap Income Loss From Continuing Operations Per Diluted Share
IncomeLossFromContinuingOperationsPerDilutedShare
1.70
CY2020Q1 us-gaap Income Loss From Discontinued Operations Net Of Tax Per Diluted Share
IncomeLossFromDiscontinuedOperationsNetOfTaxPerDilutedShare
0.86
CY2020Q2 us-gaap Income Loss From Discontinued Operations Net Of Tax Per Diluted Share
IncomeLossFromDiscontinuedOperationsNetOfTaxPerDilutedShare
-4.02
CY2020Q3 us-gaap Income Loss From Discontinued Operations Net Of Tax Per Diluted Share
IncomeLossFromDiscontinuedOperationsNetOfTaxPerDilutedShare
1.71
CY2020Q4 us-gaap Income Loss From Discontinued Operations Net Of Tax Per Diluted Share
IncomeLossFromDiscontinuedOperationsNetOfTaxPerDilutedShare
0.01
CY2020Q1 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
-0.94
CY2020Q2 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
-3.35
CY2020Q3 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
2.75
CY2020Q4 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
1.71

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