• Resources
  • Blog
  • Journalists
  • Log In
  • Sign Up
  • Data Privacy
  • Send a Release
Cision PR Newswire: news distribution, targeting and monitoring home
  • News
  • Products
    • Overview
    • Distribution by PR Newswire
    • Cision Communications Cloud®
    • Cision IR
    • All Products
  • Contact
    • General Inquiries
    • Request a Demo
    • Editorial Bureaus
    • Partnerships
    • Media Inquiries
    • Worldwide Offices

 

When typing in this field, a list of search results will appear and be automatically updated as you type.

Searching for your content...

No results found. Please change your search terms and try again.
  • News in Focus
      • Browse News Releases
      • All News Releases
      • All Public Company
      • English-only
      • News Releases Overview
      • Multimedia Gallery
      • All Multimedia
      • All Photos
      • All Videos
      • Multimedia Gallery Overview
      • Trending Topics
      • All Trending Topics
  • Business & Money
      • Auto & Transportation
      • All Automotive & Transportation
      • Aerospace, Defense
      • Air Freight
      • Airlines & Aviation
      • Automotive
      • Maritime & Shipbuilding
      • Railroads and Intermodal Transportation
      • Supply Chain/Logistics
      • Transportation, Trucking & Railroad
      • Travel
      • Trucking and Road Transportation
      • Auto & Transportation Overview
      • Business Technology
      • All Business Technology
      • Blockchain
      • Broadcast Tech
      • Computer & Electronics
      • Computer Hardware
      • Computer Software
      • Data Analytics
      • Electronic Commerce
      • Electronic Components
      • Electronic Design Automation
      • Financial Technology
      • High Tech Security
      • Internet Technology
      • Nanotechnology
      • Networks
      • Peripherals
      • Semiconductors
      • Business Technology Overview
      • Entertain­ment & Media
      • All Entertain­ment & Media
      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • Entertain­ment & Media Overview
      • Financial Services & Investing
      • All Financial Services & Investing
      • Accounting News & Issues
      • Acquisitions, Mergers and Takeovers
      • Banking & Financial Services
      • Bankruptcy
      • Bond & Stock Ratings
      • Conference Call Announcements
      • Contracts
      • Cryptocurrency
      • Dividends
      • Earnings
      • Earnings Forecasts & Projections
      • Financing Agreements
      • Insurance
      • Investments Opinions
      • Joint Ventures
      • Mutual Funds
      • Private Placement
      • Real Estate
      • Restructuring & Recapitalization
      • Sales Reports
      • Shareholder Activism
      • Stock Offering
      • Stock Split
      • Venture Capital
      • Financial Services & Investing Overview
      • General Business
      • All General Business
      • Awards
      • Commercial Real Estate
      • Corporate Expansion
      • Earnings
      • Human Resource & Workforce Management
      • Licensing
      • New Products & Services
      • Obituaries
      • Outsourcing Businesses
      • Overseas Real Estate (non-US)
      • Personnel Announcements
      • Real Estate Transactions
      • Residential Real Estate
      • Small Business Services
      • Socially Responsible Investing
      • Surveys, Polls and Research
      • Trade Show News
      • General Business Overview
  • Science & Tech
      • Consumer Technology
      • All Consumer Technology
      • Artificial Intelligence
      • Blockchain
      • Cloud Computing/Internet of Things
      • Computer Electronics
      • Computer Hardware
      • Computer Software
      • Consumer Electronics
      • Cryptocurrency
      • Data Analytics
      • Electronic Commerce
      • Electronic Gaming
      • Financial Technology
      • Mobile Entertainment
      • Multimedia & Internet
      • Peripherals
      • Social Media
      • STEM (Science, Tech, Engineering, Math)
      • Supply Chain/Logistics
      • Wireless Communications
      • Consumer Technology Overview
      • Energy & Natural Resources
      • All Energy
      • Alternative Energies
      • Chemical
      • Electrical Utilities
      • Gas
      • General Manufacturing
      • Mining
      • Mining & Metals
      • Oil & Energy
      • Oil and Gas Discoveries
      • Utilities
      • Water Utilities
      • Energy & Natural Resources Overview
      • Environ­ment
      • All Environ­ment
      • Conservation & Recycling
      • Environmental Issues
      • Environmental Policy
      • Environmental Products & Services
      • Green Technology
      • Natural Disasters
      • Environ­ment Overview
      • Heavy Industry & Manufacturing
      • All Heavy Industry & Manufacturing
      • Aerospace & Defense
      • Agriculture
      • Chemical
      • Construction & Building
      • General Manufacturing
      • HVAC (Heating, Ventilation and Air-Conditioning)
      • Machinery
      • Machine Tools, Metalworking and Metallurgy
      • Mining
      • Mining & Metals
      • Paper, Forest Products & Containers
      • Precious Metals
      • Textiles
      • Tobacco
      • Heavy Industry & Manufacturing Overview
      • Telecomm­unications
      • All Telecomm­unications
      • Carriers and Services
      • Mobile Entertainment
      • Networks
      • Peripherals
      • Telecommunications Equipment
      • Telecommunications Industry
      • VoIP (Voice over Internet Protocol)
      • Wireless Communications
      • Telecomm­unications Overview
  • Lifestyle & Health
      • Consumer Products & Retail
      • All Consumer Products & Retail
      • Animals & Pets
      • Beers, Wines and Spirits
      • Beverages
      • Bridal Services
      • Cannabis
      • Cosmetics and Personal Care
      • Fashion
      • Food & Beverages
      • Furniture and Furnishings
      • Home Improvement
      • Household, Consumer & Cosmetics
      • Household Products
      • Jewelry
      • Non-Alcoholic Beverages
      • Office Products
      • Organic Food
      • Product Recalls
      • Restaurants
      • Retail
      • Supermarkets
      • Toys
      • Consumer Products & Retail Overview
      • Entertain­ment & Media
      • All Entertain­ment & Media
      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • Entertain­ment & Media Overview
      • Health
      • All Health
      • Biometrics
      • Biotechnology
      • Clinical Trials & Medical Discoveries
      • Dentistry
      • FDA Approval
      • Fitness/Wellness
      • Health Care & Hospitals
      • Health Insurance
      • Infection Control
      • International Medical Approval
      • Medical Equipment
      • Medical Pharmaceuticals
      • Mental Health
      • Pharmaceuticals
      • Supplementary Medicine
      • Health Overview
      • Sports
      • All Sports
      • General Sports
      • Outdoors, Camping & Hiking
      • Sporting Events
      • Sports Equipment & Accessories
      • Sports Overview
      • Travel
      • All Travel
      • Amusement Parks and Tourist Attractions
      • Gambling & Casinos
      • Hotels and Resorts
      • Leisure & Tourism
      • Outdoors, Camping & Hiking
      • Passenger Aviation
      • Travel Industry
      • Travel Overview
  • Policy & Public Interest
      • Policy & Public Interest
      • All Policy & Public Interest
      • Advocacy Group Opinion
      • Animal Welfare
      • Congressional & Presidential Campaigns
      • Corporate Social Responsibility
      • Domestic Policy
      • Economic News, Trends, Analysis
      • Education
      • Environmental
      • European Government
      • FDA Approval
      • Federal and State Legislation
      • Federal Executive Branch & Agency
      • Foreign Policy & International Affairs
      • Homeland Security
      • Labor & Union
      • Legal Issues
      • Natural Disasters
      • Not For Profit
      • Patent Law
      • Public Safety
      • Trade Policy
      • U.S. State Policy
      • Policy & Public Interest Overview
  • People & Culture
      • People & Culture
      • All People & Culture
      • Aboriginal, First Nations & Native American
      • African American
      • Asian American
      • Children
      • Diversity, Equity & Inclusion
      • Hispanic
      • Lesbian, Gay & Bisexual
      • Men's Interest
      • People with Disabilities
      • Religion
      • Senior Citizens
      • Veterans
      • Women
      • People & Culture Overview
      • In-Language News

      • español
      • português
      • Česko
      • Danmark
      • Deutschland
      • España
      • France
      • Italia
      • Nederland
      • Norge
      • Polska
      • Portugal
      • Россия
      • Slovensko
      • Suomi
      • Sverige
  • Overview
  • Distribution by PR Newswire
  • Cision Communications Cloud®
  • Cision IR
  • All Products
  • General Inquiries
  • Request a Demo
  • Editorial Bureaus
  • Partnerships
  • Media Inquiries
  • Worldwide Offices
  • PR Newswire: news distribution, targeting and monitoring
  • Send a Release
    • ALL CONTACT INFO
    • Contact Us

      888-776-0942
      from 8 AM - 10 PM ET

  • Send a Release
  • Sign Up
  • Log In
  • Resources
  • Blog
  • Journalists
  • RSS
  • GDPR
  • News in Focus
    • Browse All News
    • Multimedia Gallery
    • Trending Topics
    • Send a Release
    • Sign Up
    • Log In
    • Resources
    • Blog
    • Journalists
    • RSS
    • GDPR
  • Business & Money
    • Auto & Transportation
    • Business Technology
    • Entertain­ment & Media
    • Financial Services & Investing
    • General Business
    • Send a Release
    • Sign Up
    • Log In
    • Resources
    • Blog
    • Journalists
    • RSS
    • GDPR
  • Science & Tech
    • Consumer Technology
    • Energy & Natural Resources
    • Environ­ment
    • Heavy Industry & Manufacturing
    • Telecomm­unications
    • Send a Release
    • Sign Up
    • Log In
    • Resources
    • Blog
    • Journalists
    • RSS
    • GDPR
  • Lifestyle & Health
    • Consumer Products & Retail
    • Entertain­ment & Media
    • Health
    • Sports
    • Travel
    • Send a Release
    • Sign Up
    • Log In
    • Resources
    • Blog
    • Journalists
    • RSS
    • GDPR
  • Policy & Public Interest
    • Send a Release
    • Sign Up
    • Log In
    • Resources
    • Blog
    • Journalists
    • RSS
    • GDPR
  • People & Culture
    • People & Culture
    • Send a Release
    • Sign Up
    • Log In
    • Resources
    • Blog
    • Journalists
    • RSS
    • GDPR
  • Send a Release
  • Sign Up
  • Log In
  • Resources
  • Blog
  • Journalists
  • RSS
  • GDPR
  • Overview
  • Distribution by PR Newswire
  • Cision Communications Cloud®
  • Cision IR
  • All Products
  • Send a Release
  • Sign Up
  • Log In
  • Resources
  • Blog
  • Journalists
  • RSS
  • GDPR
  • General Inquiries
  • Request a Demo
  • Editorial Bureaus
  • Partnerships
  • Media Inquiries
  • Worldwide Offices
  • Send a Release
  • Sign Up
  • Log In
  • Resources
  • Blog
  • Journalists
  • RSS
  • GDPR

West Announces Fourth-Quarter and Full-Year 2020 Results

- Conference Call Scheduled for 9 a.m. EST Today -

(PRNewsfoto/West Pharmaceutical Services, I)

News provided by

West Pharmaceutical Services, Inc.

Feb 18, 2021, 06:00 ET

Share this article

Share this article


EXTON, Pa., Feb. 18, 2021 /PRNewswire/ -- West Pharmaceutical Services, Inc. (NYSE: WST) today announced its financial results for the fourth-quarter, full-year 2020 and introduced full-year 2021 financial guidance.

Fourth-Quarter and Full-Year 2020 Summary (comparisons to prior-year period)

  • Fourth-quarter 2020 net sales of $580.2 million grew 23.3%; organic sales growth was 19.8%. Full-year 2020 net sales of $2.147 billion grew 16.7%; organic sales growth was 16.3%.
  • Fourth-quarter 2020 reported-diluted EPS of $1.29 increased 53.6%. Full-year 2020 reported-diluted EPS of $4.57 increased 42.4%.
  • Fourth-quarter 2020 adjusted-diluted EPS of $1.34 increased 63.4%. Full-year 2020 adjusted-diluted EPS of $4.76 increased 46.9%.
  • Company is introducing full-year 2021 financial guidance of net sales in a range of $2.500 billion to $2.525 billion and reported-diluted EPS in a range of $6.00 to $6.15.

"Adjusted-diluted EPS" and "organic sales growth" are Non-U.S. GAAP measurements.  See discussion under the heading "Non-U.S. GAAP Financial Measures" in this release. 

"We had a successful 2020 with tremendous execution, dedication and resiliency of our team and, most importantly, the trust of our customers across the globe.  I am proud that we finished the year with record full-year net sales, organic sales growth and operating profit margin.  Fourth quarter results were robust, led by strong growth in our Biologics and Generics market units.  In addition, we experienced an acceleration in COVID-19-associated sales of high-value product (HVP) components used for vaccines and therapeutics," said Eric M. Green, President and Chief Executive Officer.   

Mr. Green concluded, "As we look ahead, we believe there is strong momentum in our base business and uptake of our HVP components and devices.  We will continue to operate with excellence and a sense of urgency to maintain the supply of life-saving solutions that our customers, and ultimately patients, rely upon during these challenging times."

Proprietary Products Segment
In the fourth-quarter 2020, net sales grew by 28.7% to $454.1 million. Organic sales growth was 25.1%, with currency translation increasing sales growth by 360 basis points. HVP components and devices represented over 65% of segment sales and generated double-digit organic sales growth.

Our Biologics market unit had strong double-digit organic sales growth, led by Flurotec®, Westar®, Daikyo® and NovaPure® components. Our Generics market unit posted double-digit organic sales growth, led by Flurotec and Westar components. Our Pharma market unit had low single-digit organic sales growth, led by Westar and Flurotec components and Crystal Zenith® containers.

In the full-year 2020, net sales grew 17.9% to $1.649 billion. Organic sales growth was 17.6%, with currency translation increasing sales growth by 20 basis points. HVP components and devices represented 66% of segment sales and generated double-digit organic sales growth.

Contract-Manufactured Products Segment
In the fourth-quarter 2020, net sales grew by 7.0% to $126.1 million. Organic sales growth was 4.1%, with currency translation increasing sales growth by 290 basis points. Segment performance was led by strong sales of healthcare-related injection and diagnostic devices.

In the full-year 2020, net sales grew by 12.9% to $498.6 million. Organic sales growth was 12.1%, with currency translation increasing sales growth by 80 basis points.

Full-Year 2020 Financial Highlights
Operating cash flow was $472.5 million, an increase of 28.7%. Capital expenditures were $174.4 million. Free cash flow (operating cash flow minus capital expenditures) was $298.1 million, an increase of 23.8%.

Full-Year 2021 Financial Guidance 
Full-year 2021 net sales are expected to be in a range of $2.500 billion to $2.525 billion.

    • Organic sales growth is expected to be in a range of 13% to 14%.
    • Net sales guidance includes an estimated full-year 2021 benefit of $75 million based on current foreign exchange rates.
  • Full-year 2021 reported-diluted EPS is expected to be in a range of $6.00 to $6.15.
    • Full-year reported-diluted EPS guidance range includes an estimated benefit of approximately $0.23 based on current foreign currency exchange rates.
    • This reported-diluted EPS guidance range assumes a full-year 2021 tax rate of 23%, which does not include potential tax benefits from stock-based compensation.  As in prior years, we are not including potential 2021 tax benefits from stock-based compensation, as they are out of the Company's control.  Any tax benefits associated with stock-based compensation that we receive in 2021 would provide a positive adjustment to our full-year EPS guidance.
    • Full-year 2021 capital spending is expected to be in a range of $230 million to $240 million.  This includes incremental capital spending to support capacity expansions at existing HVP facilities to produce components to be used with treatments and vaccines related to COVID-19.

Fourth-Quarter 2020 Conference Call
The Company will host a conference call to discuss the results and business expectations at 9:00 a.m. Eastern Time today.  To participate on the call please dial 877-930-8295 (U.S.) or 253-336-8738 (International). The conference ID is 4095168.

A live broadcast of the conference call will be available at the Company's website, www.westpharma.com, in the "Investors" section.  Management will refer to a slide presentation during the call, which will be made available on the day of the call.  To view the presentation, select "Presentations" in the "Investors" section of the Company's website.

An online archive of the broadcast will be available at the website three hours after the live call and will be available through Thursday, February 25, 2021, by dialing 855-859-2056 (U.S.) or 404-537-3406 (International) and entering conference ID 4095168.

Forward-Looking Statements
Certain forward-looking statements appear in this release and include such words as "believe," "continue," "maintain," "expected," "to be," "includes," "estimated," "assumes," "potential," "would provide," and other similar terminology.  These statements reflect management's current expectations regarding future events and operating performance and speak only as of the date of this release.  There is no certainty that actual results will be achieved in-line with current expectations.  These forward-looking statements involve a number of risks and uncertainties.  The following are some of the factors that could cause our actual results to differ materially from those expressed in or underlying our forward-looking statements: the duration and severity of the global COVID-19 pandemic, including prevailing economic conditions and general uncertainties relating thereto that may be unknown and unforeseeable; customers' changing inventory requirements and manufacturing plans and customer decisions to move forward with our new products and product categories, including any re-prioritization of product needs due to COVID-19; other potential impacts from COVID-19, including interruptions or weaknesses in our supply chain, illness in our workforce and access to transport for our products; average profitability, or mix, of the products we sell; dependence on third-party suppliers and partners; increased raw material costs; fluctuations in currency exchange; and the ability to meet development milestones with key customers.  This list of important factors is not all inclusive. For a description of certain additional factors that could cause the Company's future results to differ from those expressed in any such forward-looking statements, see Part I Item 1A and Part II Item 1A, entitled "Risk Factors," in the Company's Annual Report on Form 10-K for the year ended December 31, 2019 and Quarterly Report on Form 10-Q for the period ended September 30, 2020, respectively.

Except as required by law or regulation, we undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.

Non-U.S. GAAP Financial Measures
For the purpose of aiding the comparison of our year-over-year results, we may refer to net sales and other financial results excluding the effects of changes in foreign currency exchange rates.  Organic net sales exclude the impact from acquisitions and/or divestitures and translate the current-period reported sales of subsidiaries whose functional currency is other than the U.S. Dollar at the applicable foreign exchange rates in effect during the comparable prior-year period.  We may also refer to financial results excluding the effects of unallocated items.  The re-measured results excluding effects from currency translation and excluding the effects of unallocated items are not in conformity with U.S. generally accepted accounting principles ("U.S. GAAP") and should not be used as a substitute for the comparable U.S. GAAP financial measures.  The non-U.S. GAAP financial measures are incorporated into our discussion and analysis as management uses them in evaluating our results of operations and believes that this information provides users a valuable insight into our overall performance and financial position.  A reconciliation of these adjusted Non-U.S. GAAP measures to the comparable U.S. GAAP financial measures is included in the accompanying tables.

WEST PHARMACEUTICAL SERVICES, INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(in millions, except per share data)



Three Months Ended

December 31,

Twelve Months Ended
December 31,


2020

2019

2020

2019

Net sales

$580.2

100%

$470.6

100%

$2,146.9

100%

$1,839.9

100%

Cost of goods and services sold

369.1

64

317.4

67

1,379.1

64

1,234.2

67

Gross profit

211.1

36

153.2

33

767.8

36

605.7

33

Research and development

12.9

2

10.2

2

46.9

2

38.9

2

Selling, general and administrative expenses

76.3

13

69.0

14

302.0

14

272.7

15

Other expense (income), net

5.8

1

(4.1)

-

12.0

1

(2.5)

-

Operating profit

116.1

20

78.1

17

406.9

19

296.6

16

Interest expense, net

1.9

-

0.8

-

6.8

-

4.7

-

Other nonoperating (income) expense

(0.9)

-

(0.1)

-

(1.2)

-

0.1

-

Income before income taxes

115.1

20

77.4

17

401.3

19

291.8

16

Income tax expense

20.4

4

16.5

3

72.5

4

59.0

3

Equity in net income of affiliated companies

(3.7)

(1)

(3.0)

-

(17.4)

(1)

(8.9)

-

Net income

$98.4

17%

$63.9

14%

$346.2

16%

$241.7

13%










Net income per share:









Basic

$1.33


$0.86


$4.68


$3.27


Diluted

$1.29


$0.84


$4.57


$3.21











Average common shares outstanding

74.0


74.1


73.9


74.0


Average shares assuming dilution

76.1


75.7


75.8


75.4


WEST PHARMACEUTICAL SERVICES
REPORTING SEGMENT INFORMATION
(UNAUDITED)
(in millions)



Three Months Ended

Twelve Months Ended


December 31,

December 31,

Net Sales:

2020

2019

2020

2019

Proprietary Products

$454.1

$352.7

$1,648.6

$1,398.6

Contract-Manufactured Products

126.1

117.9

498.6

441.5

Eliminations

-

-

(0.3)

(0.2)

Consolidated Total

$580.2

$470.6

$2,146.9

$1,839.9






Gross Profit:





Proprietary Products

$189.4

$134.1

$682.2

$540.4

Contract-Manufactured Products

21.7

19.3

85.6

65.5

Unallocated items

-

(0.2)

-

(0.2)

Gross Profit

211.1

$153.2

$767.8

$605.7

Gross Profit Margin

36.4%

32.5%

35.8%

32.9%






Operating Profit (Loss):





Proprietary Products

$121.6

$74.9

$434.5

$313.6

Contract-Manufactured Products

16.5

15.6

68.6

49.1

Stock-based compensation expense

(6.4)

(5.6)

(34.0)

(24.4)

General corporate costs

(12.6)

(11.8)

(52.1)

(41.9)

Adjusted Operating Profit

$119.1

$73.1

$417.0

$296.4

   Adjusted Operating Profit Margin

20.5%

15.5%

19.4%

16.1%

Unallocated items

(3.0)

5.0

(10.1)

0.2

Reported Operating Profit

$116.1

$78.1

$406.9

$296.6

   Reported Operating Profit Margin

20.0%

16.6%

19.0%

16.1%

WEST PHARMACEUTICAL SERVICES
RECONCILIATION OF NON-U.S. GAAP MEASURES (UNAUDITED)
Please refer to "Non-U.S. GAAP Financial Measures" for more information
(in millions, except per share data)


Reconciliation of Reported and Adjusted Operating Profit, Net Income and Diluted EPS


Three months ended December 31, 2020

Operating
profit

Income
tax
expense

Net
income

Diluted
EPS

Reported (U.S. GAAP)

$116.1

$20.4

$98.4

$1.29

Pension settlement (1)

-

0.1

0.3

0.01

Cost Investment Impairment (2)

2.5

-

2.5

0.03

Restructuring and severance related charges (3)

0.3

0.1

0.2

-

Amortization of Acquisition-related Intangible Assets (4)

0.2

-

0.7

0.01

Adjusted (Non-U.S. GAAP)

$119.1

$20.6

$102.1

$1.34


Twelve months ended December 31, 2020

Operating
profit

Income

tax expense

Net
income

Diluted
EPS

Reported (U.S. GAAP)

$406.9

$72.5

$346.2

$4.57

Pension settlement (1)

-

0.9

2.9

0.04

Cost Investment Impairment (2)

2.5

-

2.5

0.03

Restructuring and severance related charges (3)

7.0

1.7

5.3

0.07

Amortization of Acquisition-related Intangible Assets (4)

0.6

0.1

3.6

0.05

Adjusted (Non-U.S. GAAP)

$417.0

$75.2

$360.5

$4.76


Three months ended December 31, 2019

Operating
profit

Income
tax
expense

Net
income

Diluted
EPS

Reported (U.S. GAAP)

$78.1

$16.5

$63.9

$0.84

Restructuring and related charges (3)

1.1

0.3

0.8

0.02

Gain on restructuring-related sale of assets (5)

(1.7)

(0.4)

(1.3)

(0.02)

Pension settlement (1)

-

0.2

0.6

0.01

Argentina currency devaluation (6)

-

(0.3)

0.3

-

Tax recovery (7)

(4.4)

(1.5)

(2.9)

(0.04)

Tax law changes (8)

-

(0.7)

0.7

0.01

Adjusted (Non-U.S. GAAP)

$73.1

$14.1

$62.1

$0.82


Twelve months ended December 31, 2019

Operating
profit

Income

tax
expense

Net
income

Diluted
EPS

Reported (U.S. GAAP)

$296.6

$59.0

$241.7

$3.21

Restructuring and related charges (3)

4.9

1.2

3.7

0.04

Gain on restructuring-related sale of assets (5)

(1.7)

(0.4)

(1.3)

(0.02)

Pension settlement (1)

-

0.8

2.7

0.04

Argentina currency devaluation (6)

1.0

-

1.0

0.01

Tax recovery (7)

(4.4)

(1.5)

(2.9)

(0.04)

Tax law changes (8)

-

0.3

(0.3)

-

Adjusted (Non-U.S. GAAP)

$296.4

$59.4

$244.6

$3.24



(1)   

During the three and twelve months ended December 31, 2020, the Company recorded a
pension settlement charge of $0.4 million and $3.7 million, respectively, and during the
three and twelve months ended December 31, 2019, the Company recorded a pension
settlement charge of $0.8 million and $3.5 million, respectively. These charges are
recorded within other nonoperating (income) expense, as it determined that normal-course
lump-sum payments for each of its U.S. qualified and non-qualified defined benefit pension
plans exceeded the threshold for settlement accounting under U.S. GAAP for the year.



(2)  

During the three and twelve months ended December 31, 2020, the Company recorded
a $2.5 million impairment charge related to a cost investment.



(3)  

During the three and twelve months ended December 31, 2020, the Company recorded
$0.3 million and $7.0 million, respectively, in restructuring and severance related charges.
During the three and twelve months ended December 31, 2019, the Company recorded
$1.1 million and $4.9 million, respectively, in restructuring and related charges.



(4)   

During the three and twelve months ended December 31, 2020, the Company recorded
$0.2 million and $0.6 million, respectively, of amortization expense within operating profit
associated with an acquisition of an intangible asset during the second quarter of 2020.
During the three and twelve months ended December 31, 2020 the company recorded
$0.5 million and $3.1 million, respectively, of amortization expense in association with
an acquisition of increased ownership interest in Daikyo.



(5)    

During the three and twelve months ended December 31, 2019, the Company recorded
a net gain on the sale of fixed assets as a result of its restructuring plans of $1.7 million.



(6)    

During the twelve months ended December 31, 2019, the Company recorded a charge
of $1.0 million related to the continued devaluation of Argentina's currency.



(7)     

During the three and twelve months ended December 31, 2019, the Company recorded
a net tax recovery of $4.4 million related to previously-paid international excise taxes,
following a favorable court ruling.



(8)  

During the three and twelve months ended December 31, 2019, the Company recorded
a tax charge of $0.7 million and a net tax benefit of $0.3 million due to the impact of
federal law changes enacted during the quarter and year. 

WEST PHARMACEUTICAL SERVICES
RECONCILIATION OF NON-U.S. GAAP FINANCIAL MEASURES (UNAUDITED)
Please refer to "Non-U.S. GAAP Financial Measures" for more information
(in millions, except per share data)


Reconciliation of Net Sales to Organic Net Sales (9)


Three months ended December 31, 2020

Proprietary

CM

Eliminations

Total

Reported net sales (U.S. GAAP)

$454.1

$126.1

$ -

$580.2

Effect of changes in currency translation rates

(12.9)

(3.4)

-

(16.3)


Organic net sales (Non-U.S. GAAP) (9)

$441.2

$122.7

$ -

$563.9









Twelve months ended December 31, 2020

Proprietary

CM

Eliminations

Total

Reported net sales (U.S. GAAP)

$1,648.6

$498.6

$(0.3)

$2,146.9

Effect of acquisitions and/or divestitures

(1.2)

-

-

(1.2)

Effect of changes in currency translation rates

(2.2)

(3.5)

-

(5.7)

Organic net sales (Non-U.S. GAAP) (9)

$1,645.2

$495.1

$(0.3)

$2,140.0



(9)     

Organic net sales exclude the impact from acquisitions and/or divestitures and translate the current-period
reported sales of subsidiaries whose functional currency is other than the U.S. Dollar at the applicable foreign
exchange rates in effect during the comparable prior-year period.

WEST PHARMACEUTICAL SERVICES
CASH FLOW ITEMS
(UNAUDITED)
(in millions)



Twelve Months Ended December 31,


2020

2019

Depreciation and amortization

$109.1

$103.4

Operating cash flow

$472.5

$367.2

Capital expenditures

$174.4

$126.4

WEST PHARMACEUTICAL SERVICES
FINANCIAL CONDITION
(UNAUDITED)
(in millions)



As of

December 31, 2020

As of
December 31, 2019

Cash and cash equivalents

$615.5

$439.1

Accounts receivable, net

$385.3

$319.3

Inventories

$321.3

$235.7

Accounts payable

$213.1

$156.8

Debt

$255.2

$257.3

Equity

$1,854.5

$1,573.2

Working capital

$870.3

$717.1

Trademark Notices

Trademarks and registered trademarks are the property of West Pharmaceutical Services, Inc., in the United States and other jurisdictions, unless noted otherwise.

Daikyo Crystal Zenith® and Daikyo CZ® are registered trademarks of Daikyo Seiko, Ltd.  Daikyo Crystal Zenith technologies are licensed from Daikyo Seiko, Ltd.

SOURCE West Pharmaceutical Services, Inc.

Related Links

http://www.westpharma.com

Modal title

Also from this source

West to Host First-Quarter 2021 Conference Call...

West to Host First-Quarter 2021 Conference Call...


West Announces Participation in Upcoming Investor Conference...

West Announces Participation in Upcoming Investor Conference...

Explore

More news releases in similar topics

  • Health Care & Hospitals
  • Medical Pharmaceuticals
  • Pharmaceuticals
  • Earnings

    Contact Cision

  • Cision Distribution 888-776-0942
    from 8 AM - 9 PM ET

  • Chat with an Expert
    • General Inquiries
    • Request a Demo
    • Editorial Bureaus
    • Partnerships
    • Media Inquiries
    • Worldwide Offices

    Products

  • Cision Communication Cloud®
  • For Marketers
  • For Public Relations
  • For IR & Compliance
  • For Agency
  • For Small Business
  • All Products

    About

  • About PR Newswire
  • About Cision
  • Become a Publishing Partner
  • Become a Channel Partner
  • Careers
  • COVID-19 Resources
  • Accessibility Statement

    • Asia
    • Brazil
    • Canada
    • Czech
    • Denmark
    • Finland
    • France
    • Germany
    • India
    • Israel
    • Italy
    • Mexico
    • Middle East
    • Netherlands
    • Norway
    • Poland
    • Portugal
    • Russia
    • Slovakia
    • Spain
    • Sweden
    • United Kingdom

    My Services

  • All New Releases
  • Online Member Center
  • ProfNet

Contact Cision

Products

About

My Services
  • All News Releases
  • Online Member Center
  • ProfNet
Cision Distribution Helpline
888-776-0942
  • Terms of Use
  • Privacy Policy
  • Information Security Policy
  • Site Map
  • RSS
  • Cookie Settings
Copyright © 2021 Cision US Inc.