Luxfer Provides Supplemental GAAP Historical Information
1 March 2019
Effective January 1, 2019, Luxfer Holdings PLC became a U.S. domestic issuer, and accordingly, will file its 2018 consolidated financial statements under U.S. Generally Accepted Accounting Principles (GAAP) on Form 10-K.
The Company expects to file its Form 10-K on March 11, 2019. The Company previously reported in accordance with International Financial Reporting Standards (IFRS).
To help investors understand the impact of this change, the Company is providing unaudited restated selected financial information under GAAP for first three quarters of 2018 and the four quarters of 2017. Management views the impact of the change in reporting as not material to its historical results. Previously, management provided summary restated selected financial information under GAAP for the previous seven quarters in the Company’s third-quarter earnings release, dated October 31, 2018.
Earnings are primarily impacted in five areas: treatment of deferred taxes, capitalization of financing costs, accounting for development costs, impairment of goodwill and long-lived assets and defined benefit pensions.
The table of non-GAAP summary financial data includes a reconciliation of adjusted net income to net income, being the most comparable GAAP measure, for the periods presented. Management believes that adjusted net income, adjusted earnings per share and adjusted EBITDA are key performance indicators (KPIs) used by the investment community and that such presentation will enhance an investor’s understanding of the Company’s operational results. In addition, Luxfer’s CEO and other senior management use these KPIs, among others, to evaluate business performance. Investors, however, should not consider adjusted net income, adjusted earnings per share and adjusted EBITDA in isolation and as an alternative to net income and earnings per share when evaluating Luxfer’s operating performance or measuring Luxfer’s profitability.
Douglas A. Fox CFA
Director, Investor Relations