GCP Applied Technologies

GCP Applied Technologies is a publicly traded American corporation headquartered in Alpharetta, Georgia. Its core business is the sale of materials and chemicals used in construction. Its products also include coatings and sealants for packaging. The company also produces and markets a variety of industrial chemicals.

Adjusted EBITDA

Adjusted EBITDA is a non-GAAP financial measure used by GCP to measure the performance of its core business. The company uses this measure to evaluate its performance and determine employee compensation. Adjusted EBITDA is useful in assessing the ongoing performance of a company because it provides a more consistent comparison of results over time.

The company expects to release preliminary financial results for the second quarter of 2022. It has also changed the date of its fourth quarter 2020 earnings release. The release will now be held on March 4, 2021, at 6:00 a.m. EST.

Adjusted EBITDA attributable to GCP shareholders

Adjusted EBITDA attributable for GCP shareholders is the company’s net income excluding costs incurred during restructuring and repositioning. These costs historically were a material component of GCP’s net income. In addition, adjusted EBITDA excludes the impact of depreciation. Although depreciation is an inevitable element of company costs, it has historically been a significant component of GCP’s results.

Adjusted EBITDA attributable for GCP shareholders was $24.5 million in the third quarter of 2019. In the prior year’s quarter, the company’s Adjusted EBITDA for GCP shareholders was $100.0 million. However, this prior year period included $82.5 million in gains from the sale of its corporate headquarters in Cambridge, MA. Therefore, adjusted EBIT* for GCP shareholders was $24.5 million in Q2 2016, a decrease of 31.9% due to lower SCC operating income and higher corporate costs. Adjusted EBIT margin decreased 470 basis points to 9.8%.

Reconciliation to comparable U.S. GAAP financial measures

GCP uses a number of non-GAAP financial measures to analyze its business. These measures include Adjusted EBITDA, EPS, and Gross Margin. While these measures are not intended to be a substitute for U.S. GAAP financial measures, GCP uses these non-GAAP measures to help investors understand how the business is performing. In addition, these measures help investors compare the company’s financial performance from quarter to quarter.

Non-GAAP financial measures are calculated by excluding certain items. Estimates for stock-based compensation expenses, employer payroll tax expense related to employee stock plans, amortization of acquired intangible assets, and financing lease obligation are not included in these measures.

Future plans for S/4HANA

GCP applied technologies’ S/4HANA implementation strategy has been rooted in understanding how the new platform can help companies improve the way they do business. The new platform enables a company to centralize its finance and accounting operations while democratizing reporting. It also enables companies to better serve their customers.

The new platform helps organizations improve the efficiency of existing processes, and it enables them to tap new markets and increase revenues. While legacy technology was adequate for some organizations, it often held them back from growth. The benefits of S/4HANA are obvious, but companies are also required to make the transition.