2fe39eea5a66d90a8f08358b080193c6ceb613cab97a7b96ab732aee4ff9ae9b

fb603903e4bbcc8042d45c5eb908aca455e6d5ec6885d789aaa7b60cd34d0be9

920e6227001f633eced139db94e0f2e36b9cfc01f14161f94d48dacf7b7d1d1b

ea0ade62d565a32045cf00a5b3ae99a79f4e64bc2490f0975aef0805ca03a44a

North America

- United States

- Canada

Western Europe

- United Kingdom

- Continental Europe

Rest of the World

- Other International

Total Revenue

765a2606fbb7e1d57e68af15d741ac37d227fe2c02a6b6cb9ded241c2f4daa58

Net sales (USD, millions)

Cost of sales (USD, millions)

Selling, general and administrative (USD, millions)

Restructuring charges, net (USD, millions)

Operating profit (USD, millions)

Interest income (USD, millions)

Interest expense (USD, millions)

Related party interest expense (USD, millions)

Miscellaneous income, net (USD, millions)

Total other expense, net (USD, millions)

Income before income taxes (USD, millions)

Provision for income taxes (USD, millions)

Net income attributable to common shareholders (USD, millions)

e9a7dd11877c22212cb5ca74ea7d30269f2d64b4a62324c6be6ad103326ccc00

c843c0cc1c00f0bdff6a0629e164efd481a0d1e292f5ffcf47296448ca0ce10f

The significant **drop in Cash and Cash Equivalents** in Q3 2024 was primarily driven by a **reduction in operating cash inflows**—mainly due to increased working capital requirements—and a **substantial increase in cash used for investing activities** related to the acquisition of OpSec Security. Although financing activities partially offset this decline with higher net proceeds from the Revolving Facility and lower repayments on the term facility, the combined effect of these changes led to the overall decrease in cash balances.  **[0001628280-24-045736_exhibit991-pressreleasexq3.htm:1]** **[0001628280-24-045745_cxt-20240930.htm:31]** **[0001628280-24-045736_exhibit991-pressreleasexq3.htm:5]** **[0001628280-24-045736_exhibit991-pressreleasexq3.htm:4]** 

Why did Cash and Cash Equivalents drop significantly in Q3 2024?

The sharp increase in Total Assets in Q2 2024 was primarily driven by the acquisition of OpSec Security, which significantly boosted components such as **Goodwill** (up by **$109.2 million**) and **Intangible Assets, Net** (up by **$134.7 million**). Additionally, there were increases in **Inventories** (up by **$13.9 million**) and **Property, Plant, and Equipment (Net)** (up by **$10.0 million**). These inflows, despite being partially offset by a decrease in **Cash and Cash Equivalents** (down by **$51.7 million**), resulted in a net rise of **$258.1 million** in Total Assets for Q2 2024.  **[0001628280-24-035654_cxt-20240630.htm:3]** **[0001628280-24-035646_exhibit991-pressreleasexq2.htm:1]** 

What factors drove the sharp increase in Total Assets in Q2 2024?

The surge in **Short-Term Borrowings** in **Q2 2024** was primarily due to the significant use of the **Revolving Credit Facility**. During the six months ended June 30, 2024, the company drew down **$280.0 million** on this facility, predominantly to fund the **acquisition of OpSec Security**, and repaid **$65.0 million** on the same facility, which explains the noticeable increase from previous levels.  **[0001628280-24-035654_cxt-20240630.htm:3]** **[0001628280-24-035654_cxt-20240630.htm:20]** **[0001628280-24-035654_cxt-20240630.htm:31]** 

Why did Short-Term Borrowings surge prominently in Q2 2024?

The documents do not provide a definitive explanation for a “notable decline” in long-term debt in Q3 2024. In fact, the information indicates that long-term debt remained **relatively stable** between **Q3 2024** (**$638.2 million**) and **Q4 2023** (**$640.3 million**).  **[0001628280-24-045745_cxt-20240930.htm:3]**  The related commentary focuses on total debt increases driven by financing activities for acquisitions and revolving credit facility transactions, not on a decline in the long-term debt itself.  **[0001628280-24-045736_exhibit991-pressreleasexq3.htm:1]** **[0001628280-24-045745_cxt-20240930.htm:28]** **[0001628280-24-045745_cxt-20240930.htm:30]** **[0001628280-24-045736_exhibit991-pressreleasexq3.htm:5]** 

What contributed to the notable decline in Long-Term Debt in Q3 2024?

efadc5ef83f3f1aa1fb47f04733084f6c89f3e2ce83f708e0d9fe3a03031e387

Crane NXT’s Q4 2023 net sales were impacted primarily by a **decline in the Crane Payment Innovations (CPI) segment**. Despite overall net sales of **$356.9 million** reflecting an increase of **$18.7 million (5.5%)** year-over-year, the CPI segment fell by **$16.0 million (-6.9%)** to **$215.1 million** due to **lower sales volumes** as customers adjusted inventory levels amid reduced lead times. Although the **Crane Currency segment** saw strong growth and **favorable foreign exchange** added a modest boost, these factors did not fully offset the CPI decline.  **[0001628280-24-004797_exhibit991-pressreleasexq4.htm:1]** **[0001628280-24-004797_exhibit991-pressreleasexq4.htm:0]** **[0001628280-24-004797_exhibit991-pressreleasexq4.htm:9]** 

Why were net sales so low in Q4 2023?

The documents explain that while **core sales growth** contributed a positive effect, **unfavorable foreign currency translation** reduced sales by **$6.1 million** (or **0.5%**) in FY 2023. This negative foreign exchange impact was the key factor that detracted from overall net sales performance.  **[0001628280-24-004797_exhibit991-pressreleasexq4.htm:2]** **[0001628280-24-006375_cxt-20231231.htm:29]** **[0001628280-24-006375_cxt-20231231.htm:30]** 

What contributed to the sharp decline in FY 2023 net sales?

Operating profit in Q1 2024 was notably lower due to a combination of factors. **Lower overall sales**—with net sales falling by **$15.5 million** and a **4.2% decline in core sales**—led to reduced revenue, while an **unfavorable product mix** and **lower volumes** at Crane Payment Innovations (CPI) further deteriorated profitability. Additionally, **higher SG&A expenses** (up by **$5.5 million**) and one-time costs, such as **restructuring charges of $2.7 million** and increased **acquisition-related expenses** (rising from **$1.8 million** to **$4.1 million**), compounded the decline, resulting in an operating profit of **$55.4 million** in Q1 2024.  **[0001628280-24-021701_exhibit991-pressreleasexq1.htm:0]** **[0001628280-24-021706_cxt-20240331.htm:20]** **[0001628280-24-021706_cxt-20240331.htm:21]** **[0001628280-24-021701_exhibit991-pressreleasexq1.htm:1]** 

Why is operating profit so low in Q1 2024?

In FY 2023, the decline in net income was primarily driven by **higher transaction costs related to the separation** (an additional **$20.9 million** expense), an **unfavorable product mix** that reduced the operating profit margin from **22.5%** in FY 2022 to **20.6%** in FY 2023, a **lower operating profit** (a decrease of **$14.5 million**), **higher interest expenses** (rising from **$41.9 million** to **$48.1 million**), and increased **tax provisions** (from **$43.4 million** to **$51.5 million**), all of which outweighed the modest **3.8%** growth in net sales, leading to a net income drop from **$204.9 million** to **$188.3 million**.  **[0001628280-24-004797_exhibit991-pressreleasexq4.htm:8]** **[0001628280-24-004797_exhibit991-pressreleasexq4.htm:2]** **[0001628280-24-004797_exhibit991-pressreleasexq4.htm:5]** 

What drove the decline in FY 2023 net income?

020c640a0192ce02967dd17a9968eade5d9f6232eb2d1862abdcd9341ad1ae1e

Crane NXT Co (CXT)

Financials