10-Q 1 lxfr-20220327.htm 10-Q lxfr-20220327
000109605612/312022Q1FALSEUnited Kingdomhttp://fasb.org/us-gaap/2021-01-31#OtherLiabilitiesCurrenthttp://fasb.org/us-gaap/2021-01-31#OtherLiabilitiesCurrenthttp://fasb.org/us-gaap/2021-01-31#OtherLiabilitiesNoncurrenthttp://fasb.org/us-gaap/2021-01-31#OtherLiabilitiesNoncurrent00010960562022-01-012022-03-2700010960562022-03-27xbrli:sharesiso4217:USD00010960562021-01-012021-03-28iso4217:USDxbrli:shares00010960562021-12-310001096056lxfr:OrdinarySharesMember2021-03-28iso4217:GBPxbrli:shares0001096056lxfr:OrdinarySharesMember2022-03-270001096056lxfr:OrdinarySharesMember2021-12-310001096056lxfr:DeferredSharesMember2021-03-280001096056lxfr:DeferredSharesMember2022-03-270001096056lxfr:DeferredSharesMember2021-12-3100010960562020-12-3100010960562021-03-280001096056us-gaap:CommonStockMemberlxfr:OrdinarySharesMember2020-12-310001096056us-gaap:CommonStockMemberlxfr:DeferredSharesMember2020-12-310001096056us-gaap:AdditionalPaidInCapitalMember2020-12-310001096056us-gaap:TreasuryStockMember2020-12-310001096056lxfr:OwnSharesHeldByEmployeeStockOwnershipPlanMember2020-12-310001096056us-gaap:RetainedEarningsMember2020-12-310001096056us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310001096056us-gaap:RetainedEarningsMember2021-01-012021-03-280001096056us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-03-280001096056us-gaap:AdditionalPaidInCapitalMember2021-01-012021-03-280001096056lxfr:OwnSharesHeldByEmployeeStockOwnershipPlanMember2021-01-012021-03-280001096056us-gaap:CommonStockMemberlxfr:OrdinarySharesMember2021-03-280001096056us-gaap:CommonStockMemberlxfr:DeferredSharesMember2021-03-280001096056us-gaap:AdditionalPaidInCapitalMember2021-03-280001096056us-gaap:TreasuryStockMember2021-03-280001096056lxfr:OwnSharesHeldByEmployeeStockOwnershipPlanMember2021-03-280001096056us-gaap:RetainedEarningsMember2021-03-280001096056us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-280001096056us-gaap:CommonStockMemberlxfr:OrdinarySharesMember2021-12-310001096056us-gaap:CommonStockMemberlxfr:DeferredSharesMember2021-12-310001096056us-gaap:AdditionalPaidInCapitalMember2021-12-310001096056us-gaap:TreasuryStockMember2021-12-310001096056lxfr:OwnSharesHeldByEmployeeStockOwnershipPlanMember2021-12-310001096056us-gaap:RetainedEarningsMember2021-12-310001096056us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310001096056us-gaap:RetainedEarningsMember2022-01-012022-03-270001096056us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-03-270001096056us-gaap:AdditionalPaidInCapitalMember2022-01-012022-03-270001096056us-gaap:TreasuryStockMember2022-01-012022-03-270001096056us-gaap:CommonStockMemberlxfr:OrdinarySharesMember2022-03-270001096056us-gaap:CommonStockMemberlxfr:DeferredSharesMember2022-03-270001096056us-gaap:AdditionalPaidInCapitalMember2022-03-270001096056us-gaap:TreasuryStockMember2022-03-270001096056lxfr:OwnSharesHeldByEmployeeStockOwnershipPlanMember2022-03-270001096056us-gaap:RetainedEarningsMember2022-03-270001096056us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-270001096056lxfr:GasCylindersSegmentMemberlxfr:GeneralIndustrialMember2022-01-012022-03-270001096056lxfr:ElektronSegmentMemberlxfr:GeneralIndustrialMember2022-01-012022-03-270001096056lxfr:GeneralIndustrialMember2022-01-012022-03-270001096056lxfr:GasCylindersSegmentMemberlxfr:GeneralIndustrialMember2021-01-012021-03-280001096056lxfr:ElektronSegmentMemberlxfr:GeneralIndustrialMember2021-01-012021-03-280001096056lxfr:GeneralIndustrialMember2021-01-012021-03-280001096056lxfr:TransportationMemberlxfr:GasCylindersSegmentMember2022-01-012022-03-270001096056lxfr:ElektronSegmentMemberlxfr:TransportationMember2022-01-012022-03-270001096056lxfr:TransportationMember2022-01-012022-03-270001096056lxfr:TransportationMemberlxfr:GasCylindersSegmentMember2021-01-012021-03-280001096056lxfr:ElektronSegmentMemberlxfr:TransportationMember2021-01-012021-03-280001096056lxfr:TransportationMember2021-01-012021-03-280001096056lxfr:DefenseAndEmergencyMemberlxfr:GasCylindersSegmentMember2022-01-012022-03-270001096056lxfr:ElektronSegmentMemberlxfr:DefenseAndEmergencyMember2022-01-012022-03-270001096056lxfr:DefenseAndEmergencyMember2022-01-012022-03-270001096056lxfr:DefenseAndEmergencyMemberlxfr:GasCylindersSegmentMember2021-01-012021-03-280001096056lxfr:ElektronSegmentMemberlxfr:DefenseAndEmergencyMember2021-01-012021-03-280001096056lxfr:DefenseAndEmergencyMember2021-01-012021-03-280001096056lxfr:GasCylindersSegmentMember2022-01-012022-03-270001096056lxfr:ElektronSegmentMember2022-01-012022-03-270001096056lxfr:GasCylindersSegmentMember2021-01-012021-03-280001096056lxfr:ElektronSegmentMember2021-01-012021-03-280001096056lxfr:StructuralCompositesIndustriesLLCMember2021-03-152021-03-150001096056lxfr:StructuralCompositesIndustriesLLCMember2021-03-150001096056us-gaap:LandBuildingsAndImprovementsMember2022-03-270001096056us-gaap:LandBuildingsAndImprovementsMember2021-12-310001096056us-gaap:MachineryAndEquipmentMember2022-03-270001096056us-gaap:MachineryAndEquipmentMember2021-12-310001096056us-gaap:ConstructionInProgressMember2022-03-270001096056us-gaap:ConstructionInProgressMember2021-12-310001096056lxfr:GasCylindersSegmentMember2021-12-310001096056lxfr:ElektronSegmentMember2021-12-310001096056lxfr:GasCylindersSegmentMember2022-03-270001096056lxfr:ElektronSegmentMember2022-03-270001096056us-gaap:CustomerRelationshipsMember2021-12-310001096056us-gaap:TechnologyBasedIntangibleAssetsMember2021-12-310001096056us-gaap:CustomerRelationshipsMember2022-01-012022-03-270001096056us-gaap:TechnologyBasedIntangibleAssetsMember2022-01-012022-03-270001096056us-gaap:CustomerRelationshipsMember2022-03-270001096056us-gaap:TechnologyBasedIntangibleAssetsMember2022-03-270001096056lxfr:LoanNotesDue2023Memberus-gaap:SeniorNotesMember2022-03-27xbrli:pure0001096056lxfr:LoanNotesDue2023Memberus-gaap:SeniorNotesMember2021-12-310001096056lxfr:LoanNotesDue2026Memberus-gaap:SeniorNotesMember2022-03-270001096056lxfr:LoanNotesDue2026Memberus-gaap:SeniorNotesMember2021-12-310001096056us-gaap:RevolvingCreditFacilityMember2022-03-270001096056us-gaap:RevolvingCreditFacilityMember2021-12-310001096056us-gaap:DiscontinuedOperationsHeldforsaleMemberlxfr:SuperformUSBusinessMember2022-01-012022-03-270001096056us-gaap:DiscontinuedOperationsHeldforsaleMemberlxfr:SuperformUSBusinessMember2021-01-012021-03-280001096056us-gaap:DiscontinuedOperationsHeldforsaleMemberlxfr:SuperformUSBusinessMember2022-03-270001096056us-gaap:DiscontinuedOperationsHeldforsaleMemberlxfr:SuperformUSBusinessMember2021-12-310001096056lxfr:ElektronSegmentMemberus-gaap:BuildingMemberus-gaap:DisposalGroupHeldforsaleNotDiscontinuedOperationsMember2022-03-270001096056lxfr:ElektronSegmentMemberus-gaap:BuildingMemberus-gaap:DisposalGroupHeldforsaleNotDiscontinuedOperationsMember2021-12-310001096056us-gaap:ShareBasedCompensationAwardTrancheOneMember2022-01-012022-03-270001096056us-gaap:ShareBasedCompensationAwardTrancheTwoMember2022-01-012022-03-270001096056srt:MinimumMember2022-01-012022-03-270001096056srt:MaximumMember2022-01-012022-03-270001096056srt:MinimumMember2021-01-012021-12-310001096056srt:MaximumMember2021-01-012021-12-3100010960562021-01-012021-12-3100010960562021-02-042021-02-0400010960562022-02-022022-02-020001096056us-gaap:SubsequentEventMember2022-05-042022-05-0400010960562021-05-052021-05-05lxfr:segmentlxfr:division0001096056lxfr:GasCylindersSegmentMemberus-gaap:OperatingSegmentsMember2022-03-270001096056lxfr:GasCylindersSegmentMemberus-gaap:OperatingSegmentsMember2021-12-310001096056lxfr:GasCylindersSegmentMemberus-gaap:OperatingSegmentsMember2022-01-012022-03-270001096056lxfr:GasCylindersSegmentMemberus-gaap:OperatingSegmentsMember2021-01-012021-03-280001096056lxfr:ElektronSegmentMemberus-gaap:OperatingSegmentsMember2022-03-270001096056lxfr:ElektronSegmentMemberus-gaap:OperatingSegmentsMember2021-12-310001096056lxfr:ElektronSegmentMemberus-gaap:OperatingSegmentsMember2022-01-012022-03-270001096056lxfr:ElektronSegmentMemberus-gaap:OperatingSegmentsMember2021-01-012021-03-280001096056us-gaap:CorporateNonSegmentMember2022-03-270001096056us-gaap:CorporateNonSegmentMember2021-12-310001096056us-gaap:CorporateNonSegmentMember2022-01-012022-03-270001096056us-gaap:CorporateNonSegmentMember2021-01-012021-03-280001096056us-gaap:SegmentDiscontinuedOperationsMember2022-03-270001096056us-gaap:SegmentDiscontinuedOperationsMember2021-12-310001096056us-gaap:SegmentDiscontinuedOperationsMember2022-01-012022-03-270001096056us-gaap:SegmentDiscontinuedOperationsMember2021-01-012021-03-280001096056country:US2022-03-270001096056country:US2021-12-310001096056country:GB2022-03-270001096056country:GB2021-12-310001096056country:CA2022-03-270001096056country:CA2021-12-310001096056lxfr:RestOfEuropeMember2022-03-270001096056lxfr:RestOfEuropeMember2021-12-310001096056srt:AsiaPacificMember2022-03-270001096056srt:AsiaPacificMember2021-12-310001096056country:US2022-01-012022-03-270001096056us-gaap:GeographicConcentrationRiskMembercountry:USus-gaap:RevenueFromContractWithCustomerMember2022-01-012022-03-270001096056country:US2021-01-012021-03-280001096056us-gaap:GeographicConcentrationRiskMembercountry:USus-gaap:RevenueFromContractWithCustomerMember2021-01-012021-03-280001096056country:GB2022-01-012022-03-270001096056us-gaap:GeographicConcentrationRiskMembercountry:GBus-gaap:RevenueFromContractWithCustomerMember2022-01-012022-03-270001096056country:GB2021-01-012021-03-280001096056us-gaap:GeographicConcentrationRiskMembercountry:GBus-gaap:RevenueFromContractWithCustomerMember2021-01-012021-03-280001096056country:DE2022-01-012022-03-270001096056us-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMembercountry:DE2022-01-012022-03-270001096056country:DE2021-01-012021-03-280001096056us-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMembercountry:DE2021-01-012021-03-280001096056country:IT2022-01-012022-03-270001096056us-gaap:GeographicConcentrationRiskMembercountry:ITus-gaap:RevenueFromContractWithCustomerMember2022-01-012022-03-270001096056country:IT2021-01-012021-03-280001096056us-gaap:GeographicConcentrationRiskMembercountry:ITus-gaap:RevenueFromContractWithCustomerMember2021-01-012021-03-280001096056country:FR2022-01-012022-03-270001096056us-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMembercountry:FR2022-01-012022-03-270001096056country:FR2021-01-012021-03-280001096056us-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMembercountry:FR2021-01-012021-03-280001096056lxfr:TopFiveCountriesMember2022-01-012022-03-270001096056us-gaap:GeographicConcentrationRiskMemberlxfr:TopFiveCountriesMemberus-gaap:RevenueFromContractWithCustomerMember2022-01-012022-03-270001096056lxfr:TopFiveCountriesMember2021-01-012021-03-280001096056us-gaap:GeographicConcentrationRiskMemberlxfr:TopFiveCountriesMemberus-gaap:RevenueFromContractWithCustomerMember2021-01-012021-03-280001096056lxfr:RestOfEuropeMember2022-01-012022-03-270001096056us-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMemberlxfr:RestOfEuropeMember2022-01-012022-03-270001096056lxfr:RestOfEuropeMember2021-01-012021-03-280001096056us-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMemberlxfr:RestOfEuropeMember2021-01-012021-03-280001096056srt:AsiaPacificMember2022-01-012022-03-270001096056us-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMembersrt:AsiaPacificMember2022-01-012022-03-270001096056srt:AsiaPacificMember2021-01-012021-03-280001096056us-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMembersrt:AsiaPacificMember2021-01-012021-03-280001096056lxfr:OtherGeographicRegionMember2022-01-012022-03-270001096056us-gaap:GeographicConcentrationRiskMemberlxfr:OtherGeographicRegionMemberus-gaap:RevenueFromContractWithCustomerMember2022-01-012022-03-270001096056lxfr:OtherGeographicRegionMember2021-01-012021-03-280001096056us-gaap:GeographicConcentrationRiskMemberlxfr:OtherGeographicRegionMemberus-gaap:RevenueFromContractWithCustomerMember2021-01-012021-03-280001096056lxfr:CommittedBankingFacilitiesMember2021-12-310001096056lxfr:CommittedBankingFacilitiesMember2022-03-27lxfr:facility0001096056currency:GBP2021-01-012021-03-280001096056lxfr:BondingFacilityForBankGuaranteesMembercurrency:GBP2022-03-27iso4217:GBP0001096056lxfr:BondingFacilityForBankGuaranteesMembercurrency:GBP2021-12-310001096056currency:USD2022-01-012022-03-270001096056lxfr:BondingFacilityForBankGuaranteesMembercurrency:USD2022-03-270001096056lxfr:BondingFacilityForBankGuaranteesMembercurrency:USD2021-12-310001096056lxfr:BondingFacilityForBankGuaranteesMembercurrency:GBP2022-01-012022-03-270001096056lxfr:BondingFacilityForBankGuaranteesMembercurrency:GBP2021-01-012021-12-310001096056lxfr:BondingFacilityForBankGuaranteesMembercurrency:USD2021-01-012021-12-310001096056lxfr:BondingFacilityForBankGuaranteesMembercurrency:USD2022-01-012022-03-2700010960562020-11-012020-11-30lxfr:lawsuits

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended March 27, 2022


OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission File Number 001-35370
Luxfer Holdings PLC
(Exact Name of Registrant as Specified in Its Charter)
England and Wales98-1024030
State or Other Jurisdiction of
 Incorporation or Organization
I.R.S. Employer Identification No.
8989 North Port Washington Road, Suite 211,
Milwaukee, WI, 53217
(Address of principal executive offices) (Zip code)
Registrant’s telephone number, including area code: +1 414-269-2419
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Ordinary Shares, nominal value £0.50 eachLXFRNew York Stock Exchange
Securities registered or to be registered pursuant to Section 12(g) of the Act: None
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes    x No    o
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes    x No    o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company or an emerging growth company. See definition of "large accelerated filer", "accelerated filer", "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.:
Large accelerated filer 
oAccelerated Filerx
Non-accelerated filer 
o
Smaller reporting company 
Emerging growth company 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes     No    x
The number of shares outstanding of Registrant’s only class of ordinary stock on March 27, 2022, was 27,495,439.





TABLE OF CONTENTS
Page
PART I FINANCIAL INFORMATION
Item 1.Condensed Financial Statements (unaudited)
Condensed Consolidated Statements of Income (unaudited)
Condensed Consolidated Statements of Comprehensive Income (unaudited)
Condensed Consolidated Balance Sheets (unaudited)
Condensed Consolidated Statements of Cash Flows (unaudited)
Condensed Consolidated Statements of Changes in Equity (unaudited)
Notes to Condensed Consolidated Financial Statements (unaudited)
Item 2.Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3.Quantitative and Qualitative Disclosures About Market Risk
Item 4.Controls and Procedures
PART II OTHER INFORMATION
Item 1.Legal Proceedings
Item 1A.Risk Factors
Item 2.Unregistered Sales of Equity Securities and Use of Proceeds
Item 6.Exhibits
Signatures




PART I - FINANCIAL INFORMATION

Item 1.        Condensed Financial Statements (unaudited)

LUXFER HOLDINGS PLC
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
         First Quarter
In millions, except share and per-share data20222021
Net sales$97.0 $85.2 
Cost of goods sold(72.8)(60.0)
Gross profit24.2 25.2 
Selling, general and administrative expenses(10.7)(10.6)
Research and development(1.3)(0.8)
Restructuring charges(1.4)(1.4)
Acquisition-related costs(0.2)(0.2)
Other charges (1.1)
Operating income10.6 11.1 
Interest expense(0.8)(0.8)
Defined benefit pension credit 0.4 0.6 
Income before income taxes10.2 10.9 
Provision for income taxes(2.5)(2.3)
Net income from continuing operations7.7 8.6 
Net loss from discontinued operations, net of tax(0.1)(1.6)
Gain on disposition of discontinued operations, net of tax 7.5 
Net (loss) / income from discontinued operations$(0.1)$5.9 
Net income$7.6 $14.5 
Earnings / (loss) per share (1)
Basic from continuing operations$0.28 $0.31 
Basic from discontinued operations$ $0.21 
Basic$0.28 $0.52 
Diluted from continuing operations$0.28 $0.31 
Diluted from discontinued operations$ $0.21 
Diluted$0.28 $0.52 
Weighted average ordinary shares outstanding
Basic27,490,741 27,658,871 
Diluted27,696,118 28,057,323 
(1) The calculation of earnings per share is performed separately for continuing and discontinued operations. As a result, the sum of the two in any particular period may not equal the earnings-per-share amount in total.
In the first quarter of 2022, basic average shares outstanding and diluted average shares outstanding were the same for discontinued operations because the effect of potential shares of common stock was anti-dilutive since the Company generated a net loss from discontinued operations.
See accompanying notes to condensed consolidated financial statements
1


LUXFER HOLDINGS PLC
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
First Quarter
In millions20222021
Net income$7.6 $14.5 
Other comprehensive (loss) / income
Net change in foreign currency translation adjustment(1.8)0.9 
Pension and post-retirement actuarial gains, net of $0.1 and $0.1 tax, respectively
0.4 0.6 
Other comprehensive (loss) / income, net of tax(1.4)1.5 
Total comprehensive income$6.2 $16.0 

See accompanying notes to condensed consolidated financial statements

2


LUXFER HOLDINGS PLC
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
March 27,December 31,
In millions, except share and per-share data20222021
Current assets
Cash and cash equivalents$17.2 $6.2 
Restricted cash0.1 0.2 
Accounts and other receivables, net of allowances of $0.8 and $0.8, respectively
69.6 57.8 
Inventories105.9 90.5 
Assets held-for-sale12.6 8.5 
Total current assets$205.4 $163.2 
Non-current assets
Property, plant and equipment, net$83.0 $87.5 
Right-of-use assets from operating leases21.5 12.6 
Goodwill68.9 69.7 
Intangibles, net13.4 13.7 
Deferred tax assets7.9 8.0 
Pensions and other retirement benefits14.0 13.7 
Investments and loans to joint ventures and other affiliates0.4 0.4 
Total assets$414.5 $368.8 
Current liabilities
Accounts payable$37.8 $31.7 
Accrued liabilities31.3 28.2 
Taxes on income5.5 3.0 
Liabilities held-for-sale4.5 1.4 
Other current liabilities19.5 19.6 
Total current liabilities$98.6 $83.9 
Non-current liabilities
Long-term debt$85.9 $59.6 
Pensions and other retirement benefits1.9 1.9 
Deferred tax liabilities2.7 2.7 
Other non-current liabilities18.8 11.6 
Total liabilities$207.9 $159.7 
Commitments and contingencies (Note 15)
Shareholders' equity
Ordinary shares of £0.50 par value; authorized 40,000,000 shares for 2022 and 2021; issued and outstanding 28,944,000 shares for 2022 and 2021
$26.5 $26.5 
Deferred shares of £0.0001 par value; authorized, issued and outstanding 761,835,318,444 shares for 2022 and 2021
149.9 149.9 
Additional paid-in capital70.7 70.9 
Treasury shares(11.1)(9.6)
Own shares held by ESOP(1.1)(1.1)
Retained earnings108.1 107.5 
Accumulated other comprehensive loss(136.4)(135.0)
Total shareholders' equity$206.6 $209.1 
Total liabilities and shareholders' equity$414.5 $368.8 
See accompanying notes to condensed consolidated financial statements
3


LUXFER HOLDINGS PLC
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
First Quarter
In millions20222021
Operating activities
Net income$7.6 $14.5 
Net loss / (income) from discontinued operations0.1 (5.9)
Net income from continuing operations7.7 8.6 
Adjustments to reconcile net income to net cash (used for) / provided by operating activities
   Depreciation3.5 3.2 
   Amortization of purchased intangible assets0.2 0.2 
   Amortization of debt issuance costs0.2 0.1 
   Share-based compensation charges0.2 0.5 
   Deferred income taxes0.1 0.3 
   Defined benefit pension credit(0.4)(0.6)
   Defined benefit pension contributions (1.4)
Changes in assets and liabilities
   Accounts and other receivables(12.2)(7.4)
   Inventories(16.2)(0.1)
   Other current assets(3.0)(1.7)
   Accounts payable6.8 6.7 
   Accrued liabilities3.4 2.5 
   Other current liabilities2.0 2.0 
   Other non-current assets and liabilities(1.6)2.3 
Net cash (used for) / provided by operating activities - continuing(9.3)15.2 
Net cash provided by operating activities - discontinued  
Net cash (used for) / provided by operating activities$(9.3)$15.2 
Investing activities
Capital expenditures$(1.0)$(1.4)
Proceeds from sale of discontinued operations 21.0 
Business acquisition (19.3)
Net cash (used for) / provided by investing activities - continuing$(1.0)$0.3 
Net cash used for investing activities - discontinued$ $ 
Net cash (used for) / provided by investing activities$(1.0)$0.3 
Financing activities
Net drawdown of long-term borrowings26.7 19.5 
Share-based compensation cash paid(0.4)(1.3)
Dividends paid(3.4)(3.4)
Repurchases of ordinary shares(1.5) 
Net cash from financing activities$21.4 $14.8 
Effect of exchange rate changes on cash and cash equivalents(0.2) 
Net increase $10.9 $30.3 
Cash, cash equivalents and restricted cash; beginning of year (1)
6.4 1.5 
Cash, cash equivalents and restricted cash; end of the First Quarter (1)
17.3 31.8 
Supplemental cash flow information:
Interest payments$0.8 $0.9 
Income tax receipts, net(0.1) 
(1) Cash, cash equivalents and restricted cash at March 27, 2022 consists of $17.2 million (December 31, 2021: $6.2 million) cash and cash equivalents and $0.1 million (December 31, 2021: $0.2 million) restricted cash.

See accompanying notes to condensed consolidated financial statements
4


LUXFER HOLDINGS PLC
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED)
In millions, Ordinary
share
capital
Deferred
share
capital
Additional paid-in capitalTreasury shares NumberTreasury shares AmountOwn shares held by ESOP NumberOwn shares held by ESOP AmountRetained
earnings
Accumulated other comprehensive lossTotal
equity
At January 1, 2021$26.6 $149.9 $70.6 (0.4)$(4.0)(1.0)$(1.4)$91.2 $(165.8)$167.1 
Net income— — — — — — — 14.5 — 14.5 
Other comprehensive income, net of tax— — — — — — — — 1.5 1.5 
Dividends declared — — — — — — — (3.4)— (3.4)
Share-based compensation
— — 0.5 — — — — — — 0.5 
Utilization of treasury shares to satisfy share based compensation
— — (1.4)— — — 0.1 — — (1.3)
At March 28, 2021$26.6 $149.9 $69.7 (0.4)$(4.0)(1.0)$(1.3)$102.3 $(164.3)$178.9 
At January 1, 2022$26.5 $149.9 $70.9 (0.6)$(9.6)(0.8)$(1.1)$107.5 $(135.0)$209.1 
Net income— — — — — — — 7.6 — 7.6 
Other comprehensive loss, net of tax— — — — — — — — (1.4)(1.4)
Dividends declared— — — — — — — (7.0)— (7.0)
Share-based compensation
— — 0.2 — — — — — — 0.2 
Share buyback— — — (0.1)(1.5)— — — — (1.5)
Utilization of shares from ESOP to satisfy share based compensation
— — (0.4)— — — — — — (0.4)
At March 27, 2022$26.5 $149.9 $70.7 (0.7)$(11.1)(0.8)$(1.1)$108.1 $(136.4)$206.6 

See accompanying notes to condensed consolidated financial statements
5


LUXFER HOLDINGS PLC
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
1.    Basis of Presentation and Responsibility for interim Financial Statements
We prepared the accompanying unaudited consolidated condensed financial statements of Luxfer Holdings PLC and all wholly-owned, majority owned or otherwise controlled subsidiaries on the same basis as our annual audited financial statements. We condensed or omitted certain information and footnote disclosures normally included in our annual audited financial statements, which we prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP).
Our quarterly financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2021. As used in this report, the terms "we," "us," "our," "Luxfer" and "the Company" mean Luxfer Holdings PLC and its subsidiaries, unless the context indicates another meaning.
In the opinion of management, our financial statements reflect all adjustments, which are of a normal recurring nature, necessary for presentation of financial statements for interim periods in accordance with U.S. GAAP and with the instructions to Form 10-Q in Article 10 of Securities and Exchange Commission (SEC) Regulation S-X.
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions about future events that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of our financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates, and any such differences may be material to our financial statements.
Our fiscal year ends on December 31. We report our interim quarterly periods on a 13-week quarter basis, ending on a Sunday. The First Quarter, 2022, ended March 27, 2022, and the First Quarter, 2021, ended March 28, 2021.
Impact of COVID-19 on the Financial Statements
Demand from most end-markets we serve continues to improve in to 2022, following a period of recovery in 2021 from the adverse impact of COVID-19, which began in March 2020. The global political environment has become increasingly uncertain, combined with sharp recovery in demand and supply chain challenges, has resulted in some adverse business impacts, including increased material cost inflation on key inputs (including magnesium, aluminum and carbon fiber), labor availability issues and energy and transport cost increases.
Currently, our expectation is that the impact of material and energy cost inflation and labor and transport constraints will continue at least throughout 2022, but it is our intention to pass through inflation to our customers where possible.
Accounting standards issued but not yet effective
None expected to be material to the Company.


6


2.    Earnings per share

Basic earnings per share are computed by dividing net income for the period by the weighted-average number of ordinary shares outstanding, net of Treasury shares and shares held in ESOP. Diluted earnings per share are computed by dividing net income for the period by the weighted average number of ordinary shares outstanding and the dilutive ordinary shares equivalents.
Basic and diluted earnings per share were calculated as follows:
First Quarter
In millions except share and per-share data20222021
Basic earnings:
Net income from continuing operations$7.7 $8.6 
Net (loss) / income from discontinued operations(0.1)5.9 
Net income $7.6 $14.5 
Weighted average number of £0.50 ordinary shares:
For basic earnings per share27,490,741 27,658,871 
Dilutive effect of potential common stock205,377 398,452 
For diluted earnings per share27,696,118 28,057,323 
Earnings / (loss) per share using weighted average number of ordinary shares outstanding:(1)
Basic earnings per ordinary share for continuing operations$0.28 $0.31 
Basic (loss) / earnings per ordinary share for discontinued operations$ $0.21 
Basic earnings per ordinary share$0.28 $0.52 
Diluted earnings per ordinary share for continuing activities$0.28 $0.31 
Diluted (loss) / earnings per ordinary share for discontinued operations$ $0.21 
Diluted earnings per ordinary share$0.28 $0.52 

(1) The calculation of earnings per share is performed separately for continuing and discontinued operations. As a result, the sum of the two in any particular period may not equal the earnings-per-share amount in total.
In the first quarter of 2022, basic average shares outstanding and diluted average shares outstanding were the same for discontinued operations because the effect of potential shares of common stock was anti-dilutive since the Company generated a net loss from discontinued operations. As a result, 205,377 shares combined were not included in the computation of diluted EPS for discontinued operations for the first quarter of 2022.
3.    Net sales
Disaggregated sales disclosures for the quarters ended March 27, 2022, and March 28, 2021, are included below and in Note 14, Segment Information.
First Quarter
20222021
In millionsGas CylindersElektronTotalGas CylindersElektronTotal
General industrial$8.4 $26.9 $35.3 $5.8 $21.7 $27.5 
Transportation16.9 12.9 29.8 14.9 11.8 26.7 
Defense, First Response & Healthcare17.1 14.8 31.9 15.5 15.5 31.0 
$42.4 $54.6 $97.0 $36.2 $49.0 $85.2 
The Company’s performance obligations are satisfied at a point in time. With the classification of our Superform business as discontinued operations, none of the Company's revenue is satisfied over time. As a result, the Company's contract receivables, contract assets and contract liabilities are included within current assets and liabilities held-for-sale.
7


4.    Restructuring charges
The $1.4 million restructuring charge in 2022 relates solely to costs associated with the closure of Luxfer Gas Cylinders France, which ceased operations in 2019.
The $1.4 million restructuring charge in 2021 included $0.5 million of costs associated with the closure of Luxfer Gas Cylinders France and $0.9 million in relation to rationalization activity in the Elektron segment, which included $0.1 million of asset and inventory impairments, largely in relation to the planned divestiture of our small Luxfer Magtech production facility in Ontario, Canada.
Restructuring-related costs included within Restructuring charges in the Condensed Consolidated Financial Statements by reportable segment were as follows:
First Quarter
In millions20222021
Severance and related costs
Gas Cylinders segment$1.4 $0.5 
Elektron segment 0.9 
Total restructuring charges$1.4 $1.4 

Activity related to restructuring, recorded in Other current liabilities in the consolidated balance sheets is summarized as follows:
In millions2022
Balance at January 1, 2022$11.7 
Costs incurred1.4 
Cash payments and other(6.6)
Balance at March 27, 2022$6.5 

5.    Acquisitions and acquisition-related costs
Acquisition-related costs of $0.2 million in the First Quarters of 2022 and 2021 represent professional fees incurred in relation to the SCI acquisition.
On March 15, 2021, the Company completed the acquisition of the Structural Composites Industries LLC ("SCI") business of Worthington Industries, Inc., based in Pomona, California, for $19.3 million cash consideration. The acquisition of SCI strengthens Luxfer’s composite cylinder offerings and aligns with recent investment to enhance our alternative fuel capabilities to capitalize on the growing compressed natural gas (CNG) and hydrogen opportunities.
The fair value of assets and liabilities acquired are as follows:
In millions
Accounts and other receivables$4.7 
Inventories6.7 
Property, plant and equipment7.8 
Customer relationships1.8 
Less:
Accounts payable(1.7)
Net assets acquired19.3 
Purchase consideration$19.3 

6.    Other charges
There were no other charges in the first quarter of 2022. Other charges of $1.1 million in the First Quarter of 2021 related to the settlement of a class action lawsuit in the Gas Cylinders segment in relation to an alleged historic violation of the Californian Labor Code, concerning a Human Resources administration matter.
8


7.    Supplementary balance sheet information
March 27,December 31,
In millions20222021
Accounts and other receivables
Trade receivables$59.7 $45.8 
Related parties0.1 0.1
Prepayments and accrued income5.18.5
Derivative financial instruments0.30.1
Deferred consideration1.01.0
Other receivables3.42.3
Total accounts and other receivables$69.6 $57.8 
Inventories
Raw materials and supplies$49.1 $39.3 
Work-in-process31.0 26.7 
Finished goods25.8 24.5 
Total inventories$105.9 $90.5 
Property, plant and equipment, net
Land, buildings and leasehold improvements$60.2 $64.6 
Machinery and equipment263.1 266.3 
Construction in progress8.7 8.4 
Total property, plant and equipment332.0 339.3 
Accumulated depreciation and impairment(249.0)(251.8)
Total property, plant and equipment, net$83.0 $87.5 
Other current liabilities
Short term provision$0.2 $0.2 
Restructuring provision6.5 11.7 
Derivative financial instruments0.1 0.1 
Operating lease liability4.5 3.0 
Dividend payable3.6  
Advance payments4.6 4.6 
Total other current liabilities$19.5 $19.6 
Other non-current liabilities
Contingent liabilities$1.4 $1.8 
Operating lease liability17.2 9.8 
Other non-current liabilities0.2  
Total other non-current liabilities$18.8 $11.6 







9


8.     Goodwill and other identifiable intangible assets
Changes in goodwill during the First Quarter, ended March 27, 2022, were as follows:
In millionsGas CylindersElektronTotal
At January 1, 2022$27.6 $42.1 $69.7 
Exchange difference(0.6)(0.2)(0.8)
Balance at March 27, 2022$27.0 $41.9 $68.9 

Identifiable intangible assets consisted of the following:

 Customer relationshipsTechnology and trading relatedTotal
$M$M$M
Cost:   
At January 1, 202215.2 8.2 23.4 
Exchange movements (0.1)(0.1)
At March 27, 202215.2 8.1 23.3 
Accumulated amortization:  
At January 1, 20225.7 4.0 9.7 
Provided during the year0.1 0.1 0.2 
At March 27, 20225.8 4.1 9.9 
Net book values:  
At January 1, 20229.5 4.2 13.7 
At March 27, 20229.4 4.0 13.4 

Identifiable intangible asset amortization expense was $0.2 million and $0.2 million for the First Quarters of 2022 and 2021 respectively.

Intangible asset amortization expense during the remainder of 2022 and over the next five years is expected to be approximately $0.8 million in 2022 and $1.0 million per year respectively.
10


9.    Debt

Debt outstanding was as follows:
In millionsMarch 27, 2022December 31, 2021
4.88% Loan Notes due 2023
$25.0 $25.0 
4.94% Loan Notes due 2026
25.0 25.0 
Revolving credit facility36.9 10.8 
Unamortized debt issuance costs(1.0)(1.2)
Total debt$85.9 $59.6 
Less current portion$ $ 
Non-current debt$85.9 $59.6 
The weighted-average interest rate on the revolving credit facility was 2.13% for the First Quarter of 2022 and 2.19% for the full-year 2021.
The maturity profile of the Company's debt, excluding unamortized issuance costs and discounts, is as follows:
In millions20222023202420252026ThereafterTotal
Loan Notes due 2023 25.0     25.0 
Loan Notes due 2026    25.0  25.0 
Revolving credit facility    36.9  36.9 
Total debt $ $25.0 $ $ $61.9 $ $86.9 
Loan notes due and revolving credit facility
We have been in compliance with the covenants under the Note Purchase and Private Shelf Agreement throughout all of the quarterly measurement dates from and including September 30, 2014, to March 27, 2022.
The Loan Notes due 2023 and 2026, the Revolving Credit Facility and the Note Purchase and Private Shelf Agreement are governed by the laws of the State of New York.
Senior Facilities Agreement
During the First Quarter of 2022, we drew down net $26.7 million on the Revolving Credit Facility, and the balance outstanding at March 27, 2022, was $36.9 million, and at December 31, 2021, was $10.8 million, with $63.1 million undrawn at March 27, 2022, and $89.2 million at December 31, 2021.
We have been in compliance with the covenants under the Senior Facilities Agreement throughout all of the quarterly measurement dates from and including September 30, 2011, to March 27, 2022.
In October 2021, the Company completed a refinancing of its existing Revolving Credit Facility, extending its tenure to 2026.


11


10.    Discontinued Operations
Our Superform aluminum superplastic forming business operating in the U.S. was historically included in the Gas Cylinders segment. As a result of our decision to exit non-strategic aluminum product lines, we have reflected the results of operations of this business as discontinued operations in the Condensed Consolidated Statements of Income for all periods presented. We expect the sale of our Superform business to occur in 2022.
The assets and liabilities of the Superform business have been presented within assets held-for-sale and liabilities held-for-sale in the consolidated balance sheets for 2022 and 2021.
In 2021, our Superform U.K. business was also disclosed within assets and liabilities held-for-sale. The business was sold in September 2021.
Results of discontinued operations were as follows:
First Quarter
In millions20222021
Net sales$1.7 $9.7 
Cost of goods sold(1.6)(10.1)
Gross profit / (loss)$0.1 $(0.4)
Selling, general and administrative expenses(0.2)(1.4)
Operating loss$(0.1)$(1.8)
Tax credit 0.2 
Net loss$(0.1)$(1.6)

In the First Quarter of 2021, the Company sold its U.S. aluminum gas cylinders business for $21.0 million, which resulted in a gain on sale of $7.5 million, net of a $2.0 million tax charge, which was recognized in the First Quarter of 2021.
In the Second Quarter of 2021, there was a $0.4 million working capital adjustment, reducing the purchase price to $20.6 million and the gain on disposal to $7.1 million.
The assets and liabilities classified as held-for-sale related to discontinued operations were as follows:
Held-for-sale assets March 27,December 31,
In millions20222021
Right-of-use-assets from operating leases3.2  
Inventory2.7 2.7 
Accounts and other receivables1.8 2.1 
Held-for-sale assets$7.7 $4.8 
Held-for-sale liabilities
Accounts payable0.5 0.5 
Accrued liabilities0.1 0.1 
Other liabilities0.6  
Lease liabilities3.3 0.8 
Held-for-sale liabilities$4.5 $1.4 
Also included within assets held-for-sale in 2022 and 2021 are land and buildings valued at $4.9 million and $3.7 million, respectively, within our Elektron Segment.
The significant non-cash items were as follows:
First Quarter
In millions20222021
Cash flows from discontinued operating activities:
Depreciation$ $0.2 
Cash balances are swept into the treasury entities at the end of each day, and these sweeps are recorded within operating cash flows in the statements of cash flows.
12


11.    Income Taxes
We manage our affairs so that we are centrally managed and controlled in the United Kingdom (“U.K.”) and therefore have our tax residency in the U.K. The provision for income taxes consists of provisions for the U.K. and international income taxes. We operate in an international environment with operations in various locations outside the U.K. Accordingly, the consolidated income tax rate is a composite rate reflecting the earnings in the various locations and the applicable rates.
The effective income tax rate for the Quarter ended March 27, 2022, was 24.5%, compared to 21.1% for the Quarter ended March 28, 2021.

12.    Share Plans

Total share-based compensation expense for the quarters ended March 27, 2022, and March 28, 2021, was as follows:
First Quarter
In millions20222021
Total share-based compensation charges$0.2 $0.5 
In March 2022, we issued our annual share-based compensation grants under the Luxfer Holdings PLC Long-Term Umbrella Incentive Plan. The total number of awards issued was approximately 167,400, and the weighted average fair value of options granted in 2022 was estimated to be $17.82 per share.
Also in March 2022, approximately 17,000 awards were granted based on the achievement of total shareholder return targets from the period January 1, 2019, to December 31, 2021. 50% of these awards vested immediately upon grant, with the remaining 50% vesting in March 2023.
The following table illustrates the assumptions used in deriving the fair value of share options granted during the First Quarter of 2022 and the year-ended December 31, 2021:
First QuarterYear ended December 31,
20222021
Dividend yield (%)
2.27
2.27
Expected volatility range (%)
42.80 - 59.03
42.80 - 59.03
Risk-free interest rate (%)
0.04 - 0.24
0.04 - 0.24
Expected life of share options range (years)
0.50 - 4.00
0.50 - 4.00
Forfeiture rate (%)
5.00
5.00
Weighted average exercise price ($)$1.00$1.00
Models usedBlack-Scholes & Monte-CarloBlack-Scholes & Monte-Carlo
The expected life of the share options is based on historical data and current expectations, and is not necessarily indicative of exercise patterns that may occur. The expected volatility reflects the assumption that the historical volatility over a period similar to the life of the options is indicative of future trends, which may not necessarily be the actual outcome.

13


13.    Shareholders' Equity
(a) Dividends paid and proposed
In millions20222021
Dividends declared and paid during the year: