Company: ATMU
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001921963-25-000075
Chunk: 69

Company: Atmus Filtration Technologies Inc.
Filing Date: 2025-05-02
Form: 10-Q
Item: Item 8
Chunk 69
---
 margin (non-GAAP)17.4 %17.4 %Adjusted EBITDA margin (non-GAAP)19.6 %18.8 %

(a)Primarily comprised of one-time expenses related to Information Technology, warehousing, manufacturing and Human Resources separation costs.

A reconciliation of Diluted earnings per share to Adjusted earnings per share is shown in the table below:

For the Three Months Ended March 31,20252024(per share)Diluted earnings per share$0.54 $0.54 Plus:One-time separation costs(a)$0.11 $0.07 Less:Tax impact of one-time separation costs(a)$0.02 $0.01 Adjusted earnings per share$0.63 $0.60 

(a)Primarily comprised of one-time expenses related to Information Technology, warehousing, manufacturing and Human Resources separation costs and the related tax impact of those expenses. The tax impact of one-time separation costs for the three months ended March 31, 2025 and 2024 were $2.0 million and $1.3 million, respectively.

26

A reconciliation of Net cash provided by operating activities to Free cash flow and Adjusted free cash flow is shown in the table below:

For the Three Months Ended March 31,20252024(in millions)Cash provided by (used in) operating activities$28.7 $(8.2)Less:Capital expenditures$12.4 $10.6 Free cash flow (non-GAAP)$16.3 $(18.8)Plus:One-time separation capital expenditures$3.5 $2.8 Other one-time separation related(a)— 3.3 Adjusted free cash flow (non-GAAP)$19.8 $(12.7)

(a)Primarily comprised of one-time working capital inefficiencies associated with the move from intercompany settlement terms with Cummins to standalone practices.

Critical Accounting Policies and Estimates

We prepare our condensed consolidated financial statements in conformity with U.S. GAAP. The preparation of our financial statements requires the use of estimates, judgments and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the periods presented. Actual results could differ from those estimates and assumptions. Our critical accounting policies and estimates, which affect our more significant estimates and assumptions used in preparing our consolidated financial statements, are identified and described in our Annual Report on Form