Third Quarter 2018 Highlights (Versus Third Quarter
2017)
Nexeo Solutions, Inc. (NASDAQ:NXEO) (the "Company" or "Nexeo
Solutions"), today announced its consolidated financial results for
the three months ended June 30, 2018.
David Bradley, President and Chief Executive Officer of Nexeo
Solutions stated, "The investments we have made in market leading
capability, combined with disciplined commercial execution and an
improved market environment are yielding record results. Over
the last twelve months we have delivered 17% adjusted EBITDA
growth, which is a direct reflection of the quality of our people
and the strength of our proprietary operating system."
Sales and operating revenues were $1,046.4 million and $942.7
million for the three months ended June 30, 2018 and
June 30, 2017, respectively. The increase in revenues
was primarily attributable to an increase in average selling prices
of 10.2% across all segments in all regions largely due to an
inflationary pricing environment and a shift in portfolio mix to
products with higher average selling prices. Approximately
$14.4 million of the increase was a result of strengthening
exchange rates of various currencies versus the USD as compared to
the same period in the prior fiscal year.
Gross profit was $120.2 million and $102.7 million for the three
months ended June 30, 2018 and June 30, 2017,
respectively. Gross profit increased primarily due to a
favorable shift in product mix and continued specialty supplier
growth in the Chemicals line of business. Additionally, our
centralized platform allowed us to effectively manage supply chain
logistics to mitigate freight cost increases and facilitate strong
price execution. Approximately $1.1 million of the increase
in gross profit was due to the strengthening of exchange rates of
various currencies versus the USD compared to the same period in
the prior fiscal year.
The Company reported net income of $17.5 million and $10.2
million for the three months ended June 30, 2018 and
June 30, 2017, respectively. Adjusted EBITDA was $57.6
million and $52.4 million for the three months ended June 30,
2018 and June 30, 2017, respectively. For a description
of adjusted EBITDA and a reconciliation to its most comparable GAAP
financial measure, please read "Non-GAAP Financial Measures".
Third Quarter 2018 Performance
The results of the Company's operating performance are described
below and, unless otherwise indicated, are a comparison of the
three months ended June 30, 2018 with the three months ended June
30, 2017.
|
Three Months Ended June 30, |
|
|
Period Over Period |
|
2018 |
|
2017 |
|
|
$ Change |
|
% Change |
Chemicals |
|
|
|
|
|
|
|
|
Sales and operating
revenues |
$ |
494.9 |
|
$ |
443.9 |
|
|
$ |
51.0 |
|
11.5% |
Gross profit |
64.9 |
|
54.3 |
|
|
10.6 |
|
19.5% |
Plastics |
|
|
|
|
|
|
|
|
Sales and operating
revenues |
512.6 |
|
466.2 |
|
|
46.4 |
|
10.0% |
Gross profit |
49.6 |
|
43.1 |
|
|
6.5 |
|
15.1% |
Other |
|
|
|
|
|
|
|
|
Sales and operating
revenues |
38.9 |
|
32.6 |
|
|
6.3 |
|
19.3% |
Gross profit |
5.7 |
|
5.3 |
|
|
0.4 |
|
7.5% |
Consolidated |
|
|
|
|
|
|
|
|
Sales and operating
revenues |
1,046.4 |
|
942.7 |
|
|
103.7 |
|
11.0% |
Gross profit |
120.2 |
|
102.7 |
|
|
17.5 |
|
17.0% |
|
|
|
|
|
|
|
|
|
Segment Highlights
Chemicals - Sales and operating revenues for
the Chemicals line of business were $494.9 million and $443.9
million for the three months ended June 30, 2018 and
June 30, 2017, respectively. The revenue increase was
primarily attributable to a 12.9% increase in average selling
prices largely as a result of an inflationary pricing environment
and increased specialty mix. This increase was partially
offset by a decrease in volumes of 1.2% due to specialty product
supply constraints. Disciplined commercial execution to
balance price and volume resulted in the lower volumes, but yielded
higher average selling prices.
Gross profit was $64.9 million and $54.3 million for the three
months ended June 30, 2018 and June 30, 2017,
respectively. Gross profit increased primarily due to a
favorable shift in product mix and strong commercial
execution. Additionally, the increase in gross profit was
primarily due to the addition of new specialty suppliers.
Plastics - Sales and operating revenues for the
Plastics line of business were $512.6 million and $466.2 million
for the three months ended June 30, 2018 and June 30,
2017, respectively. The revenue increase was primarily
attributable to a 7.1% increase in average selling prices in an
inflationary pricing environment and an increase in volumes of 2.7%
resulting from higher demand in North America and continued market
share gain in EMEA. Approximately $13.0 million of the
increase above was a result of strengthening exchange rates of
various currencies versus the USD compared to the same period in
the prior fiscal year.
Gross profit was $49.6 million and $43.1 million for the three
months ended June 30, 2018 and June 30, 2017,
respectively. Gross profit increased primarily due to a
favorable shift in product mix and strong commercial
execution. Approximately $1.0 million of the increase in
gross profit was due to the strengthening of exchange rates of
various currencies versus the USD compared to the same period in
the prior fiscal year.
Other - Sales and operating revenues for the
Other segment were $38.9 million and $32.6 million for the three
months ended June 30, 2018 and June 30, 2017,
respectively. The increase in revenues was primarily due to
growth in waste services to existing customers.
Gross profit was $5.7 million and $5.3 million for the three
months ended June 30, 2018 and June 30, 2017,
respectively. The increase was primarily due to the increase
in revenues as discussed above as well as certain management cost
savings initiatives.
Nexeo Solutions to Hold Earnings Conference
Call
The Company will hold a conference call to discuss its third
quarter fiscal year 2018 earnings on Tuesday, August 7, 2018 at
9:00 a.m. CT (10:00 a.m. ET). To participate in the
conference call by telephone, please call one of the following
telephone numbers and reference the below access passcode 10
minutes prior to the scheduled start time:
|
• |
Domestic: |
|
+1.844.412.1004 |
|
• |
International: |
|
+1.216.562.0451 |
|
• |
Passcode: |
|
5165839 |
The conference call and presentation will also be broadcast live
via the Internet. You may listen by accessing the Investor
Relations section of the Company's website at
www.nexeosolutions.com. You should connect to the website at
least 15 minutes prior to the conference call to register, download
and install any necessary audio software to ensure a successful
user experience.
If you are unable to participate, a replay of the conference
call will be available on August 7, 2018, beginning at 12:00
p.m. CT (1:00 p.m. ET), through August 14, 2018.
The phone number for the conference call replay is +1.855.859.2056
(Domestic) or +1.404.537.3406 (International). The access
passcode is 5165839. Additionally, the recorded conference
call will be accessible through the Investor Relations section of
the Company’s website at www.nexeosolutions.com.
All individuals listening to the conference call or the replay
are reminded that all conference call material is copyrighted by
the Company and cannot be recorded or rebroadcast without the
Company's express written consent.
Non-GAAP Financial Measures
Adjusted EBITDA and adjusted net income was derived based on
methodologies other than in accordance with generally accepted
accounting principles in the United States ("GAAP"). The
Company’s management has included this measure because they believe
it is indicative of the Company’s operating performance, is used by
investors and analysts to evaluate the Company and can facilitate
comparisons across periods. As presented by the Company’s
management, this measure may not be comparable to similarly titled
measures reported by other companies. Adjusted EBITDA and
adjusted net income should be considered in addition to, not as a
substitute for, financial measures presented in accordance with
GAAP. Moreover, certain non-GAAP financial measures as
presented for financial reporting purposes herein may differ from
similarly titled measures in the applicable covenants in our credit
facilities.
The Company evaluates performance on the basis of adjusted
EBITDA, which it defines as its consolidated net income (loss),
plus the sum of interest expense, net of interest income, income
tax expense (benefit), depreciation, amortization, other operating
expenses, net (which primarily consists of acquisition and
integration-related expenses, employee stock-based compensation
expense, and other restructuring and transformational expenses),
impairment charges, loss on extinguishment of debt and other income
(expense), net, gains and losses on foreign currency transactions,
debt refinancing costs and other non-operating activity.
Management believes that adjusted EBITDA is indicative of the
Company’s operating performance and that it is used by investors
and analysts to evaluate companies with similar capital
structures. The Company believes that adjusted EBITDA is an
important indicator of operating performance because:
- adjusted EBITDA excludes the effects of income taxes, as well
as the effects of financing and investing activities by eliminating
the effects of interest, depreciation and amortization;
- the Company uses adjusted EBITDA in setting performance
incentive targets;
- the Company considers gains (losses) on the acquisition,
disposal and impairment of assets as resulting from investing
decisions rather than ongoing operations; and
- other significant one-time items, while periodically affecting
the Company's results, may vary significantly from period to period
and have a disproportionate effect in a given period, which affects
comparability of its results.
The Company evaluates performance on the basis of adjusted net
income, which it defines as its consolidated net income (loss),
plus the change in fair value of contingent consideration
obligation net of tax impact. Contingent consideration is comprised
of two components, the Deferred Cash Consideration and the Tax
Receivable Agreement ("TRA"), which have a non-cash impact and can
change significantly quarter to quarter dependent on key valuation
inputs. In order to estimate the fair value of the Deferred
Cash Consideration, the Company estimates the value of the Excess
Shares using a Monte Carlo simulation model with the market price
of the Company’s common stock at each valuation date being a
significant input to this model. Unobservable inputs to the
valuation are the expected volatility during the applicable period
as well as a marketability discount to reflect the illiquidity of
the Excess Shares given their terms. The Company estimates
the fair value of the liability for the contingent consideration
related to the TRA based on a discounted cash flow model which
incorporates assumptions of projected taxable income, projected
income tax liabilities and an estimate of tax benefits expected to
be realized as a result of the Business Combination. Key
inputs to the valuation are prevailing tax rates and market
interest rates impacting the discount rate. Management
believes that adjusted net income is indicative of the Company’s
operating performance and that it is used by investors and analysts
to evaluate companies with similar capital structures. The
Company believes that adjusted net income is an important indicator
of operating performance because:
- adjusted net income excludes the effects of the change in fair
value of contingent consideration obligation net of tax impact,
which have a non-cash impact and can change significantly quarter
to quarter dependent on key valuation inputs.
A reconciliation of adjusted EBITDA and adjusted net income to
net income (loss) from continuing operations for Nexeo Solutions,
Inc. and Subsidiaries, the most comparable GAAP financial measure,
is included at the end of this release.
About Nexeo Solutions, Inc.
Nexeo Solutions is a leading global chemicals and plastics
distributor, representing products from world-class producers to a
diverse customer base. From product specification to
sustainable solutions, the Company goes beyond traditional
logistics to provide value-added services across many industries,
including chemicals manufacturing, oil and gas, coatings, personal
care, healthcare, automotive and 3D printing. The Company
leverages a centralized technology platform to identify
efficiencies and create solutions to unlock value for suppliers and
customers. Learn more at www.nexeosolutions.com.
Forward-Looking Statements
This press release contains statements related to the Company’s
future plans and expectations and, as such, includes
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995, Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Forward-looking
statements are those statements that are based upon management’s
current plans and expectations as opposed to historical and current
facts and are often identified in this press release by use of
words including but not limited to "may," "believe," "will,"
"project," "expect," "estimate," "anticipate," and "plan."
Although the forward-looking statements contained in this press
release reflect management’s current assumptions based upon
information currently available to management and based upon that
which management believes to be reasonable assumptions, the Company
cannot be certain that actual results will be consistent with these
forward-looking statements. Forward-looking statements
necessarily involve significant known and unknown risks,
assumptions and uncertainties that may cause the Company’s actual
results, performance prospects and opportunities in future periods
to differ materially from those expressed or implied by such
forward-looking statements. These risks and uncertainties
include, among other things: the Company’s ability to achieve
projected cost savings; consolidation of the Company’s competitors;
increased costs of products the Company purchases and its ability
to pass on cost increases to its customers; disruptions to the
supply of chemicals and plastics that the Company distributes or in
the operations of the Company’s customers; the Company’s
significant working capital requirements and the risks associated
with maintaining large inventories; any disruptions to the
Company’s ERP system; the Company’s ability to meet the demands of
the Company’s customers on a timely basis; risks and costs related
with operating as a stand-alone company; risks related to the
Company’s supplier and customer contracts; risks related to the
Company’s substantial indebtedness; changes in state, federal or
foreign laws affecting the industries in which we operate; the
Company’s ability to comply with any new and existing environmental
and other laws and regulations; and general business and economic
trends in the United States and other countries, including
uncertainty as to changes and trends. The Company's future
results will depend upon various other risks and uncertainties,
including the risks and uncertainties discussed in the Company's
SEC filings, including in the sections entitled "Risk Factors" in
such SEC filings.
FOR FURTHER INFORMATION PLEASE CONTACTInvestor Relations, Nexeo
SolutionsTel:
+1.281.297.0856, Investor.Relations@nexeosolutions.com
Nexeo Solutions, Inc. and SubsidiariesCondensed
Consolidated Balance Sheets(Unaudited, in millions, except share
amounts and par value)
|
June 30,2018 |
|
September 30,2017 |
Current
Assets |
|
|
|
Cash and cash
equivalents |
$ |
43.8 |
|
|
$ |
53.9 |
|
Accounts and notes
receivable (net of allowance for doubtful accounts of $3.8 million
and $2.2 million, respectively) |
625.8 |
|
|
597.4 |
|
Inventories |
360.9 |
|
|
315.5 |
|
Income taxes
receivable |
5.7 |
|
|
3.4 |
|
Other current
assets |
17.4 |
|
|
19.8 |
|
Total current assets |
1,053.6 |
|
|
990.0 |
|
|
|
|
|
Non-Current
Assets |
|
|
|
Property, plant and
equipment, net |
288.0 |
|
|
316.1 |
|
Goodwill |
700.6 |
|
|
703.0 |
|
Other intangible
assets, net of amortization |
218.9 |
|
|
231.5 |
|
Deferred income
taxes |
2.2 |
|
|
2.3 |
|
Other non-current
assets |
15.4 |
|
|
10.6 |
|
Total non-current assets |
1,225.1 |
|
|
1,263.5 |
|
Total
Assets |
$ |
2,278.7 |
|
|
$ |
2,253.5 |
|
|
|
|
|
Current
Liabilities |
|
|
|
Short-term borrowings,
current portion of long-term debt and capital lease
obligations |
$ |
47.5 |
|
|
$ |
51.1 |
|
Accounts payable |
374.7 |
|
|
384.2 |
|
Accrued expenses and
other liabilities |
56.1 |
|
|
58.4 |
|
Due to related party
pursuant to contingent consideration obligations |
9.2 |
|
|
12.5 |
|
Income taxes
payable |
3.0 |
|
|
3.2 |
|
Total current liabilities |
490.5 |
|
|
509.4 |
|
|
|
|
|
Non-Current
Liabilities |
|
|
|
Long-term debt and
capital lease obligations, less current portion, net |
806.7 |
|
|
794.0 |
|
Deferred income
taxes |
33.4 |
|
|
34.9 |
|
Due to related party
pursuant to contingent consideration obligations |
112.1 |
|
|
127.7 |
|
Other non-current
liabilities |
10.1 |
|
|
9.9 |
|
Total non-current liabilities |
962.3 |
|
|
966.5 |
|
Total
Liabilities |
1,452.8 |
|
|
1,475.9 |
|
|
|
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
Equity |
|
|
|
Preferred stock,
$0.0001 par value (1,000,000 shares authorized, none issued and
outstanding as of June 30, 2018 and September 30, 2017) |
— |
|
|
— |
|
Common stock, $0.0001
par value (300,000,000 shares authorized; 89,753,662 shares issued
and 89,734,146 shares outstanding as of June 30, 2018 and
89,353,641 shares issued and 89,344,065 shares outstanding as of
September 30, 2017) |
— |
|
|
— |
|
Additional paid-in
capital |
769.7 |
|
|
764.4 |
|
Retained earnings |
49.2 |
|
|
4.8 |
|
Accumulated other
comprehensive income |
7.2 |
|
|
8.5 |
|
Treasury stock, at
cost: 19,516 and 9,576 shares as of June 30, 2018 and September 30,
2017 |
(0.2 |
) |
|
(0.1 |
) |
Total equity |
825.9 |
|
|
777.6 |
|
Total
Liabilities and Equity |
$ |
2,278.7 |
|
|
$ |
2,253.5 |
|
|
Nexeo Solutions, Inc. and SubsidiariesCondensed
Consolidated Statements of Operations(Unaudited, in millions,
except share amounts and par value)
|
|
Three Months Ended June 30, |
|
|
2018 |
|
2017 |
Sales and operating
revenues |
|
$ |
1,046.4 |
|
|
$ |
942.7 |
|
Cost of sales and
operating expenses |
|
926.2 |
|
|
840.0 |
|
Gross
profit |
|
120.2 |
|
|
102.7 |
|
Selling, general and
administrative expenses |
|
88.8 |
|
|
79.4 |
|
Transaction related
costs |
|
— |
|
|
0.2 |
|
Change in fair value of
contingent consideration obligations |
|
(8.7 |
) |
|
(0.8 |
) |
Operating
income |
|
40.1 |
|
|
23.9 |
|
Other income,
net |
|
0.4 |
|
|
5.7 |
|
Interest income
(expense) |
|
|
|
|
Interest
income |
|
0.2 |
|
|
— |
|
Interest
expense |
|
(13.5 |
) |
|
(13.5 |
) |
Net income
before income taxes |
|
27.2 |
|
|
16.1 |
|
Income tax expense |
|
9.7 |
|
|
5.9 |
|
Net income
attributable to Nexeo Solutions, Inc. |
|
$ |
17.5 |
|
|
$ |
10.2 |
|
|
|
|
|
|
Net income per
share available to common stockholders |
|
|
|
|
Basic |
|
$ |
0.23 |
|
|
$ |
0.13 |
|
Diluted |
|
$ |
0.23 |
|
|
$ |
0.13 |
|
Weighted
average number of common shares outstanding |
|
|
|
|
Basic |
|
76,797,414 |
|
|
76,743,853 |
|
Diluted |
|
76,983,350 |
|
|
76,828,868 |
|
|
|
|
|
|
|
|
Nexeo Solutions, Inc. and SubsidiariesCondensed
Consolidated Statements of Cash Flows(Unaudited, in millions)
|
Nine Months Ended June 30, |
|
2018 |
|
2017 |
Cash flows from
operations |
|
|
|
Net income |
$ |
44.4 |
|
|
$ |
0.8 |
|
Adjustments to
reconcile to cash flows from operations: |
|
|
|
Depreciation and amortization |
57.6 |
|
|
53.5 |
|
Debt
issuance costs amortization, debt issuance costs write-offs and
original issue discount amortization |
3.3 |
|
|
3.1 |
|
Provision
for bad debt |
1.5 |
|
|
(0.1 |
) |
Deferred
income taxes |
(4.5 |
) |
|
(0.8 |
) |
Equity-based compensation expense |
5.3 |
|
|
4.2 |
|
Change in
fair value of contingent consideration obligations |
(14.7 |
) |
|
19.8 |
|
Gain from
sales of property and equipment |
(0.6 |
) |
|
— |
|
Gain
related to reimbursements of certain capital expenditures
incurred |
— |
|
|
(8.1 |
) |
Changes in assets and
liabilities: |
|
|
|
Accounts
and notes receivable |
(32.9 |
) |
|
(63.8 |
) |
Inventories |
(46.9 |
) |
|
(34.9 |
) |
Other
current assets |
(0.1 |
) |
|
3.1 |
|
Accounts
payable |
(8.1 |
) |
|
11.7 |
|
Accrued
expenses and other liabilities |
0.8 |
|
|
(1.1 |
) |
Changes
in other operating assets and liabilities, net |
2.7 |
|
|
0.6 |
|
Net cash provided by (used in) operating
activities |
7.8 |
|
|
(12.0 |
) |
Cash flows from
investing activities |
|
|
|
Additions
to property and equipment |
(11.8 |
) |
|
(20.7 |
) |
Proceeds
from the disposal of property and equipment |
3.3 |
|
|
0.4 |
|
Proceeds
from reimbursement of certain capital expenditures incurred |
— |
|
|
8.4 |
|
Cash paid
for asset acquisitions |
(11.0 |
) |
|
(63.5 |
) |
Net cash used in investing activities |
(19.5 |
) |
|
(75.4 |
) |
Cash flows from
financing activities |
|
|
|
Cash paid
to TPG related to TRA |
(4.2 |
) |
|
— |
|
Proceeds
from short-term debt |
42.7 |
|
|
30.1 |
|
Repayments of short-term debt |
(45.9 |
) |
|
(29.6 |
) |
Proceeds
from issuance of long-term debt |
524.7 |
|
|
611.6 |
|
Repayments of long-term debt and capital lease obligations |
(514.3 |
) |
|
(536.7 |
) |
Payment
of debt issuance costs |
(0.8 |
) |
|
(1.3 |
) |
Net cash provided by financing activities |
2.2 |
|
|
74.1 |
|
Effect of exchange rate
changes on cash and cash equivalents |
(0.6 |
) |
|
(0.1 |
) |
Decrease in
cash and cash equivalents |
(10.1 |
) |
|
(13.4 |
) |
Cash and cash
equivalents at the beginning of the period |
53.9 |
|
|
47.5 |
|
Cash and cash
equivalents at the end of the period |
$ |
43.8 |
|
|
$ |
34.1 |
|
Supplemental
disclosure of cash flow information: |
|
|
|
Cash paid
during the period for interest |
$ |
36.0 |
|
|
$ |
33.9 |
|
Cash paid
during the period for taxes (net of refunds) |
$ |
15.9 |
|
|
$ |
4.3 |
|
Supplemental
disclosure of non-cash investing activities: |
|
|
|
Non-cash
capital expenditures |
$ |
1.4 |
|
|
$ |
16.0 |
|
Non-cash
intangible assets acquired |
$ |
— |
|
|
$ |
3.7 |
|
Supplemental
disclosure of non-cash financing activities: |
|
|
|
Non-cash
capital lease obligations, net |
$ |
0.2 |
|
|
$ |
13.6 |
|
|
Nexeo Solutions, Inc. and SubsidiariesSegment
Information(Unaudited, in millions)
|
Three Months Ended June 30, |
|
2018 |
|
2017 |
Chemicals |
|
|
|
Sales and operating
revenues |
$ |
494.9 |
|
|
$ |
443.9 |
|
Gross profit |
64.9 |
|
|
54.3 |
|
Plastics |
|
|
|
Sales and operating
revenues |
512.6 |
|
|
466.2 |
|
Gross profit |
49.6 |
|
|
43.1 |
|
Other |
|
|
|
Sales and operating
revenues |
38.9 |
|
|
32.6 |
|
Gross profit |
5.7 |
|
|
5.3 |
|
Consolidated |
|
|
|
Sales and operating
revenues |
1,046.4 |
|
|
942.7 |
|
Gross profit |
120.2 |
|
|
102.7 |
|
|
|
|
|
|
|
Nexeo Solutions, Inc. and SubsidiariesAdjusted
Net Income Reconciliation(Unaudited, in millions except per share
data)
|
|
Three Months EndedJune 30, 2018 |
|
Three Months EndedJune 30, 2017 |
|
|
Amount |
|
Per Share |
|
Amount |
|
Per Share |
Net income from
continuing operations |
|
$ |
17.5 |
|
|
$ |
0.23 |
|
|
$ |
10.2 |
|
|
$ |
0.13 |
|
Change in fair value
related to contingent consideration obligations |
|
(8.7 |
) |
|
(0.11 |
) |
|
(0.8 |
) |
|
(0.01 |
) |
Management add-backs
(1) |
|
4.5 |
|
|
0.06 |
|
|
2.2 |
|
|
0.03 |
|
Transaction related
costs (2) |
|
— |
|
|
— |
|
|
0.2 |
|
|
— |
|
Non-recurring tax
adjustment |
|
1.4 |
|
|
0.02 |
|
|
— |
|
|
— |
|
Tax impact |
|
0.1 |
|
|
— |
|
|
0.8 |
|
|
0.01 |
|
Adjusted net
income |
|
$ |
14.8 |
|
|
$ |
0.19 |
|
* |
$ |
12.6 |
|
|
$ |
0.16 |
|
Note: Per share amounts based on diluted shares*Per share amount
does not equal the total due to
rounding(1) Management
adjustments associated with integration, restructuring,
transformational activities and asset
impairments(2) Includes
professional and transaction costs related to acquisitions,
potential acquisitions and other business combination related
items
Nexeo Solutions, Inc. and SubsidiariesAdjusted
EBITDA Reconciliation(Unaudited, in millions)
|
Three Months Ended June 30, |
|
2018 |
|
2017 |
Net income from
continuing operations |
$ |
17.5 |
|
|
$ |
10.2 |
|
Interest expense,
net |
13.3 |
|
|
13.5 |
|
Income tax expense |
9.7 |
|
|
5.9 |
|
Depreciation and
amortization |
18.5 |
|
|
18.9 |
|
Other operating
expenses, net (1) |
(1.4 |
) |
|
3.9 |
|
Adjusted EBITDA from
continuing operations |
$ |
57.6 |
|
|
$ |
52.4 |
|
(1) See Other Operating
Expenses, Net table for additional detail
Nexeo Solutions, Inc. and SubsidiariesOther
Operating Expenses, Net(Unaudited, in millions)
|
Three Months Ended June 30, |
|
2018 |
|
2017 |
Management add-backs
(1) |
$ |
4.5 |
|
|
$ |
2.2 |
|
Change in fair value
related to contingent consideration obligations |
(8.7 |
) |
|
(0.8 |
) |
Foreign exchange
(gains) losses, net (2) |
1.0 |
|
|
(0.4 |
) |
Compensation expense
related to management equity plan (non-cash) |
1.8 |
|
|
1.5 |
|
Inventory step up |
— |
|
|
1.2 |
|
Transaction related
costs (3) |
— |
|
|
0.2 |
|
Other operating
expenses, net |
$ |
(1.4 |
) |
|
$ |
3.9 |
|
(1) Management adjustments
associated with integration, restructuring, transformational
activities and asset
impairments(2) Includes the
impact of net realized and unrealized foreign exchange gains and
losses related to transactions in currencies other than the
functional currency of the respective legal entity for the purpose
of evaluating the Company's performance and facilitating more
meaningful comparisons of performance to other fiscal
periods(3) Includes
professional and transaction costs related to acquisitions,
potential acquisitions and other business combination related
items
Nexeo Solutions, Inc. (NASDAQ:NXEO)
Historical Stock Chart
From May 2024 to Jun 2024
Nexeo Solutions, Inc. (NASDAQ:NXEO)
Historical Stock Chart
From Jun 2023 to Jun 2024