First Quarter 2019 Highlights (Versus First Quarter
2018)
Nexeo Solutions, Inc. (NASDAQ:NXEO) (the "Company" or "Nexeo
Solutions"), today announced its consolidated financial results for
the three months ended December 31, 2018.
David Bradley, President and Chief Executive Officer of Nexeo
Solutions stated, "I’m proud to report that we posted our second
best first quarter gross profit and adjusted EBITDA in Nexeo’s
history. While our first quarter performance reflects some
deflationary and macroeconomic headwinds, we remain focused on
continued execution of our strategic priorities in any environment.
The merger with Univar is on track to close and by combining the
best of the best, Univar Solutions will be well-positioned
strategically and financially to deliver increased value to our
shareholders and worldwide industry partners."
Sales and operating revenues were $935.8 million and $929.6
million for the three months ended December 31, 2018 and
December 31, 2017, respectively. The increase in
revenues was attributable to an increase in average selling prices
of 4.0% primarily due to increased specialty products sales in
North America. The increase was partially offset by a 3.8%
volume decrease, as well as, approximately $8.8 million which was a
result of weakening exchange rates of various currencies versus the
USD as compared to the same period in the prior fiscal year.
Gross profit was $98.7 million and $106.9 million for the three
months ended December 31, 2018 and December 31, 2017,
respectively. Gross profit decreased due to lower volumes as
discussed above and a deflationary environment at the end of the
current period, which caused margin compression and contributed to
lower demand as customers actively reduced inventory levels in
anticipation of lower product prices. Approximately $0.8
million of the decrease in gross profit was due to the weakening 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 $16.2 million and $26.5
million for the three months ended December 31, 2018 and
December 31, 2017, respectively. Adjusted EBITDA was
$40.4 million and $44.2 million for the three months ended
December 31, 2018 and December 31, 2017,
respectively. For a description of adjusted EBITDA and a
reconciliation to its most comparable GAAP financial measure,
please read "Non-GAAP Financial Measures".
First Quarter 2019 Performance
The results of the Company's operating performance are described
below and, unless otherwise indicated, are a comparison of the
three months ended December 31, 2018 with the three months ended
December 31, 2017.
|
|
|
|
|
|
Three Months Ended December 31, |
|
|
Period Over Period |
|
2018 |
|
2017 |
|
|
$ Change |
|
% Change |
Chemicals |
|
|
|
|
|
|
|
|
Sales and operating
revenues |
$ |
438.5 |
|
|
$ |
431.9 |
|
|
|
$ |
6.6 |
|
|
1.5% |
|
Gross profit |
53.5 |
|
|
58.4 |
|
|
|
(4.9) |
|
|
(8.4)% |
|
Plastics |
|
|
|
|
|
|
|
|
Sales and operating
revenues |
456.1 |
|
|
462.2 |
|
|
|
(6.1) |
|
|
(1.3)% |
|
Gross profit |
38.7 |
|
|
41.9 |
|
|
|
(3.2) |
|
|
(7.6)% |
|
Other |
|
|
|
|
|
|
|
|
Sales and operating
revenues |
41.2 |
|
|
35.5 |
|
|
|
5.7 |
|
|
16.1% |
|
Gross profit |
6.5 |
|
|
6.6 |
|
|
|
(0.1) |
|
|
(1.5)% |
|
Consolidated |
|
|
|
|
|
|
|
|
Sales and operating
revenues |
935.8 |
|
|
929.6 |
|
|
|
6.2 |
|
|
0.7% |
|
Gross profit |
98.7 |
|
|
106.9 |
|
|
|
(8.2) |
|
|
(7.7)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Highlights
Chemicals - Sales and operating revenues for
the Chemicals line of business were $438.5 million and $431.9
million for the three months ended December 31, 2018 and
December 31, 2017, respectively. The revenue increase
was attributable to a 5.1% increase in average selling prices
largely due to stronger product mix and increased specialty
demand. This increase was partially offset by a decrease in
volumes of 3.4% due to lower demand in the oil and gas end market
and lower consumer demand caused by the rapid deflationary
environment experienced at the end of the current period.
Gross profit was $53.5 million and $58.4 million for the three
months ended December 31, 2018 and December 31, 2017,
respectively. Gross profit decreased due to the loosening of
prior product supply constraints leading to lower customer demand
and the deflationary environment, which caused margin compression
and contributed to customers actively reducing inventory levels in
anticipation of lower product prices.
Plastics - Sales and operating revenues for the
Plastics line of business were $456.1 million and $462.2 million
for the three months ended December 31, 2018 and
December 31, 2017, respectively. The revenue decrease is
driven by $7.6 million associated with the weakening exchange rates
of various currencies versus USD compared to the same period in the
prior fiscal year, as well as a decrease in volumes of 4.3% due to
lower demand in EMEA and Asia. The decrease in revenues was
partially offset by an increase in average selling prices of 3.1%
resulting from stronger product mix in North
America.
Gross profit was $38.7 million and $41.9 million for the three
months ended December 31, 2018 and December 31, 2017,
respectively. Gross profit decreased primarily due to a
deflationary environment at the end of the current period, which
caused price compression. This was partially offset by a
favorable shift in product mix in North America.
Approximately $0.7 million of the decrease in gross profit was due
to the weakening 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 $41.2 million and $35.5 million for the three
months ended December 31, 2018 and December 31, 2017,
respectively. The increase in revenues was due to growth in
on-site services and an increase in waste services to existing
customers.
Gross profit was $6.5 million and $6.6 million for the three
months ended December 31, 2018 and December 31, 2017,
respectively. The decrease was primarily due to the shift in
product mix for the current period.
Nexeo Solutions to Hold Earnings Conference
Call
The Company will hold a conference call to discuss its first
quarter fiscal year 2019 earnings on Thursday, February 7, 2019 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:
7192068
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 February 7, 2019, beginning at 12:00
p.m. CT (1:00 p.m. ET), through February 14, 2019.
The phone number for the conference call replay is +1.855.859.2056
(Domestic) or +1.404.537.3406 (International). The access
passcode is 7192068. 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)
|
December 31, 2018 |
|
September 30, 2018 |
Current
Assets |
|
|
|
Cash and cash
equivalents |
$ |
54.6 |
|
|
$ |
58.9 |
|
Accounts and notes
receivable (net of allowance for doubtful accounts of $3.9 million
and $4.2 million, respectively) |
549.5 |
|
|
607.8 |
|
Inventories |
360.5 |
|
|
338.8 |
|
Income taxes
receivable |
6.4 |
|
|
5.9 |
|
Other current
assets |
16.9 |
|
|
17.3 |
|
Total current assets |
987.9 |
|
|
1,028.7 |
|
|
|
|
|
Non-Current
Assets |
|
|
|
Property, plant and
equipment, net |
279.1 |
|
|
284.9 |
|
Goodwill |
697.6 |
|
|
699.9 |
|
Other intangible
assets, net of amortization |
204.0 |
|
|
211.6 |
|
Deferred income
taxes |
1.5 |
|
|
2.3 |
|
Other non-current
assets |
9.0 |
|
|
16.2 |
|
Total non-current assets |
1,191.2 |
|
|
1,214.9 |
|
Total
Assets |
$ |
2,179.1 |
|
|
$ |
2,243.6 |
|
|
|
|
|
Current
Liabilities |
|
|
|
Short-term borrowings,
current portion of long-term debt and capital lease
obligations |
$ |
49.3 |
|
|
$ |
47.7 |
|
Accounts payable |
308.1 |
|
|
380.1 |
|
Accrued expenses and
other liabilities |
38.8 |
|
|
67.2 |
|
Due to related party
pursuant to contingent consideration obligations |
14.5 |
|
|
14.7 |
|
Income taxes
payable |
2.7 |
|
|
2.9 |
|
Total current liabilities |
413.4 |
|
|
512.6 |
|
|
|
|
|
Non-Current
Liabilities |
|
|
|
Long-term debt and
capital lease obligations, less current portion, net |
805.1 |
|
|
752.4 |
|
Deferred income
taxes |
29.0 |
|
|
30.7 |
|
Due to related party
pursuant to contingent consideration obligations |
100.1 |
|
|
122.8 |
|
Other non-current
liabilities |
12.0 |
|
|
10.6 |
|
Total non-current liabilities |
946.2 |
|
|
916.5 |
|
Total
Liabilities |
1,359.6 |
|
|
1,429.1 |
|
|
|
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
Equity |
|
|
|
Preferred stock,
$0.0001 par value (1,000,000 shares authorized, none issued and
outstanding as of December 31, 2018 and September 30, 2018) |
— |
|
|
— |
|
Common stock, $0.0001
par value (300,000,000 shares authorized; 89,755,231 shares issued
and 89,698,331 shares outstanding as of December 31, 2018 and
89,747,062 shares issued and 89,727,546 shares outstanding as of
September 30, 2018) |
— |
|
|
— |
|
Additional paid-in
capital |
773.3 |
|
|
771.5 |
|
Retained earnings |
50.4 |
|
|
34.2 |
|
Accumulated other
comprehensive income (loss) |
(3.6) |
|
|
9.0 |
|
Treasury stock, at
cost: 56,900 and 19,516 shares as of December 31, 2018 and
September 30, 2018 |
(0.6) |
|
|
(0.2) |
|
Total equity |
819.5 |
|
|
814.5 |
|
Total
Liabilities and Equity |
$ |
2,179.1 |
|
|
$ |
2,243.6 |
|
Nexeo Solutions, Inc. and SubsidiariesCondensed
Consolidated Statements of Operations(Unaudited, in millions,
except share amounts and par value)
|
|
Three Months Ended December 31, |
|
|
2018 |
|
2017 |
Sales and operating
revenues |
|
$ |
935.8 |
|
|
$ |
929.6 |
|
Cost of sales and
operating expenses |
|
837.1 |
|
|
822.7 |
|
Gross
profit |
|
98.7 |
|
|
106.9 |
|
Selling, general and
administrative expenses |
|
79.8 |
|
|
84.8 |
|
Transaction related
costs |
|
8.2 |
|
|
0.1 |
|
Change in fair value of
contingent consideration obligations |
|
(22.9) |
|
|
(18.6) |
|
Operating
income |
|
33.6 |
|
|
40.6 |
|
Other income,
net |
|
0.1 |
|
|
0.1 |
|
Interest income
(expense) |
|
|
|
|
Interest
income |
|
0.2 |
|
|
0.1 |
|
Interest
expense |
|
(13.5) |
|
|
(13.0) |
|
Net income
before income taxes |
|
20.4 |
|
|
27.8 |
|
Income tax expense |
|
4.2 |
|
|
1.3 |
|
Net
income |
|
$ |
16.2 |
|
|
$ |
26.5 |
|
|
|
|
|
|
Net income per
share available to common stockholders |
|
|
|
|
Basic |
|
$ |
0.21 |
|
|
$ |
0.35 |
|
Diluted |
|
$ |
0.21 |
|
|
$ |
0.34 |
|
Weighted
average number of common shares outstanding |
|
|
|
|
Basic |
|
76,945,078 |
|
|
76,793,518 |
|
Diluted |
|
77,094,430 |
|
|
77,139,236 |
|
Nexeo Solutions, Inc. and
SubsidiariesCondensed Consolidated Statements of Cash
Flows(Unaudited, in millions)
|
Three Months Ended December 31, |
|
2018 |
|
2017 |
Cash flows from
operations |
|
|
|
Net income |
$ |
16.2 |
|
|
$ |
26.5 |
|
Adjustments to
reconcile to cash flows from operations: |
|
|
|
Depreciation and amortization |
17.2 |
|
|
19.5 |
|
Debt
issuance costs amortization, debt issuance costs write-offs and
original issue discount amortization |
1.2 |
|
|
1.1 |
|
Provision
for bad debt |
(0.2) |
|
|
0.3 |
|
Deferred
income taxes |
1.6 |
|
|
(1.8) |
|
Equity-based compensation expense |
1.8 |
|
|
1.7 |
|
Change in
fair value of contingent consideration obligations |
(22.9) |
|
|
(18.6) |
|
Changes in assets and
liabilities: |
|
|
|
Accounts
and notes receivable |
55.8 |
|
|
36.9 |
|
Inventories |
(23.1) |
|
|
(50.5) |
|
Other
current assets |
(0.3) |
|
|
(1.6) |
|
Accounts
payable |
(70.7) |
|
|
(60.8) |
|
Accrued
expenses and other liabilities |
(26.4) |
|
|
(12.6) |
|
Changes
in other operating assets and liabilities, net |
(0.4) |
|
|
0.7 |
|
Net cash used in operating activities |
(50.2) |
|
|
(59.2) |
|
Cash flows from
investing activities |
|
|
|
Additions
to property and equipment |
(4.8) |
|
|
(4.1) |
|
Proceeds
from the disposal of property and equipment |
— |
|
|
0.6 |
|
Cash paid
for asset acquisitions |
(1.7) |
|
|
— |
|
Net cash used in investing activities |
(6.5) |
|
|
(3.5) |
|
Cash flows from
financing activities |
|
|
|
Cash paid
to TPG related to TRA |
— |
|
|
(4.2) |
|
Proceeds
from short-term debt |
29.6 |
|
|
27.9 |
|
Repayments of short-term debt |
(28.0) |
|
|
(31.6) |
|
Proceeds
from issuance of long-term debt |
252.7 |
|
|
231.7 |
|
Repayments of long-term debt and capital lease obligations |
(200.7) |
|
|
(172.9) |
|
Payment
of debt issuance costs |
— |
|
|
(0.8) |
|
Net cash provided by financing activities |
53.6 |
|
|
50.1 |
|
Effect of exchange rate
changes on cash and cash equivalents |
(1.2) |
|
|
0.1 |
|
Decrease in
cash and cash equivalents |
(4.3) |
|
|
(12.5) |
|
Cash and cash
equivalents at the beginning of the period |
58.9 |
|
|
53.9 |
|
Cash and cash
equivalents at the end of the period |
$ |
54.6 |
|
|
$ |
41.4 |
|
Supplemental
disclosure of cash flow information: |
|
|
|
Cash paid
during the period for interest |
$ |
12.4 |
|
|
$ |
14.0 |
|
Cash paid
during the period for taxes (net of refunds) |
$ |
3.0 |
|
|
$ |
1.6 |
|
Supplemental
disclosure of non-cash investing activities: |
|
|
|
Non-cash
capital expenditures |
$ |
1.9 |
|
|
$ |
1.4 |
|
Nexeo Solutions, Inc. and SubsidiariesSegment
Information(Unaudited, in millions)
|
Three Months Ended December 31, |
|
2018 |
|
2017 |
Chemicals |
|
|
|
Sales and operating
revenues |
$ |
438.5 |
|
|
$ |
431.9 |
|
Gross profit |
53.5 |
|
|
58.4 |
|
Plastics |
|
|
|
Sales and operating
revenues |
456.1 |
|
|
462.2 |
|
Gross profit |
38.7 |
|
|
41.9 |
|
Other |
|
|
|
Sales and operating
revenues |
41.2 |
|
|
35.5 |
|
Gross profit |
6.5 |
|
|
6.6 |
|
Consolidated |
|
|
|
Sales and operating
revenues |
935.8 |
|
|
929.6 |
|
Gross profit |
98.7 |
|
|
106.9 |
|
Nexeo Solutions, Inc. and SubsidiariesAdjusted
Net Income Reconciliation(Unaudited, in millions except per share
data)
|
|
Three Months Ended December 31,
2018 |
|
Three Months Ended December 31,
2017 |
|
|
Amount |
|
Per Share |
|
Amount |
|
Per Share |
Net income |
|
$ |
16.2 |
|
|
$ |
0.21 |
|
|
$ |
26.5 |
|
|
$ |
0.34 |
|
Change in fair value
related to contingent consideration obligations |
|
(22.9) |
|
|
(0.30) |
|
|
(18.6) |
|
|
(0.24) |
|
Management add-backs
(1) |
|
2.6 |
|
|
0.03 |
|
|
1.3 |
|
|
0.02 |
|
Transaction related
costs (2) |
|
8.2 |
|
|
0.11 |
|
|
0.1 |
|
|
— |
|
Tax impact |
|
5.7 |
|
|
0.07 |
|
|
3.1 |
|
|
0.04 |
|
Adjusted net
income |
|
$ |
9.8 |
|
|
$ |
0.13 |
|
* |
$ |
12.4 |
|
|
$ |
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 December 31, |
|
2018 |
|
2017 |
Net income |
$ |
16.2 |
|
|
$ |
26.5 |
|
Interest expense,
net |
13.3 |
|
|
12.9 |
|
Income tax expense |
4.2 |
|
|
1.3 |
|
Depreciation and
amortization |
17.2 |
|
|
19.5 |
|
Other operating
expenses, net (1) |
(10.5) |
|
|
(16.0) |
|
Adjusted EBITDA |
$ |
40.4 |
|
|
$ |
44.2 |
|
|
|
|
|
|
|
|
|
|
(1) See Other Operating Expenses, Net table for additional
detail |
Nexeo Solutions, Inc. and SubsidiariesOther
Operating Expenses, Net(Unaudited, in millions)
|
Three Months Ended December 31, |
|
2018 |
|
2017 |
Management add-backs
(1) |
$ |
2.6 |
|
|
$ |
1.3 |
|
Change in fair value
related to contingent consideration obligations |
(22.9) |
|
|
(18.6) |
|
Foreign exchange gains,
net (2) |
(0.2) |
|
|
(0.5) |
|
Compensation expense
related to management equity plan (non-cash) |
1.8 |
|
|
1.7 |
|
Transaction related
costs (3) |
8.2 |
|
|
0.1 |
|
Other operating
expenses, net |
$ |
(10.5) |
|
|
$ |
(16.0) |
|
(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 |
|
|
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