PQ Group Holdings Provides Update on Second Quarter 2020 Outlook; Raising Adjusted EBITDA Estimate by ~9% with Adjusted EBITD...
19 June 2020 - 8:15PM
Business Wire
PQ Group Holdings Inc. (NYSE:PQG), a leading integrated and
innovative global provider of specialty catalysts, materials,
chemicals and services, announced today that it is updating its
Sales and Adjusted EBITDA outlook for the second quarter 2020.
PQ is now projecting second quarter 2020 Sales to be in the
range of $350 to $360 million, down from its original guidance of
$360 to $375 million, on continued weaker demand in Europe. PQ is
raising its guidance for Adjusted EBITDA to $107 to $112 million
from its original guidance of $95 to $105 million, on better than
expected demand for regeneration services, favorable mix in
Catalysts and lower costs across the portfolio. Additionally,
second quarter 2020 Adjusted EBITDA margin is anticipated to be
approximately 27%.
“As stay-at-home restrictions are being lifted across North
America, we are seeing gasoline demand recovering, leading to a
faster improvement in our Refining Services sales,” said Belgacem
Chariag, PQ Chairman, President and Chief Executive Officer. “At
the same time, the effective and timely actions to improve our cost
structure are driving our margins higher.”
PQ plans to provide a detailed review of results during the
second quarter 2020 earnings call.
Investor Contact: Nahla A. Azmy (610) 651-4561
Nahla.Azmy@pqcorp.com
About PQ Group Holdings Inc.
PQ Group Holdings Inc. and subsidiaries is a leading integrated
and innovative global provider of specialty catalysts, materials,
chemicals and services. We support customers globally through our
strategically located network of manufacturing facilities. We
believe that our products, which are predominantly inorganic, and
services contribute to improving the sustainability of the
environment.
We have four uniquely positioned specialty businesses:
Refining Services provides sulfuric acid recycling to the
North American refining industry; Catalysts serves the
packaging and engineering plastics and the global refining,
petrochemical and emissions control industries; Performance
Materials produces transportation reflective safety markings
for roads and airports; and Performance Chemicals supplies
diverse product end uses, including personal and industrial
cleaning products, fuel-efficient tires, surface coatings, and food
and beverage products.
We serve over 4,000 customers globally across many end uses and
operate over 70 manufacturing facilities which are strategically
located across six continents. For more information, see our
website at https://www.pqcorp.com.
Presentation of Non-GAAP Financial Measures
The Company has provided certain non-GAAP financial measures in
this press release, including Adjusted EBITDA and Adjusted EBITDA
margin, which present results on a basis adjusted for certain
items. The Company uses these non-GAAP financial measures for
business planning purposes and in measuring its performance
relative to that of its competitors. The Company believes that
these non-GAAP financial measures are useful financial metrics to
assess its operating performance from period-to-period by excluding
certain items that the Company believes are not representative of
its core business. These non-GAAP financial measures are not
intended to replace, and should not be considered superior to, the
presentation of the Company’s financial results in accordance with
GAAP. The use of the terms Adjusted EBITDA and Adjusted EBITDA
margin may differ from similar measures reported by other companies
and may not be comparable to other similarly titled measures.
The Company is not able to provide a reconciliation of the
Company’s non-GAAP financial guidance to the corresponding GAAP
measures without unreasonable effort because of the inherent
difficulty in forecasting and quantifying certain amounts necessary
for such a reconciliation such as certain non-cash, nonrecurring or
other items that are included in net income and EBITDA as well as
the related tax impacts of these items, due to the uncertainty and
variability of the nature and amount of these future charges and
costs.
Note on Forward-Looking Statements
Some of the information contained in this press release
constitutes “forward-looking statements.” Forward-looking
statements can be identified by words such as “anticipates,”
“intends,” “plans,” “seeks,” “believes,” “estimates,” “expects,”
“projects” and similar references to future periods.
Forward-looking statements are based on our current expectations
and assumptions regarding our business, the economy and other
future conditions. Because forward-looking statements relate to the
future, they are subject to inherent uncertainties, risks and
changes in circumstances that are difficult to predict. Examples of
forward-looking statements include, but are not limited to,
statements regarding our 2020 second quarter financial outlook. Our
actual results may differ materially from those contemplated by the
forward-looking statements. We caution you, therefore, against
relying on any of these forward-looking statements. They are
neither statements of historical fact nor guarantees or assurances
of future performance. Important factors that could cause actual
results to differ materially from those in the forward-looking
statements include, but are not limited to, regional, national or
global political, economic, business, competitive, market and
regulatory conditions, including the ongoing COVID-19 pandemic,
tariffs and trade disputes, currency exchange rates and other
factors, including those described in the sections titled “Risk
Factors” and “Management Discussion & Analysis of Financial
Condition and Results of Operations” in our filings with the SEC,
which are available on the SEC’s website at www.sec.gov. These
forward-looking statements speak only as of the date of this
release. Factors or events that could cause our actual results to
differ may emerge from time to time, and it is not possible for us
to predict all of them. We undertake no obligation to update any
forward-looking statement, whether as a result of new information,
future developments or otherwise, except as may be required by
applicable law.
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version on businesswire.com: https://www.businesswire.com/news/home/20200619005060/en/
Investors: Nahla A. Azmy (610) 651-4561
Nahla.Azmy@pqcorp.com
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