Omnova Solutions (OMN) Misses Q4 EPS by 3c, Miss on Revenues

Omnova Solutions (NYSE: OMN) reported Q4 EPS of $0.10, $0.03 worse than the analyst estimate of $0.13. Revenue for the quarter came in at $186.3 million versus the consensus estimate of $191.77 million.

Fourth Quarter 2017 Highlights

• Loss per share in the fourth quarter of 2017 increased to $2.10 compared to a loss of $0.25 per share last year due to non-cash charges related to deferred taxes and a Performance Materials segment goodwill impairment.
• Adjusted Diluted Earnings per Share for the quarter was $0.10 compared to $0.14 last year.
• All 2017 fourth quarter results include a pre-tax loss of $2.1 million resulting from a customer bankruptcy, along with the previously forecasted pre-tax Hurricane Harvey impact of $2.0 million and environmental equipment start-up delays at the Company\'s China antioxidant plant of $1.0 million. These three items reduced Adjusted Diluted Earnings per Share by approximately $0.07.
• Specialty Solutions segment operating profit for the quarter was $14.3 million compared to $12.2 million last year. Adjusted Segment Operating Profit for the quarter was $14.6 million, up 16% from $12.6 million last year, reflecting stronger margins, the 5.1% increase in volume and contributions from our new product development pipeline.
• Net Debt to Adjusted EBITDA improved to 3.2x from 3.6x at the end of last year. Cash improved to $88 million at year-end compared to $72 million last year.
• In December 2017, the Company used its strong cash position to pre-pay $40 million of Term Loan B debt.
• For 2018, the Company is expecting its fourth consecutive year of growth in Adjusted Diluted Earnings per Share.

For earnings history and earnings-related data on Omnova Solutions (OMN) click here.

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