Platform Specialty Products (PAH) Tops Q1 EPS by 1c, Beats on Revenues

Platform Specialty Products (NYSE: PAH) reported Q1 EPS of $0.21, $0.01 better than the analyst estimate of $0.20. Revenue for the quarter came in at $964 million versus the consensus estimate of $907.64 million.

• Net sales increased 12% on a reported basis to $964 million; increased 5% on an organic basis
• GAAP diluted earnings per share of $0.13; adjusted earnings per share increased 31% to $0.21
• Reported net income attributable to common stockholders of $37 million
• Adjusted EBITDA increased 7% to $207 million
• Reaffirming full year 2018 adjusted EBITDA guidance of $870 million to $900 million
• Separation plan on track for 2018

Executive Commentary

Chief Executive Officer Rakesh Sachdev said, “Our first quarter results demonstrated strong sales growth bolstered by healthy end-markets, solid execution and a translational currency tailwind. In our Performance Solutions business, net sales grew as our end-markets are generally robust and our teams continue to execute well. In our Ag business, we saw a strong continuation of the season in Brazil and a healthy start of the season in North America and Southern Europe, offset partially by a cold spring in Eastern Europe. In both businesses, we saw margin pressure from product mix and inflation in our raw materials. We have seen the inflationary commodity environment in late 2017 continue into 2018, and our businesses continue to take actions to offset this pressure. We remain confident with respect to our adjusted EBITDA margin expansion goals for 2018."

Mr. Sachdev continued, “Our outlook for the remainder of the year is optimistic given healthy end-markets in our Performance Solutions segment and improving end-markets in Agricultural Solutions. We are reaffirming our full year adjusted EBITDA guidance in the range of $870 million to $900 million in that context.”

“Progress against our separation continues with momentum. We remain committed to this path to create two standalone businesses with terrific market positions, growth trajectories and management teams. Strategically, we believe each of these companies will be better positioned to deliver value to their customers, and we remain confident that our shareholders should benefit from value creation from the separation.”

For earnings history and earnings-related data on Platform Specialty Products (PAH) click here.

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