Luxfer Holdings plc (LXFR) Reports Q2 EPS of $0.44; Boosts FY18 EPS View

Luxfer Holdings plc (NYSE: LXFR) reported Q2 EPS of $0.44. Revenue for the quarter came in at $128.2 million

• Consolidated revenue for the second quarter of 2018 increased 20 percent to $128.2 million from $106.6 million in the second quarter of 2017.
  • Elektron Segment revenue increased 34 percent on strong growth in the company’s proprietary SoluMag® alloy, in addition to continued strength in magnesium-based disaster-relief products and higher shipments of zirconium-based catalysts.
  • Gas Cylinder Segment revenue increased 8 percent on higher shipments of aluminum cylinders, alternate fuel systems, and Superform products.
• Gross profit margin for the second quarter of 26.5 percent increased from 24.7 percent due to operating leverage related to higher volumes and ongoing productivity initiatives.
• Adjusted EBITDA increased 40 percent to $21.3 million from $15.2 million.
• Second-quarter net income was $10.2 million, up from $2.5 million for the second quarter of 2017. Adjusted net income was $12.2 million for the second quarter of 2018, up 85 percent from $6.6 million for the second quarter of 2017.
• On a per-share basis, unadjusted basic earnings per share were $0.38 for the second quarter of 2018 versus $0.09 for the second quarter of 2017. Adjusted diluted earnings per share were $0.44, compared with $0.25 for the second quarter of 2017 for an increase of 76 percent.
• Net cash inflow before financing was $8.0 million for the second quarter of 2018, a 7 percent improvement over the prior year’s inflow of $7.5 million.

“Growth across business units, improved execution, and the early benefits of our productivity initiatives drove a very strong quarter for Luxfer,” stated Luxfer’s Chief Executive Officer Alok Maskara. “We are notably pleased with growing customer demand for our innovative SoluMag product, which is helping U.S. oil and gas well operators improve productivity and lower maintenance costs. Overall, we remain on track to deliver on our business transformation plan to achieve sustainable revenue growth, improve profitability and increase cash conversion.”

Outlook

Based on the financial performance of the second quarter and outlook for the remainder of 2018, the company is increasing its guidance for the 2018 full year to EPS of $1.35 to $1.45 on an adjusted, fully diluted basis. This outlook incorporates expected usual seasonality and lower disaster-relief sales in the second half of the year, as well as for planned higher expenses related to simplification and productivity projects.

GUIDANCE:

Luxfer Holdings plc sees FY2018 EPS of $1.31-$1.45.

For earnings history and earnings-related data on Luxfer Holdings plc (LXFR) click here.

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