UPDATE: Univar (UNVR) Tops Q4 EPS by 1c, Revenues Miss; Provides FY19 Adj. EBITDA and FCF Guidance

Univar (NYSE: UNVR) reported Q4 EPS of $0.33, $0.01 better than the analyst estimate of $0.32. Revenue for the quarter came in at $1.97 billion versus the consensus estimate of $1.99 billion.

• Univar reported net income of $1.2 million, or $0.01 per share, compared to net income of $27.0 million, or $0.19 per share in the prior year fourth quarter. Net income in the current year fourth quarter included a non-cash, pension mark-to-market loss of $34.2 million or $0.18 per share, and $15.1 million or $0.09 per share for acquisition and integration related expenses.
• Adjusted earnings per share of $0.33 and Adjusted EBITDA of $144.0 million were essentially flat with the prior year.
• Univar improved its leverage ratio to 3.5x from 4.1x in the prior year fourth quarter reflecting growth in Adjusted EBITDA and a $169.8 million reduction in net debt.

"We continued to improve on our global execution in the fourth quarter despite challenges in Canada and softer than forecasted demand from most industrial end markets," said David Jukes, president and chief executive officer. \"In particular, improved sales force and operational execution in our USA segment drove Adjusted EBITDA growth in a quarter when customer demand and purchasing behavior was dampened by macroeconomic uncertainty."

"We remain focused on our strategic growth priorities," Jukes continued, "Including our ongoing USA transformation and progress toward the close of our Nexeo acquisition, which we expect will significantly enhance and accelerate our ability to grow and drive shareholder value. We are confident our strategy is working and is positioning Univar for long-term, sustainable growth."

Outlook

The following is an overview of management\'s expectations for Univar's financial performance for the first quarter and full year 2019 on a stand-alone basis. Upon completion of the Nexeo Solutions acquisition, Univar will issue pro-forma 2019 guidance for the combined Company.

For the full year 2019, on a stand-alone basis, Univar expects to generate Adjusted EBITDA roughly equal to its results for 2018 of $640.4 million. The Company expects a significant increase in Free Cash Flow from $195.3 million in 2018 to $250 million to $300 million.

For earnings history and earnings-related data on Univar (UNVR) click here.

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