Univar (UNVR) Tops Q1 EPS by 10c, Revenues Miss

Univar (NYSE: UNVR) reported Q1 EPS of $0.33, $0.10 better than the analyst estimate of $0.23. Revenue for the quarter came in at $2.16 billion versus the consensus estimate of $2.25 billion.

• Univar Solutions reported a net loss of $63.9 million, or ($0.43) per share, compared to net income of $65.4 million, or $0.46 per share, in the prior year first quarter.
• Adjusted earnings per share of $0.33 compared to $0.42 in the prior year first quarter, and is in line with expectations for the combined businesses.
• Adjusted EBITDA of $160.1 million was essentially flat on a currency neutral basis and included negative foreign exchange impacts of approximately $5.2 million. Adjusted EBITDA was in line with expectations for the combined businesses.
• Completed the transformational acquisition of Nexeo Solutions, resulting in the creation of Univar Solutions, the premier global chemical and ingredient distributor.
• Completed divestiture of Nexeo\'s plastics distribution business for gross proceeds of $650 million. Proceeds were used to pay down debt in April.
• Leverage ratio (1) of 3.9x decreased from 4.2x at the end of the first quarter last year.

Outlook

For the full year 2019, Univar Solutions continues to expect to earn $740 to $760 million in Adjusted EBITDA, compared to $640 million earned in the prior year. This guidance reflects 10 months of earnings from the Nexeo Chemicals business and approximately $10 million in net realized synergies. The Company still expects to generate between $300 and $350 million in free cash flow, inclusive of the $62.5 million saccharin settlement and before one-time integration costs and transaction fees. The negative impact of the settlement is expected to be partially offset by lower cash interest, taxes, and capital expenditures.

For the second quarter of 2019, Univar expects Adjusted EBITDA to be between $195 and $200 million, up from $173.1 million earned in the second quarter of 2018.

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

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