Venator Materials PLC (VNTR) Tops Q1 EPS by 12c, Revenues Beat

Venator Materials PLC (NYSE: VNTR) reported Q1 EPS of $0.11, $0.12 better than the analyst estimate of ($0.01). Revenue for the quarter came in at $532 million versus the consensus estimate of $529.96 million.

First Quarter 2020 Highlights

• Net income attributable to Venator of $7 million; adjusted net income attributable to Venator of $12 million
• Adjusted EBITDA of $57 million compared to $60 million in 1Q19 and $23 million in 4Q19
• Diluted earnings per share of $0.07 and adjusted diluted earnings per share of $0.11
• Average TiO2 pricing was stable compared to the fourth quarter of 2019; volumes increased in-line with historical seasonality
• Delivered $4 million of adjusted EBITDA benefit from our 2019 Business Improvement Program in the first quarter
• At the end of the quarter, we had $25 million of cash supplemented by $191 million of availability under our ABL
• Implementing a range of actions to reduce costs and cash uses in response to COVID-19

Simon Turner, President and CEO of Venator, commented:

"I am pleased with our first quarter results. Prices remained stable across our portfolio and our TiO2 volumes improved 13% compared to the fourth quarter of 2019. As the coronavirus pandemic unfolded, we took swift and decisive actions to prioritize and protect the health and safety of our employees and the integrity of our operations, all of which continue to operate to meet customer demand.

"While the impact on our first quarter earnings was limited, we expect COVID-19 will have a meaningful impact on demand in the second quarter. We estimate that TiO2 volumes could decline 15% to 20% in the second quarter compared to the first quarter. We remain focused on delivering on our self-help initiatives and are implementing a range of immediate cost actions that we expect will yield approximately $20 million of adjusted EBITDA benefit in 2020. In addition, we are taking steps to reduce our cash uses and improve our liquidity, including reducing planned capital expenditures by approximately $25 million. We believe these actions will better position Venator to navigate the impact of the pandemic and we will continue to assess the need for additional actions."

For earnings history and earnings-related data on Venator Materials PLC (VNTR) click here.

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