Univar (UNVR) Tops Q4 EPS by 2c, Revenues Beat

February 24, 2021 4:24 PM EST

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Univar (NYSE: UNVR) reported Q4 EPS of $0.27, $0.02 better than the analyst estimate of $0.25. Revenue for the quarter came in at $2.04 billion versus the consensus estimate of $1.97 billion.

Fourth Quarter 2020 Highlights

  • Net income (loss) of $(33.7) million compared to $(55.1) million in the prior year fourth quarter; Adjusted net income(1) of $45.2 million compared to $50.5 million in the prior year fourth quarter.
  • Earnings (loss) per diluted share of $(0.20) compared to $(0.33) per diluted share in the prior year fourth quarter. Adjusted earnings per diluted share(1) of $0.27 in the quarter decreased from $0.29 in the prior year fourth quarter.
  • Adjusted EBITDA(1) of $146.4 million compared to $158.8 million in the prior year fourth quarter. Adjusted EBITDA margin(1) of 7.2 percent compared to 7.4 percent in the prior year fourth quarter.
  • Net cash provided by operating activities decreased to $145.3 million from $329.7 million in the prior year fourth quarter.
  • Liquidity as of December 31, 2020 was $855.0 million inclusive of $386.6 million of cash-on-hand and additional availability under committed, asset-based credit facilities.

"I am pleased with the progress the team has made against our strategic objectives, meeting the challenges of remote working, variable supply and demand, as well as macroeconomic uncertainties. Our financial results reflect the hard work of our dedicated team members, the strength of our supplier and customer relationships, and the benefit of our investment in keeping digital at our core. I am pleased we have made good progress against our Streamline 2022 (S22) goals by executing on non-core divestitures, expanding our supplier network, and moving closer to completing our business systems migration and Nexeo integration," said David Jukes, president and chief executive officer.

"Looking to 2021, although the exact timing of the economic recovery is uncertain, our expected full-year Adjusted EBITDA guidance range of $630 million to $650 million reflects underlying performance in our on-going businesses above expected general industrial growth levels in each of our regions to offset the expected softer essential end markets performance. We are committed to realizing strong net free cash flow, while still driving towards our S22 goals of de-leveraging and improving Adjusted EBITDA(1) margins to 9% by the end of 2022. Univar Solutions is very well positioned in our markets to serve our supplier and customer needs and we expect to execute on new opportunities and grow shareholder value."

Outlook & Liquidity

Taking into account the announced divestitures, the Company expects Adjusted EBITDA(1) to be between $150 million and $160 million for the first quarter of 2021 as compared to $161.6 million for the first quarter of 2020. For full-year 2021 Adjusted EBITDA(1) is expected to be within a range of $630 million to $650 million, as compared to $635.8 million for full year 2020. Our forecast versus prior year reflects the effect of divestitures and a more normalized level of essential end market product margins.

The Company is forecasting 2021 year-end liquidity to be within a range of $800 million to $900 million (consisting of cash and available lines of credit) and expects to reduce leverage to less than 3.0x, also by year end. The Company has no significant debt maturities until 2024 and is in full compliance with the covenants under its credit agreements.

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



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