PQ Group Holdings Inc. (NYSE: PQG) reported Q1 EPS of $0.16, $0.06 better than the analyst estimate of $0.10. Revenue for the quarter came in at $361.6 million versus the consensus estimate of $356.26 million.

• Sales of $361.6 million increased 0.7%, or 2.3% on constant currency basis;
• Net income of $0.2 million with diluted EPS of $0.00; Adjusted net income of $21.7 million with Adjusted diluted EPS of $0.16;
• Adjusted EBITDA of $103.1 million increased 2.1%, or 3.3% on a constant currency basis; Adjusted EBITDA margin of 26.2%;
• Term Loan and Asset Based Lending facilities repriced and extended; and
• Liquidity of $236.3 million, including cash on hand of $107.7 million at March 31, 2020

“We had a solid start to the year, delivering volume growth from three of our four business segments led by North America highway safety in Performance Materials and continued polyolefin growth in Catalysts,” commented Belgacem Chariag, PQ Chairman, President and Chief Executive Officer. “As for the balance of the year, the COVID-19 pandemic has created significant demand uncertainty. We believe our aggressive response, business diversification and financial flexibility position PQ well to navigate through this crisis.”

COVID-19 Update and 2020 Outlook

“Our highest priority is the health and safety of our employees and their families,” said Chariag. “In addition, our focus has been on serving our customers while ensuring that our plant operations are in compliance with recommended preventive and safety measures.”

PQ’s businesses and many of its vendors and customers have been able to continue operations through the pandemic as essential businesses under government regulations. While there have been some modest production delays through the first quarter, PQ has not experienced material operational issues in terms of facility shutdowns or its supply chain.

“At the executive leadership and Board levels, we are continuously monitoring the situation,” Chariag concluded. “While we continue to believe in the favorable long-term demand drivers for our businesses, the pandemic is expected to reduce demand in the near- to mid-term. We will continue to navigate through this crisis to mitigate the impacts on PQ and its employees, customers and shareholders.”

2020 Financial Outlook

Due to the uncertainty of COVID-19 related impact on near term demand trends, we are withdrawing our previously announced annual 2020 financial outlook except for the below:

• Adjusted free cash flow in range of $130 million to $150 million, revised from a range of $155 million to $175 million
• Adjusted EBITDA margin in range of mid-20 percent

For earnings history and earnings-related data on PQ Group Holdings Inc. (PQG) click here.