GCP Applied Technologies Reports First Quarter 2020 Results
•Continued positive momentum with 1Q20 results exceeding previous guidance
•Well-positioned to navigate COVID-19 pandemic with strong balance sheet and ample liquidity
•1Q20 Net sales in North America up 5.0%; Specialty Building Materials net sales up 5.8% in North America; Specialty Construction Chemicals net sales up 4.2% in North America
•Fifth consecutive quarter of improved margins for Specialty Construction Chemicals
•1Q20 Income from continuing operations attributable to GCP shareholders of $1.4 million, or 0.6% of net sales, and Diluted EPS from continuing operations of $0.02
•1Q20 Adjusted EBITDA* up 17.6% to $26.0 million; Adjusted EBIT* increased 25.0% to $15.0 million; and Adjusted EPS* grew 42.9% to $0.10
Cambridge, MA - May 6, 2020 - GCP Applied Technologies Inc. (NYSE: GCP), a leading global provider of construction products technologies, today announced results for the first quarter of 2020.
For the three months ended March 31, 2020, GCP reported net sales of $216.7 million compared to $226.1 million in the prior year quarter. Net Sales Constant Currency Excluding Market Exits* were $219.4 million versus $224.3 million in the prior year quarter. Income from continuing operations attributable to GCP shareholders was $1.4 million compared to $14.6 million in the first quarter of 2019, while Adjusted EBITDA* increased 17.6% to $26.0 million from $22.1 million in the prior year quarter. Adjusted EBIT* grew 25.0% to $15.0 million compared to $12.0 million in the prior year quarter. Diluted EPS from continuing operations attributable to GCP shareholders was $0.02 versus $0.20 in the first quarter of 2019, while Adjusted EPS* increased 42.9% to $0.10 compared to $0.07 in the prior year quarter.
Randy Dearth, GCP’s President and Chief Executive Officer, said, "I am pleased with our accomplishments in the first quarter. Our positive business momentum continued as we produced our best first quarter earnings performance since 2016. We are successfully executing the strategy that our Board of Directors and management team partnered to develop, which is focused on further optimizing Specialty Construction Chemicals, returning Specialty Building Materials to sustainable organic growth and continuing to advance our restructuring programs. Our impressive earnings growth and margin expansion clearly demonstrate the beneficial impact of the decisive actions we have taken to improve our operations and position GCP for success.”
Dearth continued, “As we navigate the COVID-19 pandemic, the health and safety of our employees remains our top priority. We are focused on safely continuing to provide the excellent service our customers expect and advancing our operational improvement initiatives, while also maintaining financial flexibility through our strong balance sheet and liquidity position. As we look beyond the pandemic, GCP is well positioned for success, and we will continue to actively and rigorously identify additional ways to drive long-term shareholder value.”
*Non-GAAP financial measures. See the tables herein for important information regarding these measures and a reconciliation to the most comparable GAAP measures.
NM - Not meaningful.
The following information was filed by Gcp Applied Technologies Inc. (GCP) on Wednesday, May 6, 2020 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.