Nexeo Solutions Reports Third Quarter Fiscal Year 2018 Financial Results
Third Quarter 2018 Highlights (Versus Third Quarter 2017)
Revenue growth of 11%, driven by strong price execution, specialty growth and an improved market environment
Net income for the quarter was $17.5 million, or $0.23 per diluted share. Adjusted net income was $14.8 million, or $0.19 per diluted share
Record gross profit of $120 million increased 17% from prior year
Record adjusted EBITDA of $58 million increased 10% from prior year
Net leverage of 3.9x, a decrease from 4.9x last year and 4.1x last quarter
THE WOODLANDS, Texas - August 6, 2018 - Nexeo Solutions, Inc. (NASDAQ:NXEO) (the "Company" or "Nexeo Solutions"), today announced its consolidated financial results for the three months ended June 30, 2018.
David Bradley, President and Chief Executive Officer of Nexeo Solutions stated, "The investments we have made in market leading capability, combined with disciplined commercial execution and an improved market environment are yielding record results. Over the last twelve months we have delivered 17% adjusted EBITDA growth, which is a direct reflection of the quality of our people and the strength of our proprietary operating system."
Sales and operating revenues were $1,046.4 million and $942.7 million for the three months ended June 30, 2018 and June 30, 2017, respectively. The increase in revenues was primarily attributable to an increase in average selling prices of 10.2% across all segments in all regions largely due to an inflationary pricing environment and a shift in portfolio mix to products with higher average selling prices. Approximately $14.4 million of the increase was a result of strengthening exchange rates of various currencies versus the USD as compared to the same period in the prior fiscal year.
Gross profit was $120.2 million and $102.7 million for the three months ended June 30, 2018 and June 30, 2017, respectively. Gross profit increased primarily due to a favorable shift in product mix and continued specialty supplier growth in the Chemicals line of business. Additionally, our centralized platform allowed us to effectively manage supply chain logistics to mitigate freight cost increases and facilitate strong price execution. Approximately $1.1 million of the increase in gross profit was due to the strengthening of exchange rates of various currencies versus the USD compared to the same period in the prior fiscal year.
The Company reported net income of $17.5 million and $10.2 million for the three months ended June 30, 2018 and June 30, 2017, respectively. Adjusted EBITDA was $57.6 million and $52.4 million for the three months ended June 30, 2018 and June 30, 2017, respectively. For a description of adjusted EBITDA and a reconciliation to its most comparable GAAP financial measure, please read "Non-GAAP Financial Measures".
The following information was filed by Nexeo Solutions, Inc. (NXEO) on Monday, August 6, 2018 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.
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Ticker: NXEO CIK: 1604416 Form Type:10-Q Quarterly Report Accession Number: 0001628280-18-010643 Submitted to the SEC: Tue Aug 07 2018 2:09:25 PM EST Accepted by the SEC: Tue Aug 07 2018 Period: Saturday, June 30, 2018 Industry: Wholesale Chemicals And Allied Products