PQ Group Holdings Reports Third Quarter 2018; Updates 2018 Guidance
Raising adjusted free cash flow outlook to $125 million to $140 million, a yield of ~ 6%
Sales up 9.0% to $427.2 million; Net income of $14.2 million with Diluted EPS of $0.11
Adjusted Net Income of $35.4 million with Adjusted Diluted EPS of $0.26; Adjusted EBITDA of $118.1 million
Net cash provided by operating activities of $115.9 million and quarterly adjusted free cash flow of $91.0 million, leading to $80 million of debt repayment
2018 outlook: Raising adjusted free cash flow expectation to $125 million to $140 million, a yield of ~6%; on track for additional debt paydown by year-end
MALVERN, PA, November 6, 2018 -- PQ Group Holdings Inc. (NYSE:PQG) reported results for the three months ended September 30, 2018. Sales of $427.2 million increased 9.0% from the same period in 2017, driven by higher sales in both business segments. Net income was $14.2 million with diluted EPS of $0.11 as compared to a net loss of $3.4 million with diluted loss per share of $0.03 for the same period in 2017. Net cash provided by operating activities was $115.9 million for the three months ended September 30, 2018, as compared to $88.0 million for the same period in 2017.
Adjusted Net Income grew 216.1% to $35.4 million with diluted adjusted EPS of $0.26, from Adjusted Net Income of $11.2 million with diluted adjusted EPS of $0.11 for the same period in 2017 driven largely by lower interest expense. Adjusted EBITDA was $118.1 million, a 1.5% decrease largely attributable to the Performance Materials & Chemicals business segment more than offsetting improved performance in the Environmental Catalysts & Services business segment. Adjusted free cash flow generation in the quarter increased by 55.8% to $91.0 million from the same period in 2017, largely driven by lower interest costs attributed to reduced debt levels.
“While we delivered solid top line growth this quarter driven by overall healthy demand, our financial results were impacted by unfavorable sales mix and higher operating expenses in Performance Materials,” commented Belgacem Chariag, PQ President and Chief Executive Officer. “Despite this result, we generated strong free cash flow during the quarter and our free cash flow outlook for the year has improved. Our debt repayment plans for this year are on track and we remain committed to our deleveraging goals.”
Chariag added, “I am very excited by PQ’s high niche specialty businesses and the potential for profitable growth. Since joining the Company as CEO in August, the team and I have been focused squarely on the three key drivers of shareholder value - growth, effective capital allocation and free cash flow.”
The financial results and outlook include non-GAAP financial measures. These non-GAAP measures are more fully described and are reconciled from the respective measures determined under GAAP in “Presentation of Non-GAAP Financial Measures” and the attached appendix tables.
PQ Group Holdings Third Quarter 2018 Earnings Release
The following information was filed by Pq Group Holdings Inc. (PQG) on Tuesday, November 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: PQG CIK: 1708035 Form Type:10-Q Quarterly Report Accession Number: 0001708035-18-000022 Submitted to the SEC: Wed Nov 07 2018 4:30:24 PM EST Accepted by the SEC: Wed Nov 07 2018 Period: Sunday, September 30, 2018 Industry: Chemicals And Allied Products