PQ Group Holdings Reports Fourth Quarter and Full Year 2018 Results;
9% Sales growth, 50% operating cash flow improvement and ~$135 million of debt repayment for the year
Sales increased 6% to $380.1 million for the fourth quarter and 9% to $1,608.2 million for the year;
Net income of $28.2 million for the fourth quarter and $58.3 million for the year;
Adjusted EBITDA of $109.1 million for the fourth quarter and $464.0 million for the year;
Operating cash flow higher by 50% to $248.6 million for the year; Adjusted free cash flow up $109.4 million for the year leading to approximately $135 million debt reduction for the year;
2019 Guidance: Sales of $1,640 million to $1,670 million; Adjusted EBITDA of $470 million to $485 million; Adjusted free cash flow of $125 million to $145 million; and
Announcing realignment into four distinct business units including Catalysts, Performance Chemicals, Performance Materials, and Refining Services
MALVERN, PA, February 21, 2019 -- PQ Group Holdings Inc. (NYSE:PQG) (“PQ” or the “Company”) reported results for the fourth quarter and year ended December 31, 2018. For the fourth quarter, sales of $380.1 million were up 6% from the fourth quarter of 2017. Net income was $28.2 million or $0.21 diluted EPS and Adjusted net income was $23.2 million or $0.17 Adjusted diluted EPS. Adjusted EBITDA was $109.1 million. For the year, sales were $1,608.2 million, an increase of 9% over 2017. Net income was $58.3 million or $0.43 diluted EPS. Adjusted net income was $116.6 million or $0.87 Adjusted diluted EPS. Adjusted EBITDA was $464.0 million.
“In the fourth quarter, we delivered on both pricing and volume growth plans that drove a solid finish to the year. We generated strong operating and adjusted free cash flow for 2018 that was all allocated to debt reduction, achieving meaningful progress towards our deleveraging target,” commented Belgacem Chariag, PQ President and Chief Executive Officer. “Despite more modest macroeconomic trends in 2019, we expect growth in all our product groups driven by continued underlying secular demand.”
Chariag also added, “Since our last quarter earnings call, we advanced our strategic review to make our business portfolio simpler and stronger. As a first step in this process, we are delayering our business structure effective March 1 to empower our four strong business units, creating an environment of focus and accountability to drive additional efficiencies.”
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 Fourth Quarter and Year 2018 Earnings Release
The following information was filed by Pq Group Holdings Inc. (PQG) on Thursday, February 21, 2019 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-K Annual 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-K Annual Report Accession Number: 0001708035-19-000005 Submitted to the SEC: Fri Mar 01 2019 4:54:15 PM EST Accepted by the SEC: Fri Mar 01 2019 Period: Monday, December 31, 2018 Industry: Chemicals And Allied Products