PQ Group Reports Solid Second Quarter 2019 Results;
Completed Sale of Product Line for $28 million;
Sale Gain, Refining Services and Catalysts Performance Drives 94% Higher Net Income
Sales of $431.7 million declined 0.7%; up 1.4% on constant currency basis on higher pricing across the portfolio and strong performance in Refining Services and Catalysts;
Net income of $30.6 million or diluted EPS of $0.23; Adjusted net income of $41.5 million or Adjusted diluted EPS of $0.31
Adjusted EBITDA of $132.5 million increased 2.8%, or 4.6% on a constant currency basis, driving margin up 150 basis points to 28.1% (gain on sale excluded from Adjusted EBITDA, Adjusted net income and Adjusted diluted EPS);
Repaid $100 million of term loan in August 2019; targeting repayment of at least $150 million in 2019
MALVERN, PA, August 8, 2019 -- PQ Group Holdings Inc. (NYSE:PQG) (“PQ” or the “Company”) reported results for the second quarter ended June 30, 2019. Sales of $431.7 million were down 0.7% versus the same period in 2018, or up 1.4% on a constant currency basis on improved pricing across the portfolio. Net income was $30.6 million or $0.23 diluted EPS, including the after-tax gain on the sale of the sulfate salts product line of $8.5 million and diluted EPS of $0.06, respectively. Adjusted net income was $41.5 million or $0.31 Adjusted diluted EPS. Adjusted EBITDA was $132.5 million, up 2.8%, or 4.6% on a constant currency basis, with Refining Services and Catalysts driving the improvement. Adjusted EBITDA margin was 28.1%, an increase of 150 basis points.
“Our continued success this quarter in implementing higher pricing for our products and services demonstrates the value that our innovative solutions and reliability of supply bring to our customers. Given this first half performance coupled with order commitments in Catalysts, we anticipate that our second half results will be stronger than the first half of the year,” commented Belgacem Chariag, PQ President and Chief Executive Officer.
Chariag added, “Our differentiated portfolio of businesses has a proven history of delivering stable results through changing macroeconomic environments. To increase value for our shareholders, we are in the process of executing on our plan to streamline our businesses to drive improved performance. Consistent with this strategy, we completed the sale of a non-core product line within Performance Chemicals for $28 million.”
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 Second Quarter 2019 Earnings Release
The following information was filed by Pq Group Holdings Inc. (PQG) on Thursday, August 8, 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-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: 0001708035-19-000021 Submitted to the SEC: Thu Aug 08 2019 4:38:25 PM EST Accepted by the SEC: Thu Aug 08 2019 Period: Sunday, June 30, 2019 Industry: Chemicals And Allied Products