Valvoline Reports Second-Quarter Results
•Reported net income of $63 million and earnings per diluted share (EPS) of $0.33 were flat
•Adjusted EPS increased 11% to $0.39, while adjusted EBITDA increased 10% to $134 million, including impacts from the novel coronavirus (COVID-19)
•Sales declined 2% to $578 million, while lubricant volume declined 6% to 41.7 million gallons
•Quick Lubes system-wide same-store sales (SSS) grew 0.7%
•Cash and cash equivalents on hand were approximately $775 million as of April 30, 2020
LEXINGTON, Ky., May 6, 2020 – Valvoline Inc. (NYSE: VVV), a leading supplier of premium branded lubricants and automotive services, today reported financial results for its second fiscal quarter ended March 31, 2020.
“We continue to focus on the health and safety of our employees, customers and business partners as well as on support for the communities where we operate as we manage through the COVID-19 health crisis," said Sam Mitchell, CEO. "Our results in Q2 reflect a strong start to the quarter, where we saw sales up 2%, including low double-digit same-store sales growth, and EBITDA growth in the mid-teens for the first two months. In March, we began to see meaningful impacts to our business due to the decline in miles driven caused by the COVID-19 shelter-in-place and lockdown regulations. In March, we also saw a healthy rebound in China as local restrictions there began to ease.
"As the COVID-19 crisis continues, we are monitoring the situation closely and proactively managing our operational response and taking steps to maintain financial flexibility.”
Reported second-quarter 2020 net income and EPS were $63 million and $0.33, respectively. These results included net after-tax expense of $11 million ($0.06 per diluted share), primarily related to debt redemption costs of $14 million ($0.08 per diluted share) and pension and other post-employment benefit (OPEB) income of $7 million ($0.04 per diluted share) as well as other expenses totaling $4 million ($0.02 per diluted share). Reported second-quarter 2019 net income and EPS were $63 million and $0.33, respectively. These results included after-tax expense of $4 million ($0.02 per diluted share) primarily related to restructuring expenses.
The following information was filed by Valvoline Inc (VVV) 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.