- Arysta transaction expected to close on
January 31, 2019
- At close, Platform Specialty Products
to change its corporate name to Element Solutions Inc and trade
under ticker NYSE:ESI, launching new chapter for the Company
- Rakesh Sachdev announces his intention
to retire from his current role as Chief Executive Officer,
effective at closing, while continuing as a Director on the
Board
- Benjamin Gliklich to succeed Mr.
Sachdev as the new Chief Executive Officer of Element Solutions
Inc, upon closing of the Arysta transaction
- Scot R. Benson to assume role of
President & Chief Operating Officer
- Martin E. Franklin to assume role of
Executive Chairman and lead the new Office of the Chairman with Mr.
Gliklich and Mr. Benson
- 2018 Preliminary Unaudited Net Sales
and Adjusted EBITDA from Continuing Operations:
- Consolidated FY18 net sales of
approximately $1.96 billion, a year over year increase of
approximately 4%, or 3% on an organic basis
- 2018 adjusted EBITDA in the range of
$420 million to $422 million, a year over year increase of
approximately 5% at the midpoint
- 2019 Financial Guidance:
- Organic net sales growth expected to be
1% to 3%
- Adjusted EBITDA growth expected to be
5% to 8% on a constant currency basis
- Adjusted EPS of $0.75 to $0.80
- Net leverage immediately following the
closing of the Arysta transaction expected to be less than 2.4x
trailing twelve month adjusted EBITDA
Platform Specialty Products Corporation (NYSE:PAH) ("Platform"
or the "Company") announced today its preliminary unaudited
financial results for the three and twelve months ended December
31, 2018. As previously announced, the Company has received all
approvals necessary to complete the sale of Arysta LifeScience Inc.
(“Arysta”) to UPL Corporation Ltd. (“UPL”) and expects the
transaction to close on January 31, 2019. In connection with the
Arysta transaction closing, Platform also announced a corporate
name change, leadership transition and 2019 financial guidance.
All results presented in this press release are preliminary,
unaudited and subject to completion of Platform's year-end
financial close process and its audited financial statements as of
and for the year ended December 31, 2018. Actual results may differ
materially from these preliminary estimates. Unless otherwise
specified, these results exclude discontinued operations.
Discontinued operations relate to Platform's Agricultural Solutions
business, which consists of Arysta LifeScience Inc. and its
subsidiaries. On July 20, 2018, Platform entered into a definitive
agreement to sell Arysta to UPL for $4.2 billion in cash, subject
to adjustments. The Company's continuing operations include the
existing senior notes and term loans and the related liabilities
and interest expense.
Sale of Arysta LifeScience & New
Chapter for Platform Specialty Products
As previously announced, Platform has obtained all approvals
necessary to complete the sale of Arysta to UPL and expects the
transaction to close on January 31, 2019. The closing of this
transaction will start a new chapter for Platform, which will
change its name to Element Solutions Inc (“ESI” or “Element
Solutions”) and be traded on the New York Stock Exchange under the
ticker symbol “NYSE:ESI.” As a part of this change, the Company
separated its previously reported Performance Solutions segment in
the fourth quarter of 2018 into: Electronics and Industrial &
Specialty.
With a less levered, more nimble and more efficient business
profile, ESI will continue to focus on organic growth from its core
portfolio and will pursue measured opportunistic acquisitions to
build its capabilities, technologies and product offerings in its
existing and adjacent end-markets.
Rakesh Sachdev has announced his intention to retire from his
current role of Chief Executive Officer of Platform, effective at
closing of the transaction, while remaining an active Board member
of the Company. Platform’s Board has named Benjamin Gliklich,
currently Executive Vice President of Operations & Strategy, to
succeed Mr. Sachdev as Chief Executive Officer and to join
Platform’s Board of Directors. Element Solutions will be led by
Executive Chairman Martin E. Franklin, Mr. Gliklich, and Scot R.
Benson, who has been promoted to the role of President & Chief
Operating Officer, as members of the new Office of the
Chairman.
Preliminary Unaudited Fourth Quarter
2018 Highlights (compared with fourth quarter 2017) for Continuing
Operations:
- Net sales on a reported basis for the
fourth quarter of 2018 were $0.48 billion, a decrease of 2% over
the prior fourth quarter period. Organic net sales, which exclude
the impact of currency changes, certain pass-through metals
pricing, and acquisitions, increased 1%.
- Electronics: Net sales decreased 4% to
$0.28 billion. Organic net sales decreased 1%.
- Industrial & Specialty: Net sales
increased 1% to $0.20 billion. Organic net sales increased 4%.
- Adjusted EBITDA for the fourth quarter
of 2018 was between $98 million and $100 million, a decrease of ~
5% based on the midpoint of the range. On a constant currency
basis, adjusted EBITDA decreased by ~ 1% based on the midpoint of
the range.
- Electronics: Adjusted EBITDA was
between $57 million and $59 million, a decrease of ~ 8%. On a
constant currency basis, adjusted EBITDA decreased ~ 5%.
- Industrial & Specialty: Adjusted
EBITDA was between $40 million and $42 million, an increase of ~
1%. On a constant currency basis, adjusted EBITDA increased ~
5%.
Preliminary Unaudited Full Year 2018
Highlights (compared with full year 2017) for Continuing
Operations:
- Net sales on a reported basis for the
full year 2018 were $1.96 billion, an increase of 4% over the prior
full year period. Organic net sales increased 3%.
- Electronics: Net sales increased 3% to
$1.16 billion. Organic net sales increased 2%.
- Industrial & Specialty: Net sales
increased 6% to $0.80 billion. Organic net sales increased 5%.
- Adjusted EBITDA in 2018 was between
$420 million and $422 million, an increase of ~ 5% based on the
midpoint of the range. On a constant currency basis, adjusted
EBITDA increased by 4% based on the midpoint of the range.
- Electronics: Adjusted EBITDA was
between $247 million and $249 million, an increase of ~ 6%. On a
constant currency basis, adjusted EBITDA increased ~ 5%.
- Industrial & Specialty: Adjusted
EBITDA was between $172 million and $174 million, an increase of ~
3%. On a constant currency basis, adjusted EBITDA increased ~
2%.
Preliminary 2019
Guidance
For 2019, the Company expects organic net sales growth of
between 1% and 3% and constant currency adjusted EBITDA growth of
between 5% and 8%. Based on year-end 2018 exchange rates, the
Company anticipates foreign exchange headwinds of approximately 2%
to net sales and approximately $15 million to adjusted EBITDA.
Adjusted earnings per share is expected to be between $0.75 and
$0.80. This expected range benefits from an improved tax rate
expectation of 27% vs. the 34% used in 2018.
Management Commentary
Chief Executive Officer Rakesh Sachdev commented, “2018 was a
productive year for the Platform business. We achieved meaningful
year-over-year organic net sales growth, despite pressure late in
the year from demand softness in the Asia region across both
electronics and industrial markets. We delivered approximately 3%
organic net sales growth in our overall business, and we realized
constant currency adjusted EBITDA growth of approximately 4% for
the year. Our Electronics business, particularly our Alpha assembly
materials product lines, benefited from successful new product
launches, but our circuitry business in Electronics was impacted by
weak demand in the high-end mobile phone market and a generally
weak economy in Asia. Despite these macro challenges, we again
proved the resilience of our diversified business lines as our
Energy and Graphics operations continued to display strong
performance throughout the year. We also made great progress
strategically. We entered the non-conductive adhesives market
through our acquisition of HiTech Korea during 2018 and created our
new MacDermid Alpha brand, a unified electronics-focused business
which we believe provides a wider range of solutions for our
electronics customers than any of our competitors.”
Sachdev continued, “The close of the Arysta transaction will
represent a major milestone for Platform. Following the closing, we
will have achieved the separation we have been working on since
2017 to create a less levered, more nimble and more focused
business. We believe ESI is well positioned for profitable future
growth and compelling value creation. This is a natural point in
the Company’s evolution for me to step back from day-to-day
management, while continuing to contribute as a Director, and make
room for the next generation of the Company’s leadership. Ben
Gliklich is a powerful and effective change maker who, in his
several leadership roles at Platform, has driven significant
transformation throughout the Company and will make a great CEO.
Scot Benson has been a strong and effective business leader for
Platform, and he has successfully grown and integrated the
Performance Solutions businesses. Ben, Scot and their teams are
more than ready to lead ESI and continue the operating momentum we
have built together over the past three years. I have tremendous
confidence in the Company and look forward to actively supporting
its success as a continuing Board Director.”
Chairman Martin E. Franklin commented, “We are excited to be
close to entering this next phase for Platform. The sale of Arysta
will successfully position ESI for tremendous opportunity as a
standalone company. On behalf of the Board, I would like to thank
Rakesh for his immensely productive leadership of this Company over
the past three years and, in advance, for his ongoing contributions
as an active member of our Board. Rakesh delivered and, in fact,
exceeded, exactly the goals we outlined together when we first met,
and I am thrilled to have him continue as my partner on our Board.
We are very excited to announce our new leadership team, and I am
personally looking forward to working closely with Ben and Scot to
drive this business forward. Ben is the right CEO for ESI. I have
watched him drive change, lead teams and persistently pursue
positive outcomes for Platform since his first day here. Scot, as
President, has the depth of experience in the business and
end-market expertise to drive solid operational execution. We are
highly confident that our Office of the Chairman leadership
approach is the right one to take the Company forward for the
benefit of all stakeholders.”
Executive Vice President - Operations & Strategy and Chief
Executive Officer designee Benjamin Gliklich added, “ESI will have
terrific businesses, great people and compelling opportunities in
front of it. In the time since we announced the sale of Arysta, we
have developed and refined our vision and strategy for the Company,
which we believe will produce long term value creation for our
shareholders and a culture and workplace where our employees and
other stakeholders will flourish. As a more focused enterprise with
a vastly improved capital structure, we will balance operational
excellence and prudent capital allocation. This means investing
behind our fastest growing markets, maintaining our leadership in
technology and service, and managing costs aggressively, as well as
measured acquisitions on an opportunistic basis where we have
market expertise and synergies. Similarly, we will consider
effective ways to use our strengthened balance sheet to compound
shareholder value. I would like to thank Rakesh for his excellent
leadership and generous mentorship. It will be an exciting next
phase for the Company, and I am eagerly looking forward to
continuing to partner with Martin, Scot, the broader team and the
Board to create future value for the shareholders of Element
Solutions.”
Gliklich continued, “As we look into 2019, we believe ESI has a
strong earnings growth opportunity despite a challenged overall
market. We expect the weakness in the Asian economy, especially in
China, and the deceleration in the global electronics and
automotive markets that impacted our 2018 fourth quarter results to
persist in 2019. We therefore are guiding towards more modest
top-line growth than we experienced in recent years. We are
fortunate to have diversification and a margin structure that
insulates us in these markets as well as a corporate cost
opportunity to help us drive higher earnings growth despite the
macro environment. We expect organic net sales growth between 1%
and 3%, which we believe will outpace our end-markets, and constant
currency adjusted EBITDA growth in the range of 5% and 8%. Given
our improved balance sheet and effective tax rate, this growth
should translate to strong double digit adjusted EPS growth.”
Conference Call
Platform will host a webcast/dial-in conference call to discuss
the Arysta transaction and these other announcements at 8:30 a.m.
(Eastern Time) this morning. Participants on the call will include
Martin E. Franklin, Chairman, Rakesh Sachdev, Chief Executive
Officer; Benjamin Gliklich, Executive Vice President - Operations
& Strategy and Chief Executive Officer designee; Scot R. Benson
- President & Chief Operating Officer designee; and John
Connolly, Chief Financial Officer.
To listen to the call by telephone, please dial 877-876-9173
(domestic) or 785-424-1667 (international) and provide the
Conference ID: PAHQ418. The call will be simultaneously webcast at
www.platformspecialtyproducts.com.
A replay of the call will be available for three weeks shortly
after completion of the live call at www.platformspecialtyproducts.com.
About Platform
Platform is a leading specialty chemicals company which
formulates a broad range of solutions that enhance the performance
of products people use every day. Developed in multi-step
technological processes, the Company's innovative solutions enable
its customers' manufacturing processes in several industries,
including consumer electronics, communication infrastructure,
automotive, industrial surface finishing, consumer packaging and
offshore oil production and drilling.
More information on Platform is available at www.platformspecialtyproducts.com.
Forward-Looking Statements
This press release is intended to qualify for the safe harbor
from liability established by the Private Securities Litigation
Reform Act of 1995 as it contains "forward-looking statements" with
respect to Platform's preliminary unaudited fourth quarter and full
year 2018 financial results, 2019 financial guidance, the timing
for completion of the Arysta transaction, and the Company's name
change, leadership transition and strategy following this
transaction. These statements will often contain words such as
"expect," "anticipate," "project," "will," "should," "believe,"
"intend," "plan," "estimate," "predict," "seek," "continue,"
"outlook," "may," "might," "can have," "likely," "potential" or
"target" and variations of such words and similar expressions.
These projections and statements are based on management's
preliminary unaudited analysis of its financial results for the
fourth quarter and full year 2018 and assumptions based on future
events. As of the date of this press release, Platform's has not
completed its financial statement reporting process, and therefore
the preliminary unaudited results included herein remain subject to
completion of Platform's year-end financial close process and its
audited financial statements as of and for the year ended
December 31, 2018. During the course of its close procedures
and review process of the three month and year ended December 31,
2018, Platform may identify items that would require it to make
adjustments, which may be material to the information presented in
this press release. Other important factors that could cause actual
results to differ materially from those suggested by these
forward-looking statements include, but are not limited to, any
event, change or other circumstances that could give rise to the
termination of the Arysta transaction; the risk that the
transaction will not be consummated in a timely manner or by the
targeted date; the risk that Platform will experience unanticipated
delays or difficulties and transaction costs in consummating the
transaction; the risk that any of the closing conditions to the
transaction may not be satisfied in a timely manner or at all; the
risk related to disruption from the transaction and the related
diverting of management’s attention making it more difficult to
maintain business and operational relationships; the failure to
realize the benefits, efficiencies and cost savings expected from
the transaction or related strategic initiatives; the impact of the
transaction on Platform's share price and market volatility; the
effect of the announcement of the transaction on the ability of
Platform to retain customers and suppliers, retain or hire key
personnel, and maintain relationships with customers, suppliers and
lenders; the effect of the transaction or the announcement and
completion of related transactions on Platform’s operating results
and businesses generally; the impact of any future acquisitions or
additional divestitures, restructurings, refinancings, and other
unusual items, including Platform's ability to raise or retire debt
or equity and to integrate and obtain the anticipated benefits,
results and/or synergies from these items or other related
strategic initiatives. Additional information concerning these and
other factors that could cause actual results to vary is, or will
be, included in Platform's periodic and other reports filed with
the Securities and Exchange Commission. Platform undertakes no
obligation to update any forward-looking statements, whether as a
result of new information, future events or otherwise.
PLATFORM SPECIALTY PRODUCTS
CORPORATION
ADDITIONAL PRELIMINARY FINANCIAL
INFORMATION
(Unaudited)
I. PRELIMINARY NET SALES BY SEGMENT
Three Months Ended December 31,
Twelve Months Ended December 31, ($ amounts in billions)
2018 2017
Reported
ConstantCurrency
Organic 2018
2017 Reported
ConstantCurrency
Organic Net Sales Electronics $
0.28 $ 0.29 (4 %) (1 %) (1 %) $ 1.16 $ 1.12 3 % 2 % 2 %
Industrial & Specialty
0.20 0.19 1 % 4 % 4 % 0.80 0.76 6 % 5 %
5 %
Total $ 0.48 $ 0.49
(2 %) 1 % 1 % $
1.96 $ 1.88 4 % 3
% 3 % II. PRELIMINARY ADJUSTED
EBITDA BY SEGMENT Three Months Ended
December 31, Twelve Months Ended December
31, ($ amounts in millions)
2018
2017 Reported*
ConstantCurrency*
2018 2017
Reported*
ConstantCurrency*
Adjusted EBITDA Electronics $57 - $59 $63 (~ 8%) (~ 5%) $247
- $249 $233 ~ 6% ~ 5% Industrial & Specialty 40 - 42 40 ~ 1% ~
5% 172 - 174 168 ~ 3% ~ 2%
Total $98 - $100
$104 (~ 5%) (~ 1%)
$420- $422 $401 ~ 5% ~ 4%
Three Months EndedDecember
31,
Change
Twelve Months EndedDecember
31,
Change 2018 2017 Reported
ConstantCurrency
2018 2017 Reported
ConstantCurrency
Adjusted EBITDA Margin* ~ 20.7% 21.2% ~ (50)bps ~ (40)bps ~
21.5% 21.4% ~ 10bps ~ —bps
* Percentages are based on the midpoint of
preliminary adjusted EBITDA ranges.
III. NON-GAAP MEASURES
To supplement the financial measures prepared in accordance with
GAAP, Platform has provided in this release the following non-GAAP
financial measures: EBITDA, adjusted EBITDA, adjusted EBITDA
margin, adjusted EBITDA guidance, adjusted earnings per share
(EPS), adjusted EPS guidance, normalized free cash flow and organic
net sales growth. Platform also evaluates and presents its results
of operations on a constant currency basis. Management internally
reviews each of these non-GAAP measures to evaluate performance on
a comparative period-to-period basis in terms of absolute
performance, trends and expected future performance with respect to
the Company’s business, and believes that these non-GAAP measures
provide investors with an additional perspective on trends and
underlying operating results on a period-to-period comparable
basis. Platform also believes that investors find this information
helpful in understanding the ongoing performance of its operations
separate from items that may have a disproportionate positive or
negative impact on Platform's financial results in any particular
period. These non-GAAP financial measures, however, have
limitations as analytical tools, and should not be considered in
isolation from, a substitute for, or superior to, the related
financial information that Platform reports in accordance with
GAAP. The principal limitations of these non-GAAP financial
measures is that they exclude significant expenses and income that
are required by GAAP to be recorded in the Company’s financial
statements, and may not be completely comparable to similarly
titled measures of other companies due to potential differences in
the method of calculation between companies. In addition, these
measures are subject to inherent limitations as they reflect the
exercise of judgment by management about which items are excluded
or included in determining these non-GAAP financial measures.
Investors are encouraged to review the reconciliations of these
non-GAAP financial measures to their most comparable GAAP financial
measures included in this press release, and not to rely on any
single financial measure to evaluate Platform’s businesses.
The Company only provides adjusted EBITDA guidance, adjusted EPS
guidance and organic net sales growth expectations on a non-GAAP
basis and does not provide reconciliations of such forward-looking
non-GAAP measures to GAAP due to the inherent difficulty in
forecasting and quantifying certain amounts that are necessary for
such reconciliations, including adjustments that could be made for
restructurings, refinancings, divestitures, integration and
acquisition-related expenses, share-based compensation amounts,
non-recurring, unusual or unanticipated charges, expenses or gains,
adjustments to inventory and other charges reflected in its
reconciliation of historic numbers, the amount of which, based on
historical experience, could be significant.
Constant Currency:
The Company discloses net sales and adjusted EBITDA on a
constant currency basis by adjusting to exclude the impact of
changes due to the translation of foreign currencies of its
international locations into U.S. dollar. Management believes this
non-GAAP financial information facilitates period-to-period
comparison in the analysis of trends in business performance,
thereby providing valuable supplemental information regarding its
results of operations, consistent with how the Company internally
evaluates its financial results.
The impact of foreign currency translation is calculated by
converting the Company's current-period local currency financial
results into U.S. dollar using the prior period's exchange rates
and comparing these adjusted amounts to its prior period reported
results. The difference between actual growth rates and constant
currency growth rates represents the impact of foreign currency
translation.
Organic Net Sales Growth:
Organic net sales growth is defined as net sales excluding the
impact of foreign currency translation, changes due to the
pass-through pricing of certain metals, and acquisitions and/or
divestitures, as applicable. Management believes this non-GAAP
financial measure provides investors with a more complete
understanding of the underlying net sales trends by providing
comparable sales over differing periods on a consistent basis.
The following table reconciles preliminary unaudited GAAP net
sales growth from the Company's continuing operations to organic
net sales growth for the three and twelve months ended
December 31, 2018:
Three Months Ended December 31, 2018
Reported Net
SalesGrowth
Impact ofCurrency
ConstantCurrency
Change
inPass-ThroughMetalsPricing
Acquisitions
Organic
NetSalesGrowth
Electronics (4)% 3% (1)% 0% (1)% (1)% Industrial & Specialty 1%
3% 4% —% —% 4%
Total (2)% 3% 1%
0% —% 1%
NOTE: Totals may not sum due to rounding
or due to varying sizes of the two reportable segments.
Twelve Months Ended December 31, 2018
ReportedNet
SalesGrowth
Impact ofCurrency
ConstantCurrency
Change
inPass-ThroughMetalsPricing
Acquisitions
Organic
NetSalesGrowth
Electronics 3% (1)% 2% 0% (1)% 2% Industrial & Specialty 6%
(1)% 5% —% —% 5%
Total 4% (1)% 3%
0% —% 3%
NOTE: Totals may not sum due to rounding
or due to varying sizes of the two reportable segments.
For the three months ended December 31, 2018, pass through
metals pricing and acquisitions had a (negative) positive impact on
the Company's Electronics and consolidated results of $(1.4)
million and $2.2 million, respectively.
For the twelve months ended December 31, 2018, pass through
metals pricing and acquisitions had a (negative) positive impact on
the Company's Electronics and consolidated results of $(3.4)
million and $5.7 million, respectively.
Normalized Free Cash Flow:
Free cash flow is defined as net cash flows provided by
operating activities less net capital expenditures. Net capital
expenditures include capital expenditures less proceeds from
disposals of property, plant and equipment. Normalized free cash
flow adjusts for the anticipated impact of the Arysta sale on the
Company's capital structure.
The following table reconciles preliminary unaudited GAAP net
cash flows (used in) provided by the Company's continuing
operations to normalized free cash flow:
(in millions)
Twelve Months EndedDecember 31,
2018
Net cash flows (used in) provided by operating activities of
continuing operations $(2) - $0 less: Net capital expenditures:
Capital expenditures (28) Proceeds from disposal of property, plant
and equipment 4 Net capital expenditures (24) Free cash flow *
~(25) plus: Cash interest ~ 295 less: Normalized cash interest **
< (70)
Normalized free cash flow * ~$200 *
Based on the midpoint of preliminary
operating cash flows range.
**
Assumes the following illustrative capital
structure: $800 million of senior notes and $750 million of term
loans (including the effect of an interest rate swap).
EBITDA and Adjusted EBITDA:
EBITDA represents earnings before interest, provision for income
taxes, depreciation and amortization. Adjusted EBITDA is defined as
EBITDA excluding the impact of additional items, which the Company
believes are not representative or indicative of its ongoing
business. Adjusted EBITDA for each segment also includes an
allocation of corporate costs, such as compensation expense and
professional fees. Management believes adjusted EBITDA and adjusted
EBITDA margin provide investors with a more complete understanding
of the long-term profitability trends of Platform’s business and
facilitate comparisons of its profitability to prior and future
periods. However, these measures, which do not consider certain
cash requirements, should not be construed as an alternative to net
income or cash flow from operations as a measure of profitability
or liquidity.
The following table reconciles preliminary unaudited GAAP loss
from the Company's continuing operations before income taxes and
non-controlling interests to Adjusted EBITDA:
Three Months Ended
December 31, Twelve Months Ended December 31, (amounts
in millions)
2018 2017 2018
2017 Unaudited loss from continuing
operations before income taxes and non-controlling interests
$(36) - $(38) $(108) $(78) - $(80) $(260)
Add (subtract):
Interest expense, net 78 81 311 337 Depreciation expense 11 12 45
46 Amortization expense 27 28 112 110
EBITDA 78 - 80
13 388 - 390 233 Adjustments to reconcile
to Adjusted EBITDA: Restructuring expense (1) 2 7 6 24
Acquisition and integration costs (2) 2 0 12 4 Legal settlement
gains (3) — 0 — (11) Foreign exchange loss on foreign denominated
external and internal long-term debt (4) 5 4 6 53 Debt refinancing
costs (5) 1 69 1 83 Pension plan settlement (6) — 11 — 11 Gain on
sale of equity investment (7) — — (11) — Other, net (8) 10 1 18 5
Adjusted EBITDA $98 - $100 $104 $420 -
$422 $401
NOTE: Totals may not sum due to
rounding.
(1) The Company adjusts for costs of
restructuring its operations, including those related to its
acquired businesses. The Company adjusts these costs because it
believes they are not reflective of ongoing operations. (2) The
Company adjusts for costs associated with acquisition and
integration activity, including costs of obtaining related
financing such as investment banking, legal and accounting fees,
and transfer taxes. The Company adjusts these costs because it
believes they are not reflective of ongoing operations. (3) The
Company adjusts for certain legal settlements which it believes are
not considered reflective of ongoing operations, including the 2017
settlement agreement between MacDermid Printing Solutions LLC (now
known as MacDermid Graphics Solutions LLC) and E.I. du Pont de
Nemours and Company (now known as DowDuPont Inc.) which resulted in
a net gain of $11 million. (4) The Company adjusts for foreign
exchanges gains and losses on long-term intercompany and
third-party debt because it expects the period-to-period movement
of these currencies to offset on a long-term basis and, due to
their long-term nature, are not fully realized. The Company does
not exclude foreign exchange gains and losses on short-term
intercompany and third-party payables and receivables. (5) The
Company adjusts for costs related to its senior note and term debt
refinancings because it believes they are not reflective of ongoing
operations. (6) The Company adjusts for costs related to
significant pension plan settlements and curtailments. 2017
adjustments related primarily to the settlement of the Company's
pension obligation in the United Kingdom. The Company adjusts these
costs because it believes they are not reflective of ongoing
operations. (7) The Company adjusts for a gain on the sale of an
equity investment in 2018 because it believes it is not reflective
of ongoing operations. (8) The Company's 2018 adjustments include
$11 million of employee-related expenses associated with the Arysta
Sale that do not qualify for discontinued operations, non-cash
changes in the fair value of contingent consideration and certain
professional consulting fees. The Company's 2017 adjustments
include non-cash change in the fair value of contingent
consideration and a non-recurring severance payment to a senior
executive. The Company adjusts these costs because it believes they
are not reflective of ongoing operations.
Adjusted Earnings Per Share:
Adjusted earnings per share (EPS) is defined as net income
(loss) from continuing operations attributable to common
stockholders adjusted to reflect adjustments consistent with the
Company’s definition of adjusted EBITDA. Additionally, the Company
eliminates the amortization associated with intangible assets and
step-up depreciation associated with fixed assets, both recognized
in purchase accounting for acquisitions. Further, it adjusts the
effective tax rate to 27% for 2019. The resulting adjusted net
income from continuing available to stockholders is divided by the
number of shares of outstanding common stock as of the period end
plus the number of shares that would be issued if all Platform’s
convertible stock were converted to common stock, stock options
were vested and exercised and awarded equity grants were vested.
Adjusted earnings per share is a key metric used by management to
measure operating performance and trends as management believes the
exclusion of certain expenses in calculating adjusted earnings per
share facilitates operating performance comparisons on a
period-to-period basis.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190128005294/en/
Investor Relations Contact:Carey DormanCorporate Treasurer and
Vice President, Investor RelationsPlatform Specialty Products
Corporation1-561-406-8465
Media Contact:Liz CohenManaging DirectorKekst
CNC1-212-521-4845
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