PolyOne Announces First Quarter 2017 Results

CLEVELAND, 2017年4月27日 /PRNewswire/ -- PolyOne Corporation (NYSE: POL) today reported its first quarter results for 2017. GAAP earnings per share in the first quarter of 2017 increased to $0.57 from $0.46 in the first quarter of 2016.  Adjusted earnings per share expanded to $0.59 from $0.56 in the first quarter 2016.  Special items for the first quarter of 2017, which primarily included environmental remediation costs, resulted in a net after-tax charge of $1.9 million, or $0.02 per share (see Attachment 1).  In the prior year first quarter, special items were $9.1 million, or $0.10 per share.

"Our investment in commercial resources over the last two years proved to be the difference-maker, as we delivered the top line growth needed to drive our strong overall results," said Robert M. Patterson, chairman, president and chief executive officer, PolyOne Corporation.  "In total, revenue increased 6% to $899 million compared to $847 million in the prior year.  Through increased sales force efficiency and effectiveness, new products and value-added services, we achieved broad-based organic sales growth of 5%."

The company also noted that acquisitions added 2% to sales growth while unfavorable foreign exchange negatively impacted sales by 1%.

Mr. Patterson continued, "Performance Products and Solutions led the way with 11% sales growth for the quarter building upon strong prior year momentum.  We also achieved sales gains in Distribution, Color and Engineered Materials despite weaker foreign currencies."

"From an adjusted EPS perspective, we achieved record first quarter results despite the expected loss in our Designed Structures and Solutions segment and near unprecedented spikes in raw material costs which impacted margins.  Recent supply constraints and other dynamics caused certain inputs such as butadiene to triple in cost over the last few months," Mr. Patterson said. "Our first priority at times like this is to ensure that our customers get uninterrupted exemplary service from us, and I'm pleased we were able to do so during the first quarter. This will continue as we work with all of our stakeholders to address raw material volatility and increased costs."

During the quarter, the company noted it completed a number of capital structure improvements including upsizing its credit facility from $400 million to $450 million.  In addition, borrowing rates on its credit facility and term loan debt were reduced by 25 basis points and 50 basis points, respectively.

"polyone has always generated strong free cash flow, and with the exception of seasonal working capital investment, this was again the case in the first quarter," said Bradley C. Richardson, executive vice president and chief financial officer, PolyOne Corporation.  "This coupled with our balance sheet strength allowed us to improve our capital structure and also repurchase one million shares of our common stock during the first quarter."

Adding further comments on the company's performance, Mr. Patterson said, "I'm pleased with our strong start to the year and our global team who delivered these results.  I am also encouraged to see DSS improve slightly versus the fourth quarter of last year, but we clearly have a lot of work still to do to return it to profitability."

Mr. Patterson continued, "Our prior investments in commercial resources are paying off, and we are also seeing gains from our recent acquisitions.  I am particularly excited about the expansion of our composite and specialty colorant portfolio which are integrating seamlessly into polyone."

"Further fueling growth are the unique service offerings we provide, such as IQ Design, LSS Customer First, and web-based customer interfacing," added Mr. Patterson.  "These recent innovations are helping customers accelerate their speed to market and improve operational efficiencies.  As a specialty company, innovation is at the heart of our four pillar strategy which we are relentlessly focused on in pursuit of our 2020 Platinum Vision."

Conference Call
As previously announced, the company will conduct a conference call to discuss its financial results for the first quarter 8:00 a.m. Eastern Time on Thursday, April 27, 2017.  To participate in the conference call, dial 1-844-835-7433 (domestic) or 1-914-495-8589 (international) and provide conference ID number 99045455.  A simultaneous webcast of the call will be accessible via the company's website at www.avient.com/investor.

A recording of the call will also be available for one week, beginning at 11:00 a.m. Eastern Time on April 27, 2017.  To listen to this recording, dial 1-855-859-2056 (domestic) or 1-404-537-3406 (international) and enter conference ID number 99045455.

About polyone
PolyOne Corporation, with 2016 revenues of $3.3 billion, is a premier provider of specialized polymer materials, services and solutions. The company is dedicated to serving customers in diverse industries around the globe, by creating value through collaboration, innovation and an unwavering commitment to excellence.  Guided by its Core Values, Sustainability Promise and No Surprises Pledge^SM, polyone is committed to its customers, employees, communities and shareholders through ethical, sustainable and fiscally responsible principles. For more information, visit www.polyone.com.

To access PolyOne's news library online, please visit www.avient.com/news.

Forward-looking Statements

In this press release, statements that are not reported financial results or other historical information are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give current expectations or forecasts of future events and are not guarantees of future performance. They are based on management's expectations that involve a number of business risks and uncertainties, any of which could cause actual results to differ materially from those expressed in or implied by the forward-looking statements. They use words such as "will," "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," and other words and terms of similar meaning in connection with any discussion of future operating or financial condition, performance and/or sales.  Factors that could cause actual results to differ materially from those implied by these forward-looking statements include, but are not limited to: our ability to realize anticipated savings and operational benefits from the realignment of assets, including the closure of manufacturing facilities; the timing of closings and shifts of production to new facilities related to asset realignments and any unforeseen loss of customers and/or disruptions of service or quality caused by such closings and/or production shifts; separation and severance amounts that differ from original estimates; amounts for non-cash charges related to asset write-offs and accelerated depreciation realignments of property, plant and equipment, that differ from original estimates; our ability to identify and evaluate acquisition targets and consummate acquisitions; the ability to successfully integrate acquired businesses into our operations, such as Comptek, SilCoTec, Gordon Composites and Polystrand, including whether such businesses will be accretive, retain the management teams of acquired businesses, and retain relationships with customers of acquired businesses; disruptions, uncertainty or volatility in the credit markets that could adversely impact the availability of credit already arranged and the availability and cost of credit in the future; the financial condition of our customers, including the ability of customers (especially those that may be highly leveraged and those with inadequate liquidity) to maintain their credit availability; the speed and extent of an economic recovery, including the recovery of the housing market; our ability to achieve new business gains; the effect on foreign operations of currency fluctuations, tariffs and other political, economic and regulatory risks; changes in polymer consumption growth rates and laws and regulations regarding the disposal of plastic in jurisdictions where we conduct business; changes in global industry capacity or in the rate at which anticipated changes in industry capacity come online; fluctuations in raw material prices, quality and supply and in energy prices and supply; production outages or material costs associated with scheduled or unscheduled maintenance programs; unanticipated developments that could occur with respect to contingencies such as litigation and environmental matters; an inability to achieve or delays in achieving or achievement of less than the anticipated financial benefit from initiatives related to working capital reductions, cost reductions and employee productivity goals; an inability to raise or sustain prices for products or services; an inability to maintain appropriate relations with unions and employees; our ability to continue to pay cash dividends; the amount and timing of repurchases of our common shares, if any; and other factors affecting our business beyond our control, including, without limitation, changes in the general economy, changes in interest rates and changes in the rate of inflation. The above list of factors is not exhaustive.

We undertake no obligation to publicly update forward-looking statements, whether as a result of new information, future events or otherwise. You are advised to consult any further disclosures we make on related subjects in our reports on Form 10-Q, 8-K and 10-K that we provide to the Securities and Exchange Commission.

    

Senior management uses comparisons of adjusted net income attributable to polyone shareholders and diluted adjusted earnings per share (EPS) attributable to polyone shareholders, excluding special items, to assess performance and facilitate comparability of results. Senior management believes these measures are useful to investors because they allow for comparison to PolyOne's performance in prior periods without the effect of items that, by their nature, tend to obscure PolyOne's operating results due to the potential variability across periods based on timing, frequency and magnitude. Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation from, or solely as alternatives to, financial measures prepared in accordance with GAAP. Below is a reconciliation of these non-GAAP financial measures to their most directly comparable financial measures calculated and presented in accordance with GAAP. See Attachment 3 for a definition and summary of special items.

 

 

 

 

 

 

 

 

 

 

 

The table below reconciles pre-special income tax expense and the pre-special effective tax rate to their most comparable US GAAP figures.

 

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SOURCE PolyOne Corporation

Investor Relations Contact - Eric R. Swanson, Director, Investor Relations, PolyOne Corporation, +1 440-930-1018, eric.swanson@avient.com; Media Contact - Kyle G. Rose, Vice President, Corporate Communications, PolyOne Corporation, +1 440-930-3162, kyle.rose@avient.com