Stock Monitor: Innophos Holdings Post Earnings Reporting
LONDON, UK / ACCESSWIRE / March 01, 2018 / Active-Investors.com has just released a free earnings report on Axalta Coating Systems Ltd. (NYSE: AXTA) ("Axalta"). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=AXTA. The Company reported its fourth quarter fiscal 2017 operating and financial results on February 06, 2018. The high-performance coating system maker outperformed top- and bottom-line expectations, and also provided guidance for FY18. Register today and get access to over 1000 Free Research Reports by joining our site below:
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Earnings Highlights and Summary
For the fourth quarter of the fiscal year 2017, Axalta's net sales advanced 13.4% to $1.16 billion compared to $1.03 billion in Q4 2016. The Company's reported quarter constant currency net sales increased 9.9%, driven by 8.6% in acquisition contribution, coupled with 0.7% volume growth, and 0.6% higher average selling prices. Axalta's revenue numbers topped analysts' estimates of $1.16 billion.
For Q4 2017, Axalta's adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) were $245.4 million compared to $224.5 million in Q4 2016. This result was driven by the contribution of recent acquisitions, savings from the Company's operating improvement initiatives, and by moderate foreign exchange and pricing tailwinds.
During Q4 2017, Axalta's net loss attributable to common shareholders was $61.5 million, or $0.26 loss per diluted share, compared to a net loss of $37.2 million, or $0.16 loss per diluted share in Q4 2016. The Company's reported quarter results included after-tax charges of $24.4 million in severance, $10.5 million in acquisition-related costs, and the impact of the US Tax Cuts and Jobs Act 2017 legislation. This tax reform resulted in a provisional net tax charge of $112.5 million, primarily from the write-down of net deferred tax assets to the lower enacted US corporate tax rate of 21%.
Axalta's adjusted net income increased to $90.2 million, or $0.37 per diluted share, in Q4 2017 from $70.5 million, or $0.29 per diluted share, in Q4 2016, due to the contribution of recent acquisitions, benefit from productivity initiatives, and moderate improved average pricing.
For the full fiscal year 2017, Axalta recorded revenues of $4.35 billion compared to $4.07 billion in FY16. During FY17, Axalta's net income was $36.7 million, or $0.15 per diluted share, compared to $38.8 million, or $0.16 per diluted share, in FY16. On an adjusted basis, the Company posted earnings of $1.19 per share compared to $1.14 per share in the year ago same period.
During Q4 2017, Axalta's Performance Coatings segment's net sales jumped 20.7% to $732.3 million on a y-o-y basis. The segment's constant currency net sales increased 16.5%, driven by a 14.5% acquisition contribution and 2.5% higher average selling prices.
Within the Performance Coatings segment, net sales in the Refinish end-market increased 4.7% on a y-o-y basis, driven by price increases from all regions. The Industrial end-market's net sales increased 56.8% in the reported quarter, as volume grew high-single digits before acquisition contribution and price increased low-single digits.
The Performance Coatings segment generated an adjusted EBITDA of $165.4 million in Q4 2017, representing a 21.2% y-o-y growth. This strong increase was driven by a substantial acquisition contribution and a significant benefit from ongoing productivity initiatives and positive pricing contribution. The segment's adjusted EBITDA margin of 22.6% in the reported quarter reflected a 10-basis point increase compared to the prior year's corresponding quarter.
For Q4 2017, Axalta's Transportation Coatings segment produced net sales of $432.5 million, reflecting a growth of 2.8% on a y-o-y basis. The segment's constant currency net sales increased 0.2% y-o-y, driven by a 2.4% increase in volumes, and largely offset by 2.2% lower average selling prices.
Within the Transportation Coatings division, the Light Vehicle end-market's net sales fell 1.2% on a y-o-y basis, largely impacted by lower sales in North America. The Commercial Vehicle end-market's net sales increased 20.4% on a y-o-y basis, driven by ongoing strength in North America heavy duty truck production, as well as a broad-based global growth with both truck and non-truck customers.
During Q4 2017, the Transportation Coatings segment generated an adjusted EBITDA of $80.0 million, down 9.1% on a y-o-y basis, with an increased variable cost pressure and reduced average selling prices. The segment's adjusted EBITDA margin was 18.5% in the reported quarter versus 20.9% in the prior year's comparable quarter.
Axalta ended FY17 with cash and cash equivalents of $769.8 million. The Company's net debt was $3.1 billion as of the year-end compared to $3.3 billion as of September 30, 2017, driven by higher cash balances.
For Q4 2017, Axalta's operating cash flow was $233.6 million versus $228.0 million in Q4 2016, reflecting a stronger adjusted EBITDA performance and a slightly improved working capital. The Company's free cash flow totaled $195.8 million for the reported quarter, including a capital expenditure of $37.8 million, an improvement versus $187.1 million in the prior year's same quarter.
For the fiscal year 2018, Axalta is forecasting net sales growth of 8% - 9% as reported, or 6% - 7% excluding currency tailwinds. The Company is estimating adjusted EBITDA to be in the range of $940 million - $980 million; free cash flow to be in the band of $420 million - $460 million, and capital expenditure of approximately $160 million.
Stock Performance Snapshot
February 28, 2018 - At Wednesday's closing bell, Axalta Coating Systems' stock dropped 1.75%, ending the trading session at $30.80.
Volume traded for the day: 1.13 million shares.
Stock performance in the previous six-month period – up 5.19%; and past twelve-month period – up 5.81%
After yesterday's close, Axalta Coating Systems' market cap was at $7.29 billion.
Price to Earnings (P/E) ratio was at 50.49.
The stock is part of the Basic Materials sector, categorized under the Specialty Chemicals industry.
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