Post Earnings Coverage as Platform Specialty’s Quarterly Sales Jumped 5%, Adjusted EPS Soared 60%

Upcoming AWS Coverage on Axalta Coating Systems Post-Earnings Results

LONDON, UK / ACCESSWIRE / May 24, 2017 / Active Wall St. announces its post-earnings coverage on Platform Specialty Products Corp. (NYSE: PAH). The Company reported its first quarter fiscal 2017 financial results on May 08, 2017. The specialty chemical and printing products Company outperformed earnings estimates. Register with us now for your free membership at:

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One of Platform Specialty Products’ competitors within the Specialty Chemicals space, Axalta Coating Systems Ltd (NYSE: AXTA), reported on April 26, 2017, its financial results for Q1 ended March 31, 2017. AWS will be initiating a research report on Axalta Coating Systems in the coming days.

Today, AWS is promoting its earnings coverage on PAH; touching on AXTA. Get our free coverage by signing up to:

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Earnings Reviewed

Platform Specialty’s net sales on a reported basis for the quarter ended March 31, 2017, were $862 million, an increase of 5% compared to net sales of $823.8 million in Q1 2016. The Company’s organic sales, excluding the impact of currency, metals pricing, and the impact of a small acquisition in Q1 2016, increased 3%.

For Q1 2017, Platform Specialty’s adjusted EBITDA was $193 million, an increase of 15%. On a constant currency basis, adjusted EBITDA increased 18%. Adjusted EBITDA margin for the combined company improved by 200 basis points to 22.4%.

Platform Specialty reported a loss of $24.4 million, or $0.09 per share, in Q1 2017 compared to net loss of $134.8 million, or $0.59 per share, in Q1 2016. The Company’s earnings, adjusted for amortization costs and costs related to mergers and acquisitions, totaled $0.16 per share for the reported quarter compared to $0.10 per share in the year earlier same quarter and had surpassed Wall Street’s estimates of $0.12 per share.

Segment Results

During Q1 2017, MacDermid Performance Solutions’ net sales increased 6% to $447 million, while it improved 5% on organic basis. Sales of specialty chemicals in the segment’s Industrial Solutions and core electronic verticals both realized close to double-digit increase on a y-o-y basis. The MacDermid Performance Solutions adjusted EBITDA was $102 million, an increase of 23% on a y-o-y basis. On a constant currency basis, the segment’s adjusted EBITDA increased 27%.

For Q1 2017, Platform Specialty’s Arysta LifeScience segment’s net sales improved 3% to $415 million. Organic sales grew 2%, driven by increased volume in certain European markets, where the Company has expanded its presence, and higher sales in Africa. Arysta LifeScience adjusted EBITDA was $91 million for the reported quarter, an increase of 6%. On a constant currency basis, adjusted EBITDA increased 8%.

Balance Sheet & Cash Flow

Platform Specialty’s stated that it has reduced the cash investment in working capital by more than $50 million compared to Q1 2016, despite a growth in sales y-o-y. The Company attributed the improvement to a combination of better inventory and payable management.

Platform Specialty’s gross debt for the business at the end of Q1 2017 was $5.4 billion, which is $5.1 billion net of $366 million of cash. The Company managed to reprice $1.93 billion of term loans in April to save approximately $20 million of additional annualized interest; this brings the Company’s total annualized interest reduction since 2016 to approximately $45 million.

Outlook

Based on foreign exchange rates as of March 31, 2017, Platform Specialty reaffirmed its previously provided adjusted EBITDA guidance to be in the range of $800 million to $830 million, representing an increase of 8% versus full year 2016 results at the mid-point on a constant currency basis.

Stock Performance

At the close of trading session on Tuesday, May 23, 2017, Platform Specialty Products’ share price finished the trading session at $13.05, sliding 1.95%. A total volume of 1.32 million shares exchanged hands. The stock has soared 53.35% and 41.23% in the last six months and past twelve months, respectively. Furthermore, since the start of the year, shares of the Company have skyrocketed 33.03%. The stock is trading at a PE ratio of 49.25 and has a market cap of $3.60 billion.

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