Univar Reports Second Quarter 2015 Financial Results
July 29, 2015
29 July 2015
Adjusted EBITDA exceeds prior year on a currency neutral basis
Second Quarter 2015 Highlights (Versus Second Quarter 2014)
Reported Adjusted EBITDA of $168.6 million declined 4.4 percent from $176.4 million, but increased 1.5 percent on a currency neutral basis, despite significantly lower chemical demand in upstream oil and gas markets in the U.S. and other regions.
Reported net loss of $12.4 million compared to $19.5 million net income in the prior year, largely due to $26 million in after-tax expenses related to the Company’s initial public offering (“IPO”) and debt refinancing.
Gross profit margin and Adjusted EBITDA margin increased during the quarter, benefiting from product mix improvements, growth in value-added services, and cost productivity gains.
Reported net sales decreased 12.3 percent from $2,861 million to $2,510 million, reflecting a 6.9-percent decrease from foreign currency translation and a 6.9-percent decline in volumes, largely attributable to lower demand from oil and gas markets. This was partially offset by a 1.5-percent increase from higher average selling price due to product mix.
Raised approximately $760 million net of fees from the IPO of 20 million primary shares of common stock at $22 per share and a concurrent $350 million private placement with a wholly owned subsidiary of Temasek Holdings (Private) Limited. Proceeds were used to immediately retire $650 million of senior unsecured notes, bearing 10.5 percent annual interest.
Completed acquisition of Key Chemical on April 10, expanding the Company’s presence in the U.S. municipal water treatment market.
DOWNERS GROVE, Ill. – July 29, 2015 –
Univar Inc. (NYSE: UNVR) (“Univar”), a global chemical distributor and provider of value-added services, announced today its financial results for the second quarter ended June 30, 2015.
“Univar delivered modest Adjusted EBITDA growth on a currency neutral basis versus the prior-year quarter, successfully offsetting strong headwinds within our upstream oil and gas markets,” said Erik Fyrwald, President and Chief Executive Officer.“ This demonstrates the resilience of our diversified business model and solid execution against our strategic objectives as we position the company for profitable growth.”
“Additionally, with our successful initial public offering and the completion of our debt refinancing in July, we have significantly strengthened our balance sheet and improved future cash flow by reducing cash interest payments,” said Fyrwald.
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Founded in 1924, Univar is a global distributor of specialty and basic chemicals from more than 8,000 producers worldwide. Univar operates more than 700 distribution facilities throughout North America, Western Europe, the Asia-Pacific region, and Latin America, supported by a global network of sales and technical professionals. With a broad portfolio of products and value-added services, and deep technical and market expertise, Univar delivers the tailored solutions customers need through one of the most extensive chemical distribution networks in the world. Univar is Chemistry Delivered
This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be beyond our control. We caution you that the forward-looking information presented in this press release is not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking information contained in this press release. In addition, forward-looking statements generally can be identified by the use of forward-looking terminology such as “may,” “plan,” “seek,” “comfortable with,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe” or “continue” or the negative thereof or variations thereon or similar terminology. Any forward-looking information presented herein is made only as of the date of this press release, and we do not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.
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Scott C. Johnson
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