First quarter results met expectations and orders up 7% sequentially
2019 First Quarter Overview
- Sales of $248.7 million decreased 13.9% on an as-reported basis and 10.5% on a constant currency basis
- Orders of $275.3 million decreased 10.8% on an as-reported basis and 7.6% on a constant currency basis
- Operating earnings (GAAP) increased 11.6% to $25.9 million; Adjusted EBITDA (non-GAAP) decreased 23.5% to $41.0 million
- Diluted EPS (GAAP) increased 44.4% to $0.13; Diluted adjusted EPS (non-GAAP) decreased 30.8% to $0.27
- Cash flow from operations of $(4.6) million decreased $16.3 million, driving free cash flow of $(22.4) million, a $34.9 million decrease versus $12.5 million from the prior year period
Milacron Holdings Corp. (“Milacron”) (NYSE: MCRN), a leading industrial technology company serving the plastic processing industry, announced financial results for the first quarter ended March 31, 2019.
“Milacron’s first quarter results were consistent with our expectations and the first half of 2019 is progressing as anticipated” said Milacron Chief Executive Officer, Tom Goeke. “Orders for the first quarter increased 7% when compared to the third quarter and fourth quarter of 2018 and our India equipment business continued to perform well with double digit constant currency sales growth over prior year. ”
First Quarter Results
For the first quarter of 2019, sales of $248.7 million decreased 13.9% from sales of $288.8 million in the same period a year ago. Excluding the unfavorable effects of currency movements, organic sales for the first quarter of 2019 decreased 10.5% versus the prior year period. Operating earnings for the first quarter of 2019 increased 11.6% to $25.9 million compared to operating earnings of $23.2 million in the prior year period. Adjusted EBITDA for the first quarter of 2019 decreased 23.5% to $41.0 million, or 16.5% of sales, compared to Adjusted EBITDA of $53.6 million, or 18.6% of sales, in the prior year period. Net earnings from continuing operations totaled $9.2 million, or $0.13 per basic and diluted share, in the first quarter of 2019 compared to net earnings from continuing operations of $6.5 million, or $0.09 per basic and diluted share, in the prior year period. Adjusted Net Income totaled $19.1 million, or $0.27 per diluted share, in the first quarter of 2019 compared to Adjusted Net Income of $27.9 million, or $0.39 per diluted share, in the prior year period.
Segment Results
Melt Delivery & Control Systems (MDCS)
For the first quarter of 2019, sales were $100.0 million compared to sales of $116.5 million in the same period a year ago. Excluding $4.6 million of unfavorable effects of currency movements, sales decreased 10.2% over the prior year period. Operating earnings for the first quarter of 2019 decreased 31.1% to $18.4 million compared to operating earnings of $26.7 million in the prior year period. Adjusted EBITDA for the first quarter of 2019 decreased 32.5% to $25.8 million, or 25.8% of sales, from Adjusted EBITDA of $38.2 million, or 32.8% of sales, in the prior year period.
Fluid Technologies
For the first quarter of 2019, sales were $29.3 million compared to sales of $32.0 million in the same period a year ago. Excluding $1.5 million of unfavorable effects of currency movements, sales decreased 3.8% over the prior year period. Operating earnings for the first quarter of 2019 decreased 10.0% to $5.4 million compared to operating earnings of $6.0 million in the prior year period. Adjusted EBITDA for the first quarter of 2019 decreased 9.9% to $6.4 million, or 21.8% of sales, from Adjusted EBITDA of $7.1 million, or 22.2% of sales, in the prior year period.
Advanced Plastic Processing Technologies (APPT)
During the first quarter of 2019, the Company evaluated its blow molding business and concluded that it qualifies as a discontinued operation in accordance with U.S. GAAP. This is a result of the Company considering whether it would retain the blow molding business or exit it. The operating results and cash flows related to the blow molding business have been reflected as discontinued operations in the Company’s Condensed Consolidated Statements of Operations and Condensed Consolidated Statements of Cash Flows for all periods presented, while the assets and liabilities that may be sold have been reflected as assets and liabilities held for sale for the current and prior periods in the Company’s Condensed Consolidated Balance Sheets.
For the first quarter of 2019, sales were $119.4 million compared to sales of $140.3 million in the same period a year ago. Excluding $3.8 million of unfavorable effects of currency movements, sales decreased 12.2% over the prior year period. Operating earnings for the first quarter of 2019 increased 348.1% to $12.1 million compared to operating earnings of $2.7 million in the prior year period. Adjusted EBITDA for the first quarter of 2019 decreased 9.3% to $14.7 million, or 12.3% of sales, from Adjusted EBITDA of $16.2 million, or 11.5% of sales, in the prior year period.
Additional Financial Information
Milacron ended the first quarter of 2019 with cash and cash equivalents of $150.0 million and total debt, excluding unamortized discount and debt issuance costs, of $835.6 million, resulting in net debt of $685.6 million and a net total leverage ratio of 3.3x.
Quelle: Milacron
