Univar Reports 2016 Third Quarter Financial Results
4 November 2016
Third Quarter 2016 Highlights
- Reported a net loss of $63.0 million, or ($0.46) per share, due to a pre-tax $137.4 million, or after-tax ($0.63) per share non-cash impairment related charge associated with Univar's upstream oil and gas assets, compared to net income of $12.1 million, or $0.09 per share reported in the prior year third quarter.
- Adjusted EBITDA was $145.9 million compared to $156.2 million in the prior year third quarter. Canada, EMEA, and Rest of World segments in aggregate grew Adjusted EBITDA 12 percent (14 percent on a currency neutral basis).
- Gross margin increased 150 basis points to 22 percent. Adjusted EBITDA margin improved 20 basis points to 7.3 percent.
- Net debt decreased $102 million year to date.
DOWNERS GROVE, Ill. – November 4, 2016 – Univar Inc. (NYSE: UNVR) (“Univar”), a global chemical distributor and provider of value-added services, announced today its financial results for the third quarter ended Sept. 30, 2016.
For the third quarter, Univar reported a net loss of $63.0 million compared to net income of $12.1 million in the prior year, due to a pre-tax $137.4 million impairment related charge, which includes $3.8 million of accelerated depreciation, primarily associated with the write down of certain upstream oil and gas market assets. Univar reported a loss per share of ($0.46), compared to earnings per share of $0.09 in the third quarter of 2015. Earnings per share, excluding the after-tax impact of impairment related charges, was $0.17, an increase of $0.08 from the $0.09 reported in the prior year.
Univar reported net sales of $2.0 billion for the quarter, down $206.6 million or 9.4 percent, and gross profit of $438.1 million, down $12.4 million, or 2.8 percent compared to prior year, largely due to lower demand from the upstream oil and gas market, and a 6.5 percent decline in average selling price. Gross margins of 21.9 percent increased 150 basis points compared to prior year gross margins of 20.4 percent. Univar reported third quarter Adjusted EBITDA of $145.9 million, which was $10.3 million lower than the $156.2 million reported in the third quarter last year.
"Despite the difficult comparison in upstream oil and gas and an overall sluggish economy, our performance in the third quarter was slightly better than expected," said Steve Newlin, president and chief executive officer. "While we have much work to do, we are starting to see some early signs of execution gains. We are cautiously optimistic that we may be turning a corner towards growth in the coming quarters."
Read the full press release.
Founded in 1924, Univar is a global distributor of specialty and basic chemicals from more than 8,000 producers worldwide. Univar operates more than 800 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 DeliveredSM.
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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