Delaware | 001-36272 | 37-1744899 |
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
1450 Centrepark Boulevard Suite 210 West Palm Beach, Florida | 33401 |
(Address of principal executive offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Emerging growth company o |
Exhibit Number | Description |
99.1 | Press release, dated November 1, 2018, relating to Platform's financial results for the three and nine months ended September 30, 2018 (furnished only) |
99.2 | Platform's unaudited recasted condensed consolidated financial information reflecting the anticipated impact of the Announced Arysta Sale on Platform's historical results (furnished only) |
PLATFORM SPECIALTY PRODUCTS CORPORATION | ||
(Registrant) | ||
November 1, 2018 | /s/ John P. Connolly | |
(Date) | John P. Connolly | |
Chief Financial Officer |
• | Net sales from continuing operations increased 2% on a reported basis to $489 million; growth of 3% on an organic basis |
• | GAAP diluted loss per share from continuing operations of $0.02; adjusted earnings per share from continuing operations of $0.04 |
• | Reported net loss from continuing operations of $4.3 million; improved from a loss of $36.9 million in the same period last year |
• | Adjusted EBITDA from continuing operations grew 1% to $108 million; growth of 3% on a constant currency basis |
• | Reaffirming 2018 adjusted EBITDA guidance, excluding discontinued operations (Arysta LifeScience), expected to be in the range of $425 million to $445 million, which includes $5 million of reorganizational cost savings realized in 2018; expect an additional $20 million of run-rate savings from the sale of Arysta LifeScience and the associated reduction of corporate costs in 2019 |
• | Sale of Arysta LifeScience targeted to close at year-end 2018, subject to receipt of regulatory clearances |
• | Net sales on a reported basis for the third quarter of 2018 were $489 million, an increase of 2%. |
◦ | Organic sales, which exclude the impact of currency changes, certain pass-through metals pricing and acquisitions, increased 3%. |
• | Third quarter 2018 earnings per share performance: |
◦ | GAAP diluted loss per share from continuing operations was $0.02, compared to a loss of $0.13. |
◦ | Adjusted earnings per share were $0.04, an improvement of $0.02 per share. |
• | Reported net loss from continuing operations for the third quarter of 2018 was $4.3 million, compared to a net loss of $36.9 million. |
• | Adjusted EBITDA for the third quarter of 2018 was $108 million, an increase of 1%. |
◦ | On a constant currency basis, adjusted EBITDA increased 3%. |
2 |
3 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(in millions, except per share amounts) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Net sales | $ | 488.5 | $ | 480.6 | $ | 1,482.6 | $ | 1,390.0 | |||||||
Cost of sales | 278.9 | 272.4 | 847.2 | 788.4 | |||||||||||
Gross profit | 209.6 | 208.2 | 635.4 | 601.6 | |||||||||||
Operating expenses: | |||||||||||||||
Selling, technical, general and administrative | 139.5 | 140.2 | 424.6 | 420.2 | |||||||||||
Research and development | 10.5 | 11.2 | 33.1 | 33.8 | |||||||||||
Total operating expenses | 150.0 | 151.4 | 457.7 | 454.0 | |||||||||||
Operating profit | 59.6 | 56.8 | 177.7 | 147.6 | |||||||||||
Other expense: | |||||||||||||||
Interest expense, net | (77.9 | ) | (84.7 | ) | (233.4 | ) | (256.3 | ) | |||||||
Foreign exchange (loss) gain | (4.7 | ) | (11.2 | ) | 0.4 | (47.5 | ) | ||||||||
Other (expense) income, net | (0.1 | ) | 0.6 | 13.6 | 3.4 | ||||||||||
Total other expense | (82.7 | ) | (95.3 | ) | (219.4 | ) | (300.4 | ) | |||||||
Loss before income taxes and non-controlling interests | (23.1 | ) | (38.5 | ) | (41.7 | ) | (152.8 | ) | |||||||
Income tax benefit (expense) | 18.8 | 1.6 | (21.1 | ) | (20.2 | ) | |||||||||
Net loss from continuing operations | (4.3 | ) | (36.9 | ) | (62.8 | ) | (173.0 | ) | |||||||
(Loss) income from discontinued operations, net of tax | (401.6 | ) | (29.4 | ) | (293.3 | ) | 23.1 | ||||||||
Net loss | (405.9 | ) | (66.3 | ) | (356.1 | ) | (149.9 | ) | |||||||
Net income attributable to the non-controlling interests | (3.0 | ) | (2.9 | ) | (3.5 | ) | (4.8 | ) | |||||||
Net loss attributable to common stockholders | $ | (408.9 | ) | $ | (69.2 | ) | $ | (359.6 | ) | $ | (154.7 | ) | |||
(Loss) earnings per share | |||||||||||||||
Basic from continuing operations | $ | (0.02 | ) | $ | (0.13 | ) | $ | (0.23 | ) | $ | (0.62 | ) | |||
Basic from discontinued operations | (1.40 | ) | (0.11 | ) | (1.02 | ) | 0.08 | ||||||||
Basic attributable to common stockholders | $ | (1.42 | ) | $ | (0.24 | ) | $ | (1.25 | ) | $ | (0.54 | ) | |||
Diluted from continuing operations | $ | (0.02 | ) | $ | (0.13 | ) | $ | (0.23 | ) | $ | (0.62 | ) | |||
Diluted from discontinued operations | (1.40 | ) | (0.11 | ) | (1.02 | ) | 0.08 | ||||||||
Diluted attributable to common stockholders | $ | (1.42 | ) | $ | (0.24 | ) | $ | (1.25 | ) | $ | (0.54 | ) | |||
Weighted average common shares outstanding | |||||||||||||||
Basic | 288.2 | 286.7 | 288.1 | 285.8 | |||||||||||
Diluted | 288.2 | 286.7 | 288.1 | 285.8 |
4 |
September 30, | December 31, | ||||||
(in millions) | 2018 | 2017 | |||||
Assets | |||||||
Cash and cash equivalents | $ | 252.2 | $ | 258.4 | |||
Accounts receivable, net of allowance for doubtful accounts of $7.8 and $8.2 at September 30, 2018 and December 31, 2017, respectively | 400.3 | 399.8 | |||||
Inventories | 210.2 | 186.4 | |||||
Prepaid expenses and other current assets | 59.6 | 63.9 | |||||
Current assets of discontinued operations | 1,545.0 | 1,432.1 | |||||
Total current assets | 2,467.3 | 2,340.6 | |||||
Property, plant and equipment, net | 270.1 | 287.4 | |||||
Goodwill | 2,187.4 | 2,252.6 | |||||
Intangible assets, net | 1,054.4 | 1,160.8 | |||||
Other assets | 28.8 | 42.4 | |||||
Non-current assets of discontinued operations | 3,383.5 | 4,168.6 | |||||
Total assets | $ | 9,391.5 | $ | 10,252.4 | |||
Liabilities & stockholders' equity | |||||||
Accounts payable | $ | 112.7 | $ | 111.2 | |||
Accrued expenses and other current liabilities | 171.5 | 215.6 | |||||
Current liabilities of discontinued operations | 842.4 | 764.9 | |||||
Total current liabilities | 1,126.6 | 1,091.7 | |||||
Debt and capital lease obligations | 5,389.9 | 5,437.1 | |||||
Pension and post-retirement benefits | 53.4 | 56.3 | |||||
Deferred income taxes | 145.3 | 170.0 | |||||
Contingent consideration | 81.7 | 79.2 | |||||
Other liabilities | 76.9 | 85.5 | |||||
Non-current liabilities of discontinued operations | 406.4 | 472.6 | |||||
Total liabilities | 7,280.2 | 7,392.4 | |||||
Stockholders' equity | |||||||
Preferred stock - Series A | — | — | |||||
Common stock: 400.0 shares authorized (2018: 288.3 shares issued; 2017: 287.4 shares issued) | 2.9 | 2.9 | |||||
Additional paid-in capital | 4,054.0 | 4,032.0 | |||||
Treasury stock (2018 and 2017: 0.0 shares) | (0.1 | ) | (0.1 | ) | |||
Accumulated deficit | (1,230.6 | ) | (871.0 | ) | |||
Accumulated other comprehensive loss | (780.0 | ) | (420.7 | ) | |||
Total stockholders' equity | 2,046.2 | 2,743.1 | |||||
Non-controlling interests | 65.1 | 116.9 | |||||
Total equity | 2,111.3 | 2,860.0 | |||||
Total liabilities and stockholders' equity | $ | 9,391.5 | $ | 10,252.4 |
5 |
Three Months Ended | Nine Months Ended | |||||||||||||||||||
(in millions) | September 30, 2018 | June 30, 2018 | March 31, 2018 | September 30, 2018 | September 30, 2017 | |||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||
Net (loss) income | $ | (405.9 | ) | $ | 11.8 | $ | 38.0 | $ | (356.1 | ) | $ | (149.9 | ) | |||||||
(Loss) income from discontinued operations, net of tax | (401.6 | ) | 61.4 | 46.9 | (293.3 | ) | 23.1 | |||||||||||||
Net loss from continuing operations | (4.3 | ) | (49.6 | ) | (8.9 | ) | (62.8 | ) | (173.0 | ) | ||||||||||
Reconciliation of net loss to net cash flows used in operating activities: | ||||||||||||||||||||
Depreciation and amortization | 38.7 | 39.6 | 40.2 | 118.5 | 116.5 | |||||||||||||||
Deferred income taxes | 5.2 | (17.4 | ) | (0.6 | ) | (12.8 | ) | (32.9 | ) | |||||||||||
Foreign exchange loss (gain) | 4.3 | 0.9 | (8.6 | ) | (3.4 | ) | 40.6 | |||||||||||||
Other, net | 12.6 | 10.1 | (4.5 | ) | 18.2 | 36.9 | ||||||||||||||
Changes in assets and liabilities (net of acquisitions): | ||||||||||||||||||||
Accounts receivable | (4.4 | ) | 0.4 | (11.7 | ) | (15.7 | ) | (26.7 | ) | |||||||||||
Inventories | (3.7 | ) | (10.1 | ) | (17.0 | ) | (30.8 | ) | (22.8 | ) | ||||||||||
Accounts payable | (7.4 | ) | 7.3 | 4.9 | 4.8 | 6.7 | ||||||||||||||
Accrued expenses | (40.9 | ) | 40.5 | (39.5 | ) | (39.9 | ) | (9.9 | ) | |||||||||||
Prepaid expenses and other current assets | (6.8 | ) | 11.4 | 6.1 | 10.7 | (15.2 | ) | |||||||||||||
Other assets and liabilities | (7.0 | ) | 3.6 | (9.8 | ) | (13.2 | ) | 14.8 | ||||||||||||
Net cash flows (used in) provided by operating activities | (13.7 | ) | 36.7 | (49.4 | ) | (26.4 | ) | (65.0 | ) | |||||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Capital expenditures | (8.6 | ) | (6.2 | ) | (4.8 | ) | (19.6 | ) | (24.5 | ) | ||||||||||
Proceeds from disposal of property, plant and equipment | 0.1 | 1.6 | — | 1.7 | 14.2 | |||||||||||||||
Proceeds from the sale of equity investment | — | — | 25.0 | 25.0 | — | |||||||||||||||
Acquisition of business, net of cash acquired | — | (28.2 | ) | — | (28.2 | ) | — | |||||||||||||
Other, net | 2.3 | 1.6 | (0.8 | ) | 3.1 | (4.2 | ) | |||||||||||||
Net cash flows (used in) provided by investing activities | (6.2 | ) | (31.2 | ) | 19.4 | (18.0 | ) | (14.5 | ) | |||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Change in lines of credit, net | (60.0 | ) | 8.0 | 52.0 | — | 25.6 | ||||||||||||||
Debt proceeds, net of discount and premium | — | — | — | — | 1,927.2 | |||||||||||||||
Repayments of borrowings | (0.2 | ) | (0.1 | ) | (0.1 | ) | (0.4 | ) | (1,955.5 | ) | ||||||||||
Debt prepayment and debt extinguishment costs | — | — | — | — | (6.1 | ) | ||||||||||||||
Other, net | 0.3 | (0.3 | ) | (0.4 | ) | (0.4 | ) | (0.3 | ) | |||||||||||
Net cash flows (used in) provided by financing activities | (59.9 | ) | 7.6 | 51.5 | (0.8 | ) | (9.1 | ) | ||||||||||||
Cash flows from discontinued operations: | ||||||||||||||||||||
Net cash flows provided by (used in) operating activities | 42.0 | 32.7 | (111.7 | ) | (37.0 | ) | 133.3 | |||||||||||||
Net cash flows used in investing activities | (11.6 | ) | (8.3 | ) | (12.6 | ) | (32.5 | ) | (20.7 | ) | ||||||||||
Net cash flows provided by (used in) financing activities | 17.9 | 21.4 | 22.7 | 62.0 | (66.5 | ) | ||||||||||||||
Net cash flows provided by (used in) discontinued operations | 48.3 | 45.8 | (101.6 | ) | (7.5 | ) | 46.1 | |||||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (7.8 | ) | (29.9 | ) | 14.1 | (23.6 | ) | 27.3 | ||||||||||||
Net (decrease) increase in cash, cash equivalents and restricted cash | (39.3 | ) | 29.0 | (66.0 | ) | (76.3 | ) | (15.2 | ) | |||||||||||
Cash, cash equivalents and restricted cash at beginning of period (1) | 446.9 | 417.9 | 483.9 | 483.9 | 423.5 | |||||||||||||||
Cash, cash equivalents and restricted cash at end of period (2) | $ | 407.6 | $ | 446.9 | $ | 417.9 | $ | 407.6 | $ | 408.3 |
6 |
I. UNAUDITED RESULTS - CONTINUING OPERATIONS | ||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||
($ amounts in millions) | 2018 | 2017 | Reported | Constant Currency | Organic | 2018 | 2017 | Reported | Constant Currency | Organic | ||||||||||||||||||
Net Sales | $ | 488.5 | $ | 480.6 | 2% | 4% | 3% | $ | 1,482.6 | $ | 1,390.0 | 7% | 4% | 4% | ||||||||||||||
Adjusted EBITDA | $ | 108.3 | $ | 107.8 | 1% | 3% | $ | 321.8 | $ | 297.7 | 8% | 5% | ||||||||||||||||
Reported | Constant Currency | Reported | Constant Currency | |||||||||||||||||||||||||
2018 | 2017 | Change | 2018 | Change | 2018 | 2017 | Change | 2018 | Change | |||||||||||||||||||
Adjusted EBITDA Margin | 22.2% | 22.4% | (20) bps | 22.2% | (20) bps | 21.7% | 21.4% | 30 bps | 21.6% | 20 bps |
II. UNAUDITED CAPITAL STRUCTURE | |||||||||
(in millions) | Maturity | Coupon | September 30, 2018 | ||||||
Instrument | |||||||||
Corporate Revolver | 6/7/2020 | $ | — | ||||||
Term Loan B6 - USD | (1) (2) | 6/7/2023 | L + 300 | 1,135.3 | |||||
Term Loan B7 - USD | (1) | 6/7/2020 | L + 250 | 630.3 | |||||
Term Loan C5 - EUR | (1) (2) | 6/7/2023 | E + 275 | 695.9 | |||||
Term Loan C6 - EUR | (1) | 6/7/2020 | E + 250 | 677.8 | |||||
Other Secured Debt | 10.5 | ||||||||
Other Secured Debt - discontinued operations | 5.0 | ||||||||
Total First Lien Debt | 3,154.8 | ||||||||
Senior Notes due 2022 | 2/1/2022 | 6.5% | 1,100.0 | ||||||
Senior Notes due 2023 (Euro) | 2/1/2023 | 6% | 406.3 | ||||||
Senior Notes due 2025 | 12/1/2025 | 5.875% | 800.0 | ||||||
Other Unsecured Debt - discontinued operations | 71.5 | ||||||||
Total Unsecured Debt | 2,377.8 | ||||||||
Total Debt | 5,532.6 | ||||||||
Cash Balance - continuing operations | 252.2 | ||||||||
Cash Balance - discontinued operations | 151.2 | ||||||||
Net Debt | $ | 5,129.2 | |||||||
Adjusted Shares Outstanding | (3) | 302.1 | |||||||
Market Capitalization | (4) | $ | 3,767.2 | ||||||
Total Capitalization | $ | 8,896.4 |
(1) | Platform swapped certain of its floating term loans to fixed rate including $1.13 billion of its USD tranches and €277 million of its Euro tranches. At September 30, 2018, approximately 32% of debt was floating and 68% was fixed. |
(2) | These term loans mature on June 7, 2023, provided that the Company prepays, redeems or otherwise retires and/or refinances in full its 6.50% USD Senior Notes due 2022, as permitted under its Amended and Restated Credit Agreement, on or prior to November 2, 2021, otherwise the maturity reverts to November 2, 2021. |
(3) | See "Non-GAAP Adjusted Common Shares at September 30, 2018 and 2017 (Unaudited)" following the Adjusted Earnings Per Share table below. |
(4) | Based on Platform's closing price of $12.47 at September 28, 2018, the last trading day of Q3 2018. |
7 |
III. SELECTED FINANCIAL DATA - CONTINUING OPERATIONS | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(in millions) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Interest expense | $ | 78.8 | $ | 84.9 | $ | 235.2 | $ | 256.8 | |||||||
Interest paid | 85.8 | 89.1 | 232.8 | 244.0 | |||||||||||
Income tax (benefit) expense | (18.8 | ) | (1.6 | ) | 21.1 | 20.2 | |||||||||
Income taxes paid | 18.6 | 18.1 | 58.5 | 54.5 | |||||||||||
Capital expenditures | 8.6 | 6.7 | 19.6 | 24.5 | |||||||||||
Proceeds from disposal of property, plant and equipment | 0.1 | 10.1 | 1.7 | 14.2 |
8 |
Reported Net Sales Growth | Impact of Currency | Constant Currency | Change in Pass-Through Metals Pricing | Acquisitions/ (Divestitures) | Organic Sales Growth | ||||||
Three Months Ended September 30, 2018 | 2% | 2% | 4% | —% | —% | 3% | |||||
Nine Months Ended September 30, 2018 | 7% | (3)% | 4% | —% | —% | 4% |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
(in millions, except per share amounts) | 2018 | 2017 | 2018 | 2017 | ||||||||||||
Net loss attributable to common stockholders | $ | (408.9 | ) | $ | (69.2 | ) | $ | (359.6 | ) | $ | (154.7 | ) | ||||
Net loss (income) from discontinued operations attributable to common stockholders | 402.6 | 31.5 | 294.1 | (21.1 | ) | |||||||||||
Net loss from continuing operations attributable to common stockholders | (6.3 | ) | (37.7 | ) | (65.5 | ) | (175.8 | ) | ||||||||
Reversal of amortization expense | (1) | 27.8 | 27.7 | 84.7 | 81.7 | |||||||||||
Restructuring expense | (2) | 1.0 | 8.9 | 4.3 | 16.2 | |||||||||||
Acquisition and integration costs | (3) | 5.2 | 0.4 | 9.7 | 3.9 | |||||||||||
Legal settlement | (4) | — | — | — | (10.6 | ) | ||||||||||
Foreign exchange loss on foreign denominated external and internal long-term debt | (5) | 3.8 | 11.5 | 0.7 | 49.3 | |||||||||||
Debt refinancing costs | (6) | — | 0.8 | — | 14.6 | |||||||||||
Gain on sale of equity investment | (7) | — | — | (11.3 | ) | — | ||||||||||
Other, net | (8) | 4.8 | — | 8.2 | 4.3 | |||||||||||
Tax effect of pre-tax non-GAAP adjustments | (9) | (14.4 | ) | (17.3 | ) | (32.7 | ) | (55.8 | ) | |||||||
Adjustment to estimated effective tax rate | (9) | (11.1 | ) | 11.9 | 35.2 | 73.7 | ||||||||||
Adjustment to reverse income attributable to certain non-controlling interests | (10) | 2.0 | 0.7 | 2.6 | 2.6 | |||||||||||
Adjusted net income from continuing operations attributable to common stockholders | $ | 12.8 | $ | 6.9 | $ | 35.9 | $ | 4.1 | ||||||||
Adjusted earnings per share from continuing operations | (11) | $ | 0.04 | $ | 0.02 | $ | 0.12 | $ | 0.01 | |||||||
Adjusted common shares outstanding | (11) | 302.1 | 300.2 | 302.0 | 300.3 |
(1) | The Company eliminates the amortization associated with intangible assets recognized in purchase accounting for acquisitions The Company believes this adjustment provides insight with respect to the cash flows necessary to maintain and enhance the Company's product portfolio. |
(2) | The Company adjusts for costs of restructuring its operations, including those related to its acquired businesses. The Company adjusts these costs because it believes they are not reflective of ongoing operations. |
(3) | The Company adjusts for costs associated with acquisition and integration activity, including costs of obtaining related financing such as investment banking, legal and accounting fees, and transfer taxes. The Company adjusts these costs because it believes they are not reflective of ongoing operations. |
(4) | The Company adjusts for certain legal settlements which it believes are not considered reflective of ongoing operations, including the 2017 settlement agreement between MacDermid Printing Solutions LLC (now known as MacDermid Graphics Solutions LLC) and E.I. du Pont de Nemours and Company (now known as DowDuPont Inc.) which resulted in a net gain of $10.6 million in 2017. |
(5) | The Company adjusts for foreign exchanges gains and losses on long-term intercompany and third-party debt because it expects the period-to-period movement of these currencies to offset on a long-term basis and, due to their long-term nature, are not fully realized. The Company does not exclude foreign exchange gains and losses on short-term intercompany and third-party payables and receivables. |
(6) | The Company adjusts for costs related to its 2017 term loans refinancings because it believes they are not reflective of ongoing operations. |
(7) | The Company adjusts for a gain on the sale of an equity investment in 2018 because it believes it is not reflective of ongoing operations. |
(8) | The Company's 2018 adjustments include employee expenses associated with the Announced Arysta Sale that do not qualify for discontinued operations, non-cash changes in the fair value of contingent consideration, certain profession consulting fees and hedge ineffectiveness charges. The Company's 2017 adjustments include non-cash change in the fair value of contingent consideration and a non-recurring severance payment to a senior executive. The Company adjusts these costs because they are not considered to be reflective of ongoing operations. |
(9) | The Company adjusts its effective tax rate to 34% for the three and nine months ended September 30, 2018. This adjustment does not reflect the Company’s current or near-term tax structure, including limitations on its ability to utilize net operating losses and foreign tax credits in certain jurisdictions. These factors significantly increase the Company's effective tax rate from 34%. The Company also applies an effective tax rate of 34% to pre-tax non-GAAP adjustments. For the three and nine months ended September 30, 2017, before the enactment of the Tax Reform in December 2017, the Company adjusted its effective tax rate to 35%. The Company adjusts the effective tax rates because it believes it provides a meaningful comparison of its performance between periods. |
(10) | The Company adjusts for the income or loss attributable to non-controlling interest created at the time of the acquisition of MacDermid, Incorporated because holders of such equity interest are expected to convert their holdings into shares of Platform's common stock. The Company adjusts these non-controlling |
10 |
(11) | The Company defines "Adjusted common shares" as the outstanding shares of Platform's common stock at September 30, 2018 and 2017 plus the number of shares that would be issued if all Platform's convertible stock were converted into common stock, stock options were vested and exercised, and awarded equity grants were vested at September 30, 2018 and 2017. The Company adjusts the outstanding shares of Platform's common stock for this calculation to provide an understanding of the Company’s results of operations on a per share basis. See table below for further information. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
(in millions) | 2018 | 2017 | 2018 | 2017 | |||||||
Basic outstanding common shares | 288.3 | 287.1 | 288.2 | 286.3 | |||||||
Number of shares issuable upon conversion of PDH Common Stock | 4.1 | 5.1 | 4.1 | 5.8 | |||||||
Number of shares issuable upon conversion of Series A Preferred Stock | 2.0 | 2.0 | 2.0 | 2.0 | |||||||
Number of shares issuable upon vesting and exercise of Stock Options | 0.7 | 0.7 | 0.7 | 0.7 | |||||||
Number of shares issuable upon vesting of granted Equity Awards | 7.0 | 5.3 | 7.0 | 5.4 | |||||||
Adjusted common shares outstanding | 302.1 | 300.2 | 302.0 | 300.3 |
11 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
(in millions) | 2018 | 2017 | 2018 | 2017 | ||||||||||||
Net loss attributable to common stockholders | $ | (408.9 | ) | $ | (69.2 | ) | $ | (359.6 | ) | $ | (154.7 | ) | ||||
Add (subtract): | ||||||||||||||||
Net income attributable to the non-controlling interests | 3.0 | 2.9 | 3.5 | 4.8 | ||||||||||||
Loss (income) from discontinued operations, net of tax | 401.6 | 29.4 | 293.3 | (23.1 | ) | |||||||||||
Income tax (benefit) expense | (18.8 | ) | (1.6 | ) | 21.1 | 20.2 | ||||||||||
Interest expense, net | 77.9 | 84.7 | 233.4 | 256.3 | ||||||||||||
Depreciation expense | 10.9 | 12.3 | 33.8 | 34.8 | ||||||||||||
Amortization expense | 27.8 | 27.7 | 84.7 | 81.7 | ||||||||||||
EBITDA | 93.5 | 86.2 | 310.2 | 220.0 | ||||||||||||
Adjustments to reconcile to Adjusted EBITDA: | ||||||||||||||||
Restructuring expense | (2) | 1.0 | 8.9 | 4.3 | 16.2 | |||||||||||
Acquisition and integration costs | (3) | 5.2 | 0.4 | 9.7 | 3.9 | |||||||||||
Legal settlement | (4) | — | — | — | (10.6 | ) | ||||||||||
Foreign exchange loss on foreign denominated external and internal long-term debt | (5) | 3.8 | 11.5 | 0.7 | 49.3 | |||||||||||
Debt refinancing costs | (6) | — | 0.8 | — | 14.6 | |||||||||||
Gain on sale of equity investment | (7) | — | — | (11.3 | ) | — | ||||||||||
Other, net | (8) | 4.8 | — | 8.2 | 4.3 | |||||||||||
Adjusted EBITDA | $ | 108.3 | $ | 107.8 | $ | 321.8 | $ | 297.7 |
12 |
• | Platform's condensed consolidated financial statements and the notes thereto as of and for the six months ended June 30, 2018 and 2017, and Management's Discussion and Analysis of Financial Condition and Results of Operations included in Platform's Quarterly Reports on Form 10-Q for the quarters ended June 30, 2018 and 2017; |
• | Platform's condensed consolidated financial statements and the notes thereto as of and for the three months ended March 31, 2018 and 2017, and Management's Discussion and Analysis of Financial Condition and Results of Operations included in Platform's Quarterly Reports on Form 10-Q for the quarters ended March 31, 2018 and 2017; |
• | Platform's consolidated financial statements and the notes thereto as of and for the years ended December 31, 2017, 2016 and 2015, and Management's Discussions and Analysis of Financial Condition and Results of Operations included in Platform's Annual Reports on Form 10-K for the years ended December 31, 2017, 2016 and 2015; and |
• | The risk factors outlined under the caption "Risk Factors" within each of the Reports listed above. |
Six Months Ended June 30, 2018 | Three Months Ended March 31, 2018 | |||||||||||||||||||||||
(in millions, except per share amounts) | PAH Historical | Adjustments for Arysta Sale | PAH Recasted | PAH Historical | Adjustments for Arysta Sale | PAH Recasted | ||||||||||||||||||
Net sales | $ | 1,986.6 | $ | (992.5 | ) | $ | 994.1 | $ | 964.1 | $ | (471.6 | ) | $ | 492.5 | ||||||||||
Cost of sales | 1,159.0 | (590.7 | ) | 568.3 | 559.4 | (278.0 | ) | 281.4 | ||||||||||||||||
Gross profit | 827.6 | (401.8 | ) | 425.8 | 404.7 | (193.6 | ) | 211.1 | ||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Selling, technical, general and administrative | 557.0 | (271.9 | ) | 285.1 | 277.0 | (136.2 | ) | 140.8 | ||||||||||||||||
Research and development | 49.4 | (26.8 | ) | 22.6 | 23.5 | (12.1 | ) | 11.4 | ||||||||||||||||
Total operating expenses | 606.4 | (298.7 | ) | 307.7 | 300.5 | (148.3 | ) | 152.2 | ||||||||||||||||
Operating profit | 221.2 | (103.1 | ) | 118.1 | 104.2 | (45.3 | ) | 58.9 | ||||||||||||||||
Other expense: | ||||||||||||||||||||||||
Interest expense, net | (157.7 | ) | 2.2 | (155.5 | ) | (78.2 | ) | 1.0 | (77.2 | ) | ||||||||||||||
Foreign exchange gain | 5.8 | (0.7 | ) | 5.1 | 58.0 | (50.5 | ) | 7.5 | ||||||||||||||||
Other income, net | 30.9 | (17.2 | ) | 13.7 | 19.0 | (7.2 | ) | 11.8 | ||||||||||||||||
Total other expense | (121.0 | ) | (15.7 | ) | (136.7 | ) | (1.2 | ) | (56.7 | ) | (57.9 | ) | ||||||||||||
Income (loss) before income taxes and non-controlling interests | 100.2 | (118.8 | ) | (18.6 | ) | 103.0 | (102.0 | ) | 1.0 | |||||||||||||||
Income tax expense | (50.4 | ) | 10.5 | (39.9 | ) | (65.0 | ) | 55.1 | (9.9 | ) | ||||||||||||||
Net income (loss) | 49.8 | (108.3 | ) | (58.5 | ) | 38.0 | (46.9 | ) | (8.9 | ) | ||||||||||||||
Net income attributable to the non-controlling interests | (0.5 | ) | (0.2 | ) | (0.7 | ) | (0.7 | ) | (0.6 | ) | (1.3 | ) | ||||||||||||
Net income (loss) attributable to common stockholders | $ | 49.3 | $ | (108.5 | ) | $ | (59.2 | ) | $ | 37.3 | $ | (47.5 | ) | $ | (10.2 | ) | ||||||||
Earnings (Loss) per share | ||||||||||||||||||||||||
Basic | $ | 0.17 | $ | (0.21 | ) | $ | 0.13 | $ | (0.04 | ) | ||||||||||||||
Diluted | $ | 0.17 | $ | (0.21 | ) | $ | 0.13 | $ | (0.04 | ) | ||||||||||||||
Weighted average common shares outstanding | ||||||||||||||||||||||||
Basic | 288.0 | 288.0 | 287.9 | 287.9 | ||||||||||||||||||||
Diluted | 297.9 | 288.0 | 293.8 | 287.9 |
Year Ended December 31, 2017 | Six Months Ended June 30, 2017 | Three Months Ended March 31, 2017 | |||||||||||||||||||||||||||||||||||
(in millions, except per share amounts) | PAH Historical (*) | Adjustments for Arysta Sale | PAH Recasted | PAH Historical | Adjustments for Arysta Sale | PAH Recasted | PAH Historical | Adjustments for Arysta Sale | PAH Recasted | ||||||||||||||||||||||||||||
Net sales | $ | 3,775.9 | $ | (1,897.3 | ) | $ | 1,878.6 | $ | 1,802.9 | $ | (893.5 | ) | $ | 909.4 | $ | 861.8 | $ | (414.7 | ) | $ | 447.1 | ||||||||||||||||
Cost of sales | 2,186.9 | (1,122.1 | ) | 1,064.8 | 1,024.6 | (508.6 | ) | 516.0 | 483.4 | (233.1 | ) | 250.3 | |||||||||||||||||||||||||
Gross profit | 1,589.0 | (775.2 | ) | 813.8 | 778.3 | (384.9 | ) | 393.4 | 378.4 | (181.6 | ) | 196.8 | |||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||||||
Selling, technical, general and administrative | 1,098.6 | (531.4 | ) | 567.2 | 541.7 | (261.7 | ) | 280.0 | 257.4 | (119.0 | ) | 138.4 | |||||||||||||||||||||||||
Research and development | 98.4 | (52.0 | ) | 46.4 | 46.7 | (24.1 | ) | 22.6 | 21.6 | (10.7 | ) | 10.9 | |||||||||||||||||||||||||
Goodwill impairment | 160.0 | (160.0 | ) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Total operating expenses | 1,357.0 | (743.4 | ) | 613.6 | 588.4 | (285.8 | ) | 302.6 | 279.0 | (129.7 | ) | 149.3 | |||||||||||||||||||||||||
Operating profit | 232.0 | (31.8 | ) | 200.2 | 189.9 | (99.1 | ) | 90.8 | 99.4 | (51.9 | ) | 47.5 | |||||||||||||||||||||||||
Other expense: | |||||||||||||||||||||||||||||||||||||
Interest expense, net | (341.6 | ) | 4.7 | (336.9 | ) | (174.4 | ) | 2.8 | (171.6 | ) | (89.4 | ) | 1.6 | (87.8 | ) | ||||||||||||||||||||||
Foreign exchange loss | (107.5 | ) | 53.8 | (53.7 | ) | (72.5 | ) | 36.2 | (36.3 | ) | (12.6 | ) | 7.3 | (5.3 | ) | ||||||||||||||||||||||
Other (expense) income, net | (71.9 | ) | 1.9 | (70.0 | ) | 3.2 | (0.4 | ) | 2.8 | (2.3 | ) | 3.5 | 1.2 | ||||||||||||||||||||||||
Total other expense | (521.0 | ) | 60.4 | (460.6 | ) | (243.7 | ) | 38.6 | (205.1 | ) | (104.3 | ) | 12.4 | (91.9 | ) | ||||||||||||||||||||||
Loss before income taxes and non-controlling interests | (289.0 | ) | 28.6 | (260.4 | ) | (53.8 | ) | (60.5 | ) | (114.3 | ) | (4.9 | ) | (39.5 | ) | (44.4 | ) | ||||||||||||||||||||
Income tax (expense) benefit | (6.6 | ) | 75.2 | 68.6 | (29.8 | ) | 8.0 | (21.8 | ) | (18.7 | ) | 0.9 | (17.8 | ) | |||||||||||||||||||||||
Net loss | (295.6 | ) | 103.8 | (191.8 | ) | (83.6 | ) | (52.5 | ) | (136.1 | ) | (23.6 | ) | (38.6 | ) | (62.2 | ) | ||||||||||||||||||||
Net income attributable to the non-controlling interests | (0.6 | ) | (1.7 | ) | (2.3 | ) | (1.9 | ) | (0.1 | ) | (2.0 | ) | (0.8 | ) | (1.1 | ) | (1.9 | ) | |||||||||||||||||||
Net loss attributable to common stockholders | $ | (296.2 | ) | $ | 102.1 | $ | (194.1 | ) | $ | (85.5 | ) | $ | (52.6 | ) | $ | (138.1 | ) | $ | (24.4 | ) | $ | (39.7 | ) | $ | (64.1 | ) | |||||||||||
Loss per share | |||||||||||||||||||||||||||||||||||||
Basic | $ | (1.04 | ) | $ | (0.68 | ) | $ | (0.30 | ) | $ | (0.48 | ) | $ | (0.09 | ) | $ | (0.23 | ) | |||||||||||||||||||
Diluted | $ | (1.04 | ) | $ | (0.68 | ) | $ | (0.30 | ) | $ | (0.48 | ) | $ | (0.09 | ) | $ | (0.23 | ) | |||||||||||||||||||
Weighted average common shares outstanding | |||||||||||||||||||||||||||||||||||||
Basic | 286.1 | 286.1 | 285.3 | 285.3 | 284.5 | 284.5 | |||||||||||||||||||||||||||||||
Diluted | 286.1 | 286.1 | 285.3 | 285.3 | 284.5 | 284.5 |
Year Ended December 31, 2016 | Year Ended December 31, 2015 | |||||||||||||||||||||||
(in millions, except per share amounts) | PAH Historical (*) | Adjustments for Arysta Sale | PAH Recasted | PAH Historical (*) | Adjustments for Arysta Sale | PAH Recasted | ||||||||||||||||||
Net sales | $ | 3,585.9 | $ | (1,815.8 | ) | $ | 1,770.1 | $ | 2,542.3 | $ | (1,741.6 | ) | $ | 800.7 | ||||||||||
Cost of sales | 2,078.2 | (1,085.4 | ) | 992.8 | 1,550.4 | (1,137.1 | ) | 413.3 | ||||||||||||||||
Gross profit | 1,507.7 | (730.4 | ) | 777.3 | 991.9 | (604.5 | ) | 387.4 | ||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Selling, technical, general and administrative | 1,121.0 | (524.7 | ) | 596.3 | 860.1 | (520.2 | ) | 339.9 | ||||||||||||||||
Research and development | 84.4 | (39.4 | ) | 45.0 | 62.8 | (37.4 | ) | 25.4 | ||||||||||||||||
Goodwill impairment | 46.6 | — | 46.6 | — | — | — | ||||||||||||||||||
Total operating expenses | 1,252.0 | (564.1 | ) | 687.9 | 922.9 | (557.6 | ) | 365.3 | ||||||||||||||||
Operating profit | 255.7 | (166.3 | ) | 89.4 | 69.0 | (46.9 | ) | 22.1 | ||||||||||||||||
Other expense: | ||||||||||||||||||||||||
Interest expense, net | (375.7 | ) | 3.4 | (372.3 | ) | (213.9 | ) | 7.2 | (206.7 | ) | ||||||||||||||
Foreign exchange loss | (14.1 | ) | (20.4 | ) | (34.5 | ) | (43.4 | ) | 16.5 | (26.9 | ) | |||||||||||||
Other income (expense), net | 86.0 | (0.4 | ) | 85.6 | (41.0 | ) | (0.1 | ) | (41.1 | ) | ||||||||||||||
Total other expense | (303.8 | ) | (17.4 | ) | (321.2 | ) | (298.3 | ) | 23.6 | (274.7 | ) | |||||||||||||
Loss before income taxes and non-controlling interests | (48.1 | ) | (183.7 | ) | (231.8 | ) | (229.3 | ) | (23.3 | ) | (252.6 | ) | ||||||||||||
Income tax (expense) benefit | (28.6 | ) | 69.9 | 41.3 | (75.1 | ) | 79.0 | 3.9 | ||||||||||||||||
Net loss | (76.7 | ) | (113.8 | ) | (190.5 | ) | (304.4 | ) | 55.7 | (248.7 | ) | |||||||||||||
Net loss (income) attributable to the non-controlling interests | 3.0 | 2.6 | 5.6 | (4.2 | ) | 5.3 | 1.1 | |||||||||||||||||
Net loss attributable to stockholders | (73.7 | ) | (111.2 | ) | (184.9 | ) | (308.6 | ) | 61.0 | (247.6 | ) | |||||||||||||
Gain on amendment of Series B Convertible Preferred Stock | 32.9 | — | 32.9 | — | — | — | ||||||||||||||||||
Net loss attributable to common stockholders | $ | (40.8 | ) | $ | (111.2 | ) | $ | (152.0 | ) | $ | (308.6 | ) | $ | 61.0 | $ | (247.6 | ) | |||||||
Loss per share | ||||||||||||||||||||||||
Basic | $ | (0.17 | ) | $ | (0.62 | ) | $ | (1.52 | ) | $ | (1.22 | ) | ||||||||||||
Diluted | $ | (0.65 | ) | $ | (1.06 | ) | $ | (1.52 | ) | $ | (1.22 | ) | ||||||||||||
Weighted average common shares outstanding | ||||||||||||||||||||||||
Basic | 243.3 | 243.3 | 203.2 | 203.2 | ||||||||||||||||||||
Diluted | 272.3 | 272.3 | 203.2 | 203.2 |
June 30, 2018 | March 31, 2018 | |||||||||||||||||||||||
(in millions) | PAH Historical | Adjustments for Arysta Sale | PAH Recasted | PAH Historical | Adjustments for Arysta Sale | PAH Recasted | ||||||||||||||||||
Assets | ||||||||||||||||||||||||
Cash and cash equivalents | $ | 442.4 | $ | (162.1 | ) | $ | 280.3 | $ | 412.6 | $ | (150.5 | ) | $ | 262.1 | ||||||||||
Accounts receivable, net | 1,241.4 | (838.3 | ) | 403.1 | 1,270.9 | (850.0 | ) | 420.9 | ||||||||||||||||
Inventories | 583.8 | (373.2 | ) | 210.6 | 611.6 | (401.2 | ) | 210.4 | ||||||||||||||||
Prepaid expenses | 47.3 | (28.9 | ) | 18.4 | 48.4 | (24.0 | ) | 24.4 | ||||||||||||||||
Other current assets | 186.9 | (152.4 | ) | 34.5 | 208.6 | (167.3 | ) | 41.3 | ||||||||||||||||
Total current assets | 2,501.8 | (1,554.9 | ) | 946.9 | 2,552.1 | (1,593.0 | ) | 959.1 | ||||||||||||||||
Property, plant and equipment, net | 429.7 | (153.5 | ) | 276.2 | 451.0 | (166.8 | ) | 284.2 | ||||||||||||||||
Goodwill | 4,043.8 | (1,825.4 | ) | 2,218.4 | 4,276.4 | (1,978.3 | ) | 2,298.1 | ||||||||||||||||
Intangible assets, net | 2,896.7 | (1,799.4 | ) | 1,097.3 | 3,126.6 | (1,972.3 | ) | 1,154.3 | ||||||||||||||||
Other assets | 106.4 | (70.6 | ) | 35.8 | 141.1 | (102.7 | ) | 38.4 | ||||||||||||||||
Total assets | $ | 9,978.4 | $ | (5,403.8 | ) | $ | 4,574.6 | $ | 10,547.2 | $ | (5,813.1 | ) | $ | 4,734.1 | ||||||||||
Liabilities & stockholders' equity | ||||||||||||||||||||||||
Accounts payable | $ | 464.4 | $ | (343.3 | ) | $ | 121.1 | $ | 498.1 | $ | (380.1 | ) | $ | 118.0 | ||||||||||
Current installments of long-term debt and revolving credit facilities | 138.8 | (67.1 | ) | 71.7 | 116.3 | (51.1 | ) | 65.2 | ||||||||||||||||
Accrued expenses and other current liabilities | 582.4 | (379.1 | ) | 203.3 | 620.9 | (453.9 | ) | 167.0 | ||||||||||||||||
Total current liabilities | 1,185.6 | (789.5 | ) | 396.1 | 1,235.3 | (885.1 | ) | 350.2 | ||||||||||||||||
Debt and capital lease obligations | 5,402.0 | (4.7 | ) | 5,397.3 | 5,495.2 | (4.5 | ) | 5,490.7 | ||||||||||||||||
Pension and post-retirement benefits | 65.7 | (12.1 | ) | 53.6 | 70.1 | (13.6 | ) | 56.5 | ||||||||||||||||
Deferred income taxes | 524.9 | (369.5 | ) | 155.4 | 569.3 | (393.9 | ) | 175.4 | ||||||||||||||||
Contingent consideration | 80.7 | — | 80.7 | 79.7 | — | 79.7 | ||||||||||||||||||
Other liabilities | 115.1 | (38.4 | ) | 76.7 | 130.6 | (48.1 | ) | 82.5 | ||||||||||||||||
Total liabilities | 7,374.0 | (1,214.2 | ) | 6,159.8 | 7,580.2 | (1,345.2 | ) | 6,235.0 | ||||||||||||||||
Total equity | 2,604.4 | (4,189.6 | ) | (1,585.2 | ) | 2,967.0 | (4,467.9 | ) | (1,500.9 | ) | ||||||||||||||
Total liabilities and stockholders' equity | $ | 9,978.4 | $ | (5,403.8 | ) | $ | 4,574.6 | $ | 10,547.2 | $ | (5,813.1 | ) | $ | 4,734.1 |
December 31, 2017 | December 31, 2016 | |||||||||||||||||||||||
(in millions) | PAH Historical | Adjustments for Arysta Sale | PAH Recasted | PAH Historical | Adjustments for Arysta Sale | PAH Recasted | ||||||||||||||||||
Assets | ||||||||||||||||||||||||
Cash and cash equivalents | $ | 477.8 | $ | (219.4 | ) | $ | 258.4 | $ | 422.6 | $ | (186.5 | ) | $ | 236.1 | ||||||||||
Accounts receivable, net | 1,140.3 | (740.5 | ) | 399.8 | 1,050.9 | (699.7 | ) | 351.2 | ||||||||||||||||
Inventories | 490.4 | (304.0 | ) | 186.4 | 416.4 | (251.3 | ) | 165.1 | ||||||||||||||||
Prepaid expenses | 42.8 | (22.6 | ) | 20.2 | 71.3 | (53.9 | ) | 17.4 | ||||||||||||||||
Other current assets | 189.3 | (145.6 | ) | 43.7 | 110.0 | (69.3 | ) | 40.7 | ||||||||||||||||
Total current assets | 2,340.6 | (1,432.1 | ) | 908.5 | 2,071.2 | (1,260.7 | ) | 810.5 | ||||||||||||||||
Property, plant and equipment, net | 452.3 | (164.9 | ) | 287.4 | 460.5 | (155.8 | ) | 304.7 | ||||||||||||||||
Goodwill | 4,201.2 | (1,948.6 | ) | 2,252.6 | 4,178.9 | (2,046.4 | ) | 2,132.5 | ||||||||||||||||
Intangible assets, net | 3,137.3 | (1,976.5 | ) | 1,160.8 | 3,233.3 | (2,024.4 | ) | 1,208.9 | ||||||||||||||||
Other assets | 121.0 | (78.5 | ) | 42.5 | 110.2 | (79.2 | ) | 31.0 | ||||||||||||||||
Total assets | $ | 10,252.4 | $ | (5,600.6 | ) | $ | 4,651.8 | $ | 10,054.1 | $ | (5,566.5 | ) | $ | 4,487.6 | ||||||||||
Liabilities & stockholders' equity | ||||||||||||||||||||||||
Accounts payable | $ | 461.8 | $ | (350.6 | ) | $ | 111.2 | $ | 383.6 | $ | (276.2 | ) | $ | 107.4 | ||||||||||
Current installments of long-term debt and revolving credit facilities | 38.9 | (28.8 | ) | 10.1 | 116.1 | (86.3 | ) | 29.8 | ||||||||||||||||
Accrued expenses and other current liabilities | 591.1 | (385.5 | ) | 205.6 | 583.0 | (379.2 | ) | 203.8 | ||||||||||||||||
Total current liabilities | 1,091.8 | (764.9 | ) | 326.9 | 1,082.7 | (741.7 | ) | 341.0 | ||||||||||||||||
Debt and capital lease obligations | 5,440.6 | (3.5 | ) | 5,437.1 | 5,122.9 | (2.6 | ) | 5,120.3 | ||||||||||||||||
Pension and post-retirement benefits | 69.0 | (12.7 | ) | 56.3 | 73.8 | (10.3 | ) | 63.5 | ||||||||||||||||
Deferred income taxes | 579.6 | (409.6 | ) | 170.0 | 663.2 | (443.9 | ) | 219.3 | ||||||||||||||||
Contingent consideration | 79.2 | — | 79.2 | 75.8 | — | 75.8 | ||||||||||||||||||
Other liabilities | 132.2 | (46.7 | ) | 85.5 | 145.9 | (57.4 | ) | 88.5 | ||||||||||||||||
Total liabilities | 7,392.4 | (1,237.4 | ) | 6,155.0 | 7,164.3 | (1,255.9 | ) | 5,908.4 | ||||||||||||||||
Redeemable preferred stock - Series B | — | — | — | — | — | — | ||||||||||||||||||
Total equity | 2,860.0 | (4,363.2 | ) | (1,503.2 | ) | 2,889.8 | (4,310.6 | ) | (1,420.8 | ) | ||||||||||||||
Total liabilities and stockholders' equity | $ | 10,252.4 | $ | (5,600.6 | ) | $ | 4,651.8 | $ | 10,054.1 | $ | (5,566.5 | ) | $ | 4,487.6 |
Six Months Ended June 30, 2018 | Three Months Ended March 31, 2018 | |||||||||||||||||||||||
(in millions) | PAH Historical | Adjustments for Arysta Sale | PAH Recasted | PAH Historical | Adjustments for Arysta Sale | PAH Recasted | ||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||||||
Net income (loss) | $ | 49.8 | $ | (108.3 | ) | $ | (58.5 | ) | $ | 38.0 | $ | (46.9 | ) | $ | (8.9 | ) | ||||||||
Reconciliation of net income (loss) to net cash flows used in operating activities: | ||||||||||||||||||||||||
Depreciation and amortization | 183.5 | (103.7 | ) | 79.8 | 91.7 | (51.5 | ) | 40.2 | ||||||||||||||||
Deferred income taxes | (21.4 | ) | 3.4 | (18.0 | ) | (22.3 | ) | 21.7 | (0.6 | ) | ||||||||||||||
Foreign exchange gain | (22.8 | ) | 15.1 | (7.7 | ) | (67.5 | ) | 58.9 | (8.6 | ) | ||||||||||||||
Other, net | 11.4 | (5.8 | ) | 5.6 | (3.2 | ) | (1.3 | ) | (4.5 | ) | ||||||||||||||
Changes in assets and liabilities, net of acquisitions: | ||||||||||||||||||||||||
Accounts receivable | (167.8 | ) | 156.5 | (11.3 | ) | (131.0 | ) | 119.3 | (11.7 | ) | ||||||||||||||
Inventories | (112.3 | ) | 85.2 | (27.1 | ) | (105.2 | ) | 88.2 | (17.0 | ) | ||||||||||||||
Accounts payable | 24.3 | (12.1 | ) | 12.2 | 33.1 | (28.2 | ) | 4.9 | ||||||||||||||||
Accrued expenses | 9.4 | (8.4 | ) | 1.0 | 22.8 | (62.3 | ) | (39.5 | ) | |||||||||||||||
Prepaid expenses and other current assets | (34.3 | ) | 51.8 | 17.5 | (27.0 | ) | 33.1 | 6.1 | ||||||||||||||||
Other assets and liabilities | (11.5 | ) | 5.3 | (6.2 | ) | 9.5 | (19.3 | ) | (9.8 | ) | ||||||||||||||
Net cash flows used in operating activities | $ | (91.7 | ) | $ | 79.0 | $ | (12.7 | ) | $ | (161.1 | ) | $ | 111.7 | $ | (49.4 | ) | ||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||
Capital expenditures | $ | (24.3 | ) | $ | 13.3 | $ | (11.0 | ) | $ | (10.0 | ) | $ | 5.2 | $ | (4.8 | ) | ||||||||
Investment in registrations of products | (20.3 | ) | 20.3 | — | (13.2 | ) | 13.2 | — | ||||||||||||||||
Proceeds from beneficial interests on sold accounts receivable | 34.2 | (34.2 | ) | — | 10.0 | (10.0 | ) | — | ||||||||||||||||
Proceeds from disposal of property, plant and equipment | 1.9 | (0.3 | ) | 1.6 | — | — | — | |||||||||||||||||
Other, net | (24.2 | ) | 21.8 | (2.4 | ) | 20.0 | 4.2 | 24.2 | ||||||||||||||||
Net cash flows (used in) provided by investing activities | $ | (32.7 | ) | $ | 20.9 | $ | (11.8 | ) | $ | 6.8 | $ | 12.6 | $ | 19.4 | ||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||
Net cash flows provided by financing activities | $ | 103.2 | $ | (44.1 | ) | $ | 59.1 | $ | 74.2 | $ | (22.7 | ) | $ | 51.5 |
Six Months Ended June 30, 2017 | Three Months Ended March 31, 2017 | |||||||||||||||||||||||
(in millions) | PAH Historical | Adjustments for Arysta Sale | PAH Recasted | PAH Historical | Adjustments for Arysta Sale | PAH Recasted | ||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||||||
Net loss | $ | (83.6 | ) | $ | (52.5 | ) | $ | (136.1 | ) | $ | (23.6 | ) | $ | (38.6 | ) | $ | (62.2 | ) | ||||||
Reconciliation of net loss to net cash flows used in operating activities: | ||||||||||||||||||||||||
Depreciation and amortization | 172.9 | (96.4 | ) | 76.5 | 85.9 | (48.2 | ) | 37.7 | ||||||||||||||||
Deferred income taxes | (19.9 | ) | (2.4 | ) | (22.3 | ) | (14.2 | ) | 6.9 | (7.3 | ) | |||||||||||||
Foreign exchange loss | 70.2 | (35.0 | ) | 35.2 | 13.7 | (8.7 | ) | 5.0 | ||||||||||||||||
Other, net | 41.2 | (13.4 | ) | 27.8 | 12.8 | (0.8 | ) | 12.0 | ||||||||||||||||
Changes in assets and liabilities, net of acquisitions: | ||||||||||||||||||||||||
Accounts receivable | (72.4 | ) | 60.5 | (11.9 | ) | (120.1 | ) | 119.0 | (1.1 | ) | ||||||||||||||
Inventories | (86.5 | ) | 60.6 | (25.9 | ) | (83.9 | ) | 67.7 | (16.2 | ) | ||||||||||||||
Accounts payable | 41.1 | (38.7 | ) | 2.4 | 32.9 | (26.7 | ) | 6.2 | ||||||||||||||||
Accrued expenses | (14.7 | ) | 20.5 | 5.8 | (15.9 | ) | 6.4 | (9.5 | ) | |||||||||||||||
Prepaid expenses and other current assets | (47.0 | ) | 20.3 | (26.7 | ) | (2.6 | ) | (7.4 | ) | (10.0 | ) | |||||||||||||
Other assets and liabilities | (11.6 | ) | 22.1 | 10.5 | (4.5 | ) | 2.1 | (2.4 | ) | |||||||||||||||
Net cash flows used in operating activities | $ | (10.3 | ) | $ | (54.4 | ) | $ | (64.7 | ) | $ | (119.5 | ) | $ | 71.7 | $ | (47.8 | ) | |||||||
Cash flows from investing activities: | ||||||||||||||||||||||||
Capital expenditures | $ | (28.7 | ) | $ | 10.9 | $ | (17.8 | ) | $ | (14.9 | ) | $ | 4.0 | $ | (10.9 | ) | ||||||||
Investment in registrations of products | (18.1 | ) | 18.1 | — | (12.9 | ) | 12.9 | — | ||||||||||||||||
Proceeds from beneficial interests on sold accounts receivable | 2.4 | (2.4 | ) | — | 0.1 | (0.1 | ) | — | ||||||||||||||||
Proceeds from disposal of property, plant and equipment | 4.0 | 0.1 | 4.1 | 4.0 | — | 4.0 | ||||||||||||||||||
Other, net | (5.0 | ) | 0.4 | (4.6 | ) | (1.7 | ) | 0.4 | (1.3 | ) | ||||||||||||||
Net cash flows used in investing activities | $ | (45.4 | ) | $ | 27.1 | $ | (18.3 | ) | $ | (25.4 | ) | $ | 17.2 | $ | (8.2 | ) | ||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||
Net cash flows provided by financing activities | $ | 42.0 | $ | 38.5 | $ | 80.5 | $ | 78.9 | $ | (2.8 | ) | $ | 76.1 |
Year Ended December 31, 2017 | Year Ended December 31, 2016 | |||||||||||||||||||||||
(in millions) | PAH Historical | Adjustments for Arysta Sale | PAH Recasted | PAH Historical | Adjustments for Arysta Sale | PAH Recasted | ||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||||||
Net loss | $ | (295.6 | ) | $ | 103.8 | $ | (191.8 | ) | $ | (76.7 | ) | $ | (138.3 | ) | $ | (215.0 | ) | |||||||
Reconciliation of net loss to net cash flows used in operating activities: | ||||||||||||||||||||||||
Depreciation and amortization | 354.2 | (198.2 | ) | 156.0 | 342.3 | (183.9 | ) | 158.4 | ||||||||||||||||
Deferred income taxes | (126.6 | ) | (37.8 | ) | (164.4 | ) | (57.4 | ) | (42.4 | ) | (99.8 | ) | ||||||||||||
Amortization of inventory step-up | — | — | — | 11.7 | — | 11.7 | ||||||||||||||||||
Foreign exchange loss | 114.0 | (68.2 | ) | 45.8 | 43.8 | (9.8 | ) | 34.0 | ||||||||||||||||
Goodwill impairment | 160.0 | (160.0 | ) | — | 46.6 | — | 46.6 | |||||||||||||||||
Gain on settlement agreement related to Series B Convertible | — | — | — | (103.0 | ) | — | (103.0 | ) | ||||||||||||||||
Other, net | 89.9 | (14.8 | ) | 75.1 | 85.2 | (16.2 | ) | 69.0 | ||||||||||||||||
Changes in assets and liabilities, net of acquisitions: | ||||||||||||||||||||||||
Accounts receivable | (41.4 | ) | 19.9 | (21.5 | ) | (19.1 | ) | (24.1 | ) | (43.2 | ) | |||||||||||||
Inventories | (30.3 | ) | 21.1 | (9.2 | ) | 70.4 | (62.8 | ) | 7.6 | |||||||||||||||
Accounts payable | 50.0 | (53.3 | ) | (3.3 | ) | (67.3 | ) | 58.1 | (9.2 | ) | ||||||||||||||
Accrued expenses | (9.2 | ) | 11.7 | 2.5 | 38.8 | (12.3 | ) | 26.5 | ||||||||||||||||
Prepaid expenses and other current assets | (78.8 | ) | 65.8 | (13.0 | ) | (3.7 | ) | 19.5 | 15.8 | |||||||||||||||
Other assets and liabilities | (44.0 | ) | 124.7 | 80.7 | (130.2 | ) | 158.5 | 28.3 | ||||||||||||||||
Net cash flows provided by (used in) operating activities | $ | 142.2 | $ | (185.3 | ) | $ | (43.1 | ) | $ | 181.4 | $ | (253.7 | ) | $ | (72.3 | ) | ||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||
Capital expenditures | $ | (59.4 | ) | $ | 28.6 | $ | (30.8 | ) | $ | (56.3 | ) | $ | 23.7 | $ | (32.6 | ) | ||||||||
Investment in registrations of products | (40.7 | ) | 40.7 | — | (36.4 | ) | 36.4 | — | ||||||||||||||||
Proceeds from beneficial interests on sold accounts receivable | 40.1 | (40.1 | ) | — | 3.4 | (3.4 | ) | — | ||||||||||||||||
Proceeds from disposal of property, plant and equipment | 17.5 | (0.6 | ) | 16.9 | 20.6 | (11.2 | ) | 9.4 | ||||||||||||||||
Other, net | (5.0 | ) | — | (5.0 | ) | (2.1 | ) | (0.8 | ) | (2.9 | ) | |||||||||||||
Net cash flows used in investing activities | $ | (47.5 | ) | $ | 28.6 | $ | (18.9 | ) | $ | (70.8 | ) | $ | 44.7 | $ | (26.1 | ) | ||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||
Net cash flows (used in) provided by financing activities | $ | (67.4 | ) | $ | 74.5 | $ | 7.1 | $ | (102.2 | ) | $ | (19.9 | ) | $ | (122.1 | ) |
Six Months Ended June 30, | |||||||||||
($ amounts in millions) | 2018 | 2017 | Reported | Constant Currency | |||||||
Adjusted EBITDA | |||||||||||
PAH historical | $ | 433.2 | $ | 398.3 | 9% | 3% | |||||
Adjustment for Arysta sale | (219.7 | ) | (208.4 | ) | |||||||
Adjusted EBITDA from continuing operations | $ | 213.5 | $ | 189.9 | 12% | 6% |
Three Months Ended March 31, | |||||||||||
($ amounts in millions) | 2018 | 2017 | Reported | Constant Currency | |||||||
Adjusted EBITDA | |||||||||||
PAH historical | $ | 207.2 | $ | 193.1 | 7% | (3)% | |||||
Adjustment for Arysta sale | (103.1 | ) | (98.7 | ) | |||||||
Adjusted EBITDA from continuing operations | $ | 104.1 | $ | 94.4 | 10% | 2% |
Year Ended December 31 | |||||||||||
($ amounts in millions) | 2017 | 2016 | Reported | Constant Currency | |||||||
Adjusted EBITDA | |||||||||||
PAH historical | $ | 820.9 | $ | 769.5 | 7% | 7% | |||||
Adjustment for Arysta sale | (419.7 | ) | (401.1 | ) | |||||||
Adjusted EBITDA from continuing operations | $ | 401.2 | $ | 368.4 | 9% | 9% |
Six Months Ended June 30, | Three Months Ended March 31, | Year Ended December 31, | |||||||||||
2018 | 2017 | 2018 | 2017 | 2017 | 2016 | ||||||||
Net Sales Growth | 9% | 6% | 10% | 6% | 6% | 121% | |||||||
Impact of Currency | (5)% | 2% | (7)% | 2% | —% | 2% | |||||||
Constant Currency | 4% | 8% | 3% | 9% | 6% | 123% | |||||||
Change in Pass-Through Metals Pricing | —% | (3)% | 1% | (3)% | (1)% | (2)% | |||||||
Acquisitions/ (Divestitures) | —% | —% | —% | (1)% | —% | (120)% | |||||||
Organic Sales Growth | 4% | 5% | 4% | 5% | 4% | 1% |
Six Months Ended June 30, | Three Months Ended March 31, | |||||||||||||||
(in millions, except per share amounts) | 2018 | 2017 | 2018 | 2017 | ||||||||||||
Net income (loss) attributable to common stockholders | $ | 49.3 | $ | (85.5 | ) | $ | 37.3 | $ | (24.4 | ) | ||||||
Income from discontinued operations, net of tax | (108.3 | ) | (52.5 | ) | (46.9 | ) | (38.6 | ) | ||||||||
Net (loss) from discontinued operations attributable to the non-controlling interests | (0.2 | ) | (0.1 | ) | (0.6 | ) | (1.1 | ) | ||||||||
Net loss from continuing operations attributable to common stockholders | (59.2 | ) | (138.1 | ) | (10.2 | ) | (64.1 | ) | ||||||||
Adjustments: | ||||||||||||||||
Reversal of amortization expense | (1) | 56.9 | 54.0 | 28.5 | 26.6 | |||||||||||
Restructuring expense | (2) | 3.3 | 7.3 | 1.7 | 2.3 | |||||||||||
Acquisition and integration costs | (4) | 4.5 | 3.5 | 1.0 | 3.1 | |||||||||||
Legal settlement | (5) | — | (10.6 | ) | — | — | ||||||||||
Foreign exchange (gain) loss on foreign denominated external and internal long-term debt | (6) | (3.1 | ) | 37.8 | (7.7 | ) | 4.2 | |||||||||
Debt refinancing costs | (7) | — | 13.8 | — | 1.0 | |||||||||||
Gain on sale of equity investment | (11) | (11.3 | ) | — | (11.3 | ) | — | |||||||||
Other, net | (12) | 3.4 | 4.3 | 2.0 | 2.7 | |||||||||||
Tax effect of pre-tax non-GAAP adjustments | (13) | (18.3 | ) | (38.5 | ) | (4.8 | ) | (14.0 | ) | |||||||
Adjustment to estimated effective tax rate | (13) | 46.3 | 61.8 | 9.5 | 33.4 | |||||||||||
Adjustment to reverse income attributable to certain non-controlling interests | (14) | 0.6 | 1.9 | 1.2 | 1.9 | |||||||||||
Adjusted net income (loss) from continuing operations attributable to common stockholders | $ | 23.1 | $ | (2.8 | ) | $ | 9.9 | $ | (2.9 | ) | ||||||
Adjusted earnings (loss) per share | (15) | $ | 0.08 | $ | (0.01 | ) | $ | 0.03 | $ | (0.01 | ) | |||||
Adjusted common shares outstanding | (15) | 302.0 | 300.3 | 302.0 | 300.3 |
Twelve Months Ended December 31, | ||||||||
(in millions, except per share amounts) | 2017 | 2016 | ||||||
Net loss attributable to common stockholders | $ | (296.2 | ) | $ | (40.8 | ) | ||
Loss (income) from discontinued operations, net of tax | 103.8 | (113.8 | ) | |||||
Net (loss) income from discontinued operations attributable to the non-controlling interests | (1.7 | ) | 2.6 | |||||
Net loss from continuing operations attributable to common stockholders | (194.1 | ) | (152.0 | ) | ||||
Adjustments: | ||||||||
Reversal of amortization expense | (1) | 109.6 | 109.1 | |||||
Restructuring expense | (2) | 23.5 | 25.0 | |||||
Amortization of inventory step-up | (3) | — | 11.7 | |||||
Acquisition and integration costs | (4) | 4.1 | 25.1 | |||||
Legal settlement | (5) | (10.8 | ) | — | ||||
Foreign exchange loss on foreign denominated external and internal long-term debt | (6) | 53.4 | 25.8 | |||||
Debt refinancing costs | (7) | 83.1 | 19.7 | |||||
Goodwill impairment | (8) | — | 46.6 | |||||
Gain on settlement agreement related to Series B Convertible Preferred Stock | (9) | — | (103.0 | ) | ||||
Non-cash change in fair value of preferred stock redemption liability | (9) | — | 5.0 | |||||
Pension Plan Settlement | (10) | 10.5 | 1.7 | |||||
Other, net | (12) | 4.9 | 14.6 | |||||
Tax effect of pre-tax non-GAAP adjustments | (13) | (97.4 | ) | (63.5 | ) | |||
Adjustment to estimated effective tax rate | (13) | 22.5 | 39.9 | |||||
Gain on amendment of Series B Convertible Preferred Stock | (9) | — | (32.9 | ) | ||||
Adjustment to reverse income (loss) attributable to certain non-controlling interests | (14) | 2.1 | (5.9 | ) | ||||
Adjusted net income (loss) from continuing operations attributable to common stockholders | $ | 11.4 | $ | (33.1 | ) | |||
Adjusted earnings (loss) per share | (15) | $ | 0.04 | $ | (0.12 | ) | ||
Adjusted common shares outstanding | (15) | 300.1 | 282.3 |
(1) | The Company eliminates the amortization associated with intangible assets recognized in purchase accounting for acquisitions. The Company believes this adjustment provides insight with respect to the cash flows necessary to maintain and enhance the Company's product portfolio. |
(2) | The Company adjusts for costs of restructuring its operations, including those related to its acquired businesses. The Company adjusts these costs because it believes they are not reflective of ongoing operations. |
(3) | Adjustment for purchase accounting fair value adjustment to inventory associated with the acquisitions of Alent plc and OMG Electronic Chemicals (M) Sdn Bhd ("OMG Malaysia"), charged to cost of sales. The Company adjusts these costs because they are not considered to be reflective of ongoing operations. |
(4) | The Company adjusts for costs associated with acquisition and integration activity, including costs of obtaining related financing such as investment banking, legal and accounting fees, and transfer taxes. The Company adjusts these costs because it believes they are not reflective of ongoing operations. |
(5) | The Company adjusts for certain legal settlements which it believes are not considered reflective of ongoing operations, including the 2017 settlement agreement between MacDermid Printing Solutions LLC (now known as MacDermid Graphics Solutions LLC) and E.I. du Pont de Nemours and Company (now known as DowDuPont Inc.). |
(6) | The Company adjusts for foreign exchanges gains and losses on long-term intercompany and third-party debt because it expects the period-to-period movement of these currencies to offset on a long-term basis and, due to their long-term nature, are not fully realized. The Company does not exclude foreign exchange gains and losses on short-term intercompany and third-party payables and receivables. |
(7) | The Company adjusts for costs related to its 2017 term loans refinancings because it believes they are not reflective of ongoing operations. |
(8) | The Company recorded non-cash impairment charges of $46.6 million related to its Performance Solutions segment in 2016. The Company adjusts these charges because they are not considered to be reflective of ongoing operations. |
(9) | The Company accounted for a settlement agreement amending its Series B Convertible Preferred Stock and, as a result, recognized gains in net income of $103 million and income available to common stockholders of $32.9 million related to this amendment. Further, the Company recognized a full-year net loss of $5.0 million related to the adjustment of the Series B Convertible Preferred Stock to fair value subsequent to this amendment. The Company adjusted these gains and losses because they are not considered to be representative of ongoing operations. These gains and losses were included in income available to common stockholders for the computation of GAAP basic earnings per share; however, they were excluded for the calculation of GAAP diluted earnings per share. |
(10) | The Company adjusts for costs related to pension plan settlements and curtailments. 2017 adjustments related primarily to the settlement of the Company's |
(11) | The Company adjusts for a gain on the sale of an equity investment in 2018 because it believes it is not reflective of ongoing operations. |
(12) | The Company adjusts for non-cash changes in the fair value of contingent consideration for all periods presented. The Company's 2017 adjustments include a non-recurring severance payment to a senior executive. The Company adjusts these costs because they are not considered to be reflective of ongoing operations. |
(13) | The Company adjusts its effective tax rate to 34% for the six months ended June 30, 2018 and the three months ended March 31, 2018. This adjustment does not reflect the Company’s current or near-term tax structure, including limitations on its ability to utilize net operating losses and foreign tax credits in certain jurisdictions. These factors significantly increase the Company's effective tax rate from 34%. The Company also applies an effective tax rate of 34% to pre-tax non-GAAP adjustments. For the six months ended June 30, 2017, the three months ended March 31, 2017, and the twelve months ended December 31, 2017 and 2016, before the enactment of the Tax Reform in December 2017, the Company adjusted its effective tax rate to 35%. The Company adjusts the effective tax rates because it believes it provides a meaningful comparison of its performance between periods. |
(14) | The Company adjusts for the income or loss attributable to non-controlling interest created at the time of the acquisition of MacDermid, Incorporated because holders of such equity interest are expected to convert their holdings into shares of Platform's common stock. The Company adjusts these non-controlling interests because it believes they are not reflective of ongoing operations. |
(15) | The Company defines "Adjusted common shares" as the outstanding shares of Platform's common stock at each period presented plus the number of shares that would be issued if all Platform's convertible stock were converted into common stock, stock options were vested and exercised, and awarded equity grants were vested at each period presented. The Company adjusts the outstanding shares of Platform's common stock for this calculation to provide an understanding of the Company’s results of operations on a per share basis. See table below for further information. |
Twelve Months Ended December 31, | |||||
(in millions) | 2017 | 2016 | |||
Basic outstanding common shares | 286.6 | 255.4 | |||
Number of shares issuable upon conversion of Series B Convertible Preferred Stock | — | 16.6 | |||
Number of shares issuable upon conversion of PDH Common Stock | 5.5 | 7.9 | |||
Number of shares issuable upon conversion of Series A Preferred Stock | 2.0 | 2.0 | |||
Number of shares issuable upon vesting and exercise of Stock Options | 0.7 | 0.6 | |||
Number of shares issuable upon vesting of granted Equity Awards | 5.3 | 4.0 | |||
Net impact of pending Series B Convertible Preferred Stock actions | — | (4.2 | ) | ||
Adjusted common shares outstanding | 300.1 | 282.3 |
Six Months Ended June 30, | Three Months Ended March 31, | ||||||||||
(in millions) | 2018 | 2017 | 2018 | 2017 | |||||||
Basic outstanding common shares | 288.2 | 286.0 | 288.1 | 285.7 | |||||||
Number of shares issuable upon conversion of PDH Common Stock | 4.1 | 6.1 | 4.2 | 6.4 | |||||||
Number of shares issuable upon conversion of Series A Preferred Stock | 2.0 | 2.0 | 2.0 | 2.0 | |||||||
Number of shares issuable upon vesting and exercise of Stock Options | 0.7 | 0.7 | 0.7 | 0.7 | |||||||
Number of shares issuable upon vesting of granted Equity Awards | 7.0 | 5.5 | 7.0 | 5.5 | |||||||
Adjusted common shares outstanding | 302.0 | 300.3 | 302.0 | 300.3 |
Six Months Ended June 30, | Three Months Ended March 31, | |||||||||||||||
(in millions) | 2018 | 2017 | 2018 | 2017 | ||||||||||||
Net income (loss) attributable to common stockholders | $ | 49.3 | $ | (85.5 | ) | $ | 37.3 | $ | (24.4 | ) | ||||||
Add (subtract): | ||||||||||||||||
Net income attributable to the non-controlling interests | 0.5 | 1.9 | 0.7 | 0.8 | ||||||||||||
Loss from discontinued operations, net of tax | (108.3 | ) | (52.5 | ) | (46.9 | ) | (38.6 | ) | ||||||||
Income tax expense | 39.9 | 21.8 | 9.9 | 17.8 | ||||||||||||
Interest expense, net | 155.5 | 171.6 | 77.2 | 87.8 | ||||||||||||
Depreciation expense | 22.9 | 22.5 | 11.7 | 11.1 | ||||||||||||
Amortization expense | 56.9 | 54.0 | 28.5 | 26.6 | ||||||||||||
EBITDA | 216.7 | 133.8 | 118.4 | 81.1 | ||||||||||||
Adjustments to reconcile to Adjusted EBITDA: | ||||||||||||||||
Restructuring expense | (2) | 3.3 | 7.3 | 1.7 | 2.3 | |||||||||||
Acquisition and integration costs | (4) | 4.5 | 3.5 | 1.0 | 3.1 | |||||||||||
Legal settlement | (5) | — | (10.6 | ) | — | — | ||||||||||
Foreign exchange (gain) loss on foreign denominated external and internal long-term debt | (6) | (3.1 | ) | 37.8 | (7.7 | ) | 4.2 | |||||||||
Debt refinancing costs | (7) | — | 13.8 | — | 1.0 | |||||||||||
Gain on sale of equity investment | (11) | (11.3 | ) | — | (11.3 | ) | — | |||||||||
Other, net | (12) | 3.4 | 4.3 | 2.0 | 2.7 | |||||||||||
Adjusted EBITDA | $ | 213.5 | $ | 189.9 | $ | 104.1 | $ | 94.4 |
Twelve Months Ended December 31, | ||||||||
(in millions) | 2017 | 2016 | ||||||
Net loss attributable to common stockholders | $ | (296.2 | ) | $ | (40.8 | ) | ||
Add (subtract): | ||||||||
Gain on amendment of Series B Convertible Preferred Stock | (9) | — | (32.9 | ) | ||||
Net income (loss) attributable to the non-controlling interests | 0.6 | (3.0 | ) | |||||
Loss (income) from discontinued operations, net of tax | 103.8 | (113.8 | ) | |||||
Income tax benefit | (68.6 | ) | (41.3 | ) | ||||
Interest expense, net | 336.9 | 372.3 | ||||||
Depreciation expense | 46.4 | 46.6 | ||||||
Amortization expense | 109.6 | 109.1 | ||||||
EBITDA | 232.5 | 296.2 | ||||||
Adjustments to reconcile to Adjusted EBITDA: | ||||||||
Restructuring expense | (2) | 23.5 | 25.0 | |||||
Amortization of inventory step-up | (3) | — | 11.7 | |||||
Acquisition and integration costs | (4) | 4.1 | 25.1 | |||||
Legal settlement | (5) | (10.8 | ) | — | ||||
Foreign exchange loss on foreign denominated external and internal long-term debt | (6) | 53.4 | 25.8 | |||||
Debt refinancing costs | (7) | 83.1 | 19.7 | |||||
Goodwill impairment | (8) | — | 46.6 | |||||
Gain on settlement agreement related to Series B Convertible Preferred Stock | (9) | — | (103.0 | ) | ||||
Non-cash change in fair value of preferred stock redemption liability | (9) | — | 5.0 | |||||
Pension plan settlement and curtailment | (10) | 10.5 | 1.7 | |||||
Other, net | (12) | 4.9 | 14.6 | |||||
Adjusted EBITDA | $ | 401.2 | $ | 368.4 |
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