Business News

PolyOne Announces Strong Fourth Quarter and Full Year 2013 Results

Friday 31. January 2014 - Organic growth across all platforms, plus the addition of Spartech, drove a 42% year-over-year increase in revenue

Fourth Quarter Results
Organic growth across all platforms, plus the addition of Spartech, drove a 42% year-over-year increase in revenue
GAAP earnings per share improved to $0.25 versus $0.03 in the prior year quarter
Adjusted earnings per share increased 44% to $0.26 over the prior year quarter,17th consecutive quarter of double-digit adjusted earnings per share growth
Further enhanced balance sheet with $651 million in liquidity
Full Year Results
Revenue increased 32% versus 2012 driven by solid second half top-line organic growth and the acquisitions of Spartech and Glasforms
GAAP earnings per share of $2.53 significantly exceeded $0.80 in prior year
Adjusted earnings per share grew 31% to $1.31 up from $1.00 in 2012
Specialty portfolio transformation accelerated with the acquisition of Spartech and the divestiture of non-core resin assets
PolyOne Corporation (NYSE: POL) today reported $924 million in revenue for the fourth quarter of 2013, a 42% increase compared to $651 million in the fourth quarter of 2012.
GAAP earnings per share totaled $0.25 in the fourth quarter of 2013, versus $0.03 reported in the fourth quarter of 2012.  Special items for the quarter resulted in a net after-tax charge of $4.9 million, or $0.05 per share (see Attachment 3). Adjusted earnings per share increased 44% to $0.26 for the fourth quarter of 2013, from $0.18 in the fourth quarter of 2012.
Full year revenue in 2013 was $3.8 billion, 32% higher than 2012, primarily driven by the acquisitions of Spartech and Glasforms. GAAP earnings per share were $2.53 for the full year, which included the gain on the sale of the non-core resin assets in May 2013. Adjusted earnings per share for 2013 expanded 31% to $1.31.
“I am extremely pleased with our fourth quarter performance, which brings to a close another record year for PolyOne,” said Stephen D. Newlin, Chairman, President and Chief Executive Officer. “Due to our unwavering focus on executing our four pillar strategy, we have now delivered 17 quarters of consecutive double-digit adjusted earnings per share growth, with a compounded annual growth rate of 24%, a distinguished performance that all of our associates are justifiably proud of.”
Mr. Newlin added, “Since our specialty transformation began, we have worked tirelessly to overhaul our culture and portfolio of businesses to better serve our customers with new and unique specialty solutions.  This year was no exception, as we divested our last remaining base resin assets and reinvested the proceeds in our Specialty Platform with the acquisition of Spartech.  These ambitious moves allowed us to strengthen the broadest portfolio of specialty offerings in the industry and further improve an underlying mix of earnings that has never been stronger.”
Commenting on the Spartech acquisition, Robert M. Patterson, Executive Vice President and Chief Operating Officer said, “We’re very pleased with the speed at which we have been able to capture initial synergies and deliver operating income growth beyond our preliminary expectations.  Spartech added $0.12 to our adjusted earnings per share this year, driven primarily by a reduction in duplicate public company costs, better utilization of manufacturing assets and mix improvement.”
Mr. Patterson added, “In many ways, the expansion of Spartech’s profitability is a replay of how we improved PolyOne in our transformation, only faster.  We have clearly demonstrated our ability to implement and execute proven best practices in previously underperforming businesses.”
Executive Vice President and Chief Financial Officer, Bradley C. Richardson said, “Having joined PolyOne in November, I am excited to be part of an organization whose focus is on improving profitability, growing the business, and becoming the leader in material science formulation. PolyOne’s track record of success is very impressive, yet I believe we are still in the early stages of a multi-year transformation.”
Mr. Richardson continued, “Our core business has never been stronger, and that underlying stability has allowed us to strengthen our balance sheet and financial position while also returning cash to shareholders.  During the quarter, we repurchased approximately 1.2 million shares, bringing our 2013 share buyback total to 5 million shares. We are now 50% toward our goal of repurchasing the 10 million shares issued in conjunction with the acquisition of Spartech, while maintaining strong liquidity of $651 million.”
Outlook
Commenting on the Company’s 2014 outlook, Mr. Newlin said, “We finished 2013 very strong, building on our momentum throughout the year, and we are in an excellent position for another record year in 2014 with strong double-digit adjusted earnings per share growth.  We anticipate our specialty platform will lead the way with new product introductions, growth from emerging markets and further accretion from the legacy Spartech businesses.  We reaffirm our expectation to deliver $2.50 in adjusted earnings per share in 2015.”