Workflow
Trinseo(TSE) - 2024 Q4 - Annual Results
TSETrinseo(TSE)2025-02-12 21:24

Financial Performance - Fourth quarter 2024 net sales were 821million,adecreaseof2821 million, a decrease of 2% compared to the prior year, driven by lower sales volumes across all business segments [5]. - The net loss for the fourth quarter was 118 million, an improvement of 147millionyear−over−year,primarilyduetoalowerprovisionforincometaxes[6].−AdjustedEBITDAforthefourthquarterwas147 million year-over-year, primarily due to a lower provision for income taxes [6]. - Adjusted EBITDA for the fourth quarter was 26 million, which was 6millionhigherthanthepreviousyeardespitea6 million higher than the previous year despite a 10 million unfavorable net timing variance [6]. - Full-year 2024 net sales totaled 3.5billion,reflectinga43.5 billion, reflecting a 4% decrease compared to 2023, with lower sales volumes contributing to a 6% decline [7]. - The full-year net loss was 349 million, which was 352millionbetterthantheprioryear,mainlyduetoasignificantgoodwillimpairmentchargerecordedin2023[7].−GrossprofitforQ42024was352 million better than the prior year, mainly due to a significant goodwill impairment charge recorded in 2023 [7]. - Gross profit for Q4 2024 was 56.0 million, significantly up from 20.3millioninQ42023,reflectingagrossmarginimprovement[34].−NetlossfortheyearendedDecember31,2024,was20.3 million in Q4 2023, reflecting a gross margin improvement [34]. - Net loss for the year ended December 31, 2024, was 348.5 million, compared to a net loss of 701.3millionfortheyearendedDecember31,2023,indicatinga50.3701.3 million for the year ended December 31, 2023, indicating a 50.3% reduction in losses [34]. - Adjusted EBITDA for the year ended December 31, 2024, was 203.7 million, up from 154.3millionin2023,representinga32154.3 million in 2023, representing a 32% increase [34]. - Adjusted EPS for the year ended December 31, 2024, was (7.71), compared to (6.92)fortheyearendedDecember31,2023[34].CashFlowandLiquidity−FreeCashFlowforthefourthquarterwas(6.92) for the year ended December 31, 2023 [34]. Cash Flow and Liquidity - Free Cash Flow for the fourth quarter was 64 million, marking a sequential and year-over-year improvement of 67million[4].−FreeCashFlowfortheyearendedDecember31,2024,was67 million [4]. - Free Cash Flow for the year ended December 31, 2024, was 63.9 million, compared to (3.1)millionin2023[40].−CashprovidedbyoperatingactivitiesfortheyearendedDecember31,2024,was(3.1) million in 2023 [40]. - Cash provided by operating activities for the year ended December 31, 2024, was 148.7 million, an increase from (14.2)millionin2023[40].−CashandcashequivalentsattheendofQ42024were(14.2) million in 2023 [40]. - Cash and cash equivalents at the end of Q4 2024 were 209.8 million, down from 259.1millionattheendofQ42023[27].−ThecompanyemphasizesthatFreeCashFlowisanon−GAAPmeasureandmaydifferfromothercompanies′definitions[38].FutureOutlook−Forthefirstquarterof2025,thecompanyexpectsanetlossbetween259.1 million at the end of Q4 2023 [27]. - The company emphasizes that Free Cash Flow is a non-GAAP measure and may differ from other companies' definitions [38]. Future Outlook - For the first quarter of 2025, the company expects a net loss between 55 million and 40millionandAdjustedEBITDAof40 million and Adjusted EBITDA of 65 million to 80million,includingapproximately80 million, including approximately 26 million from the polycarbonate technology license agreement [11]. - Trinseo anticipates seasonally higher volumes in the first quarter but expects year-over-year volume declines due to ongoing weakness in certain end markets [10]. - Adjusted EBITDA for the three months ended March 31, 2025, is projected to be between 60millionand60 million and 80 million [36]. - Net Loss from continuing operations is estimated to be between (60)millionand(60) million and (40) million for the same period [36]. - Adjusted EPS is expected to range from (1.68)to(1.68) to (1.12) for the first quarter of 2025 [36]. Operational Changes - The company agreed to sell its polycarbonate manufacturing assets in Stade, Germany, and license polycarbonate technology to Deepak Chem Tech Limited for $52 million [4]. - The company has executed numerous initiatives to exit loss-generating businesses and improve liquidity and debt maturity profile [4]. Shareholder Information - The company’s weighted average shares outstanding for Q4 2024 were 35.4 million, slightly up from 35.2 million in Q4 2023 [34]. - The weighted average shares for diluted EPS calculation is 35.7 million [36]. - Future share transactions or events that could impact EPS calculations are not included in the forecast [41]. - The company does not forecast reconciling items to Adjusted EBITDA and Adjusted Net Income due to their nature [41].