Element Solutions (US:ESI)2024-10-29 20:15Financial Performance - Net income for Q3 2024 was $40.4 million, compared to a loss of $31.7 million in Q3 2023, marking a significant turnaround [10]. - Total comprehensive income for Q3 2024 was $81.6 million, while Q3 2023 reported a comprehensive loss of $57.0 million [11]. - The company reported a net income of $189.7 million for the nine months ended September 30, 2024, significantly higher than $41.0 million for the same period in 2023 [14]. - The net income for the three months ended September 30, 2024, was $40.3 million, compared to a net loss of $31.8 million for the same period in 2023, indicating a significant turnaround [17]. - For the nine months ended September 30, 2024, net income was reported at $189.5 million, a significant increase from the previous year's performance [18]. - Basic earnings per share for the nine months ended September 30, 2024, was $0.77, up from $0.16 in the same period of 2023 [61]. Cash and Assets - Cash and cash equivalents increased to $376.0 million as of September 30, 2024, up from $289.3 million at the end of 2023 [14]. - Total assets rose to $5,098.2 million in Q3 2024, compared to $4,974.1 million at the end of 2023 [13]. - Goodwill decreased to $2,220.2 million as of September 30, 2024, down from $2,336.7 million at the end of 2023 [13]. - The total number of common shares outstanding increased to 267,133,844 as of September 30, 2024, from 266,130,782 as of June 30, 2023 [17]. - As of September 30, 2024, total stockholders' equity increased to $2,439.3 million from $2,373.1 million at June 30, 2024, reflecting a growth of approximately 2.8% [16]. Liabilities and Debt - Total liabilities increased slightly to $2,643.5 million in Q3 2024 from $2,629.8 million at the end of 2023 [13]. - The Company recorded a total debt of $1,926.2 million as of September 30, 2024, slightly down from $1,932.5 million at the end of 2023 [37]. - The Company’s total long-term debt was $1,914.7 million as of September 30, 2024, compared to $1,921.0 million at the end of 2023, reflecting a decrease of 0.3% [37]. Income and Expenses - The Company recognized an income tax expense of $36.8 million for the three months ended September 30, 2024, compared to $15.3 million in the same period for 2023 [69]. - The income tax expense for the nine months ended September 30, 2024, included a benefit from the release of valuation allowances of $38.8 million against certain U.K. tax attribute carryforwards [70]. - The Company completed an internal restructuring that resulted in a non-recurring tax expense of $13.6 million during the third quarter of 2024 [69]. Sales and Revenue - Total net sales for the three months ended September 30, 2024, were $645.0 million, an increase from $599.3 million in the same period for 2023, representing an increase of approximately 7.5% [75]. - Adjusted EBITDA for the three months ended September 30, 2024, was $142.7 million, compared to $134.1 million in the same period for 2023, reflecting a growth of about 6.4% [75]. - The Electronics segment reported net sales of $419.1 million for the three months ended September 30, 2024, up from $367.0 million in the same period for 2023, marking an increase of approximately 14.2% [75]. - The Industrial & Specialty segment had net sales of $225.9 million for the three months ended September 30, 2024, down from $232.3 million in the same period for 2023, a decrease of about 2.8% [75]. Other Financial Metrics - The company declared dividends of $0.08 per share, totaling $19.5 million for the quarter ended September 30, 2024 [16]. - The accumulated deficit decreased to $(1,052.4) million as of September 30, 2024, from $(1,073.2) million at June 30, 2024, showing an improvement in financial health [16]. - The fair value of the company's long-term debt was estimated at $1.91 billion as of September 30, 2024 [59]. - The company held commodity derivative contracts with a notional amount of $76.8 million as of September 30, 2024 [55]. - The fair value of cross-currency swaps was a net asset of $0.9 million as of September 30, 2024 [51]. Business Operations - The Company agreed to sell its flexographic printing plate business, MacDermid Graphics Solutions, for approximately $325 million, expected to close in Q4 2024 or H1 2025 [26]. - As of September 30, 2024, total assets held for sale from MacDermid Graphics Solutions amounted to $261.4 million, including $130.4 million in goodwill [28]. - The Company achieved a product qualification milestone related to the Kuprion Acquisition, resulting in a $3.9 million R&D expense [36]. - The Company recorded depreciation expenses of $10.0 million for Q3 2024, compared to $11.8 million for Q3 2023, indicating a decrease of 15.3% [30]. - Amortization expenses on intangible assets were $29.4 million for Q3 2024, down from $32.7 million for Q3 2023, a reduction of 10.1% [35]. Legal and Environmental Matters - The Company is involved in various legal proceedings but believes that their resolutions will not have a material adverse effect on its consolidated financial position [67]. - The Company's environmental liabilities totaled $10.8 million and $11.3 million as of September 30, 2024, and December 31, 2023, respectively, primarily due to environmental remediation and monitoring costs [64]. - An impairment charge of $80.0 million was recorded for the Industrial & Specialty segment due to a goodwill impairment test conducted in Q3 2023 [60].