Nexeo Solutions, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited, in millions, except share amounts and par value)
| Three Months Ended June 30, | ||||||||
| 2018 | 2017 | |||||||
| Sales and operating revenues | $ | 1,046.4 | $ | 942.7 | ||||
| Cost of sales and operating expenses | 926.2 | 840.0 | ||||||
| Gross profit | 120.2 | 102.7 | ||||||
| Selling, general and administrative expenses | 88.8 | 79.4 | ||||||
| Transaction related costs | — | 0.2 | ||||||
| Change in fair value of contingent consideration obligations | (8.7 | ) | (0.8 | ) | ||||
| Operating income | 40.1 | 23.9 | ||||||
| Other income, net | 0.4 | 5.7 | ||||||
| Interest income (expense) | ||||||||
| Interest income | 0.2 | — | ||||||
| Interest expense | (13.5 | ) | (13.5 | ) | ||||
| Net income before income taxes | 27.2 | 16.1 | ||||||
| Income tax expense | 9.7 | 5.9 | ||||||
| Net income attributable to Nexeo Solutions, Inc. | $ | 17.5 | $ | 10.2 | ||||
| Net income per share available to common stockholders | ||||||||
| Basic | $ | 0.23 | $ | 0.13 | ||||
| Diluted | $ | 0.23 | $ | 0.13 | ||||
| Weighted average number of common shares outstanding | ||||||||
| Basic | 76,797,414 | 76,743,853 | ||||||
| Diluted | 76,983,350 | 76,828,868 | ||||||
Nexeo Solutions, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(Unaudited, in millions)
| Nine Months Ended June 30, | |||||||
| 2018 | 2017 | ||||||
| Cash flows from operations | |||||||
| Net income | $ | 44.4 | $ | 0.8 | |||
| Adjustments to reconcile to cash flows from operations: | |||||||
| Depreciation and amortization | 57.6 | 53.5 | |||||
| Debt issuance costs amortization, debt issuance costs write-offs and original issue discount amortization | 3.3 | 3.1 | |||||
| Provision for bad debt | 1.5 | (0.1 | ) | ||||
| Deferred income taxes | (4.5 | ) | (0.8 | ) | |||
| Equity-based compensation expense | 5.3 | 4.2 | |||||
| Change in fair value of contingent consideration obligations | (14.7 | ) | 19.8 | ||||
| Gain from sales of property and equipment | (0.6 | ) | — | ||||
| Gain related to reimbursements of certain capital expenditures incurred | — | (8.1 | ) | ||||
| Changes in assets and liabilities: | |||||||
| Accounts and notes receivable | (32.9 | ) | (63.8 | ) | |||
| Inventories | (46.9 | ) | (34.9 | ) | |||
| Other current assets | (0.1 | ) | 3.1 | ||||
| Accounts payable | (8.1 | ) | 11.7 | ||||
| Accrued expenses and other liabilities | 0.8 | (1.1 | ) | ||||
| Changes in other operating assets and liabilities, net | 2.7 | 0.6 | |||||
| Net cash provided by (used in) operating activities | 7.8 | (12.0 | ) | ||||
| Cash flows from investing activities | |||||||
| Additions to property and equipment | (11.8 | ) | (20.7 | ) | |||
| Proceeds from the disposal of property and equipment | 3.3 | 0.4 | |||||
| Proceeds from reimbursement of certain capital expenditures incurred | — | 8.4 | |||||
| Cash paid for asset acquisitions | (11.0 | ) | (63.5 | ) | |||
| Net cash used in investing activities | (19.5 | ) | (75.4 | ) | |||
| Cash flows from financing activities | |||||||
| Cash paid to TPG related to TRA | (4.2 | ) | — | ||||
| Proceeds from short-term debt | 42.7 | 30.1 | |||||
| Repayments of short-term debt | (45.9 | ) | (29.6 | ) | |||
| Proceeds from issuance of long-term debt | 524.7 | 611.6 | |||||
| Repayments of long-term debt and capital lease obligations | (514.3 | ) | (536.7 | ) | |||
| Payment of debt issuance costs | (0.8 | ) | (1.3 | ) | |||
| Net cash provided by financing activities | 2.2 | 74.1 | |||||
| Effect of exchange rate changes on cash and cash equivalents | (0.6 | ) | (0.1 | ) | |||
| Decrease in cash and cash equivalents | (10.1 | ) | (13.4 | ) | |||
| Cash and cash equivalents at the beginning of the period | 53.9 | 47.5 | |||||
| Cash and cash equivalents at the end of the period | $ | 43.8 | $ | 34.1 | |||
| Supplemental disclosure of cash flow information: | |||||||
| Cash paid during the period for interest | $ | 36.0 | $ | 33.9 | |||
| Cash paid during the period for taxes (net of refunds) | $ | 15.9 | $ | 4.3 | |||
| Supplemental disclosure of non-cash investing activities: | |||||||
| Non-cash capital expenditures | $ | 1.4 | $ | 16.0 | |||
| Non-cash intangible assets acquired | $ | — | $ | 3.7 | |||
| Supplemental disclosure of non-cash financing activities: | |||||||
| Non-cash capital lease obligations, net | $ | 0.2 | $ | 13.6 | |||
