OMNOVA Solutions Inc. (OMN, Financial) filed Quarterly Report for the period ended 2011-02-28.
Omnova Solutions Inc. has a market cap of $365 million; its shares were traded at around $8.11 with a P/E ratio of 9.6 and P/S ratio of 0.4. Omnova Solutions Inc. had an annual average earning growth of 0.8% over the past 10 years.
Performance Chemicals net sales increased $100.0 million to $212.8 million during the first quarter of 2011 compared to $112.8 million during the first quarter of 2010. The inclusion of Eliokem sales within Specialty Chemicals added $74.7 million in net sales compared to the prior year. Performance Chemicals legacy business net sales were up $25.3 million as a result of price increases of $14.0 million and volume improvements of $11.5 million, partially offset by $0.2 million of unfavorable foreign currency translation. Net sales for the Paper and Carpet Chemicals product line increased $15.8 million to $87.1 million during the first quarter of 2011 compared to $71.3 million during the first quarter of 2010 driven by price and volume increases. Net sales for the Specialty Chemicals product line, excluding Eliokem, increased $9.5 million to $51.0 million during the first quarter of 2011 compared to $41.5 million during the first quarter of 2010, also due to price and volume increases. While Paper and Specialty Chemicals volumes were up due to market demand and new product introductions, carpet volumes were down 8% year-over-year due to weak market demand.
This segment generated an operating profit of $21.4 million in the first quarter of 2011 compared to $13.8 million in the first quarter of 2010. Eliokem provided operating profit of $5.8 million in the first quarter of 2011. The additional increase in segment operating profit was primarily due to the higher pricing of $14.0 million, margin on improved volumes of $2.0 million and lower SG&A and manufacturing costs of $0.3 million as a result of lower headcount and higher capacity utilization, partially offset by higher raw material costs of $14.7 million. The segment operating profit also includes items which management excludes when evaluating the results of the Companys segments. Those items include $2.7 million due to a one-time fair value adjustment for Eliokem inventory and workforce reduction costs for Eliokem of $0.7 million in the first quarter of 2011 and workforce reduction costs of $0.2 million in the first quarter of 2010 for legacy operations.
Decorative Products net sales increased $4.8 million, or 6.8%, to $75.9 million in the first quarter of 2011 from $71.1 million in the first quarter of 2010 primarily due to higher selling prices of $2.6 million, higher volumes of $1.2 million and favorable foreign exchange translation benefit of $1.0 million. Commercial Wallcovering and Coated Fabrics net sales were $52.9 million in the first quarter of 2011 compared to $50.9 million in the first quarter of 2010 as sales improved in all product lines and geographic regions with the exception of coated fabrics in China. Net sales for the Decorative Laminates and Performance Films product line increased to $23.0 million during the first quarter of 2011 compared to $20.2 million during the first quarter of 2010 as sales improved in all product lines.
Cash used in investing activities was $21.3 million in the first quarter of 2011, compared to $2.1 million in the first quarter of 2010. Included in 2011 is the cash paid for the acquisition of Eliokem of $299.8 million, less cash acquired in the businesses of $30.1 million. Also included was the use of $253.2 million of restricted cash, which primarily consisted of $250.0 million in proceeds from the issuance of the Senior Notes, which was placed in an escrow account in November 2010 until the completion of the acquisition of Eliokem and refinancing of the Companys existing debt on December 9, 2010. Additionally, the Company incurred $4.8 million of capital expenditures in the first quarter of 2011 compared to $2.5 million in the first quarter of 2010. Capital expenditures were made and are planned principally for asset replacement, new product capability, cost reduction, safety and productivity improvements and environmental protection.
Cash provided by financing activities in the first quarter of 2011 was $46.3 million due to the refinancing and increase of the Companys Term Loan B (as described under Purchase Transaction and Long-Term Debt) from $140.9 million to $200 million. This increase was used to complete the acquisition of Eliokem. Cash used in financing activities was $0.4 million in the first quarter of 2010 primarily due to debt repayments. Total debt was $456.6 million as of February 28, 2011, which includes the Senior Notes, $199.5 million for the revised Term Loan and $7.1 million of foreign debt, compared to $390.9 million as of November 30, 2010. The Companys cash balance of $74.0 million at February 28, 2011 consists of $35.2 million in the U.S., $13.5 million in Europe and $25.3 million in Asia. The Company is not aware of any restrictions regarding the repatriation of its non-U.S. cash.
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Omnova Solutions Inc. has a market cap of $365 million; its shares were traded at around $8.11 with a P/E ratio of 9.6 and P/S ratio of 0.4. Omnova Solutions Inc. had an annual average earning growth of 0.8% over the past 10 years.
Highlight of Business Operations:
The Company generated net income of $1.0 million or $0.02 per diluted share in the first quarter of 2011. Included in the first quarter of 2011 are the higher interest expense of $7.5 million, a $1.0 million write-off of deferred financing fees as a result of refinancing actions, $1.9 million of acquisition and integration expense and the $1.1 million tax charge resulting from the liquidation transaction. Net income in the first quarter of 2010 was $7.8 million or $0.17 per diluted share.Performance Chemicals net sales increased $100.0 million to $212.8 million during the first quarter of 2011 compared to $112.8 million during the first quarter of 2010. The inclusion of Eliokem sales within Specialty Chemicals added $74.7 million in net sales compared to the prior year. Performance Chemicals legacy business net sales were up $25.3 million as a result of price increases of $14.0 million and volume improvements of $11.5 million, partially offset by $0.2 million of unfavorable foreign currency translation. Net sales for the Paper and Carpet Chemicals product line increased $15.8 million to $87.1 million during the first quarter of 2011 compared to $71.3 million during the first quarter of 2010 driven by price and volume increases. Net sales for the Specialty Chemicals product line, excluding Eliokem, increased $9.5 million to $51.0 million during the first quarter of 2011 compared to $41.5 million during the first quarter of 2010, also due to price and volume increases. While Paper and Specialty Chemicals volumes were up due to market demand and new product introductions, carpet volumes were down 8% year-over-year due to weak market demand.
This segment generated an operating profit of $21.4 million in the first quarter of 2011 compared to $13.8 million in the first quarter of 2010. Eliokem provided operating profit of $5.8 million in the first quarter of 2011. The additional increase in segment operating profit was primarily due to the higher pricing of $14.0 million, margin on improved volumes of $2.0 million and lower SG&A and manufacturing costs of $0.3 million as a result of lower headcount and higher capacity utilization, partially offset by higher raw material costs of $14.7 million. The segment operating profit also includes items which management excludes when evaluating the results of the Companys segments. Those items include $2.7 million due to a one-time fair value adjustment for Eliokem inventory and workforce reduction costs for Eliokem of $0.7 million in the first quarter of 2011 and workforce reduction costs of $0.2 million in the first quarter of 2010 for legacy operations.
Decorative Products net sales increased $4.8 million, or 6.8%, to $75.9 million in the first quarter of 2011 from $71.1 million in the first quarter of 2010 primarily due to higher selling prices of $2.6 million, higher volumes of $1.2 million and favorable foreign exchange translation benefit of $1.0 million. Commercial Wallcovering and Coated Fabrics net sales were $52.9 million in the first quarter of 2011 compared to $50.9 million in the first quarter of 2010 as sales improved in all product lines and geographic regions with the exception of coated fabrics in China. Net sales for the Decorative Laminates and Performance Films product line increased to $23.0 million during the first quarter of 2011 compared to $20.2 million during the first quarter of 2010 as sales improved in all product lines.
Cash used in investing activities was $21.3 million in the first quarter of 2011, compared to $2.1 million in the first quarter of 2010. Included in 2011 is the cash paid for the acquisition of Eliokem of $299.8 million, less cash acquired in the businesses of $30.1 million. Also included was the use of $253.2 million of restricted cash, which primarily consisted of $250.0 million in proceeds from the issuance of the Senior Notes, which was placed in an escrow account in November 2010 until the completion of the acquisition of Eliokem and refinancing of the Companys existing debt on December 9, 2010. Additionally, the Company incurred $4.8 million of capital expenditures in the first quarter of 2011 compared to $2.5 million in the first quarter of 2010. Capital expenditures were made and are planned principally for asset replacement, new product capability, cost reduction, safety and productivity improvements and environmental protection.
Cash provided by financing activities in the first quarter of 2011 was $46.3 million due to the refinancing and increase of the Companys Term Loan B (as described under Purchase Transaction and Long-Term Debt) from $140.9 million to $200 million. This increase was used to complete the acquisition of Eliokem. Cash used in financing activities was $0.4 million in the first quarter of 2010 primarily due to debt repayments. Total debt was $456.6 million as of February 28, 2011, which includes the Senior Notes, $199.5 million for the revised Term Loan and $7.1 million of foreign debt, compared to $390.9 million as of November 30, 2010. The Companys cash balance of $74.0 million at February 28, 2011 consists of $35.2 million in the U.S., $13.5 million in Europe and $25.3 million in Asia. The Company is not aware of any restrictions regarding the repatriation of its non-U.S. cash.
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