On its first-quarter earnings call in May, the company noted that the PHH facility had returned to service at reduced operating rates and described its expectation that the PHH facility would reach full operating rates during the second quarter.
“The PHH facility returned to full service at the end of June, but followed a slower ramp up to full operating rates, resulting in lower than expected sales volumes and higher operating and maintenance costs during the second quarter,” President and CEO
Carrico also provided broader perspective about the company’s second-quarter performance. “In our Building Products segment, we experienced a normal seasonal increase in U.S. sales volumes but continued to see weaker Canadian sales and the impact of a weaker Canadian dollar during the period. Additionally, our Aromatics operating income results will be approximately
Based on these factors, the company expects to report
“Long-term, we remain confident that our integrated chemicals and building products business will continue to benefit from low-cost natural gas in
Cautionary Statements About Forward-Looking Information
This press release contains certain statements relating to future events and our intentions, beliefs, expectations, and predictions for the future. Any such statements other than statements of historical fact are forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. Words or phrases such as “anticipate,” “believe,” “plan,” “estimate,” “project,” “may,” “will,” “intend,” “target,” “expect,” “would” or “could” (including the negative variations thereof) or similar terminology used in connection with any discussion of future plans, actions or events generally identify forward-looking statements. These statements relate to, among other things, our expectations regarding: (i) our estimates regarding our financial performance for the quarter ended
In light of these risks, uncertainties, assumptions, and factors, the forward-looking events discussed in this press release may not occur. Other unknown or unpredictable factors could also have a material adverse effect on Axiall’s actual future results, performance, or achievements. For a further discussion of these and other risks and uncertainties applicable to
Reconciliation of Non-GAAP Financial Measure
Adjusted EBITDA is defined as earnings before interest, taxes, depreciation, and amortization, cash and non-cash restructuring charges and certain other charges, if any, related to financial restructuring and business improvement initiatives, gains or losses on redemption and other debt costs, and sales of certain assets, certain purchase accounting and certain non-income tax reserve adjustments, professional fees related to a previously disclosed and withdrawn unsolicited offer and the Merger, costs to attain Merger related synergies, certain pension plan amendment curtailment gains, goodwill, intangibles, and other long lived asset impairments, and interest expense related to the lease financing transaction.
Adjusted EBITDA is not a measurement of financial performance under GAAP and should not be considered as an alternative to net income or as a measure of performance. In addition, our calculation of Adjusted EBITDA may be different from the calculation used by other companies and, therefore, comparability may be limited. A reconciliation of this non-GAAP financial measure to the most comparable GAAP measure is presented in the table set forth below.
Adjusted EBITDA Reconciliation to Consolidated Net Income
Three months ended
(Range in Millions)
|Costs to attain merger synergies||(1 to 3)|
|Depreciation and amortization||(60)|
|Interest expense, net||(19)|
|Provision for income taxes||(10 to 13)|
|Transaction-related costs and other net||(3 to 7)|
|Consolidated Net Income|