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Dec 31, 2019
Quaker Chemical Q4 2019 Earnings Report
Announced fourth quarter and full year 2019 results, marked by increased net sales and strategic integration efforts.
Key Takeaways
Quaker Houghton reported Q4 2019 net sales of $391.3 million, an 85% increase compared to the prior year, driven by the Houghton and Norman Hay acquisitions. Net income was $15.2 million, or $0.86 per diluted share. Non-GAAP earnings per diluted share were $1.34. Adjusted EBITDA was $60.6 million, up 4% on a pro forma basis.
Net sales increased 85% year-over-year to $391.3 million due to Houghton and Norman Hay acquisitions.
Net income reached $15.2 million, with earnings per diluted share at $0.86.
Non-GAAP earnings per diluted share stood at $1.34.
Adjusted EBITDA increased 4% on a pro forma basis to $60.6 million, exceeding guidance.
Forward Guidance
The company anticipates strong adjusted EBITDA growth in 2020, driven by synergy benefits, a full year of Norman Hay, and additional market share gains, despite potential impacts from the coronavirus and Boeing 737 Max production halt.
Positive Outlook
- Expected adjusted EBITDA growth of approximately $30 million or more over 2019 pro forma adjusted EBITDA.
- Synergy benefits from the Combination.
- Full year contribution from Norman Hay.
- Additional market share gains.
- Targeting total net indebtedness to adjusted EBITDA to improve to approximately 3.0 to 1 or better by the end of 2020.
Challenges Ahead
- Uncertainty in forecasting due to the coronavirus and Boeing's decision to temporarily stop production of the 737 Max.
- Potential impact of approximately $10 million on adjusted EBITDA due to the coronavirus.
- Potential impact of approximately $6 million on adjusted EBITDA due to lower 737 Max production.
Historical Earnings Impact
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