Kraton Performance Polymers Inc. announced unaudited consolidated earnings results for the first quarter ended March 31, 2013. Sales revenue was $340.1 million, down $68.2 million compared to $408.3 million in the first quarter 2012. Sales volume was 78.2 kilotons, down 12.7% compared to 89.6 kilotons in the first quarter 2012. Lower first quarter 2013 sales volume compared to the atypical first quarter 2012, accounted for $51.9 million or approximately 76% of the year-on-year revenue decline, while lower average sales prices, which move directionally with raw material prices as the company adjusts product sales prices, accounted for $9.6 million or approximately 14% of the revenue decline. Adjusted EBITDA was $28.7 million, compared to $43.0 million in the first quarter 2012. Adjusted EBITDA at ECRC was $29.2 million, compared to $39.6 million in the first quarter 2012. Adjusted earnings per diluted share were $0.07, compared to $0.49 in the first quarter 2012. Net loss attributable to Kraton was $3.7 million or $0.12 per diluted share, compared to net income of $16.4 million or $0.50 per diluted share in the first quarter 2012. Cash used in operating activities was $20.8 million in the first quarter 2013, compared to cash provided by operating activities of $56.1 million in the first quarter 2012. The decline in operating cash flow is associated with a build of inventory, which the company expects will be reduced over the course of the second quarter. Net capital expenditures in the first quarter 2013 were $15.2 million compared to $10.4 million in the first quarter 2012. Loss before income taxes was $2,378,000 against income before tax of $19,085,000 a year ago. Adjusted net income was $2,108,000 against $15,821,000 a year ago. The company believes the stability in feedstock prices should continue in the second quarter 2013, and expects that second quarter 2013 sales volume will increase compared to the second quarter 2012. For 2013, the company now expects interest expense to be $32 million. This figure includes the charges of $5.7 million associated with the refinancing transaction, so excluding these charges, interest expense would be projected to be approximately $26 million on a run rate basis. The company is currently maintaining estimates for research and development, SG&A and depreciation expenses, and in addition, although the first quarter effective tax rate differed from the 12% full year estimate, the company is currently holding to the 12% estimate for effective tax rate. This estimate is subject to a number of factors, including the mix of pre-tax earnings in the various jurisdictions in which the company operates. The company has guided to a CapEx number of $80 million to $85 million. The company estimates research & development expenses of $35 million, SG&A expenses of $109 million and depreciation and amortization expenses of $60 million.

Kraton Performance Polymers Inc., Q1 2013 Earnings Call, May 02, 2013

Kraton Performance Polymers Inc. announced that they will report Q1, 2013 results at 5:00 PM, Eastern Standard Time on May 01, 2013