Market Overview

Trinseo Reports Second Quarter 2018 Financial Results; Affirms 2018 Full Year Outlook

Share:

Second Quarter 2018 Highlights

  • Net Income of $98 million and diluted EPS of $2.24
  • Adjusted EPS of $2.40
  • Adjusted EBITDA of $170 million
  • Cash provided by operating activities of $142 million; Free Cash Flow
    of $113 million

Trinseo (NYSE:TSE):

             
Three Months Ended
June 30,
$millions, except per share data 2018     2017
Net Sales 1,237 1,145
Net Income 98 60
EPS(Diluted) ($) 2.24 1.34
Adjusted Net Income* 105 63
Adjusted EPS ($)* 2.40 1.39
EBITDA* 162 124
Adjusted EBITDA* 170 126

____________________

*For a reconciliation of EBITDA, Adjusted EBITDA, and Adjusted Net
Income to Net Income, as well as a reconciliation of Adjusted EPS, see
note 2 below.

Trinseo
(NYSE:TSE), a global materials company and manufacturer of plastics,
latex binders and synthetic rubber, today reported its second quarter
2018 financial results with net sales of $1,237 million, net income of
$98 million, and earnings per diluted share of $2.24. Second quarter
Adjusted EPS was $2.40 and Adjusted EBITDA was $170 million.

Net sales in the second quarter increased 8% versus prior year due to
higher sales volume across all segments except for Feedstocks as well as
favorable currency, as the euro strengthened in comparison to the U.S.
dollar, which had a positive impact across all segments. These impacts
were partially offset by lower prices due to the pass through of lower
butadiene cost, which was partially offset by the pass through of higher
styrene cost. Second quarter net income of $98 million was $38 million
higher than prior year. Second quarter Adjusted EBITDA of $170 million
was $44 million higher than prior year. The higher profitability was
from higher styrene margins, favorable currency impacts, as well as
favorable net timing in the current year, due to increasing raw material
costs, in comparison to unfavorable net timing in the prior year. Lower
margins outside of the Feedstocks segment, including impacts from raw
material costs, were more than offset by higher sales volume across
nearly all segments except Feedstocks.

Commenting on the Company's performance, Chris Pappas, Trinseo President
and Chief Executive Officer, said, "We started the year with record
profitability in the first quarter and continued that momentum with
strong profitability in the second quarter, with total company
performance in line with guidance. In addition, we had strong cash
generation and returned $52 million to shareholders via share
repurchases and dividends."

Second Quarter Results and Commentary by Business Segment

  • Latex Binders net sales of $281 million for the quarter
    decreased 4% versus prior year. Higher sales volume to the carpet and
    adhesives & construction markets was more than offset by the pass
    through of lower butadiene cost. Adjusted EBITDA of $36 million was
    flat to prior year. Higher sales volume as well as favorable currency
    impacts were offset by unfavorable raw material impacts, including
    increasing butadiene cost in Asia.
  • Synthetic Rubber net sales of $155 million for the quarter
    decreased 11% versus prior year. Higher SSBR and ESBR sales volumes as
    well as favorable currency impacts were more than offset by the pass
    through of lower butadiene cost. Adjusted EBITDA of $31 million was $3
    million above prior year. Favorable net timing impacts were partially
    offset by lower margins across several products, including impacts
    from higher raw material and utility costs.
  • Performance Plastics net sales of $413 million for the quarter
    was 22% above prior year due to higher sales volume, mainly from our
    China ABS expansion, as well as favorable currency impacts. In
    addition, API Plastics contributed a 4% increase in net sales.
    Adjusted EBITDA of $49 million was $1 million above prior year, and
    included an approximate $10 million unfavorable impact from planned
    maintenance activities.
  • Polystyrene net sales of $286 million for the quarter was 22%
    above prior year due primarily to higher sales volume in Asia,
    currency, as well as the pass through of higher raw material costs.
    Adjusted EBITDA of $14 million was $7 million above prior year due to
    favorable net timing impacts as well as higher sales volume in Asia.
  • Feedstocks net sales of $102 million for the quarter was 5%
    below prior year due to lower styrene related sales volume. This was
    partially offset by currency impacts as well as the pass through of
    higher styrene prices. Adjusted EBITDA of $32 million was $33 million
    above prior year due mainly to higher styrene margins as well as
    favorable net timing.
  • Americas Styrenics Adjusted EBITDA of $33 million for the
    quarter was $3 million above prior year due mainly to higher styrene
    margin, including an unfavorable impact in the prior year from lower
    margin spot sales following a maintenance outage.

Second Quarter Cash Generation

Cash provided by operating activities for the quarter was $142 million
and capital expenditures were $29 million, resulting in Free Cash Flow
for the quarter of $113 million. Second quarter cash from operations and
Free Cash Flow included approximately $13 million of lower working
capital. At the end of the quarter, the Company had $451 million of cash
after $37 million of share repurchases during the quarter. For a
reconciliation of Free Cash Flow to cash provided by operating
activities, see note 3 below.

Outlook

  • Third quarter 2018 net income of $88 million to $96 million and
    earnings per diluted share of $2.00 to $2.19
  • Third quarter 2018 Adjusted EBITDA of $150 million to $160 million and
    Adjusted EPS of $2.00 to $2.19
  • Full year 2018 net income of $393 million to $410 million and earnings
    per diluted share of $8.95 to $9.32
  • Full year 2018 Adjusted EBITDA of $665 million to $685 million and
    Adjusted EPS of $9.15 to $9.52

Commenting on the outlook for the third quarter and full year 2018
Pappas said, "While we expect continued solid performance and cash
generation in the third quarter, profitability should be sequentially
lower due to seasonality, a lower level of planned styrene outages
resulting in decreasing styrene margins, and a somewhat softer tire
market demand."

Pappas continued, "Looking ahead to the full year performance, we are
affirming our previous guidance and we remain focused on strong cash
generation."

For a reconciliation of third quarter and full year 2018 net income to
Adjusted EBITDA and Adjusted EPS, see note 2 below. Additionally, refer
to the appendix within Exhibit 99.3 of our Form 8-K, dated August 2,
2018, for further details on how net timing impacts are defined and
calculated for our segments.

Conference Call and Webcast Information

Trinseo will host a conference call to discuss its second quarter 2018
financial results on Friday, August 3, 2018 at 10 AM Eastern Time.

Commenting on results will be Chris Pappas, President and Chief
Executive Officer, Barry Niziolek, Executive Vice President and Chief
Financial Officer, and David Stasse, Vice President, Treasury and
Investor Relations. The conference call will be available by phone at:

Participant Toll-Free Dial-In Number: +1 866-393-4306
Participant
International Dial-In Number: +1 734-385-2616
Conference ID: 1082289

The Company will also offer a live Webcast of the conference call with
question and answer session via the registration
page
 of the Trinseo Investor
Relations website
.

Trinseo has posted its second quarter 2018 financial results on the
Company's Investor Relations website. The presentation slides will also
be made available in the webcast player prior to the conference call.
The Company will also furnish copies of the financial results press
release and presentation slides to investors by means of a Form 8-K
filing with the U.S. Securities and Exchange Commission.

A replay of the conference call and transcript will be archived on the
Company's Investor Relations website shortly following the conference
call. The replay will be available until August 3, 2019.

About Trinseo

Trinseo (NYSE:TSE) is a global materials solutions provider and
manufacturer of plastics, latex binders, and synthetic rubber. We are
focused on delivering innovative and sustainable solutions to help our
customers create products that touch lives every day — products that are
intrinsic to how we live our lives — across a wide range of end-markets,
including automotive, consumer electronics, appliances, medical devices,
lighting, electrical, carpet, paper and board, building and
construction, and tires. Trinseo had approximately $4.4 billion in net
sales in 2017, with 16 manufacturing sites around the world, and
approximately 2,200 employees. For more information visit www.trinseo.com.

Recast of Financial Statements for New Accounting Standard

On January 1, 2018, the Company adopted pension accounting guidance
that requires employers to present the service cost component of net
periodic benefit cost in the same statement of operations line item as
other employee compensation costs arising from services rendered during
the period. As a result of this adoption, for the three and six months
ended June 30, 2017, the Company reclassified net periodic benefit cost
of $1.3 million and $2.5 million, respectively, from "Cost of sales",
and $0.7 million and $1.5 million, respectively, from "Selling, general,
and administrative expenses", to "Other expense (income), net" within
the condensed consolidated statement of operations.

Use of non-GAAP measures

In addition to using standard measures of performance and liquidity
that are recognized in accordance with accounting principles generally
accepted in the United States of America ("GAAP"), we use additional
measures of income excluding certain GAAP items ("non-GAAP measures"),
such as Adjusted Net Income, Adjusted EBITDA, EBITDA and Adjusted EPS
and measures of liquidity excluding certain GAAP items, such as Free
Cash Flow. We believe these measures are useful for investors and
management in evaluating business trends and performance each period.

These income measures are also used to manage our business and assess
current period profitability, as well as to provide an appropriate basis
to evaluate the effectiveness of our pricing strategies. Such measures
are not recognized in accordance with GAAP and should not be viewed as
an alternative to GAAP measures of performance or liquidity, as
applicable. The definitions of each of these measures, further
discussion of usefulness, and reconciliations of non-GAAP measures to
GAAP measures are provided in the Notes to Condensed Consolidated
Financial Information presented herein.

Note on Forward-Looking Statements

This press release may contain "forward-looking statements" within
the meaning of the safe harbor provisions of the United States Private
Securities Litigation Reform Act of 1995. Words such as "expect,"
"estimate," "project," "budget," "forecast," "anticipate," "target,"
"outlook," "guidance," "intend," "plan," "may," "will," "could,"
"should," "believes," "predicts," "potential," "continue," and similar
expressions are intended to identify such forward-looking statements.
Forward-looking statements in this press release may include, without
limitation, forecasts of growth, net sales, business activity,
acquisitions, financings and other matters that involve known and
unknown risks, uncertainties and other factors that may cause results,
levels of activity, performance or achievements to differ materially
from results expressed or implied by this press release. Such factors
include, among others: conditions in the global economy and capital
markets; the inability of the Company to execute on its business
strategy; volatility in costs or disruption in the supply of the raw
materials utilized for our products; loss of market share to other
producers of chemical products; compliance with laws and regulations
impacting our business; changes in laws and regulations applicable to
our business; our inability to continue technological innovation and
successful introduction of new products; system security risk issues
that could disrupt our internal operations or information technology
services; the loss of customers; the market price of the Company's
ordinary shares prevailing from time to time; the nature of other
investment opportunities presented to the Company from time to time; and
the Company's cash flows from operations. Additional risks and
uncertainties are set forth in the Company's reports filed with the
United States Securities and Exchange Commission, which are available at
http://www.sec.gov/
as well as the Company's web site at
http://www.trinseo.com.
As a result of the foregoing considerations, you are cautioned not to
place undue reliance on these forward-looking statements, which speak
only as of the date of this press release. All forward-looking
statements are qualified in their entirety by this cautionary statement.
The Company undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.

 

TRINSEO S.A.

 

Condensed Consolidated Statements of Operations

(In millions, except per share data)

(Unaudited)

 
 
    Three Months Ended     Six Months Ended
      June 30,
2018
    June 30,
2017
    June 30,
2018
    June 30,
2017
Net sales $ 1,236.6     $ 1,145.2 $ 2,358.1     $ 2,249.7
Cost of sales   1,073.9   1,018.7   2,020.2   1,924.2  
Gross profit 162.7 126.5 337.9 325.5
Selling, general and administrative expenses 61.7 54.7 126.1 114.3
Equity in earnings of unconsolidated affiliates   33.2   29.9   78.8   49.2  
Operating income 134.2 101.7 290.6 260.4
Interest expense, net 10.8 18.7 25.7 36.9
Loss on extinguishment of long-term debt 0.2 0.2
Other expense (income), net   4.5   4.0   0.8   (2.1 )
Income before income taxes 118.7 79.0 263.9 225.6
Provision for income taxes   20.4   18.8   45.3   48.1  
Net income $ 98.3 $ 60.2 $ 218.6 $ 177.5  
Weighted average shares- basic 43.1 43.9 43.3 44.0
Net income per share- basic $ 2.28 $ 1.37 $ 5.05 $ 4.03
Weighted average shares- diluted 43.8 45.0 44.2 45.2
Net income per share- diluted $ 2.24 $ 1.34 $ 4.95 $ 3.93
 
Dividends per share $ 0.40 $ 0.36 $ 0.76 $ 0.66
 
 

TRINSEO S.A.

 

Condensed Consolidated Balance Sheets

(In millions, except per share data)

(Unaudited)

 
 
    June 30,     December 31,
2018 2017
Assets
Current assets
Cash and cash equivalents $ 451.4 $ 432.8
Accounts receivable, net of allowance for doubtful accounts 763.3 685.5
Inventories 531.7 510.4
Other current assets   28.9     17.5  
Total current assets   1,775.3     1,646.2  
 
Investments in unconsolidated affiliates 163.8 152.5
Property, plant and equipment, net of accumulated depreciation 600.4 627.0
Other assets
Goodwill 70.2 72.5
Other intangible assets, net 197.3 207.5
Deferred income tax assets 32.6 35.5
Deferred charges and other assets   35.2     30.8  
Total other assets   335.3     346.3  
Total assets $ 2,874.8   $ 2,772.0  
 
Liabilities and shareholders' equity
Current liabilities
Short-term borrowings and current portion of long-term debt $ 7.0 $ 7.0
Accounts payable 448.3 436.8
Income taxes payable 15.8 35.9
Accrued expenses and other current liabilities   146.7     146.9  
Total current liabilities   617.8     626.6  
Noncurrent liabilities
Long-term debt, net of unamortized deferred financing fees 1,162.6 1,165.0
Deferred income tax liabilities 44.7 49.2
Other noncurrent obligations   247.9     256.4  
Total noncurrent liabilities   1,455.2     1,470.6  
 
Commitments and contingencies
Shareholders' equity
Ordinary shares, $0.01 nominal value, 50,000.0 shares authorized
(June 30, 2018: 48.8 shares issued and 43.0 shares outstanding ;
December 31, 2017: 48.8 shares issued and 43.4 shares outstanding)
0.5 0.5
Additional paid-in-capital 569.1 578.8
Treasury shares, at cost (June 30, 2018: 5.8 shares; December 31,
2017: 5.4 shares)
(333.3 ) (286.8 )
Retained earnings 713.4 527.9
Accumulated other comprehensive loss   (147.9 )   (145.6 )
Total shareholders' equity   801.8     674.8  
Total liabilities and shareholders' equity $ 2,874.8   $ 2,772.0  
 
 

TRINSEO S.A.

 

Condensed Consolidated Statements of Cash Flows

(In millions)

(Unaudited)

 
 

 

    Six Months Ended
June 30,
2018     2017
Cash flows from operating activities
Cash provided by operating activities $ 182.4   $ 36.6  
 
Cash flows from investing activities
Capital expenditures (59.5 ) (74.3 )
Proceeds from capital expenditures subsidy 1.0
Proceeds from the sale of businesses and other assets 1.8 43.7
Distributions from unconsolidated affiliates       0.9  
Cash used in investing activities   (56.7 )   (29.7 )
 
Cash flows from financing activities
Deferred financing fees (0.6 )
Short-term borrowings, net (0.1 ) (0.1 )
Purchase of treasury shares (60.5 ) (56.4 )
Dividends paid (31.8 ) (26.5 )
Proceeds from exercise of option awards 2.3 6.0
Withholding taxes paid on restricted share units (8.3 ) (0.3 )
Net proceeds from issuance of 2024 Term Loan B 696.5
Repayments of 2024 Term Loan B (700.0 )
Repayments of 2021 Term Loan B       (2.5 )
Cash used in financing activities (102.5 ) (79.8 )
Effect of exchange rates on cash   (4.6 )   7.7  
Net change in cash and cash equivalents 18.6 (65.2 )
Cash and cash equivalents—beginning of period   432.8     465.1  
Cash and cash equivalents—end of period $ 451.4   $ 399.9  
 
                         

TRINSEO S.A.

 

Notes to Condensed Consolidated Financial Information

(Unaudited)

 

Note 1: Net sales by Segment

 
 
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
(In millions) 2018 2017 2018 2017
Latex Binders $ 280.8 $ 291.5 $ 536.1 $ 580.5
Synthetic Rubber 155.3 174.0 304.5 337.4
Performance Plastics 412.8 339.2 815.6 676.2
Polystyrene 285.6 233.5 525.2 461.7
Feedstocks 102.1 107.0 176.7 193.9
Americas Styrenics*        
Total Net Sales $ 1,236.6 $ 1,145.2 $ 2,358.1 $ 2,249.7

____________________

* The results of this segment are comprised entirely of earnings from
Americas Styrenics, our 50%-owned equity method investment. As such, we
do not separately report net sales of Americas Styrenics within our
condensed consolidated statement of operations.

Note 2: Reconciliation of Non-GAAP Performance
Measures to Net income

EBITDA is a non-GAAP financial performance measure that we refer to in
making operating decisions because we believe it provides our management
as well as our investors with meaningful information regarding the
Company's operational performance. We believe the use of EBITDA as a
metric assists our board of directors, management and investors in
comparing our operating performance on a consistent basis.

We also present Adjusted EBITDA as a non-GAAP financial performance
measure, which we define as income from continuing operations before
interest expense, net; income tax provision; depreciation and
amortization expense; loss on extinguishment of long-term debt; asset
impairment charges; gains or losses on the dispositions of businesses
and assets; restructuring charges; acquisition related costs and other
items. In doing so, we are providing management, investors, and credit
rating agencies with an indicator of our ongoing performance and
business trends, removing the impact of transactions and events that we
would not consider a part of our core operations.

Lastly, we present Adjusted Net Income and Adjusted EPS as additional
performance measures. Adjusted Net Income is calculated as Adjusted
EBITDA (defined beginning with net income, above), less interest
expense, less the provision for income taxes and depreciation and
amortization, tax affected for various discrete items, as appropriate.
Adjusted EPS is calculated as Adjusted Net Income per weighted average
diluted shares outstanding for a given period. We believe that Adjusted
Net Income and Adjusted EPS provide transparent and useful information
to management, investors, analysts and other stakeholders in evaluating
and assessing our operating results from period-to-period after removing
the impact of certain transactions and activities that affect
comparability and that are not considered part of our core operations.

There are limitations to using the financial performance measures noted
above. These performance measures are not intended to represent net
income or other measures of financial performance. As such, they should
not be used as alternatives to net income as indicators of operating
performance. Other companies in our industry may define these
performance measures differently than we do. As a result, it may be
difficult to use these or similarly-named financial measures that other
companies may use, to compare the performance of those companies to our
performance. We compensate for these limitations by providing
reconciliations of these performance measures to our net income, which
is determined in accordance with GAAP.

                 
Three Months Ended
(In millions, except per share data) June 30,
2018
    June 30,
2017
Net income $ 98.3 $ 60.2
Interest expense, net 10.8 18.7
Provision for income taxes 20.4 18.8
Depreciation and amortization   32.3     26.3  
EBITDA $ 161.8 $ 124.0
Loss on extinguishment of long-term debt 0.2 Loss on extinguishment of long-term debt
Restructuring and other charges (a) 1.2 1.1 Selling, general, and administrative expenses
Acquisition transaction and integration costs (b) 0.2 1.1 Selling, general, and administrative expenses
Other items (c)   6.8       Cost of sales, Selling, general, and administrative expenses; Other
expense (income), net
Adjusted EBITDA   170.2   $ 126.2  

Adjusted EBITDA to Adjusted Net Income:

Adjusted EBITDA $ 170.2 $ 126.2
Interest expense, net 10.8 18.7
Provision for income taxes — Adjusted (d) 22.3 19.2
Depreciation and amortization — Adjusted (e)   32.1     25.8  
Adjusted Net Income $ 105.0   $ 62.5  
Adjusted EPS $ 2.40   $ 1.39  
 

Adjusted EBITDA by Segment:

Latex Binders $ 36.0 $ 36.1
Synthetic Rubber 30.6 27.7
Performance Plastics 48.9 48.5
Polystyrene 13.7 6.8
Feedstocks 32.4 (1.2 )
Americas Styrenics 33.2 29.9
Corporate unallocated   (24.6 )   (21.6 )
Adjusted EBITDA $ 170.2   $ 126.2  

____________________

(a)   Restructuring and other charges primarily relate to charges incurred
in connection with the upgrade and replacement of the Company's
compounding facility in Terneuzen, The Netherlands as well as the
Company's decision to cease manufacturing activities at our latex
binders manufacturing facility in Livorno, Italy.
 
Note that the accelerated depreciation charges incurred as part of
the upgrade and replacement of the Company's compounding facility in
Terneuzen, The Netherlands are included within the "Depreciation and
amortization" caption above, and therefore are not included as a
separate adjustment within this caption.
 
(b) Acquisition transaction and integration costs for the periods
presented above relate to advisory and professional fees incurred in
conjunction with the Company's acquisition of API Plastics.
 
(c) Other items for the three months ended June 30, 2018 primarily
relate to advisory and professional fees incurred in conjunction
with the Company's initiative to transition business services from
The Dow Chemical Company, including certain administrative services
such as accounts payable, logistics, and IT services, as well as
fees incurred in conjunction with the Company's term loan repricing
which was completed during the second quarter of 2018.
 
(d) Adjusted to remove the tax impact of the items noted in (a),(b),(c)
and (e). The income tax expense (benefit) related to these items was
determined utilizing either (1) the estimated annual effective tax
rate on our ordinary income based upon our forecasted ordinary
income for the full year, or (2) for items treated discretely for
tax purposes, we utilized the applicable rates in the taxing
jurisdictions in which these adjustments occurred. Additionally, the
three months ended June 30, 2018 excludes a $1.2 million discrete
tax benefit related to certain legal entity restructuring, partially
offset by $0.6 million in tax expense related to adjustments in
reserves for uncertain tax positions.
 
(e) For the three months ended June 30, 2018 and 2017 the amounts
exclude accelerated depreciation of $0.3 million and $0.6 million,
respectively, related to the upgrade and replacement of the
Company's compounding facility in Terneuzen, The Netherlands.
 

For the same reasons discussed above, we are providing the following
reconciliation of forecasted net income to forecasted Adjusted EBITDA
and Adjusted EPS for the three months ended September 30, 2018, as well
as for the full year ended December 31, 2018. See "Note on
Forward-Looking Statements" above for a discussion of the limitations of
these forecasts.

                 
Three Months Ended Year Ended
(In millions, except per share data) September 30,
2018
December 31,
2018
Adjusted EBITDA $ 150 - 160 $ 665 - 685
Interest expense, net (11) (48)
Provision for income taxes (19) – (21) (84) – (87)
Depreciation and amortization (32) (129)

Reconciling items to Adjusted EBITDA (f)

    (11)
Net Income 88 - 96 393 - 410

Reconciling items to Adjusted Net Income (f)

    9
Adjusted Net Income   88 - 96   402 - 419
 

Weighted average shares- diluted (g)

43.8 44.0
EPS - diluted $ 2.00 – 2.19 $ 8.95 – 9.32
Adjusted EPS $ 2.00 – 2.19 $ 9.15 – 9.52

____________________

(f)

  Reconciling items to Adjusted EBITDA and Adjusted Net Income are not
typically forecasted by the Company based on their nature as being
primarily driven by transactions that are not part of the core
operations of the business. As such, for the forecasted three months
ended September 30, 2018 and full year ended December 31, 2018, we
have not included estimates for these items.
 

(g)

Weighted average shares calculated for the purpose of forecasting
Adjusted EPS do not forecast significant future share transactions
or events, such as repurchases, significant stock-based compensation
award grants, and changes in the Company's share price. These are
all factors which could have a significant impact on the calculation
of Adjusted EPS during actual future periods.
 

Note 3: Reconciliation of Non-GAAP Liquidity
Measures to Cash from Operations

The Company uses Free Cash Flow to evaluate and discuss its liquidity
position and results. Free Cash Flow is defined as cash from operating
activities, less capital expenditures. We believe that Free Cash Flow
provides an indicator of the Company's ongoing ability to generate cash
through core operations, as it excludes the cash impacts of various
financing transactions as well as cash flows from business combinations
that are not considered organic in nature. We also believe that Free
Cash Flow provides management and investors with a useful analytical
indicator of our ability to service our indebtedness, pay dividends
(when declared), and meet our ongoing cash obligations.

Free Cash Flow is not intended to represent cash flows from operations
as defined by GAAP, and therefore, should not be used as an alternative
for that measure. Other companies in our industry may define Free Cash
Flow differently than we do. As a result, it may be difficult to use
this or similarly-named financial measures that other companies may use,
to compare the liquidity and cash generation of those companies to our
own. The Company compensates for these limitations by providing the
reconciliation below, which is determined in accordance with GAAP.

 

Free Cash Flow

 
    Three Months Ended     Six Months Ended
June 30,     June 30, June 30,     June 30,
(in millions) 2018 2017 2018 2017
Cash provided by operating activities $ 141.6 $ 62.3 $ 182.4 $ 36.6
Capital expenditures   (28.9 )   (38.2 )   (59.5 )   (74.3 )
Free Cash Flow $ 112.7   $ 24.1   $ 122.9   $ (37.7 )
 

View Comments and Join the Discussion!