Trinseo Proclaims Fourth Quarter and Full-12 months 2022 Anticipated Outcomes and Goodwill Impairment; Supplies Particulars for Fourth Quarter 2022 Convention Name

Fourth Quarter 2022 Anticipated Outcomes

  • Internet loss from persevering with operations of $367 million to $362 million and Adjusted EBITDA* of $4 million to $9 million

  • Internet loss features a pre-tax, non-cash goodwill impairment cost of $297 million associated to the PMMA enterprise and Aristech Surfaces reporting models

  • Money from operations of $32 million to $37 million and capital expenditures of roughly $54 million leading to Free Money Stream* of damaging $22 million to $17 million; outcomes included a $34 million cost for settlement of the European Fee’s 2018 investigation of the Firm’s styrene buying practices in Europe

Full-12 months 2022 Anticipated Outcomes

  • Internet loss from persevering with operations of $432 million to $427 million and Adjusted EBITDA* of $309 million to $314 million

  • Money from operations of $41 million to $46 million and capital expenditures of $149 million leading to Free Money Stream* of damaging $108 million to $103 million

  • 12 months-end money of $212 million plus an extra $252 million of obtainable liquidity from two undrawn, dedicated financing services

WAYNE, Pa., January 26, 2023–(BUSINESS WIRE)–Trinseo (NYSE: TSE):

(Unaudited)

Present Expectation
Three Months Ended

Present Expectation
12 months Ended

Prior Steerage
12 months Ended

(In hundreds of thousands)

December 31,
2022

December 31,

2022

December 31,
2022

Internet loss from persevering with operations

$

(367) – (362)

$

(432) – (427)

$

(126) – (91)

Adjusted EBITDA*

4 – 9

309 – 314

325 – 375

Money from operations

32 – 37

41 – 46

~150

Free Money Stream*

(22) – (17)

(108) – (103)

~0

________________________
*For a reconciliation Adjusted EBITDA and Free Money Stream, each of that are non-GAAP measures, to internet loss from persevering with operations and money from operations, see Notes 1 and a pair of under. For the ‘Prior Steerage’ column, check with the Firm’s press launch, furnished on its Kind 8-Okay dated November 2, 2022, for a reconciliation of non-GAAP measures to their corresponding GAAP measures.

Trinseo (NYSE: TSE), a specialty materials options supplier, introduced expectations for its fourth quarter 2022 monetary outcomes. Internet loss from persevering with operations and Adjusted EBITDA expectations embrace a pre-tax unfavorable internet timing impression of $19 million from declining uncooked materials prices in addition to a $15 million unfavorable impression from pure fuel hedges that had been put into place within the second half of the 12 months.

Commenting on the Firm’s fourth quarter efficiency, Frank Bozich, President and Chief Government Officer of Trinseo, mentioned, “Our fourth quarter outcomes replicate a difficult working atmosphere together with a continuation of buyer destocking, decrease underlying demand, and quantity and margin impacts from lower-cost imports into Europe from Asia. Because of this, our earnings and money era had been under our earlier expectations. Nevertheless, as a result of proactive working choices resembling idling styrene manufacturing all through the fourth quarter, we noticed a substantial sequential Adjusted EBITDA enchancment of greater than $40 million. Additional enchancment within the first quarter is predicted given seasonally stronger demand, decrease vitality costs and the belief of our asset restructuring initiatives.”

In reference to the Firm’s annual goodwill impairment evaluation carried out within the fourth quarter, the Firm expects to file a non-cash impairment cost of $297 million associated to the PMMA enterprise and Aristech Surfaces reporting models’ goodwill balances established in 2021. The impairment fees had been attributed to a difficult macroeconomic atmosphere, together with considerably decrease demand for constructing & development and wellness purposes, which led to decrease working outcomes together with slower progress projections in addition to a protracted drop in market capitalization. These impairment fees don’t have an effect on the Firm’s money place, and the Firm stays inspired in regards to the companies’ anticipated synergies and strategic worth as we proceed to evolve as a specialty materials and sustainable options supplier.

Bozich continued, “Regardless of the near-term challenges, we stay very optimistic about these companies. Gross sales quantity has been impacted by weak underlying demand and continued buyer destocking. As well as, each quantity and margins had been pressured as elevated pure fuel costs in Europe and low demand in China created an arbitrage window for lower-cost commodity merchandise from Asia to be extra closely imported into Europe and North America. We view each of those as non permanent circumstances which we consider will resolve themselves within the coming quarters.”

For a reconciliation of estimated fourth quarter and full 12 months 2022 (unaudited) internet loss from persevering with operations to Adjusted EBITDA and money supplied by working actions to Free Money Stream for fourth quarter and full 12 months 2022, see Notes 1 and a pair of under, respectively.

Trinseo will host a convention name to debate additional particulars of its fourth quarter and full 12 months 2022 monetary outcomes on Thursday, February 9, 2023, at 10 AM Japanese Time.

Commenting on outcomes will probably be Frank Bozich, President and Chief Government Officer, David Stasse, Government Vice President and Chief Monetary Officer, and Andy Myers, Director of Investor Relations. The convention name will embrace introductory feedback adopted by a question-and-answer session.

For these interested by asking questions through the Q&A, please register utilizing the next hyperlink:

For these interested by listening solely, please register for the webcast utilizing the next hyperlink:

After registering for the convention name, you’ll obtain a affirmation e mail with a gathering invitation and data for entry. Registration is open by means of the reside name, however it’s suggested you register upfront to make sure you are related for the total name.

Trinseo will distribute its fourth quarter 2022 monetary outcomes by way of press launch on Enterprise Wire and put up the discharge and presentation slides on the Firm’s Investor Relations web site on Wednesday, February 8, 2023, after market shut. The Firm will furnish copies of the monetary outcomes press launch and presentation slides to buyers via a Kind 8-Okay submitting with the U.S. Securities and Trade Fee.

A replay of the convention name and transcript will probably be archived on the Company’s Investor Relations website shortly following the convention name. The replay will probably be obtainable till February 9, 2024.

Unaudited monetary knowledge for the fiscal quarter and 12 months ended December 31, 2022, offered herein are preliminary, based mostly upon our good religion estimates and topic to completion of our monetary closing procedures. We’ve supplied ranges for sure of our expectations described herein as a result of our fiscal quarter and year-end closing procedures usually are not but full. Whereas we count on that our last monetary outcomes for the quarterly and annual intervals ended December 31, 2022, following the completion of our monetary closing procedures, will probably be throughout the ranges described herein, our precise outcomes might differ materially from these estimates because of the completion of our monetary closing procedures in addition to last changes and different developments that will come up between now and the time that our monetary outcomes for these quarterly and annual intervals are finalized. All the information offered herein has been ready by and is the duty of administration. This abstract will not be a complete assertion of our monetary outcomes for the quarterly and annual intervals.

Notice 1: Reconciliation of Non-GAAP Efficiency Measures to Internet revenue

We current Adjusted EBITDA as a non-GAAP monetary efficiency measure, which we outline as revenue from persevering with operations earlier than curiosity expense, internet; revenue tax provision; depreciation and amortization expense; loss on extinguishment of long-term debt; asset impairment fees; good points or losses on the inclinations of companies and belongings; restructuring fees; acquisition associated prices and different objects. In doing so, we’re offering administration, buyers, and credit standing companies with an indicator of our ongoing efficiency and enterprise tendencies, eradicating the impression of transactions and occasions that we might not contemplate part of our core operations.

We additionally current Adjusted Internet Earnings (Loss) as an extra efficiency measure. Adjusted Internet Earnings (Loss) is calculated as Adjusted EBITDA (outlined starting with internet revenue from persevering with operations, above), much less curiosity expense, much less the availability for revenue taxes and depreciation and amortization, tax affected for numerous discrete objects, as acceptable. We consider that Adjusted Internet Earnings (Loss) gives clear and helpful info to administration, buyers, analysts, and different stakeholders in evaluating and assessing our working outcomes from period-to-period after eradicating the impression of sure transactions and actions that have an effect on comparability and that aren’t thought of a part of our core operations.

There are limitations to utilizing the monetary efficiency measures famous above. These efficiency measures usually are not supposed to characterize internet revenue or different measures of monetary efficiency. As such, they shouldn’t be used as options to internet revenue as indicators of working efficiency. Different firms in our trade might outline these efficiency measures in a different way than we do. Because of this, it might be tough to make use of these or equally named monetary measures that different firms might use to check the efficiency of these firms to our efficiency. We compensate for these limitations by offering reconciliations of those efficiency measures to our internet revenue, which is set in accordance with GAAP.

For the explanations mentioned above, we’re offering the next reconciliations of anticipated internet revenue from persevering with operations to Adjusted EBITDA and Adjusted Internet Earnings (Loss) for the three months and full 12 months ended December 31, 2022. See “Notice on Ahead-Trying Statements” under for a dialogue of the constraints of those estimates. Quantities under might not sum as a result of rounding.

(Unaudited)

Three Months Ended

12 months Ended

(In hundreds of thousands, besides per share knowledge)

December 31,
2022

December 31,

2022

Adjusted EBITDA

$

4 – 9

$

309 – 314

Curiosity expense, internet

(35)

(113)

Profit from revenue taxes

~ 83

~ 41

Depreciation and amortization

(90)

(237)

Reconciling objects to Adjusted EBITDA (a)

(329)

(432)

Internet loss from persevering with operations

(367) – (362)

(432) – (427)

Reconciling objects to Adjusted Internet Loss (a)

~ 304

~ 411

Adjusted Internet Loss

(63) – (58)

(21) – (16)

________________________

(a)

Reconciling objects to Adjusted EBITDA and Adjusted Internet Earnings (Loss) for the three months and 12 months ended December 31, 2022, replicate the Firm’s preliminary estimate of changes for the intervals, and primarily replicate numerous prices related to ongoing strategic initiatives of the Firm, restructuring and impairment fees. The quantities for the three months and 12 months ended December 31, 2022, are inclusive of the PMMA enterprise and Aristech Surfaces goodwill impairment and the asset restructuring plan introduced within the fourth quarter. The 12 months ended December 31, 2022 additionally consists of the European Fee request for info, adjusted for international trade fee impacts.

Notice that the accelerated depreciation fees incurred as a part of the Firm’s asset restructuring plan are included throughout the “Depreciation and amortization” caption above, and due to this fact usually are not included as a separate adjustment inside this caption.

Notice 2: Reconciliation of Non-GAAP Liquidity Measures to Money from Operations

The Firm makes use of Free Money Stream to judge and focus on its liquidity place and outcomes. Free Money Stream is outlined as money from working actions, much less capital expenditures. We consider that Free Money Stream gives an vital indicator of the Firm’s ongoing skill to generate money by means of core operations, because it excludes the money impacts of varied financing transactions in addition to money flows from enterprise combos that aren’t thought of natural in nature. We additionally consider that Free Money Stream gives administration and buyers with a helpful analytical indicator of our skill to service our indebtedness, pay dividends (when declared), and meet our ongoing money obligations.

Free Money Stream will not be supposed to characterize money flows from operations as outlined by GAAP, and due to this fact, shouldn’t be used as a substitute for that measure. Different firms in our trade might outline Free Money Stream in a different way than we do. Because of this, it might be tough to make use of this or equally named monetary measures that different firms might use, to check the liquidity and money era of these firms to our personal. The Firm compensates for these limitations by offering the next element, which is set in accordance with GAAP.

For the explanations mentioned above, we’re offering the next reconciliation of anticipated money supplied by working actions to Free Money Stream for the three months ended December 31, 2022 and for the total 12 months ended December 31, 2022. See “Notice on Ahead-Trying Statements” under for a dialogue of the constraints of those estimates. Quantities under might not sum as a result of rounding.

(Unaudited)

Three Months
Ended

12 months
Ended

(In hundreds of thousands)

December 31,
2022

December 31,
2022

Money supplied by working actions

$

32 – 37

$

41 – 46

Capital expenditures

(54)

(149)

Free Money Stream

(22) – (17)

(108) – (103)

About Trinseo

Trinseo (NYSE: TSE) a specialty materials options supplier, companions with firms to deliver concepts to life in an imaginative, sensible, and sustainability-focused method by combining its premier experience, forward-looking improvements and best-in-class supplies to unlock worth for firms and customers.

From design to manufacturing, Trinseo faucets into many years of expertise in numerous materials options to handle clients’ distinctive challenges in a variety of industries, together with shopper items, mobility, constructing and development, and medical.

Trinseo’s roughly 3,400 workers deliver countless creativity to reimagining the chances with shoppers everywhere in the world from the corporate’s places in North America, Europe, and Asia Pacific. Trinseo reported internet gross sales of roughly $4.8 billion in 2021. Uncover extra by visiting www.trinseo.com and connecting with Trinseo on LinkedIn, Twitter, Fb and WeChat.

Use of non-GAAP measures

Along with utilizing normal measures of efficiency and liquidity which can be acknowledged in accordance with accounting rules typically accepted in america of America (“GAAP”), we use extra measures of revenue excluding sure GAAP objects (“non-GAAP measures”), resembling Adjusted Internet Earnings, EBITDA and Adjusted EBITDA and measures of liquidity excluding sure GAAP objects, resembling Free Money Stream. We consider these measures are helpful for buyers and administration in evaluating enterprise tendencies and efficiency every interval. These measures are additionally used to handle our enterprise and assess present interval profitability, in addition to to offer an acceptable foundation to judge the effectiveness of our pricing methods. Such measures usually are not acknowledged in accordance with GAAP and shouldn’t be considered as a substitute for GAAP measures of efficiency or liquidity, as relevant. The definitions of every of those measures, additional dialogue of usefulness, and reconciliations of non-GAAP measures to GAAP measures are supplied herein.

Notice on Ahead-Trying Statements

This press launch might comprise forward-looking statements together with, with out limitation, statements regarding plans, targets, targets, projections, forecasts, methods, future occasions or efficiency, and underlying assumptions and different statements, which aren’t statements of historic info or ensures or assurances of future efficiency. Ahead-looking statements could also be recognized by means of phrases like “count on,” “anticipate,” “consider,” “intend,” “forecast,” “outlook,” “will,” “might,” “would possibly,” “see,” “have a tendency,” “assume,” “potential,” “doubtless,” “goal,” “plan,” “ponder,” “search,” “try,” “ought to,” “may,” “would” or expressions of comparable which means. Ahead-looking statements replicate administration’s analysis of data at the moment obtainable and are based mostly on our present expectations and assumptions, our enterprise, the financial system and different future circumstances. As a result of forward-looking statements relate to the longer term, they’re topic to inherent uncertainties, dangers and adjustments in circumstances which can be tough to foretell. Elements which may trigger future outcomes to vary from these expressed by the forward-looking statements embrace, however usually are not restricted to, our skill to efficiently execute our enterprise and transformation technique; elevated prices or disruption within the provide of uncooked supplies; elevated vitality prices; our skill to efficiently generate value financial savings and improve profitability by means of asset restructuring initiatives; compliance with legal guidelines and laws impacting our enterprise; circumstances within the international financial system and capital markets; and people mentioned in our Annual Report on Kind 10-Okay, underneath Half I, Merchandise 1A —”Threat Elements” and elsewhere in our different studies, filings and furnishings made with the U.S. Securities and Trade Fee now and again. Because of these or different elements, our precise outcomes, efficiency or achievements might differ materially from these contemplated by the forward-looking statements. Subsequently, we warning you in opposition to counting on any of those forward-looking statements. The forward-looking statements included on this press launch are made solely as of the date hereof. We undertake no obligation to publicly replace or revise any forward-looking assertion because of new info, future occasions or in any other case, besides as in any other case required by legislation.

View supply model on businesswire.com: https://www.businesswire.com/news/home/20230126005978/en/

Contacts

Trinseo
Andy Myers
Tel : +1 610-240-3221
E mail: [email protected]

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