Innophos Holdings, Inc. reported unaudited consolidated earnings results for the first quarter ended March 31, 2018. For the quarter, net sales were $205 million against $166 million a year ago. Net income was $11 million against $11 million a year ago. Adjusted net income was $12 million against $12 million a year ago. EBITDA was $30 million against $26 million a year ago. Adjusted EBITDA was $32 million against $28 million a year ago. Diluted earnings per share were $0.55 against $0.55 a year ago. Adjusted diluted earnings per share were $0.61 against $0.59 a year ago. Cash outflow from operations was $4 million against $11 million a year ago. Operating income was $18,296,000 against $16,391,000 a year ago. Income before income taxes was $15,603,000 against $15,109,000 a year ago. Capital expenditures were $9,399,000 against $8,553,000 a year ago. Finally, in the first quarter, net debt of $304 million increased due to the $151 million spent on the 2017 acquisitions.

The company continues to expect full year 2018 revenue to grow 12% to 14% due to the annualized contributions from acquisitions, favorable growth in the specialty nutrition end-markets served, and stabilization in the legacy business. Full year GAAP EPS is expected to more than double in 2018. Adjusted EPS and Adjusted EBITDA are expected to grow by 10% to 14% and 15% to 17%, respectively. This includes an improvement in 2018 full year EPS of approximately $0.16 per diluted share due to the lower effective tax rate. Adjusted EBITDA margin is expected to be approximately 17% of sales. The company expects free cash flow to be similar to prior year with capital cash outflow of approximately $45 million to principally support the strategic value chain repositioning and manufacturing optimization programs. The company's effective tax rate of 30% was up year-over-year due to the geographical earnings mix in 2018, while the first quarter of 2017 rate benefited from new accounting standards for share-based compensation. The company expects free cash flow to be similar to prior year with capital cash outflow of approximately $45 million to principally support the strategic value chain repositioning and manufacturing optimization programs.