Innophos Holdings, Inc. Reports Unaudited Consolidated Earnings Results for the First Quarter Ended March 31, 2018; Reaffirms Earnings Guidance for the Year 2018
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.