Innophos Holdings, Inc. reported unaudited consolidated earnings results for the second quarter and six months ended June 30, 2018. For the quarter, net sales were $206,725,000 against $179,140,000 a year ago. Operating income was $12,544,000 against $18,377,000 a year ago. Income before income taxes was $8,223,000 against $17,017,000 a year ago. Net income was $6,246,000 against $11,223,000 a year ago. Diluted earnings per participating share were $0.31 against $0.57 a year ago. EBITDA was $22,510,000 against $28,019,000 a year ago. Adjusted EBITDA was $30,622,000 against $29,835,000 a year ago. Adjusted net income was $10,894,000 against $11,387,000 a year ago. Net cash provided from operations was $16,302,000 against $30,035,000 a year ago. Capital expenditures were $19,627,000 against $7,524,000 a year ago. Adjusted Diluted earnings per share were $0.55 against $0.57 a year ago.

For six months, net sales were $412,165,000 against $345,084,000 a year ago. Operating income was $30,840,000 against $34,768,000 a year ago. Income before income taxes was $23,826,000 against $32,126,000 a year ago. Net income was $17,161,000 against $22,146,000 a year ago. Diluted earnings per participating share were $0.87 against $1.12 a year ago. EBITDA was $52,381,000 against $54,062,000 a year ago. Adjusted EBITDA was $63,028,000 against $57,538,000 a year ago. Adjusted net income was $22,883,000 against $22,991,000 a year ago. Net cash provided from operations was $12,108,000 against $19,356,000 a year ago. Capital expenditures were $29,026,000 against $16,077,000 a year ago. Adjusted Diluted earnings per share were $1.15 against $1.16 a year ago.

For the full year of 2018, the company is reiterating its revenue and adjusted earnings guidance with revenue to grow 12% to 14% and adjusted EBITDA to grow 15% to 17% compared to 2017. The impact from specific value chain transition charges will lower 2018 GAAP earnings expectations as these transition costs will be incurred ahead of the $20 million accruing to earnings. The Company anticipates the effective tax rate to operate in the 28-30% range given the geographical mix in earnings. Free cash flow is expected to modestly decrease versus prior year, principally to support the strategic value chain repositioning and manufacturing optimization program. The Company continues to diligently work through the multi-faceted value chain repositioning and manufacturing optimization program and expects full benefits to materialize in second half of 2019. The program is estimated to deliver adjusted diluted EPS improvement of 10% by the end of 2019. Cash flow or CapEx is consistent with what the company have previously said.