Innophos Holdings, Inc. reported unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2017. For the quarter, the company reported net sales of $193,100,000 against $167,790,000 a year ago. Operating income was $9,261,000 against $16,320,000 a year ago. Income before income taxes was $7,232,000 against $13,594,000 a year ago. Net loss was $11,283,000 against net income of $9,382,000 a year ago. Diluted loss per participating share was $0.58 against diluted earnings per participating share of $0.47 a year ago. Adjusted net income was $10,191,000 against $10,257,000 a year ago. Adjusted diluted earnings per participating share were $0.52 against $0.52 a year ago. EBITDA was $21,199,000 against $24,508,000 a year ago. Adjusted EBITDA was $27,070,000 against $26,270,000 a year ago. In the fourth quarter, net debt increased by $19 million to $281 million, due primarily to the $28 million borrowed for the NutraGenesis acquisition.

For the nine months, the company reported net sales of $722,024,000 against $725,345,000 a year ago. Operating income was $63,067,000 against $79,098,000 a year ago. Income before income taxes was $56,637,000 against $70,318,000 a year ago. Net income was $22,445,000 against $47,971,000 a year ago. Diluted earnings per participating share were $1.13 against $2.44 a year ago. Adjusted net income was $48,617,000 against $50,155,000 a year ago. Adjusted diluted earnings per participating share were $2.46 against $2.55 a year ago. EBITDA was $104,049,000 against $115,466,000 a year ago. Adjusted EBITDA was $119,855,000 against $121,704,000 a year ago. Net cash provided from operating activities was $80,617,000 against $139,109,000 a year ago. Capital expenditures were $41,487,000 against $36,599,000 a year ago.

For the full year, the company expects full year 2018 revenues to grow 12% to 14% due to the annualized contributions from Novel Ingredients and NutraGenesis, favorable growth in the nutrition end-markets served, and stabilization in the base business. Due primarily to recently enacted tax reform, Innophos is lowering its estimated effective tax rate for 2018 from the typical 32% to 33% range to 27% to 29% given the geographical mix in earnings. 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 approximate 17% of sales. Adjusted EBITDA is forecasted to be weighted 45% toward first half and 55% toward second half given the phasing of the benefits from the strategic value chain repositioning and manufacturing optimization program, as well as the integration of the acquisitions completed in 2017. The Company expects to only modestly increase the use of cash to make targeted 2018 capital investments to support the aforementioned program.