OMNOVA Solutions Inc. announced unaudited consolidated earnings results for the first quarter ended February 28, 2018. For the quarter, the company reported net sales of $178.7 million against $174.6 million a year ago. Income before income taxes was $2.2 million against $2.0 million a year ago. Net income was $7.3 million or $0.16 per basic and diluted share against $3.6 million or $0.08 per basic and diluted share a year ago. Net cash used in) operating activities was $8.0 million against $4.7 million a year ago. Capital expenditures was $3.2 million against $3.7 million a year ago. On non-GAAP basis, the company reported Net Sales were $178.7 million against $174.6 million a year ago. Income before income taxes was $2.2 million against $2.0 million a year ago. Adjusted segment operating profit was $5.1 million against $3.0 million a year ago. Adjusted income was $3.9 million or $0.09 per diluted share against $2.1 million or $0.05 per diluted share a year ago. Corporate capital expenditures was $3.2 million against $3.7 million a year ago. Consolidated adjusted EBIT was $10.2 million against $8.2 million a year ago. Consolidated adjusted EBITDA was $17.4 million against $14.9 million a year ago.

The company reaffirmed earnings guidance for the full year of 2018. For fiscal 2018, the company is using a normalized blended book tax rate of 25% to reflect the lower U.S. statutory rates, which accounts for about $0.01 of additional EPS in this year's first quarter compared to last year. The company expects to continue to utilize NOLs to offset taxable income. Accordingly, the company doesn't expect to pay any U.S. cash taxes for the next few years. The company continues to expect adjusted EPS growth for the full year.