Free Post Earnings Research Report: Versum’s Sales Surged 22%; Adjusted EPS Advanced 12.5%

Stock Monitor: AdvanSix Post Earnings Reporting

LONDON, UK / ACCESSWIRE / March 02, 2018 / Active-Investors.com has just released a free earnings report on Versum Materials, Inc. (NYSE: VSM) ("Versum"). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=VSM. The Company reported its first quarter fiscal 2018 operating and financial results on February 06, 2018. The leading global materials and equipment supplier to the semiconductor industry outperformed top- and bottom-line expectations, and also raised its guidance for the full fiscal year 2018. Register today and get access to over 1000 Free Research Reports by joining our site below:

www.active-investors.com/registration-sg

Active-Investors.com is currently working on the research report for AdvanSix Inc. (NYSE: ASIX), which also belongs to the Basic Materials sector as the Company Versum Materials. Do not miss out and become a member today for free to access this upcoming report at:

www.active-investors.com/registration-sg/?symbol=ASIX

Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Versum Materials most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

www.active-investors.com/registration-sg/?symbol=VSM

Earnings Highlights and Summary

For the first quarter ended December 31, 2017, Versum's sales surged 22% to $330.8 million versus $270.8 million in Q1 FY17, attributable to a robust growth in the Company's Delivery Systems & Services (DS&S) segment, and a strong volume growth in its Advanced Materials product lines. Versum's revenue numbers exceeded analysts' estimates by $35.39 million.

Versum's adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) were $102.3 million in Q1 FY18 versus $93.2 million in Q1 FY17, reflecting a 10% increase on a y-o-y basis. Strong volumes in both the DS&S segment and the Materials segment, coupled with modestly favorable currency, were partially offset by an unfavorable gross profit impact in the Materials segment, higher selling & administrative and research & development (SARD) costs to support growth, and unfavorable foreign exchange impacts.

During Q1 FY18, Versum's net income was $18.6 million, or $0.17 per diluted share, versus $50.8 million, or $0.47 per diluted share, in Q1 FY17. The Company's reported quarter's strong sales and operating performance were more than offset by the $37.6 million charge resulting from the Tax Cuts and Jobs Act 2017 (TCJA) and a write-off of financing costs, net of tax, of $1.5 million.

Excluding the tax charge resulting from the TCJA, the one-time charges related to separation, restructuring, and cost reduction actions, and the write-off of financing costs, Versum's adjusted net income was $59.0 million, or $0.54 per diluted share, in Q1 FY18, versus $52.9 million, or $0.48 per diluted share, in Q1 FY17; beating Wall Street's estimates of $0.51 per share.

Business Segment Results

During Q1 FY18, Versum's Materials segment's sales grew 3% to $214.6 million compared to $208.0 million in Q1 FY17, driven by a strong volume growth in Advanced Materials product lines. The segment's operating income was $65.8 million for the reported quarter, down 10% from $72.9 million in the prior year's same quarter, while its adjusted EBITDA were $76.8 million in Q1 FY18, down 8% from $83.1 million in Q1 FY17. The segment's strong Advanced Materials product lines' performance was more than offset by unfavorable impacts, primarily from the Process Materials product lines' carryover pricing, and higher raw material and third-party costs due to capacity constraints.

For Q1 FY18, Versum's DS&S segment's sales soared 86.3% to $115.3 million compared to $61.9 million in Q1 FY17, driven by a continued strong equipment and installation growth due to a robust demand across all markets, especially Korea and China. The segment's operating income was $33.4 million for the reported quarter, up 169% from $12.4 million in the prior year's comparable quarter. In Q1 FY18, the segment's adjusted EBITDA soared 165% to $33.7 million compared to $12.7 million in Q1 FY17, driven by robust equipment and installation activities and a strong project cost management.

Cash Matters

Versum's year-to-date cash flow from operations was $39.1 million, with cash used for capital spending of $28.7 million, including $11.5 million of capital spending related to restructuring activities.

Outlook

For the fiscal year 2018, Versum revised its outlook to estimated sales of $1.25 billion to $1.30 billion and adjusted EBITDA of $415 million to $435 million, from the earlier guidance of $1.18 billion to $1.23 billion and $395 million to $415 million, respectively. The Company's adjusted EBITDA outlook excludes approximately $15 million to $20 million of estimated one-time stand-up costs related to the implementation of its own enterprise resource planning (ERP) system, and the relocation of certain administrative and research & development personnel to Versum sites.

Stock Performance Snapshot

March 01, 2018 - At Thursday's closing bell, Versum Materials' stock was slightly up 0.49%, ending the trading session at $37.20.

Volume traded for the day: 506.51 thousand shares.

Stock performance in the previous six-month period – up 4.35%; and past twelve-month period – up 19.35%

After yesterday's close, Versum Materials' market cap was at $4.05 billion.

Price to Earnings (P/E) ratio was at 20.54.

The stock has a dividend yield of 0.54%.

The stock is part of the Basic Materials sector, categorized under the Chemicals - Major Diversified industry.

Active-Investors:

Active-Investors (A-I) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. A-I has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles, and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

A-I has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third-party research service company (the "Reviewer") represented by a credentialed financial analyst [for further information on analyst credentials, please email info@active-investors.com. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by A-I. A-I is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

A-I, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. A-I, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, A-I, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither A-I nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://active-investors.com/legal-disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: info@active-investors.com
Phone number: 73 29 92 6381

Office Address: 6, Jalan Kia Peng, Kuala Lumpur, 50450 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur, Malaysia

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Active-Investors