Fourth Quarter E.P.S. of $0.76 (Adjusted E.P.S. of $0.53)
ALPHARETTA, Ga., Feb. 12, 2019 -- Neenah, Inc. (NYSE: NP) today reported 2018 fourth quarter and full-year results.
Fourth Quarter Highlights
- Revenues of $240.9 million decreased 1 percent versus the fourth quarter of 2017.
- Earnings per diluted share of $0.76 decreased from $1.10 in the fourth quarter of 2017, while adjusted earnings per share of $0.53 compared with $1.06 in the prior year.
- Cash generated from operations of $29.0 million increased from $18.4 million in the prior year.
- The Company's manufacturing facility in Brattleboro, Vermont was sold on December 31, 2018 for a cash price of $5 million.
- The Company's U.S. revolving credit facility was amended and extended, providing additional capacity, lower rates and added flexibility.
- Quarterly cash dividends paid of $0.41 per share were 11 percent higher than the prior year period. A ninth consecutive double-digit dividend increase was announced for payments beginning in March 2019.
Full Year Highlights
- Revenues of $1,034.9 million increased 6 percent versus 2017 and topped one billion dollars for the first time. A 13 percent increase in Technical Products sales was partly offset by 2 percent decline in Fine Paper & Packaging sales.
- Earnings per diluted share of $2.17 declined compared with earnings of $4.68 per share in 2017. In 2018, earnings included $1.37 per share of expense related to the impairment loss and subsequent sale of the Brattleboro facility. Adjusted earnings per share of $3.50 in 2018 compared with $4.32 per share in 2017.
- Key strategic activities completed in 2018 included the continued ramp up of U.S. transportation filtration operations, integration and synergies from the November 2017 Coldenhove acquisition, and sale of the Brattleboro facility.
- Cash returns to shareholders through dividends and share repurchases increased 12 percent to $38.6 million.
"Adjusted earnings" is a non-GAAP measure and is used to improve comparability of year-on-year results. Adjusted figures are reconciled to GAAP later in this release.
"Fourth quarter results were challenged by the largest quarterly input cost increase of the year and lower seasonal demand that was compounded by growing global economic uncertainty. As a result, our teams continue to combine significant pricing initiatives and aggressive cost management to restore margins," said John O'Donnell, Chief Executive Officer. "In 2019, we will benefit from these actions, as well as from our recent footprint rationalization in Fine Paper, continued filtration expansion in the U.S. and planned growth in targeted niche markets. Our commitment towards executing on proven capital deployment priorities in ways that add value for our shareholders remains unwavering, and we'll do this while maintaining our strong balance sheet."