PolyOne Announces Fourth Quarter and Full Year 2011 Results

Monday, Feb 20, 2012

CLEVELAND, Feb. 17, 2012 /PRNewswire-FirstCall/ --

Fourth Quarter Results

• Earnings per share of $0.13; earnings per share as adjusted of $0.18  
• Adjusted earnings per share expand 20% over $0.15 for fourth quarter 2010
• Completed acquisition of ColorMatrix on December 21, accelerating specialty transformation

Full Year Results

• Earnings per share of $1.83 versus $1.69 in 2010
• Adjusted earnings per share of $1.02 increased 29% from $0.79 in the prior year
• Record performances in all three strategic platforms

PolyOne Corporation (NYSE: POL) today reported $640.4 million of revenues for the fourth quarter of 2011, a 4% increase compared to $617.8 million in the fourth quarter of 2010.  

Diluted earnings per share totaled $0.13 in the fourth quarter of 2011 compared to diluted earnings per share of $0.92 in the fourth quarter of 2010. Adjusted earnings per share increased 20% to $0.18 for the fourth quarter of 2011 up from $0.15 recorded in the fourth quarter last year.

Full year revenues in 2011 increased 9% to $2.9 billion, compared to $2.6 billion in the prior year.  Diluted earnings per share totaled $1.83 for the full year 2011, compared to $1.69 per diluted share in 2010.  Adjusted earnings per share increased 29% to $1.02 per diluted share for full year 2011 compared with$0.79 per diluted share recorded in the prior year.

"I am pleased with our fourth quarter results, as we expanded adjusted EPS by 20% over the fourth quarter of 2010 and completed the acquisition of ColorMatrix," said Stephen D. Newlin, chairman, president and chief executive officer.  "The fourth quarter marks the end of another record-breaking year for PolyOne.  For the year, both our Specialty Platform and PolyOne Distribution achieved record levels of operating income, while Performance Products and Solutions reached a new record return on sales of 7.2%."

Newlin added, "I look back on 2011 as a critical inflection point in our transformation toward becoming a specialty company.  We divested our equity investment in SunBelt, a commodity manufacturer of chlorine and caustic soda, and, among other important initiatives, completed the acquisitions of Uniplen in Braziland ColorMatrix, a global leader in additive and liquid colorant technologies."

The company said the acquisition of ColorMatrix had a negligible impact on earnings in 2011 as it was completed on December 21.

"With respect to ColorMatrix, we are increasing accretion guidance for 2012 and 2013," Newlin said.  "Net of deal-related financing costs, we expect ColorMatrix will add income of $0.04 to $0.06 per share in 2012 and $0.12 to $0.15 per share in 2013.  Integration is well underway, and our confidence in this acquisition has grown as we plan to leverage each other's strengths to accelerate growth."

Commenting on the company's outlook, Newlin said "Looking at 2012, we expect another year of record adjusted earnings per share.  However, growth rates may decelerate given the current economic environment."  Newlin added, "While a slowdown in the European economy and a weaker Euro pose near term headwinds, we remain extremely optimistic about our medium to long-term growth prospects."

"Our acquisitions in 2011 would not have been possible if it were not for the divestiture of commodity investments and prudent cash management," said Robert M. Patterson, executive vice president and chief financial officer.  "In addition to the upfront proceeds generated from the sale of our investment in SunBelt in February of 2011, we further expect to benefit from the transaction's three year earn-out structure.  During the fourth quarter of 2011 we recorded a gain of $18.1 million related to the first year of the earn-out, which we expect to collect in the first quarter of 2012."  

Patterson added, "We ended the year with $192 million of cash on the balance sheet after the purchase of ColorMatrix and related financing.  This, coupled with $148 million of availability under our new asset-based revolver, leaves us with more than ample cash to fund our future growth initiatives."  

The company also said that during the fourth quarter it repurchased two million shares of PolyOne common stock in the open market.

To facilitate a comparison of current period results with prior-year amounts, net income and earnings per share have been adjusted to exclude special items, tax adjustments and equity income from the now divested SunBelt joint venture.  The chart below identifies the adjustments related to the fourth quarter of 2011 and 2010, respectively.  

SOURCE PolyOne Corporation