ALPHARETTA, Ga., Aug. 6, 2019 -- Neenah, Inc. (NYSE: NP) today reported second quarter 2019 results.
Second Quarter Highlights
- Net sales of $253.4 million decreased 7 percent compared with $271.3 million in the prior year. On a constant currency basis and excluding the impact of the December 2018 sale of the Brattleboro mill, net sales were down 2 percent.
- GAAP earnings per diluted common share (E.P.S.) of $0.80 compared with a loss of ($0.29) per share in 2018.
- On an adjusted basis, 2019 quarterly E.P.S. of $0.95 compared to $1.18 in the prior year period. Pre-tax adjusting items of $3.5 million in the second quarter of 2019 included $2.0 million for accelerated depreciation and other costs related to the planned idling of a fine paper machine, $0.9 million for restructuring and other non-routine costs and $0.6 million for costs related to resolution of an indirect tax audit for 2012-15. Pre-tax adjusting items of $33.3 million in 2018 were largely comprised of a non-cash impairment loss related to the Brattleboro mill prior to its sale. Adjusted E.P.S. is a non-GAAP measure used to enhance understanding and comparability of year-on-year results. Details on adjusting items and a reconciliation to comparable GAAP measures is shown later in this release.
- Cash generated from operations of $38.0 million increased from $31.7 million in the second quarter of 2018. Cash flows in 2019 were used to reduce debt in the quarter by $23.0 million.
- Quarterly cash dividends paid of $0.45 per share in 2019 increased 10 percent from $0.41 per share in the prior year period.
"Our improving performance versus the first quarter reflects benefits from the actions taken by our teams to manage costs and pricing, as well as a moderation of input cost pressures. Although market demand and external conditions are not robust, I was pleased with our strong growth in filtration, improved operating margins in both business segments, and significantly increased cash flow," said John O'Donnell, Chief Executive Officer. "We remain committed to using near term cash flow to reduce debt and maintain a strong balance sheet, and provide an attractive dividend for our shareholders. At the same time, we continue to make progress on organic initiatives that are catalysts for longer term growth, and remain vigilant and disciplined in executing our strategy to pursue additional value-adding growth opportunities."