Univar Solutions Reports Solid 2019 Second Quarter Financial Results

Published

DOWNERS GROVE, Ill., Aug. 5, 2019 /PRNewswire/ -- Univar Inc. (NYSE: UNVR) ("Univar Solutions," or "The Company"), a global chemical and ingredient distributor and provider of value-added services, announced today its financial results for the second quarter ended June 30, 2019.

Second Quarter 2019 Highlights

  • Univar Solutions reported net income of $16.3 million, or $0.10 per share, compared to net income of $56.1 million, or $0.40 per share, in the prior year second quarter. The current quarter includes $49.1 million of integration and transaction related costs before tax, and higher shares outstanding associated with the Company's acquisition of Nexeo Solutions, Inc. ("Nexeo") in the first quarter of 2019.
  • Adjusted earnings per share of $0.42 compared to $0.47 in the prior year second quarter, in line with expectations.
  • Adjusted EBITDA grew 16.2 percent to $201.1 million, and Adjusted EBITDA margin expanded 50 basis points to 7.8 percent from the prior year.
  • Leverage ratio (1) of 4.1x essentially equal to the end of the second quarter last year.
  • Raised annual net synergy expectations from the Nexeo acquisition value capture program from $100 million to $120 million, with $20 million expected to be realized in 2019, up from original estimate of $10 million.
  • The Company expects market demand for chemicals and ingredients in the second half of 2019 to be lower than the comparable period in 2018, and now expects Adjusted EBITDA for the full year between $725 million and $740 million, compared to its previous estimate of $740 million to $760 million.

 

(1)  Leverage ratio as defined in the Company's credit agreements, excluding the impact of synergies.

"I'm pleased with our strong performance in the second quarter in a challenging macroeconomic environment," said David Jukes, president and chief executive officer. "Our USA transformation is working, and we are capturing valuable synergies from the Nexeo acquisition. We have multiple levers in our control, including accelerating integration cost synergies and improving our sales force execution, which create value for our suppliers, customers, and shareholders."

"We made significant advances with the integration of Nexeo in the quarter," added Carl Lukach, executive vice president and chief financial officer. "Our operating efficiency is increasing as we realize these synergies. We remain on track to continue lowering our leverage ratio, despite lower global demand for chemicals."

Company Performance

Univar Solutions' operating performance results are described below and, unless otherwise indicated, are a comparison of second quarter 2019 results with second quarter 2018 results, including Adjusted EBITDA, which is reconciled to reported net income in the accompanying supplemental financial information.

(1)  Leverage ratio as defined in the Company's credit agreements, excluding the impact of synergies. (Unaudited)
Three months ended June 30, % change
(in millions) 2019 2018 $ change % change excl. currency
External Net Sales
USA $ 1,605.3 $ 1,309.8 $ 295.5 22.6 % 22.6 %
Canada 404.8 450.9 (46.1) (10.2) % (6.7) %
EMEA 457.9 511.9 (54.0) (10.5) % (4.5) %
LATAM 116.6 100.0 16.6 16.6 % 19.6 %
Total Consolidated Net Sales $ 2,584.6 $ 2,372.6 $ 212.0 8.9 % 11.0 %
Gross Profit
USA $ 374.1 $ 290.8 $ 83.3 28.6 % 28.6 %
Canada 68.5 68.9 (0.4) (0.6) % 3.2 %
EMEA 110.2 118.2 (8.0) (6.8) % (0.6) %
LATAM 24.5 22.6 1.9 8.4 % 12.4 %
Total Consolidated Gross Profit (1) $ 577.3 $ 500.5 $ 76.8 15.3 % 17.5 %
Adjusted EBITDA
USA $ 127.6 $ 97.2 $ 30.4 31.3 % 31.3 %
Canada 33.8 34.6 (0.8) (2.3) % 1.4 %
EMEA 38.2 40.1 (1.9) (4.7) % 2.2 %
LATAM 9.4 9.1 0.3 3.3 % 7.7 %
Other (2) (7.9) (7.9) % %
Total Consolidated Adjusted EBITDA $ 201.1 $ 173.1 $ 28.0 16.2 % 18.7 %

(1)  Leverage ratio as defined in the Company's credit agreements, excluding the impact of synergies. (Unaudited) (1)   Gross profit is calculated by deducting cost of goods sold (exclusive of depreciation), from net sales.
Three months ended June 30, % change (2)   Other represents unallocated corporate costs that do not directly benefit segments.
(in millions) 2019 2018 $ change % change excl. currency
External Net Sales
USA $ 1,605.3 $ 1,309.8 $ 295.5 22.6 % 22.6 %
Canada 404.8 450.9 (46.1) (10.2) % (6.7) %
EMEA 457.9 511.9 (54.0) (10.5) % (4.5) %
LATAM 116.6 100.0 16.6 16.6 % 19.6 %
Total Consolidated Net Sales $ 2,584.6 $ 2,372.6 $ 212.0 8.9 % 11.0 %
Gross Profit
USA $ 374.1 $ 290.8 $ 83.3 28.6 % 28.6 %
Canada 68.5 68.9 (0.4) (0.6) % 3.2 %
EMEA 110.2 118.2 (8.0) (6.8) % (0.6) %
LATAM 24.5 22.6 1.9 8.4 % 12.4 %
Total Consolidated Gross Profit (1) $ 577.3 $ 500.5 $ 76.8 15.3 % 17.5 %
Adjusted EBITDA
USA $ 127.6 $ 97.2 $ 30.4 31.3 % 31.3 %
Canada 33.8 34.6 (0.8) (2.3) % 1.4 %
EMEA 38.2 40.1 (1.9) (4.7) % 2.2 %
LATAM 9.4 9.1 0.3 3.3 % 7.7 %
Other (2) (7.9) (7.9) % %
Total Consolidated Adjusted EBITDA $ 201.1 $ 173.1 $ 28.0 16.2 % 18.7 %

Consolidated Results

Univar Solutions reported net sales of $2.6 billion, up 11.0 percent compared to the prior year second quarter on a constant currency basis. Growth in the U.S. business was driven by contribution from the Nexeo acquisition and improving sales force execution. This was partially offset by weakness in the Canadian agriculture sector and lower demand for chemicals and ingredients from global industrial end markets. The macroeconomic environment in the USA and EMEA segments weakened sequentially during the quarter.

Gross profit of $577.3 million was up 15.3 percent compared to the prior year second quarter, driven by contribution from the Nexeo acquisition, improving sales force execution and favorable product and end market mix.

Adjusted EBITDA of $201.1 million increased $28.0 million, or 16.2 percent compared to the prior year second quarter, or 18.7 percent on a currency neutral basis. Adjusted EBITDA was favorably impacted by contribution from Nexeo, improving sales force execution and product mix, in addition to prudent cost management and realization of cost synergies from the integration of Nexeo.

Univar Solutions reported net income of $16.3 million, or $0.10 per share, compared to net income of $56.1 million, or $0.40 per share, in the prior year second quarter.  Net income in the second quarter included $49.1 million before tax of integration and transaction related costs.

Segment Results

USA – Adjusted EBITDA increased 31.3 percent to $127.6 million and Adjusted EBITDA margin increased 50 basis points to 7.9 percent. Gross profit grew 28.6 percent and gross margin expanded 110 basis points to 23.3 percent, reflecting focused margin management and product and end market mix compared to the prior year second quarter. USA segment sales grew 22.6 percent due to contribution from the Nexeo acquisition and improving sales force execution. However, demand for chemicals from most industrial end markets during the quarter was lower than the second quarter last year and this year's first quarter, excluding the impact of initial supplier dis-synergies from the integration of Nexeo.

Canada – Adjusted EBITDA grew 1.4 percent on a currency neutral basis, and declined 2.3 percent to $33.8 million on a reported basis compared to prior year second quarter. Adjusted EBITDA margin increased 60 basis points to 8.3 percent. Solid performance in the core industrial chemical business and certain commodity products, along with contribution from the Nexeo acquisition, was partially offset by lower volumes attributable to a weather impacted agriculture sector. Gross profit was about flat with prior year second quarter, while gross margin increased 160 basis points to 16.9 percent due to favorable product and end market mix. Canada segment sales declined 10.2 percent, or 6.7 percent excluding the impact of currency.

EMEA – Adjusted EBITDA increased 2.2 percent on a constant currency basis, the 23rd consecutive quarter of currency neutral EBITDA growth. The beneficial Brexit impact of approximately $2 million in the first quarter largely reversed in the second quarter. Gross profit was about equal to the prior year second quarter on a currency neutral basis, however gross margin increased 100 basis points to 24.1 percent driven by mix improvement. Adjusted EBITDA margin expanded 50 basis points to 8.3 percent, driven by mix improvement and effective cost management in a softening economic environment. EMEA segment sales declined 10.5 percent, or 4.5 percent excluding the impact of currency.

LATAM – Adjusted EBITDA grew 7.7 percent on a currency neutral basis, and increased 3.3 percent to $9.4 million on a reported basis. Results benefited from the acquisition of Nexeo, solid performance in Mexico energy markets and the Brazilian agriculture sector, and strong cost control. This was partially offset by softness in industrial demand. Gross profit grew 12.4 percent on a currency neutral basis, while gross margin decreased 160 basis points to 21.0 percent due to change in product and end market mix. LATAM segment sales of $116.6 million grew 19.6 percent, excluding the impact of currency.

Outlook

The Company's integration of Nexeo's chemical distribution customers, suppliers and support functions is progressing swiftly and successfully. Cost saving synergies are now expected to be greater than originally estimated. As a result, the Company is raising its forecast for annual, recurring net synergies from $100 million to $120 million before tax. The Company expects to realize $20 million in net synergies in 2019, doubling its initial estimate of $10 million.

The Company issued financial guidance at the beginning of the year based on the assumption that industrial production growth would be flat, slower than its historical projection of one to two percent growth. Market demand for chemicals and ingredients, however, has progressively declined in the first half of the year. The Company now expects chemical and ingredient demand from industrial end markets for the full year to be lower than the prior year.

Taking into account lower than expected market demand for chemicals and ingredients, and outlook commentary from many supplier partners, along with higher forecasted net cost synergies from the Nexeo acquisition, the Company projects full year Adjusted EBITDA to be within a range of $725 million to $740 million, compared to its prior forecast of $740 million to $760 million which assumed flat year-over-year demand. Further, the Company expects free cash flow for the year to be in a range of $275 million to $325 million, including the payment of the $62.5 million legal settlement reported in the first quarter, and before one-time integration and transaction costs.

For the third quarter of 2019, the Company expects Adjusted EBITDA to be between $180 million and $190 million, up from $157.0 million earned in the third quarter of 2018.

Univar Solutions to Host Webcast on August 5, 2019 at 9:00 a.m. EDT

The Company will host a webcast with investors to discuss the second quarter results at 9:00 a.m. ET on August 5, 2019, which can be accessed on the Investor Relations section of its website at http://investors.univarsolutions.com. Following the event, an archived version of the webcast and supporting materials will be available on the same website.

Gross Profit, Delivered Gross Profit, Gross Margin, Delivered Gross Margin, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net income, Adjusted earnings per share

For the purposes of making decisions about resource allocation and otherwise assessing performance, the Company monitors the results of its operating segments separately. The Company evaluates performance on the basis of gross profit, which it defines as net sales less cost of goods sold (exclusive of depreciation), delivered gross profit, which it defines as gross profit less outbound freight and handling expense, gross margin, which it defines as gross profit divided by external net sales, delivered gross margin, which it defines as delivered gross profit divided by external net sales, as well as Adjusted EBITDA, which it defines as its consolidated net income (loss), plus the sum of net (loss) income from discontinued operations, interest expense, net of interest income, income tax expense (benefit), depreciation, amortization, other operating expenses, net (which primarily consists of employee stock-based compensation expense, restructuring charges, other employee termination costs, acquisition and integration related expenses, and other unusual or non-recurring expenses), loss on extinguishment of debt and other (expense) income, net (which consists of gains (losses) on foreign currency transactions and undesignated derivative instruments, non-operating retirement benefits, and other non-operating activity). Adjusted EBITDA margin is Adjusted EBITDA as a percentage of net sales. Adjusted EBITDA conversion ratio is Adjusted EBITDA as a percentage of Gross Profit. The Company believes that Adjusted EBITDA is an important indicator of operating performance because:

  • The Company considers gains (losses) on the acquisition, disposal and impairment of assets as resulting from investing decisions rather than ongoing operations;
  • Adjusted EBITDA excludes the effects of income taxes, as well as the effects of financing and investing activities by eliminating the effects of interest, depreciation and amortization expenses and therefore more closely measures our operational performance;
  • The Company uses Adjusted EBITDA in setting performance incentive targets in order to align performance measurement with operational performance; and
  • Other significant items, while periodically affecting the Company's results, may vary significantly from period to period and have a disproportionate effect in a given period, which affects comparability of its results.

The Company has incorporated an Adjusted net income and Adjusted earnings per share metric as a complementary metric to GAAP earnings per share to provide additional transparency to ongoing performance.  Adjusted net income excludes the same items as Adjusted EBITDA, except for stock-based compensation expense and non-operating retirement benefits.

Use of Non-GAAP Measures

The Company believes that certain financial measures that do not conform with generally accepted accounting principles in the United States ("GAAP") provide relevant and meaningful information concerning its ongoing operating results. These financial measures include gross profit, gross margin, delivered gross profit and delivered gross margin (all exclusive of depreciation), Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net income, Adjusted earnings per share and Free Cash Flow. Such non-GAAP financial measures are used from time to time herein but should not be viewed as a substitute for GAAP measures of performance. Reconciliations of non-GAAP measures to GAAP are provided in Schedules A, D, E and F.

The Company evaluates its results of operations on both an as reported and a constant currency basis. The constant currency presentation is a non-GAAP financial measure, which excludes the impact of fluctuations in foreign currency exchange rates. The Company believes providing constant currency information provides valuable supplemental information regarding its results of operations, consistent with how it evaluates its performance. The Company calculates constant currency percentages by converting its financial results in local currency for a period using the average exchange rate for the prior period to which it is comparing. This calculation may differ from similarly-titled measures used by other companies.

The Company has provided Adjusted EBITDA and Free Cash Flow guidance that excludes certain nonrecurring costs and expenses. While the Company expects that these nonrecurring costs and expenses will occur in the future, due to the uncertain nature and variability of these items, such as market changes affecting our defined benefit plans and foreign currency movements, it is not possible at this time, without unreasonable efforts, to estimate the amount or significance of these nonrecurring costs and expenses that may be included in projected GAAP earnings per share. The Company believes that these nonrecurring costs and expenses are not representative of its underlying business performance and that Adjusted EBITDA and Free Cash Flow provides the best estimate of future performance.

About Univar Solutions

Univar Solutions (NYSE: UNVR) is a leading global chemical and ingredient distributor and provider of value-added services to customers across a wide range of industries. With the industry's largest private transportation fleet and North American sales force, a vast supplier network, deep market and regulatory knowledge, world-class formulation and recipe development, unparalleled logistics know-how, and industry-leading digital tools, Univar Solutions is a committed ally to customers and suppliers, helping them anticipate, navigate, and leverage meaningful growth opportunities. Learn more at www.univarsolutions.com.

Forward-Looking Statements

This press release includes certain statements relating to future events and our intentions, beliefs, expectations, and predictions for the future, including our outlook, which are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995.  Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be beyond our control.  These risks and uncertainties are described under the caption "Risk Factors" in the Company's most recent Annual Report on Form 10-K. We caution you that the forward-looking information presented in this press release is not a guarantee of future events or results, and that actual events or results may differ materially from those made in or suggested by the forward-looking information contained in this press release.  In addition, forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "plan," "seek," "comfortable with," "will," "expect," "intend," "estimate," "anticipate," "believe," "to achieve," "targets" or "continue" or the negative thereof or variations thereon or similar terminology.  Any forward-looking information presented herein is made only as of the date of this press release, and we do not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

(1)  Leverage ratio as defined in the Company's credit agreements, excluding the impact of synergies. (Unaudited) (1)   Gross profit is calculated by deducting cost of goods sold (exclusive of depreciation), from net sales. Univar Inc.
Three months ended June 30, % change (2)   Other represents unallocated corporate costs that do not directly benefit segments. Condensed Consolidated Statements of Operations
(in millions) 2019 2018 $ change % change excl. currency (Unaudited)
External Net Sales Three months ended June 30, Six months ended June 30,
USA $ 1,605.3 $ 1,309.8 $ 295.5 22.6 % 22.6 % (in millions, except per share data) 2019 2018 2019 2018
Canada 404.8 450.9 (46.1) (10.2) % (6.7) % Net sales $ 2,584.6 $ 2,372.6 $ 4,744.6 $ 4,530.6
EMEA 457.9 511.9 (54.0) (10.5) % (4.5) % Cost of goods sold (exclusive of depreciation) 2,007.3 1,872.1 3,670.9 3,543.5
LATAM 116.6 100.0 16.6 16.6 % 19.6 % Operating expenses:
Total Consolidated Net Sales $ 2,584.6 $ 2,372.6 $ 212.0 8.9 % 11.0 % Outbound freight and handling 95.4 86.5 178.3 165.8
Warehousing, selling and administrative 280.8 240.9 534.2 481.9
Gross Profit Other operating expenses, net 63.8 11.0 228.6 24.6
USA $ 374.1 $ 290.8 $ 83.3 28.6 % 28.6 % Depreciation 39.7 30.9 72.9 62.3
Canada 68.5 68.9 (0.4) (0.6) % 3.2 % Amortization 18.6 13.8 33.0 27.2
EMEA 110.2 118.2 (8.0) (6.8) % (0.6) % Total operating expenses $ 498.3 $ 383.1 $ 1,047.0 $ 761.8
LATAM 24.5 22.6 1.9 8.4 % 12.4 % Operating income $ 79.0 $ 117.4 $ 26.7 $ 225.3
Total Consolidated Gross Profit (1) $ 577.3 $ 500.5 $ 76.8 15.3 % 17.5 % Other (expense) income:
Interest income 1.1 0.9 1.7 2.1
Adjusted EBITDA Interest expense (39.0) (32.9) (73.8) (69.0)
USA $ 127.6 $ 97.2 $ 30.4 31.3 % 31.3 % Loss on extinguishment of debt (0.7)
Canada 33.8 34.6 (0.8) (2.3) % 1.4 % Other (expense) income, net (5.6) (2.1) (11.7) 0.5
EMEA 38.2 40.1 (1.9) (4.7) % 2.2 % Total other expense $ (43.5) $ (34.1) $ (84.5) $ (66.4)
LATAM 9.4 9.1 0.3 3.3 % 7.7 % Income (loss) before income taxes 35.5 83.3 (57.8) 158.9
Other (2) (7.9) (7.9) % % Income tax expense (benefit) from continuing operations 18.5 27.2 (4.8) 37.4
Total Consolidated Adjusted EBITDA $ 201.1 $ 173.1 $ 28.0 16.2 % 18.7 % Net income (loss) from continuing operations $ 17.0 $ 56.1 $ (53.0) $ 121.5
Net (loss) income from discontinued operations $ (0.7) $ $ 5.4 $
Net income (loss) $ 16.3 $ 56.1 $ (47.6) $ 121.5
Income (loss) per common share:
Basic from continuing operations $ 0.10 $ 0.40 $ (0.33) $ 0.86
Basic from discontinued operations 0.03
Basic income (loss) per common share $ 0.10 $ 0.40 $ (0.30) $ 0.86
Diluted from continuing operations 0.10 0.40 (0.33) 0.86
Diluted from discontinued operations 0.03
Diluted income (loss) per common share $ 0.10 $ 0.40 $ (0.30) $ 0.86
Weighted average common shares outstanding:
Basic 169.8 141.1 159.5 141.0
Diluted 170.7 142.0 159.5 142.0

 

(1)  Leverage ratio as defined in the Company's credit agreements, excluding the impact of synergies. (Unaudited) (1)   Gross profit is calculated by deducting cost of goods sold (exclusive of depreciation), from net sales. Univar Inc. Univar Inc.
Three months ended June 30, % change (2)   Other represents unallocated corporate costs that do not directly benefit segments. Condensed Consolidated Statements of Operations Condensed Consolidated Balance Sheets
(in millions) 2019 2018 $ change % change excl. currency (Unaudited) (Unaudited)
External Net Sales Three months ended June 30, Six months ended June 30, (in millions, except per share data) June 30, 2019 December 31, 2018
USA $ 1,605.3 $ 1,309.8 $ 295.5 22.6 % 22.6 % (in millions, except per share data) 2019 2018 2019 2018 Assets
Canada 404.8 450.9 (46.1) (10.2) % (6.7) % Net sales $ 2,584.6 $ 2,372.6 $ 4,744.6 $ 4,530.6 Current assets:
EMEA 457.9 511.9 (54.0) (10.5) % (4.5) % Cost of goods sold (exclusive of depreciation) 2,007.3 1,872.1 3,670.9 3,543.5 Cash and cash equivalents $ 109.5 $ 121.6
LATAM 116.6 100.0 16.6 16.6 % 19.6 % Operating expenses: Trade accounts receivable, net 1,544.4 1,094.7
Total Consolidated Net Sales $ 2,584.6 $ 2,372.6 $ 212.0 8.9 % 11.0 % Outbound freight and handling 95.4 86.5 178.3 165.8 Inventories 938.0 803.3
Warehousing, selling and administrative 280.8 240.9 534.2 481.9 Prepaid expenses and other current assets 214.3 169.1
Gross Profit Other operating expenses, net 63.8 11.0 228.6 24.6 Total current assets $ 2,806.2 $ 2,188.7
USA $ 374.1 $ 290.8 $ 83.3 28.6 % 28.6 % Depreciation 39.7 30.9 72.9 62.3 Property, plant and equipment, net 1,153.5 955.8
Canada 68.5 68.9 (0.4) (0.6) % 3.2 % Amortization 18.6 13.8 33.0 27.2 Goodwill 2,488.0 1,780.7
EMEA 110.2 118.2 (8.0) (6.8) % (0.6) % Total operating expenses $ 498.3 $ 383.1 $ 1,047.0 $ 761.8 Intangible assets, net 381.0 238.1
LATAM 24.5 22.6 1.9 8.4 % 12.4 % Operating income $ 79.0 $ 117.4 $ 26.7 $ 225.3 Deferred tax assets 25.3 24.8
Total Consolidated Gross Profit (1) $ 577.3 $ 500.5 $ 76.8 15.3 % 17.5 % Other (expense) income: Other assets 277.1 84.3
Interest income 1.1 0.9 1.7 2.1 Total assets $ 7,131.1 $ 5,272.4
Adjusted EBITDA Interest expense (39.0) (32.9) (73.8) (69.0) Liabilities and stockholders' equity
USA $ 127.6 $ 97.2 $ 30.4 31.3 % 31.3 % Loss on extinguishment of debt (0.7) Current liabilities:
Canada 33.8 34.6 (0.8) (2.3) % 1.4 % Other (expense) income, net (5.6) (2.1) (11.7) 0.5 Short-term financing $ 3.2 $ 8.1
EMEA 38.2 40.1 (1.9) (4.7) % 2.2 % Total other expense $ (43.5) $ (34.1) $ (84.5) $ (66.4) Trade accounts payable 1,081.5 925.4
LATAM 9.4 9.1 0.3 3.3 % 7.7 % Income (loss) before income taxes 35.5 83.3 (57.8) 158.9 Current portion of long-term debt 19.0 21.7
Other (2) (7.9) (7.9) % % Income tax expense (benefit) from continuing operations 18.5 27.2 (4.8) 37.4 Accrued compensation 86.6 93.6
Total Consolidated Adjusted EBITDA $ 201.1 $ 173.1 $ 28.0 16.2 % 18.7 % Net income (loss) from continuing operations $ 17.0 $ 56.1 $ (53.0) $ 121.5 Other accrued expenses 409.6 285.8
Net (loss) income from discontinued operations $ (0.7) $ $ 5.4 $ Total current liabilities $ 1,599.9 $ 1,334.6
Net income (loss) $ 16.3 $ 56.1 $ (47.6) $ 121.5 Long-term debt 3,117.1 2,350.4
Pension and other postretirement benefit liabilities 250.7 254.4
Income (loss) per common share: Deferred tax liabilities 118.8 42.9
Basic from continuing operations $ 0.10 $ 0.40 $ (0.33) $ 0.86 Other long-term liabilities 270.1 98.4
Basic from discontinued operations 0.03 Total liabilities $ 5,356.6 $ 4,080.7
Basic income (loss) per common share $ 0.10 $ 0.40 $ (0.30) $ 0.86 Stockholders' equity:
Diluted from continuing operations 0.10 0.40 (0.33) 0.86 Preferred stock, 200.0 million shares authorized at $0.01 par value with no shares issued or outstanding as of June 30, 2019 and December 31, 2018 $ $
Diluted from discontinued operations 0.03 Common stock, 2.0 billion shares authorized at $0.01 par value with 168.6 million and 141.7 million shares issued and outstanding at June 30, 2019 and December 31, 2018, respectively 1.7 1.4
Diluted income (loss) per common share $ 0.10 $ 0.40 $ (0.30) $ 0.86 Additional paid-in capital 2,959.4 2,325.0
Accumulated deficit (805.9) (761.5)
Weighted average common shares outstanding: Accumulated other comprehensive loss (380.7) (373.2)
Basic 169.8 141.1 159.5 141.0 Total stockholders' equity $ 1,774.5 $ 1,191.7
Diluted 170.7 142.0 159.5 142.0 Total liabilities and stockholders' equity $ 7,131.1 $ 5,272.4

 

(1)  Leverage ratio as defined in the Company's credit agreements, excluding the impact of synergies. (Unaudited) (1)   Gross profit is calculated by deducting cost of goods sold (exclusive of depreciation), from net sales. Univar Inc. Univar Inc. Univar Inc.
Three months ended June 30, % change (2)   Other represents unallocated corporate costs that do not directly benefit segments. Condensed Consolidated Statements of Operations Condensed Consolidated Balance Sheets Condensed Consolidated Statements of Cash Flows
(in millions) 2019 2018 $ change % change excl. currency (Unaudited) (Unaudited) (Unaudited)
External Net Sales Three months ended June 30, Six months ended June 30, (in millions, except per share data) June 30, 2019 December 31, 2018 Three months ended June 30, Six months ended June 30,
USA $ 1,605.3 $ 1,309.8 $ 295.5 22.6 % 22.6 % (in millions, except per share data) 2019 2018 2019 2018 Assets (in millions) 2019 2018 2019 2018
Canada 404.8 450.9 (46.1) (10.2) % (6.7) % Net sales $ 2,584.6 $ 2,372.6 $ 4,744.6 $ 4,530.6 Current assets: Operating activities:
EMEA 457.9 511.9 (54.0) (10.5) % (4.5) % Cost of goods sold (exclusive of depreciation) 2,007.3 1,872.1 3,670.9 3,543.5 Cash and cash equivalents $ 109.5 $ 121.6 Net income (loss) $ 16.3 $ 56.1 $ (47.6) $ 121.5
LATAM 116.6 100.0 16.6 16.6 % 19.6 % Operating expenses: Trade accounts receivable, net 1,544.4 1,094.7 Adjustments to reconcile net income to net cash used by operating activities:
Total Consolidated Net Sales $ 2,584.6 $ 2,372.6 $ 212.0 8.9 % 11.0 % Outbound freight and handling 95.4 86.5 178.3 165.8 Inventories 938.0 803.3 Depreciation and amortization 58.3 44.7 105.9 89.5
Warehousing, selling and administrative 280.8 240.9 534.2 481.9 Prepaid expenses and other current assets 214.3 169.1 Amortization of deferred financing fees and debt discount 3.0 1.9 4.8 3.9
Gross Profit Other operating expenses, net 63.8 11.0 228.6 24.6 Total current assets $ 2,806.2 $ 2,188.7 Amortization of  pension credit from accumulated other comprehensive loss 0.1 0.1 0.1 0.1
USA $ 374.1 $ 290.8 $ 83.3 28.6 % 28.6 % Depreciation 39.7 30.9 72.9 62.3 Property, plant and equipment, net 1,153.5 955.8 Loss on extinguishment of debt 0.7
Canada 68.5 68.9 (0.4) (0.6) % 3.2 % Amortization 18.6 13.8 33.0 27.2 Goodwill 2,488.0 1,780.7 Deferred income taxes 3.3 8.0 (24.9) 5.0
EMEA 110.2 118.2 (8.0) (6.8) % (0.6) % Total operating expenses $ 498.3 $ 383.1 $ 1,047.0 $ 761.8 Intangible assets, net 381.0 238.1 Stock-based compensation expense 11.3 4.3 17.3 13.7
LATAM 24.5 22.6 1.9 8.4 % 12.4 % Operating income $ 79.0 $ 117.4 $ 26.7 $ 225.3 Deferred tax assets 25.3 24.8 Other 2.5 0.7 3.0 1.1
Total Consolidated Gross Profit (1) $ 577.3 $ 500.5 $ 76.8 15.3 % 17.5 % Other (expense) income: Other assets 277.1 84.3 Changes in operating assets and liabilities:
Interest income 1.1 0.9 1.7 2.1 Total assets $ 7,131.1 $ 5,272.4 Trade accounts receivable, net (67.2) (110.8) (153.8) (330.2)
Adjusted EBITDA Interest expense (39.0) (32.9) (73.8) (69.0) Liabilities and stockholders' equity Inventories 65.3 28.5 22.4 (51.6)
USA $ 127.6 $ 97.2 $ 30.4 31.3 % 31.3 % Loss on extinguishment of debt (0.7) Current liabilities: Prepaid expenses and other current assets (23.0) (11.0) (27.2) (25.1)
Canada 33.8 34.6 (0.8) (2.3) % 1.4 % Other (expense) income, net (5.6) (2.1) (11.7) 0.5 Short-term financing $ 3.2 $ 8.1 Trade accounts payable (26.9) 139.2 10.4 206.5
EMEA 38.2 40.1 (1.9) (4.7) % 2.2 % Total other expense $ (43.5) $ (34.1) $ (84.5) $ (66.4) Trade accounts payable 1,081.5 925.4 Pensions and other postretirement benefit liabilities (9.4) (11.7) (12.7) (23.3)
LATAM 9.4 9.1 0.3 3.3 % 7.7 % Income (loss) before income taxes 35.5 83.3 (57.8) 158.9 Current portion of long-term debt 19.0 21.7 Other, net (90.6) (60.0) (78.9) (60.1)
Other (2) (7.9) (7.9) % % Income tax expense (benefit) from continuing operations 18.5 27.2 (4.8) 37.4 Accrued compensation 86.6 93.6 Net cash (used) provided by operating activities $ (57.0) $ 90.0 $ (180.5) $ (49.0)
Total Consolidated Adjusted EBITDA $ 201.1 $ 173.1 $ 28.0 16.2 % 18.7 % Net income (loss) from continuing operations $ 17.0 $ 56.1 $ (53.0) $ 121.5 Other accrued expenses 409.6 285.8 Investing activities:
Net (loss) income from discontinued operations $ (0.7) $ $ 5.4 $ Total current liabilities $ 1,599.9 $ 1,334.6 Purchases of property, plant and equipment $ (28.9) $ (28.9) $ (45.4) $ (45.1)
Net income (loss) $ 16.3 $ 56.1 $ (47.6) $ 121.5 Long-term debt 3,117.1 2,350.4 Purchases of businesses, net of cash acquired 10.0 (11.5) (1,155.5) (20.4)
Pension and other postretirement benefit liabilities 250.7 254.4 Proceeds from sale of property, plant, and equipment 0.1 0.3 0.8 2.5
Income (loss) per common share: Deferred tax liabilities 118.8 42.9 Proceeds from sale of business (10.0) 640.0
Basic from continuing operations $ 0.10 $ 0.40 $ (0.33) $ 0.86 Other long-term liabilities 270.1 98.4 Other (1.3)
Basic from discontinued operations 0.03 Total liabilities $ 5,356.6 $ 4,080.7 Net cash used by investing activities $ (28.8) $ (40.1) $ (561.4) $ (63.0)
Basic income (loss) per common share $ 0.10 $ 0.40 $ (0.30) $ 0.86 Stockholders' equity: Financing activities:
Diluted from continuing operations 0.10 0.40 (0.33) 0.86 Preferred stock, 200.0 million shares authorized at $0.01 par value with no shares issued or outstanding as of June 30, 2019 and December 31, 2018 $ $ Proceeds from issuance of long-term debt $ (145.6) $ 204.1 $ 1,195.8 $ 345.9
Diluted from discontinued operations 0.03 Common stock, 2.0 billion shares authorized at $0.01 par value with 168.6 million and 141.7 million shares issued and outstanding at June 30, 2019 and December 31, 2018, respectively 1.7 1.4 Payments on long-term debt and finance lease obligations (454.9) (233.4) (459.5) (553.5)
Diluted income (loss) per common share $ 0.10 $ 0.40 $ (0.30) $ 0.86 Additional paid-in capital 2,959.4 2,325.0 Short-term financing, net (2.6) 3.2 (6.9) (3.4)
Accumulated deficit (805.9) (761.5) Taxes paid related to net share settlements of stock-based compensation awards (0.8) (0.5) (2.8) (3.2)
Weighted average common shares outstanding: Accumulated other comprehensive loss (380.7) (373.2) Stock option exercises 5.7 0.3 5.7 1.1
Basic 169.8 141.1 159.5 141.0 Total stockholders' equity $ 1,774.5 $ 1,191.7 Other 0.6 0.6 $ 0.6 0.6
Diluted 170.7 142.0 159.5 142.0 Total liabilities and stockholders' equity $ 7,131.1 $ 5,272.4 Net cash (used) provided by financing activities $ (597.6) $ (25.7) $ 732.9 $ (212.5)
Effect of exchange rate changes on cash and cash equivalents $ 4.9 $ (11.5) $ (3.1) $ (13.9)
Net (decrease) increase in cash and cash equivalents (678.5) 12.7 (12.1) (338.4)
Cash and cash equivalents at beginning of period 788.0 115.9 121.6 467.0
Cash and cash equivalents at end of period $ 109.5 $ 128.6 $ 109.5 $ 128.6

 

(1)  Leverage ratio as defined in the Company's credit agreements, excluding the impact of synergies. (Unaudited) (1)   Gross profit is calculated by deducting cost of goods sold (exclusive of depreciation), from net sales. Univar Inc. Univar Inc. Univar Inc. Schedule A
Three months ended June 30, % change (2)   Other represents unallocated corporate costs that do not directly benefit segments. Condensed Consolidated Statements of Operations Condensed Consolidated Balance Sheets Condensed Consolidated Statements of Cash Flows Univar Inc.
(in millions) 2019 2018 $ change % change excl. currency (Unaudited) (Unaudited) (Unaudited) Reconciliation of Adjusted EBITDA to Reported Net Income
(Unaudited)
External Net Sales Three months ended June 30, Six months ended June 30, (in millions, except per share data) June 30, 2019 December 31, 2018 Three months ended June 30, Six months ended June 30,
USA $ 1,605.3 $ 1,309.8 $ 295.5 22.6 % 22.6 % (in millions, except per share data) 2019 2018 2019 2018 Assets (in millions) 2019 2018 2019 2018 (in millions) USA Canada EMEA LATAM Other/ Eliminations Consolidated
Canada 404.8 450.9 (46.1) (10.2) % (6.7) % Net sales $ 2,584.6 $ 2,372.6 $ 4,744.6 $ 4,530.6 Current assets: Operating activities: Three Months Ended June 30, 2019
EMEA 457.9 511.9 (54.0) (10.5) % (4.5) % Cost of goods sold (exclusive of depreciation) 2,007.3 1,872.1 3,670.9 3,543.5 Cash and cash equivalents $ 109.5 $ 121.6 Net income (loss) $ 16.3 $ 56.1 $ (47.6) $ 121.5 Net sales:
LATAM 116.6 100.0 16.6 16.6 % 19.6 % Operating expenses: Trade accounts receivable, net 1,544.4 1,094.7 Adjustments to reconcile net income to net cash used by operating activities: External customers $ 1,605.3 $ 404.8 $ 457.9 $ 116.6 $ $ 2,584.6
Total Consolidated Net Sales $ 2,584.6 $ 2,372.6 $ 212.0 8.9 % 11.0 % Outbound freight and handling 95.4 86.5 178.3 165.8 Inventories 938.0 803.3 Depreciation and amortization 58.3 44.7 105.9 89.5 Inter-segment 23.4 1.7 1.0 (26.1)
Warehousing, selling and administrative 280.8 240.9 534.2 481.9 Prepaid expenses and other current assets 214.3 169.1 Amortization of deferred financing fees and debt discount 3.0 1.9 4.8 3.9 Total net sales $ 1,628.7 $ 406.5 $ 458.9 $ 116.6 $ (26.1) $ 2,584.6
Gross Profit Other operating expenses, net 63.8 11.0 228.6 24.6 Total current assets $ 2,806.2 $ 2,188.7 Amortization of  pension credit from accumulated other comprehensive loss 0.1 0.1 0.1 0.1 Cost of goods sold (exclusive of depreciation) 1,254.6 338.0 348.7 92.1 (26.1) 2,007.3
USA $ 374.1 $ 290.8 $ 83.3 28.6 % 28.6 % Depreciation 39.7 30.9 72.9 62.3 Property, plant and equipment, net 1,153.5 955.8 Loss on extinguishment of debt 0.7 Outbound freight and handling 66.4 11.6 14.9 2.5 95.4
Canada 68.5 68.9 (0.4) (0.6) % 3.2 % Amortization 18.6 13.8 33.0 27.2 Goodwill 2,488.0 1,780.7 Deferred income taxes 3.3 8.0 (24.9) 5.0 Warehousing, selling and administrative 180.1 23.1 57.1 12.6 7.9 280.8
EMEA 110.2 118.2 (8.0) (6.8) % (0.6) % Total operating expenses $ 498.3 $ 383.1 $ 1,047.0 $ 761.8 Intangible assets, net 381.0 238.1 Stock-based compensation expense 11.3 4.3 17.3 13.7 Adjusted EBITDA $ 127.6 $ 33.8 $ 38.2 $ 9.4 $ (7.9) $ 201.1
LATAM 24.5 22.6 1.9 8.4 % 12.4 % Operating income $ 79.0 $ 117.4 $ 26.7 $ 225.3 Deferred tax assets 25.3 24.8 Other 2.5 0.7 3.0 1.1 Other operating expenses, net 63.8
Total Consolidated Gross Profit (1) $ 577.3 $ 500.5 $ 76.8 15.3 % 17.5 % Other (expense) income: Other assets 277.1 84.3 Changes in operating assets and liabilities: Depreciation 39.7
Interest income 1.1 0.9 1.7 2.1 Total assets $ 7,131.1 $ 5,272.4 Trade accounts receivable, net (67.2) (110.8) (153.8) (330.2) Amortization 18.6
Adjusted EBITDA Interest expense (39.0) (32.9) (73.8) (69.0) Liabilities and stockholders' equity Inventories 65.3 28.5 22.4 (51.6) Interest expense, net 37.9
USA $ 127.6 $ 97.2 $ 30.4 31.3 % 31.3 % Loss on extinguishment of debt (0.7) Current liabilities: Prepaid expenses and other current assets (23.0) (11.0) (27.2) (25.1) Other expense, net 5.6
Canada 33.8 34.6 (0.8) (2.3) % 1.4 % Other (expense) income, net (5.6) (2.1) (11.7) 0.5 Short-term financing $ 3.2 $ 8.1 Trade accounts payable (26.9) 139.2 10.4 206.5 Income tax expense 18.5
EMEA 38.2 40.1 (1.9) (4.7) % 2.2 % Total other expense $ (43.5) $ (34.1) $ (84.5) $ (66.4) Trade accounts payable 1,081.5 925.4 Pensions and other postretirement benefit liabilities (9.4) (11.7) (12.7) (23.3) Net income from continuing operations $ 17.0
LATAM 9.4 9.1 0.3 3.3 % 7.7 % Income (loss) before income taxes 35.5 83.3 (57.8) 158.9 Current portion of long-term debt 19.0 21.7 Other, net (90.6) (60.0) (78.9) (60.1) Net loss from discontinued operations $ (0.7)
Other (2) (7.9) (7.9) % % Income tax expense (benefit) from continuing operations 18.5 27.2 (4.8) 37.4 Accrued compensation 86.6 93.6 Net cash (used) provided by operating activities $ (57.0) $ 90.0 $ (180.5) $ (49.0) Net income $ 16.3
Total Consolidated Adjusted EBITDA $ 201.1 $ 173.1 $ 28.0 16.2 % 18.7 % Net income (loss) from continuing operations $ 17.0 $ 56.1 $ (53.0) $ 121.5 Other accrued expenses 409.6 285.8 Investing activities: Total assets $ 5,600.9 $ 1,715.1 $ 1,030.1 $ 317.1 $ (1,532.1) $ 7,131.1
Net (loss) income from discontinued operations $ (0.7) $ $ 5.4 $ Total current liabilities $ 1,599.9 $ 1,334.6 Purchases of property, plant and equipment $ (28.9) $ (28.9) $ (45.4) $ (45.1)
Net income (loss) $ 16.3 $ 56.1 $ (47.6) $ 121.5 Long-term debt 3,117.1 2,350.4 Purchases of businesses, net of cash acquired 10.0 (11.5) (1,155.5) (20.4) (in millions) USA Canada EMEA LATAM Other/ Eliminations Consolidated
Pension and other postretirement benefit liabilities 250.7 254.4 Proceeds from sale of property, plant, and equipment 0.1 0.3 0.8 2.5 Three Months Ended June 30, 2019
Income (loss) per common share: Deferred tax liabilities 118.8 42.9 Proceeds from sale of business (10.0) 640.0 Gross profit:
Basic from continuing operations $ 0.10 $ 0.40 $ (0.33) $ 0.86 Other long-term liabilities 270.1 98.4 Other (1.3) Net sales $ 1,628.7 $ 406.5 $ 458.9 $ 116.6 $ (26.1) $ 2,584.6
Basic from discontinued operations 0.03 Total liabilities $ 5,356.6 $ 4,080.7 Net cash used by investing activities $ (28.8) $ (40.1) $ (561.4) $ (63.0) Cost of goods sold (exclusive of depreciation) 1,254.6 338.0 348.7 92.1 (26.1) 2,007.3
Basic income (loss) per common share $ 0.10 $ 0.40 $ (0.30) $ 0.86 Stockholders' equity: Financing activities: Gross profit (exclusive of depreciation) $ 374.1 $ 68.5 $ 110.2 $ 24.5 $ $ 577.3
Diluted from continuing operations 0.10 0.40 (0.33) 0.86 Preferred stock, 200.0 million shares authorized at $0.01 par value with no shares issued or outstanding as of June 30, 2019 and December 31, 2018 $ $ Proceeds from issuance of long-term debt $ (145.6) $ 204.1 $ 1,195.8 $ 345.9 (in millions) USA Canada EMEA LATAM Other/ Eliminations Consolidated
Diluted from discontinued operations 0.03 Common stock, 2.0 billion shares authorized at $0.01 par value with 168.6 million and 141.7 million shares issued and outstanding at June 30, 2019 and December 31, 2018, respectively 1.7 1.4 Payments on long-term debt and finance lease obligations (454.9) (233.4) (459.5) (553.5)
Diluted income (loss) per common share $ 0.10 $ 0.40 $ (0.30) $ 0.86 Additional paid-in capital 2,959.4 2,325.0 Short-term financing, net (2.6) 3.2 (6.9) (3.4) Three Months Ended June 30, 2018
Accumulated deficit (805.9) (761.5) Taxes paid related to net share settlements of stock-based compensation awards (0.8) (0.5) (2.8) (3.2) Net sales:
Weighted average common shares outstanding: Accumulated other comprehensive loss (380.7) (373.2) Stock option exercises 5.7 0.3 5.7 1.1 External customers $ 1,309.8 $ 450.9 $ 511.9 $ 100.0 $ $ 2,372.6
Basic 169.8 141.1 159.5 141.0 Total stockholders' equity $ 1,774.5 $ 1,191.7 Other 0.6 0.6 $ 0.6 0.6 Inter-segment 37.9 2.2 1.2 (41.3)
Diluted 170.7 142.0 159.5 142.0 Total liabilities and stockholders' equity $ 7,131.1 $ 5,272.4 Net cash (used) provided by financing activities $ (597.6) $ (25.7) $ 732.9 $ (212.5) Total net sales $ 1,347.7 $ 453.1 $ 513.1 $ 100.0 $ (41.3) $ 2,372.6
Effect of exchange rate changes on cash and cash equivalents $ 4.9 $ (11.5) $ (3.1) $ (13.9) Cost of goods sold (exclusive of depreciation) 1,056.9 384.2 394.9 77.4 (41.3) 1,872.1
Net (decrease) increase in cash and cash equivalents (678.5) 12.7 (12.1) (338.4) Outbound freight and handling 56.7 12.0 15.8 2.0 86.5
Cash and cash equivalents at beginning of period 788.0 115.9 121.6 467.0 Warehousing, selling and administrative 136.9 22.3 62.3 11.5 7.9 240.9
Cash and cash equivalents at end of period $ 109.5 $ 128.6 $ 109.5 $ 128.6 Adjusted EBITDA $ 97.2 $ 34.6 $ 40.1 $ 9.1 $ (7.9) $ 173.1
Other operating expenses, net 11.0
Depreciation 30.9
Amortization 13.8
Interest expense, net 32.0
Other expense, net 2.1
Income tax expense 27.2
Net income $ 56.1
Total assets $ 3,310.1 $ 1,758.6 $ 1,017.3 $ 220.6 $ (597.5) $ 5,709.1
(in millions) USA Canada EMEA LATAM Other/ Eliminations Consolidated
Three Months Ended June 30, 2018
Gross profit:
Net sales $ 1,347.7 $ 453.1 $ 513.1 $ 100.0 $ (41.3) $ 2,372.6
Cost of goods sold (exclusive of depreciation) 1,056.9 384.2 394.9 77.4 (41.3) 1,872.1
Gross profit (exclusive of depreciation) $ 290.8 $ 68.9 $ 118.2 $ 22.6 $ $ 500.5

 

(1)  Leverage ratio as defined in the Company's credit agreements, excluding the impact of synergies. (Unaudited) (1)   Gross profit is calculated by deducting cost of goods sold (exclusive of depreciation), from net sales. Univar Inc. Univar Inc. Univar Inc. Schedule A Schedule B
Three months ended June 30, % change (2)   Other represents unallocated corporate costs that do not directly benefit segments. Condensed Consolidated Statements of Operations Condensed Consolidated Balance Sheets Condensed Consolidated Statements of Cash Flows Univar Inc. Univar Inc.
(in millions) 2019 2018 $ change % change excl. currency (Unaudited) (Unaudited) (Unaudited) Reconciliation of Adjusted EBITDA to Reported Net Income Other operating expenses, net
(Unaudited) (Unaudited)
External Net Sales Three months ended June 30, Six months ended June 30, (in millions, except per share data) June 30, 2019 December 31, 2018 Three months ended June 30, Six months ended June 30,
USA $ 1,605.3 $ 1,309.8 $ 295.5 22.6 % 22.6 % (in millions, except per share data) 2019 2018 2019 2018 Assets (in millions) 2019 2018 2019 2018 (in millions) USA Canada EMEA LATAM Other/ Eliminations Consolidated Three months ended June 30, Six months ended June 30,
Canada 404.8 450.9 (46.1) (10.2) % (6.7) % Net sales $ 2,584.6 $ 2,372.6 $ 4,744.6 $ 4,530.6 Current assets: Operating activities: Three Months Ended June 30, 2019 (in millions) 2019 2018 2019 2018
EMEA 457.9 511.9 (54.0) (10.5) % (4.5) % Cost of goods sold (exclusive of depreciation) 2,007.3 1,872.1 3,670.9 3,543.5 Cash and cash equivalents $ 109.5 $ 121.6 Net income (loss) $ 16.3 $ 56.1 $ (47.6) $ 121.5 Net sales: Acquisition and integration related expenses $ 32.6 $ 1.0 $ 109.7 $ 1.4
LATAM 116.6 100.0 16.6 16.6 % 19.6 % Operating expenses: Trade accounts receivable, net 1,544.4 1,094.7 Adjustments to reconcile net income to net cash used by operating activities: External customers $ 1,605.3 $ 404.8 $ 457.9 $ 116.6 $ $ 2,584.6 Stock-based compensation expense 11.3 4.3 17.3 13.7
Total Consolidated Net Sales $ 2,584.6 $ 2,372.6 $ 212.0 8.9 % 11.0 % Outbound freight and handling 95.4 86.5 178.3 165.8 Inventories 938.0 803.3 Depreciation and amortization 58.3 44.7 105.9 89.5 Inter-segment 23.4 1.7 1.0 (26.1) Restructuring charges 0.5 0.6 0.5
Warehousing, selling and administrative 280.8 240.9 534.2 481.9 Prepaid expenses and other current assets 214.3 169.1 Amortization of deferred financing fees and debt discount 3.0 1.9 4.8 3.9 Total net sales $ 1,628.7 $ 406.5 $ 458.9 $ 116.6 $ (26.1) $ 2,584.6 Other employee termination costs 6.2 4.4 19.1 6.8
Gross Profit Other operating expenses, net 63.8 11.0 228.6 24.6 Total current assets $ 2,806.2 $ 2,188.7 Amortization of  pension credit from accumulated other comprehensive loss 0.1 0.1 0.1 0.1 Cost of goods sold (exclusive of depreciation) 1,254.6 338.0 348.7 92.1 (26.1) 2,007.3 Saccharin legal settlement 62.5
USA $ 374.1 $ 290.8 $ 83.3 28.6 % 28.6 % Depreciation 39.7 30.9 72.9 62.3 Property, plant and equipment, net 1,153.5 955.8 Loss on extinguishment of debt 0.7 Outbound freight and handling 66.4 11.6 14.9 2.5 95.4 Other 13.2 1.3 19.4 2.2
Canada 68.5 68.9 (0.4) (0.6) % 3.2 % Amortization 18.6 13.8 33.0 27.2 Goodwill 2,488.0 1,780.7 Deferred income taxes 3.3 8.0 (24.9) 5.0 Warehousing, selling and administrative 180.1 23.1 57.1 12.6 7.9 280.8 Total other operating expenses, net $ 63.8 $ 11.0 $ 228.6 $ 24.6
EMEA 110.2 118.2 (8.0) (6.8) % (0.6) % Total operating expenses $ 498.3 $ 383.1 $ 1,047.0 $ 761.8 Intangible assets, net 381.0 238.1 Stock-based compensation expense 11.3 4.3 17.3 13.7 Adjusted EBITDA $ 127.6 $ 33.8 $ 38.2 $ 9.4 $ (7.9) $ 201.1
LATAM 24.5 22.6 1.9 8.4 % 12.4 % Operating income $ 79.0 $ 117.4 $ 26.7 $ 225.3 Deferred tax assets 25.3 24.8 Other 2.5 0.7 3.0 1.1 Other operating expenses, net 63.8
Total Consolidated Gross Profit (1) $ 577.3 $ 500.5 $ 76.8 15.3 % 17.5 % Other (expense) income: Other assets 277.1 84.3 Changes in operating assets and liabilities: Depreciation 39.7
Interest income 1.1 0.9 1.7 2.1 Total assets $ 7,131.1 $ 5,272.4 Trade accounts receivable, net (67.2) (110.8) (153.8) (330.2) Amortization 18.6
Adjusted EBITDA Interest expense (39.0) (32.9) (73.8) (69.0) Liabilities and stockholders' equity Inventories 65.3 28.5 22.4 (51.6) Interest expense, net 37.9
USA $ 127.6 $ 97.2 $ 30.4 31.3 % 31.3 % Loss on extinguishment of debt (0.7) Current liabilities: Prepaid expenses and other current assets (23.0) (11.0) (27.2) (25.1) Other expense, net 5.6
Canada 33.8 34.6 (0.8) (2.3) % 1.4 % Other (expense) income, net (5.6) (2.1) (11.7) 0.5 Short-term financing $ 3.2 $ 8.1 Trade accounts payable (26.9) 139.2 10.4 206.5 Income tax expense 18.5
EMEA 38.2 40.1 (1.9) (4.7) % 2.2 % Total other expense $ (43.5) $ (34.1) $ (84.5) $ (66.4) Trade accounts payable 1,081.5 925.4 Pensions and other postretirement benefit liabilities (9.4) (11.7) (12.7) (23.3) Net income from continuing operations $ 17.0
LATAM 9.4 9.1 0.3 3.3 % 7.7 % Income (loss) before income taxes 35.5 83.3 (57.8) 158.9 Current portion of long-term debt 19.0 21.7 Other, net (90.6) (60.0) (78.9) (60.1) Net loss from discontinued operations $ (0.7)
Other (2) (7.9) (7.9) % % Income tax expense (benefit) from continuing operations 18.5 27.2 (4.8) 37.4 Accrued compensation 86.6 93.6 Net cash (used) provided by operating activities $ (57.0) $ 90.0 $ (180.5) $ (49.0) Net income $ 16.3
Total Consolidated Adjusted EBITDA $ 201.1 $ 173.1 $ 28.0 16.2 % 18.7 % Net income (loss) from continuing operations $ 17.0 $ 56.1 $ (53.0) $ 121.5 Other accrued expenses 409.6 285.8 Investing activities: Total assets $ 5,600.9 $ 1,715.1 $ 1,030.1 $ 317.1 $ (1,532.1) $ 7,131.1
Net (loss) income from discontinued operations $ (0.7) $ $ 5.4 $ Total current liabilities $ 1,599.9 $ 1,334.6 Purchases of property, plant and equipment $ (28.9) $ (28.9) $ (45.4) $ (45.1)
Net income (loss) $ 16.3 $ 56.1 $ (47.6) $ 121.5 Long-term debt 3,117.1 2,350.4 Purchases of businesses, net of cash acquired 10.0 (11.5) (1,155.5) (20.4) (in millions) USA Canada EMEA LATAM Other/ Eliminations Consolidated
Pension and other postretirement benefit liabilities 250.7 254.4 Proceeds from sale of property, plant, and equipment 0.1 0.3 0.8 2.5 Three Months Ended June 30, 2019
Income (loss) per common share: Deferred tax liabilities 118.8 42.9 Proceeds from sale of business (10.0) 640.0 Gross profit:
Basic from continuing operations $ 0.10 $ 0.40 $ (0.33) $ 0.86 Other long-term liabilities 270.1 98.4 Other (1.3) Net sales $ 1,628.7 $ 406.5 $ 458.9 $ 116.6 $ (26.1) $ 2,584.6
Basic from discontinued operations 0.03 Total liabilities $ 5,356.6 $ 4,080.7 Net cash used by investing activities $ (28.8) $ (40.1) $ (561.4) $ (63.0) Cost of goods sold (exclusive of depreciation) 1,254.6 338.0 348.7 92.1 (26.1) 2,007.3
Basic income (loss) per common share $ 0.10 $ 0.40 $ (0.30) $ 0.86 Stockholders' equity: Financing activities: Gross profit (exclusive of depreciation) $ 374.1 $ 68.5 $ 110.2 $ 24.5 $ $ 577.3
Diluted from continuing operations 0.10 0.40 (0.33) 0.86 Preferred stock, 200.0 million shares authorized at $0.01 par value with no shares issued or outstanding as of June 30, 2019 and December 31, 2018 $ $ Proceeds from issuance of long-term debt $ (145.6) $ 204.1 $ 1,195.8 $ 345.9 (in millions) USA Canada EMEA LATAM Other/ Eliminations Consolidated
Diluted from discontinued operations 0.03 Common stock, 2.0 billion shares authorized at $0.01 par value with 168.6 million and 141.7 million shares issued and outstanding at June 30, 2019 and December 31, 2018, respectively 1.7 1.4 Payments on long-term debt and finance lease obligations (454.9) (233.4) (459.5) (553.5)
Diluted income (loss) per common share $ 0.10 $ 0.40 $ (0.30) $ 0.86 Additional paid-in capital 2,959.4 2,325.0 Short-term financing, net (2.6) 3.2 (6.9) (3.4) Three Months Ended June 30, 2018
Accumulated deficit (805.9) (761.5) Taxes paid related to net share settlements of stock-based compensation awards (0.8) (0.5) (2.8) (3.2) Net sales:
Weighted average common shares outstanding: Accumulated other comprehensive loss (380.7) (373.2) Stock option exercises 5.7 0.3 5.7 1.1 External customers $ 1,309.8 $ 450.9 $ 511.9 $ 100.0 $ $ 2,372.6
Basic 169.8 141.1 159.5 141.0 Total stockholders' equity $ 1,774.5 $ 1,191.7 Other 0.6 0.6 $ 0.6 0.6 Inter-segment 37.9 2.2 1.2 (41.3)
Diluted 170.7 142.0 159.5 142.0 Total liabilities and stockholders' equity $ 7,131.1 $ 5,272.4 Net cash (used) provided by financing activities $ (597.6) $ (25.7) $ 732.9 $ (212.5) Total net sales $ 1,347.7 $ 453.1 $ 513.1 $ 100.0 $ (41.3) $ 2,372.6
Effect of exchange rate changes on cash and cash equivalents $ 4.9 $ (11.5) $ (3.1) $ (13.9) Cost of goods sold (exclusive of depreciation) 1,056.9 384.2 394.9 77.4 (41.3) 1,872.1
Net (decrease) increase in cash and cash equivalents (678.5) 12.7 (12.1) (338.4) Outbound freight and handling 56.7 12.0 15.8 2.0 86.5
Cash and cash equivalents at beginning of period 788.0 115.9 121.6 467.0 Warehousing, selling and administrative 136.9 22.3 62.3 11.5 7.9 240.9
Cash and cash equivalents at end of period $ 109.5 $ 128.6 $ 109.5 $ 128.6 Adjusted EBITDA $ 97.2 $ 34.6 $ 40.1 $ 9.1 $ (7.9) $ 173.1
Other operating expenses, net 11.0
Depreciation 30.9
Amortization 13.8
Interest expense, net 32.0
Other expense, net 2.1
Income tax expense 27.2
Net income $ 56.1
Total assets $ 3,310.1 $ 1,758.6 $ 1,017.3 $ 220.6 $ (597.5) $ 5,709.1
(in millions) USA Canada EMEA LATAM Other/ Eliminations Consolidated
Three Months Ended June 30, 2018
Gross profit:
Net sales $ 1,347.7 $ 453.1 $ 513.1 $ 100.0 $ (41.3) $ 2,372.6
Cost of goods sold (exclusive of depreciation) 1,056.9 384.2 394.9 77.4 (41.3) 1,872.1
Gross profit (exclusive of depreciation) $ 290.8 $ 68.9 $ 118.2 $ 22.6 $ $ 500.5

 

(1)  Leverage ratio as defined in the Company's credit agreements, excluding the impact of synergies. (Unaudited) (1)   Gross profit is calculated by deducting cost of goods sold (exclusive of depreciation), from net sales. Univar Inc. Univar Inc. Univar Inc. Schedule A Schedule B Schedule C
Three months ended June 30, % change (2)   Other represents unallocated corporate costs that do not directly benefit segments. Condensed Consolidated Statements of Operations Condensed Consolidated Balance Sheets Condensed Consolidated Statements of Cash Flows Univar Inc. Univar Inc. Univar Inc.
(in millions) 2019 2018 $ change % change excl. currency (Unaudited) (Unaudited) (Unaudited) Reconciliation of Adjusted EBITDA to Reported Net Income Other operating expenses, net Other (expense) income, net
(Unaudited) (Unaudited) (Unaudited)
External Net Sales Three months ended June 30, Six months ended June 30, (in millions, except per share data) June 30, 2019 December 31, 2018 Three months ended June 30, Six months ended June 30,
USA $ 1,605.3 $ 1,309.8 $ 295.5 22.6 % 22.6 % (in millions, except per share data) 2019 2018 2019 2018 Assets (in millions) 2019 2018 2019 2018 (in millions) USA Canada EMEA LATAM Other/ Eliminations Consolidated Three months ended June 30, Six months ended June 30, Three months ended June 30, Six months ended June 30,
Canada 404.8 450.9 (46.1) (10.2) % (6.7) % Net sales $ 2,584.6 $ 2,372.6 $ 4,744.6 $ 4,530.6 Current assets: Operating activities: Three Months Ended June 30, 2019 (in millions) 2019 2018 2019 2018 (in millions) 2019 2018 2019 2018
EMEA 457.9 511.9 (54.0) (10.5) % (4.5) % Cost of goods sold (exclusive of depreciation) 2,007.3 1,872.1 3,670.9 3,543.5 Cash and cash equivalents $ 109.5 $ 121.6 Net income (loss) $ 16.3 $ 56.1 $ (47.6) $ 121.5 Net sales: Acquisition and integration related expenses $ 32.6 $ 1.0 $ 109.7 $ 1.4 Foreign currency transactions $ (2.1) $ (4.2) $ (2.8) $ (4.3)
LATAM 116.6 100.0 16.6 16.6 % 19.6 % Operating expenses: Trade accounts receivable, net 1,544.4 1,094.7 Adjustments to reconcile net income to net cash used by operating activities: External customers $ 1,605.3 $ 404.8 $ 457.9 $ 116.6 $ $ 2,584.6 Stock-based compensation expense 11.3 4.3 17.3 13.7 Foreign currency denominated loans revaluation (4.7) (2.6) 0.5 (1.4)
Total Consolidated Net Sales $ 2,584.6 $ 2,372.6 $ 212.0 8.9 % 11.0 % Outbound freight and handling 95.4 86.5 178.3 165.8 Inventories 938.0 803.3 Depreciation and amortization 58.3 44.7 105.9 89.5 Inter-segment 23.4 1.7 1.0 (26.1) Restructuring charges 0.5 0.6 0.5 Undesignated foreign currency derivative instruments 4.3 2.2 (5.6) 0.9
Warehousing, selling and administrative 280.8 240.9 534.2 481.9 Prepaid expenses and other current assets 214.3 169.1 Amortization of deferred financing fees and debt discount 3.0 1.9 4.8 3.9 Total net sales $ 1,628.7 $ 406.5 $ 458.9 $ 116.6 $ (26.1) $ 2,584.6 Other employee termination costs 6.2 4.4 19.1 6.8 Undesignated interest rate swap contracts (3.0) (2.8)
Gross Profit Other operating expenses, net 63.8 11.0 228.6 24.6 Total current assets $ 2,806.2 $ 2,188.7 Amortization of  pension credit from accumulated other comprehensive loss 0.1 0.1 0.1 0.1 Cost of goods sold (exclusive of depreciation) 1,254.6 338.0 348.7 92.1 (26.1) 2,007.3 Saccharin legal settlement 62.5 Non-operating retirement benefits 0.6 3.4 1.2 6.9
USA $ 374.1 $ 290.8 $ 83.3 28.6 % 28.6 % Depreciation 39.7 30.9 72.9 62.3 Property, plant and equipment, net 1,153.5 955.8 Loss on extinguishment of debt 0.7 Outbound freight and handling 66.4 11.6 14.9 2.5 95.4 Other 13.2 1.3 19.4 2.2 Other (0.7) (0.9) (2.2) (1.6)
Canada 68.5 68.9 (0.4) (0.6) % 3.2 % Amortization 18.6 13.8 33.0 27.2 Goodwill 2,488.0 1,780.7 Deferred income taxes 3.3 8.0 (24.9) 5.0 Warehousing, selling and administrative 180.1 23.1 57.1 12.6 7.9 280.8 Total other operating expenses, net $ 63.8 $ 11.0 $ 228.6 $ 24.6 Total other (expense) income, net $ (5.6) $ (2.1) $ (11.7) $ 0.5
EMEA 110.2 118.2 (8.0) (6.8) % (0.6) % Total operating expenses $ 498.3 $ 383.1 $ 1,047.0 $ 761.8 Intangible assets, net 381.0 238.1 Stock-based compensation expense 11.3 4.3 17.3 13.7 Adjusted EBITDA $ 127.6 $ 33.8 $ 38.2 $ 9.4 $ (7.9) $ 201.1
LATAM 24.5 22.6 1.9 8.4 % 12.4 % Operating income $ 79.0 $ 117.4 $ 26.7 $ 225.3 Deferred tax assets 25.3 24.8 Other 2.5 0.7 3.0 1.1 Other operating expenses, net 63.8
Total Consolidated Gross Profit (1) $ 577.3 $ 500.5 $ 76.8 15.3 % 17.5 % Other (expense) income: Other assets 277.1 84.3 Changes in operating assets and liabilities: Depreciation 39.7
Interest income 1.1 0.9 1.7 2.1 Total assets $ 7,131.1 $ 5,272.4 Trade accounts receivable, net (67.2) (110.8) (153.8) (330.2) Amortization 18.6
Adjusted EBITDA Interest expense (39.0) (32.9) (73.8) (69.0) Liabilities and stockholders' equity Inventories 65.3 28.5 22.4 (51.6) Interest expense, net 37.9
USA $ 127.6 $ 97.2 $ 30.4 31.3 % 31.3 % Loss on extinguishment of debt (0.7) Current liabilities: Prepaid expenses and other current assets (23.0) (11.0) (27.2) (25.1) Other expense, net 5.6
Canada 33.8 34.6 (0.8) (2.3) % 1.4 % Other (expense) income, net (5.6) (2.1) (11.7) 0.5 Short-term financing $ 3.2 $ 8.1 Trade accounts payable (26.9) 139.2 10.4 206.5 Income tax expense 18.5
EMEA 38.2 40.1 (1.9) (4.7) % 2.2 % Total other expense $ (43.5) $ (34.1) $ (84.5) $ (66.4) Trade accounts payable 1,081.5 925.4 Pensions and other postretirement benefit liabilities (9.4) (11.7) (12.7) (23.3) Net income from continuing operations $ 17.0
LATAM 9.4 9.1 0.3 3.3 % 7.7 % Income (loss) before income taxes 35.5 83.3 (57.8) 158.9 Current portion of long-term debt 19.0 21.7 Other, net (90.6) (60.0) (78.9) (60.1) Net loss from discontinued operations $ (0.7)
Other (2) (7.9) (7.9) % % Income tax expense (benefit) from continuing operations 18.5 27.2 (4.8) 37.4 Accrued compensation 86.6 93.6 Net cash (used) provided by operating activities $ (57.0) $ 90.0 $ (180.5) $ (49.0) Net income $ 16.3
Total Consolidated Adjusted EBITDA $ 201.1 $ 173.1 $ 28.0 16.2 % 18.7 % Net income (loss) from continuing operations $ 17.0 $ 56.1 $ (53.0) $ 121.5 Other accrued expenses 409.6 285.8 Investing activities: Total assets $ 5,600.9 $ 1,715.1 $ 1,030.1 $ 317.1 $ (1,532.1) $ 7,131.1
Net (loss) income from discontinued operations $ (0.7) $ $ 5.4 $ Total current liabilities $ 1,599.9 $ 1,334.6 Purchases of property, plant and equipment $ (28.9) $ (28.9) $ (45.4) $ (45.1)
Net income (loss) $ 16.3 $ 56.1 $ (47.6) $ 121.5 Long-term debt 3,117.1 2,350.4 Purchases of businesses, net of cash acquired 10.0 (11.5) (1,155.5) (20.4) (in millions) USA Canada EMEA LATAM Other/ Eliminations Consolidated
Pension and other postretirement benefit liabilities 250.7 254.4 Proceeds from sale of property, plant, and equipment 0.1 0.3 0.8 2.5 Three Months Ended June 30, 2019
Income (loss) per common share: Deferred tax liabilities 118.8 42.9 Proceeds from sale of business (10.0) 640.0 Gross profit:
Basic from continuing operations $ 0.10 $ 0.40 $ (0.33) $ 0.86 Other long-term liabilities 270.1 98.4 Other (1.3) Net sales $ 1,628.7 $ 406.5 $ 458.9 $ 116.6 $ (26.1) $ 2,584.6
Basic from discontinued operations 0.03 Total liabilities $ 5,356.6 $ 4,080.7 Net cash used by investing activities $ (28.8) $ (40.1) $ (561.4) $ (63.0) Cost of goods sold (exclusive of depreciation) 1,254.6 338.0 348.7 92.1 (26.1) 2,007.3
Basic income (loss) per common share $ 0.10 $ 0.40 $ (0.30) $ 0.86 Stockholders' equity: Financing activities: Gross profit (exclusive of depreciation) $ 374.1 $ 68.5 $ 110.2 $ 24.5 $ $ 577.3
Diluted from continuing operations 0.10 0.40 (0.33) 0.86 Preferred stock, 200.0 million shares authorized at $0.01 par value with no shares issued or outstanding as of June 30, 2019 and December 31, 2018 $ $ Proceeds from issuance of long-term debt $ (145.6) $ 204.1 $ 1,195.8 $ 345.9 (in millions) USA Canada EMEA LATAM Other/ Eliminations Consolidated
Diluted from discontinued operations 0.03 Common stock, 2.0 billion shares authorized at $0.01 par value with 168.6 million and 141.7 million shares issued and outstanding at June 30, 2019 and December 31, 2018, respectively 1.7 1.4 Payments on long-term debt and finance lease obligations (454.9) (233.4) (459.5) (553.5)
Diluted income (loss) per common share $ 0.10 $ 0.40 $ (0.30) $ 0.86 Additional paid-in capital 2,959.4 2,325.0 Short-term financing, net (2.6) 3.2 (6.9) (3.4) Three Months Ended June 30, 2018
Accumulated deficit (805.9) (761.5) Taxes paid related to net share settlements of stock-based compensation awards (0.8) (0.5) (2.8) (3.2) Net sales:
Weighted average common shares outstanding: Accumulated other comprehensive loss (380.7) (373.2) Stock option exercises 5.7 0.3 5.7 1.1 External customers $ 1,309.8 $ 450.9 $ 511.9 $ 100.0 $ $ 2,372.6
Basic 169.8 141.1 159.5 141.0 Total stockholders' equity $ 1,774.5 $ 1,191.7 Other 0.6 0.6 $ 0.6 0.6 Inter-segment 37.9 2.2 1.2 (41.3)
Diluted 170.7 142.0 159.5 142.0 Total liabilities and stockholders' equity $ 7,131.1 $ 5,272.4 Net cash (used) provided by financing activities $ (597.6) $ (25.7) $ 732.9 $ (212.5) Total net sales $ 1,347.7 $ 453.1 $ 513.1 $ 100.0 $ (41.3) $ 2,372.6
Effect of exchange rate changes on cash and cash equivalents $ 4.9 $ (11.5) $ (3.1) $ (13.9) Cost of goods sold (exclusive of depreciation) 1,056.9 384.2 394.9 77.4 (41.3) 1,872.1
Net (decrease) increase in cash and cash equivalents (678.5) 12.7 (12.1) (338.4) Outbound freight and handling 56.7 12.0 15.8 2.0 86.5
Cash and cash equivalents at beginning of period 788.0 115.9 121.6 467.0 Warehousing, selling and administrative 136.9 22.3 62.3 11.5 7.9 240.9
Cash and cash equivalents at end of period $ 109.5 $ 128.6 $ 109.5 $ 128.6 Adjusted EBITDA $ 97.2 $ 34.6 $ 40.1 $ 9.1 $ (7.9) $ 173.1
Other operating expenses, net 11.0
Depreciation 30.9
Amortization 13.8
Interest expense, net 32.0
Other expense, net 2.1
Income tax expense 27.2
Net income $ 56.1
Total assets $ 3,310.1 $ 1,758.6 $ 1,017.3 $ 220.6 $ (597.5) $ 5,709.1
(in millions) USA Canada EMEA LATAM Other/ Eliminations Consolidated
Three Months Ended June 30, 2018
Gross profit:
Net sales $ 1,347.7 $ 453.1 $ 513.1 $ 100.0 $ (41.3) $ 2,372.6
Cost of goods sold (exclusive of depreciation) 1,056.9 384.2 394.9 77.4 (41.3) 1,872.1
Gross profit (exclusive of depreciation) $ 290.8 $ 68.9 $ 118.2 $ 22.6 $ $ 500.5

 

(1)  Leverage ratio as defined in the Company's credit agreements, excluding the impact of synergies. (Unaudited) (1)   Gross profit is calculated by deducting cost of goods sold (exclusive of depreciation), from net sales. Univar Inc. Univar Inc. Univar Inc. Schedule A Schedule B Schedule C Schedule D
Three months ended June 30, % change (2)   Other represents unallocated corporate costs that do not directly benefit segments. Condensed Consolidated Statements of Operations Condensed Consolidated Balance Sheets Condensed Consolidated Statements of Cash Flows Univar Inc. Univar Inc. Univar Inc. Univar Inc.
(in millions) 2019 2018 $ change % change excl. currency (Unaudited) (Unaudited) (Unaudited) Reconciliation of Adjusted EBITDA to Reported Net Income Other operating expenses, net Other (expense) income, net GAAP Net Income (Loss) to Adjusted Net Income and Adjusted EBITDA Tabular Reconciliations
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
External Net Sales Three months ended June 30, Six months ended June 30, (in millions, except per share data) June 30, 2019 December 31, 2018 Three months ended June 30, Six months ended June 30,
USA $ 1,605.3 $ 1,309.8 $ 295.5 22.6 % 22.6 % (in millions, except per share data) 2019 2018 2019 2018 Assets (in millions) 2019 2018 2019 2018 (in millions) USA Canada EMEA LATAM Other/ Eliminations Consolidated Three months ended June 30, Six months ended June 30, Three months ended June 30, Six months ended June 30, Three months ended June 30, Six months ended June 30,
Canada 404.8 450.9 (46.1) (10.2) % (6.7) % Net sales $ 2,584.6 $ 2,372.6 $ 4,744.6 $ 4,530.6 Current assets: Operating activities: Three Months Ended June 30, 2019 (in millions) 2019 2018 2019 2018 (in millions) 2019 2018 2019 2018 2019 2018 2019 2018
EMEA 457.9 511.9 (54.0) (10.5) % (4.5) % Cost of goods sold (exclusive of depreciation) 2,007.3 1,872.1 3,670.9 3,543.5 Cash and cash equivalents $ 109.5 $ 121.6 Net income (loss) $ 16.3 $ 56.1 $ (47.6) $ 121.5 Net sales: Acquisition and integration related expenses $ 32.6 $ 1.0 $ 109.7 $ 1.4 Foreign currency transactions $ (2.1) $ (4.2) $ (2.8) $ (4.3) (in millions, except per share data) Amount (2) per share (1) Amount (2) per share (1) Amount per share (1) Amount per share (1)
LATAM 116.6 100.0 16.6 16.6 % 19.6 % Operating expenses: Trade accounts receivable, net 1,544.4 1,094.7 Adjustments to reconcile net income to net cash used by operating activities: External customers $ 1,605.3 $ 404.8 $ 457.9 $ 116.6 $ $ 2,584.6 Stock-based compensation expense 11.3 4.3 17.3 13.7 Foreign currency denominated loans revaluation (4.7) (2.6) 0.5 (1.4) Net income (loss) (3) $ 16.3 $ 0.10 $ 56.1 $ 0.40 $ (47.6) $ (0.30) $ 121.5 $ 0.86
Total Consolidated Net Sales $ 2,584.6 $ 2,372.6 $ 212.0 8.9 % 11.0 % Outbound freight and handling 95.4 86.5 178.3 165.8 Inventories 938.0 803.3 Depreciation and amortization 58.3 44.7 105.9 89.5 Inter-segment 23.4 1.7 1.0 (26.1) Restructuring charges 0.5 0.6 0.5 Undesignated foreign currency derivative instruments 4.3 2.2 (5.6) 0.9 Net loss (income) from discontinued operations 0.7 (5.4) (0.03)
Warehousing, selling and administrative 280.8 240.9 534.2 481.9 Prepaid expenses and other current assets 214.3 169.1 Amortization of deferred financing fees and debt discount 3.0 1.9 4.8 3.9 Total net sales $ 1,628.7 $ 406.5 $ 458.9 $ 116.6 $ (26.1) $ 2,584.6 Other employee termination costs 6.2 4.4 19.1 6.8 Undesignated interest rate swap contracts (3.0) (2.8) Exchange loss (2)(4) 6.8 0.04 6.8 0.05 2.3 0.01 5.7 0.04
Gross Profit Other operating expenses, net 63.8 11.0 228.6 24.6 Total current assets $ 2,806.2 $ 2,188.7 Amortization of  pension credit from accumulated other comprehensive loss 0.1 0.1 0.1 0.1 Cost of goods sold (exclusive of depreciation) 1,254.6 338.0 348.7 92.1 (26.1) 2,007.3 Saccharin legal settlement 62.5 Non-operating retirement benefits 0.6 3.4 1.2 6.9 Derivative (gain) loss (2)(4) (1.3) (0.01) (2.2) (0.02) 8.4 0.05 (0.9) (0.01)
USA $ 374.1 $ 290.8 $ 83.3 28.6 % 28.6 % Depreciation 39.7 30.9 72.9 62.3 Property, plant and equipment, net 1,153.5 955.8 Loss on extinguishment of debt 0.7 Outbound freight and handling 66.4 11.6 14.9 2.5 95.4 Other 13.2 1.3 19.4 2.2 Other (0.7) (0.9) (2.2) (1.6) Restructuring charges (2)(4) 0.5 0.6 0.5
Canada 68.5 68.9 (0.4) (0.6) % 3.2 % Amortization 18.6 13.8 33.0 27.2 Goodwill 2,488.0 1,780.7 Deferred income taxes 3.3 8.0 (24.9) 5.0 Warehousing, selling and administrative 180.1 23.1 57.1 12.6 7.9 280.8 Total other operating expenses, net $ 63.8 $ 11.0 $ 228.6 $ 24.6 Total other (expense) income, net $ (5.6) $ (2.1) $ (11.7) $ 0.5 Other employee termination costs (2)(4) 6.2 0.03 4.4 0.03 19.1 0.12 6.8 0.05
EMEA 110.2 118.2 (8.0) (6.8) % (0.6) % Total operating expenses $ 498.3 $ 383.1 $ 1,047.0 $ 761.8 Intangible assets, net 381.0 238.1 Stock-based compensation expense 11.3 4.3 17.3 13.7 Adjusted EBITDA $ 127.6 $ 33.8 $ 38.2 $ 9.4 $ (7.9) $ 201.1 Loss on extinguishment of debt 0.7
LATAM 24.5 22.6 1.9 8.4 % 12.4 % Operating income $ 79.0 $ 117.4 $ 26.7 $ 225.3 Deferred tax assets 25.3 24.8 Other 2.5 0.7 3.0 1.1 Other operating expenses, net 63.8 Acquisition and integration related costs (2)(4)(5) 32.6 0.18 1.0 0.01 109.7 0.69 1.4 0.01
Total Consolidated Gross Profit (1) $ 577.3 $ 500.5 $ 76.8 15.3 % 17.5 % Other (expense) income: Other assets 277.1 84.3 Changes in operating assets and liabilities: Depreciation 39.7 Saccharin legal settlement (2)(4) 62.5 0.39
Interest income 1.1 0.9 1.7 2.1 Total assets $ 7,131.1 $ 5,272.4 Trade accounts receivable, net (67.2) (110.8) (153.8) (330.2) Amortization 18.6 Other (2)(4)(5) 13.9 0.10 2.2 0.02 21.6 0.14 3.8 0.03
Adjusted EBITDA Interest expense (39.0) (32.9) (73.8) (69.0) Liabilities and stockholders' equity Inventories 65.3 28.5 22.4 (51.6) Interest expense, net 37.9 Benefit from income taxes related to reconciling items (2)(6) (1