Company Quick10K Filing
Quick10K
Platform Specialty Products
Closing Price ($) Shares Out (MM) Market Cap ($MM)
$12.40 258 $3,194
10-Q 2019-06-30 Quarter: 2019-06-30
10-Q 2019-03-31 Quarter: 2019-03-31
10-K 2018-12-31 Annual: 2018-12-31
10-Q 2018-09-30 Quarter: 2018-09-30
10-Q 2018-06-30 Quarter: 2018-06-30
10-Q 2018-03-31 Quarter: 2018-03-31
10-K 2017-12-31 Annual: 2017-12-31
10-Q 2017-09-30 Quarter: 2017-09-30
10-Q 2017-06-30 Quarter: 2017-06-30
10-Q 2017-03-31 Quarter: 2017-03-31
10-K 2016-12-31 Annual: 2016-12-31
10-Q 2016-09-30 Quarter: 2016-09-30
10-Q 2016-06-30 Quarter: 2016-06-30
10-Q 2016-03-31 Quarter: 2016-03-31
10-K 2015-12-31 Annual: 2015-12-31
10-Q 2015-09-30 Quarter: 2015-09-30
10-Q 2015-06-30 Quarter: 2015-06-30
10-Q 2015-03-31 Quarter: 2015-03-31
10-K 2014-12-31 Annual: 2014-12-31
10-Q 2014-09-30 Quarter: 2014-09-30
10-Q 2014-06-30 Quarter: 2014-06-30
10-Q 2014-03-31 Quarter: 2014-03-31
10-K 2013-12-31 Annual: 2013-12-31
8-K 2019-08-02 Earnings, Exhibits
8-K 2019-06-21 Officers
8-K 2019-06-05 Shareholder Vote
8-K 2019-05-17 Other Events
8-K 2019-05-01 Earnings, Exhibits
8-K 2019-04-22 Officers, Other Events, Exhibits
8-K 2019-03-22 Officers, Exhibits
8-K 2019-03-12 Officers, Other Events, Exhibits
8-K 2019-02-28 Earnings, Exhibits
8-K 2019-02-03 Enter Agreement, Officers, Exhibits
8-K 2019-01-30 Enter Agreement, Leave Agreement, M&A, Off-BS Arrangement, Officers, Amend Bylaw, Regulation FD, Other Events, Exhibits
8-K 2019-01-28 Enter Agreement, Earnings, Off-BS Arrangement, Officers, Exhibits
8-K 2018-11-01 Earnings, Regulation FD, Exhibits
8-K 2018-08-02 Earnings, Exhibits
8-K 2018-07-19 Enter Agreement, Impairments, Officers, Regulation FD, Exhibits
8-K 2018-06-25 Shareholder Vote
8-K 2018-03-21 Enter Agreement, Off-BS Arrangement, Exhibits
8-K 2018-02-27 Earnings, Exhibits
8-K 2018-01-10 Regulation FD, Exhibits
LIN Linde 100,395
APD Air Products & Chemicals 49,704
VSM Versum Materials 5,666
NEU Newmarket 5,264
POL Polyone 2,415
PQG PQ Group Holdings 1,949
GPP Green Plains Partners 306
GEVO Gevo 32
PEIX Pacific Ethanol 31
FSI Flexible Solutions International 29
PAH 2019-06-30
Part I. Financial Information
Item 1. Condensed Consolidated Financial Statements
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II. Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Item 5. Other Information
Item 6. Exhibits
EX-10.1 esi10-q2019630exx101.htm
EX-10.2 esi10-q2019630exx102.htm
EX-10.3 esi10-q2019630exx103.htm
EX-31.1 esi10-q2019630exx311.htm
EX-31.2 esi10-q2019630exx312.htm
EX-32.1 esi10-q2019630exx321.htm

Platform Specialty Products Earnings 2019-06-30

PAH 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

Document
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_______________

FORM 10-Q
_______________


QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2019
OR
 
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                      to                     
 
Commission file number: 001-36272
elementlogoupdatedregrgba05.jpg
Element Solutions Inc
(Exact name of Registrant as specified in its charter)
Delaware
 
 
37-1744899
(State or other jurisdiction of incorporation or organization)
 
 
(I.R.S. Employer Identification No.)
 
 
 
 
 
500 East Broward Boulevard,
Suite 1860
 
33394
Fort Lauderdale,
Florida
 
 
(Zip Code)
(Address of principal executive offices)
 
 
 
Registrant’s telephone number, including area code: (561) 207-9600
_______________
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading symbol(s)
Name of each exchange on which registered
Common Stock, par value $0.01 per share
ESI
New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes        No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes        No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.    



Large accelerated filer
Accelerated filer
Non-accelerated filer  
Smaller reporting company
 
 
Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes   No
Number of shares of common stock outstanding at July 26, 2019: 256,664,544



TABLE OF CONTENTS



 
Page
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Condensed Consolidated Statements of Operations
 
 
Three and Six Months Ended June 30, 2019 and 2018
 
Condensed Consolidated Statements of Comprehensive (Loss) Income
 
 
Three and Six Months Ended June 30, 2019 and 2018
 
Condensed Consolidated Balance Sheets
 
 
June 30, 2019 and December 31, 2018
 
Condensed Consolidated Statements of Cash Flows
 
 
Six Months Ended June 30, 2019 and 2018
 
Condensed Consolidated Statements of Changes in Stockholders' Equity
 
 
Three and Six Months Ended June 30, 2019 and 2018
 
 
 
 
 
 
 
 
 
 
 



GLOSSARY OF DEFINED TERMS


Terms    
 
Definitions
Element Solutions;
We; Us; Our; the Company
 
Element Solutions Inc, a Delaware corporation, and, where the context requires, its subsidiaries or operating businesses.
Arysta
 
Arysta LifeScience Inc., parent company of the former Agricultural Solutions segment.
Arysta Sale
 
Sale of 100% of the issued and outstanding shares of common stock of Arysta and its subsidiaries to UPL for net cash proceeds of approximately $4.28 billion, completed on January 31, 2019.
Arysta Sale Agreement
 
Stock Purchase Agreement, dated July 20, 2018, as amended by Amendment Number One to Stock Purchase Agreement, dated as of January 25, 2019, related to the Arysta Sale.
ASU
 
Accounting Standards Update.
Board
 
Element Solutions' board of directors.
EBITDA
 
Earnings before interest, taxes, depreciation and amortization.
ESPP
 
Element Solutions Inc 2014 Employee Stock Purchase Plan.
Exchange Act
 
Securities Exchange Act of 1934, as amended.
FASB
 
Financial Accounting Standard Board.
Founder Entities
 
Mariposa Acquisition, LLC and Berggruen Holdings Ltd. and affiliates, collectively.
GAAP
 
Generally accepted accounting principles in the United States.
MacDermid
 
MacDermid, Incorporated, a Connecticut corporation.
MacDermid Acquisition
 
Element Solutions' acquisition of 100% of the equity of MacDermid Holdings, LLC, completed on October 31, 2013 and March 4, 2014.
New Credit Agreement
 
Element Solutions' new Credit Agreement, dated as of January 31, 2019, among, inter alia, Element Solutions and MacDermid, as borrowers, certain subsidiaries of Element Solutions and MacDermid from time to time parties thereto, the lenders from time to time parties thereto, and Barclays Bank PLC, as administrative agent and collateral agent.
NYSE
 
New York Stock Exchange.
OEM
 
Original Equipment Manufacturer.
PDH
 
Platform Delaware Holdings, Inc., a former subsidiary of Element Solutions.
Prior Senior Notes
 
Element Solutions' 6.00% EUR Notes due 2023 and 6.50% USD Notes due 2022, collectively.
Prior Senior Notes Indenture
 
The indenture, dated as of February 2, 2015, governing the Prior Senior Notes prior to their redemption.
Quarterly Report
 
This quarterly report on Form 10-Q for the three and six months ended June 30, 2019.
Retaining Holder
 
Each Holder whose equity interest of MacDermid Holdings, LLC, held immediately prior to the closing of the MacDermid Acquisition, was converted into shares of common stock of PDH pursuant to a Retaining Holder Securityholders’ Agreement dated October 31, 2013.
SEC
 
Securities and Exchange Commission.
Series A Preferred Stock
 
2,000,000 shares of Element Solutions' Series A convertible preferred stock held by the Founder Entities and convertible into shares of Element Solutions' common stock, on a one-for-one basis, at any time at the option of the Founder Entities.
UPL
 
UPL Corporation Ltd., a Mauritius public limited company and a wholly-owned subsidiary of UPL Limited.
2018 Annual Report
 
Element Solutions' annual report on Form 10-K for the fiscal year ended December 31, 2018, filed with the SEC on February 28, 2019.
5.875% USD Notes Indenture
 
The indenture, dated November 24, 2017, governing the 5.875% USD Notes due 2025.
5.875% USD Notes due 2025
 
Element Solutions' $800 million aggregate principal amount of 5.875% senior notes due 2025, denominated in U.S. dollars, issued on November 24, 2017.
6.00% EUR Senior Notes due 2023
 
Element Solutions’ €350,000,000 aggregate principal amount of 6.00% senior notes due 2023, denominated in euros, issued on February 2, 2015 and redeemed on February 1, 2019.
6.50% USD Senior Notes due 2022
 
Element Solutions’ $1,100,000,000 aggregate principal amount of 6.50% senior notes due 2022, denominated in U.S. dollars, issued on February 2, 2015 and redeemed on February 1, 2019.


i


Discontinued Operations
Unless otherwise specified, the results and disclosures presented in this Quarterly Report exclude discontinued operations. Discontinued operations relate to the former Agricultural Solutions business of Element Solutions which consisted of Arysta and its subsidiaries. Accordingly, Agricultural Solutions' assets, liabilities, operating results and cash flows for all periods presented have been classified as discontinued operations within the unaudited Condensed Consolidated Financial Statements. The Arysta Sale was completed on January 31, 2019. See Note 3, Discontinued Operations, to the unaudited Condensed Consolidated Financial Statements included in this Quarterly Report for additional information.
Forward-Looking Statements
This Quarterly Report contains forward-looking statements that can be identified by words such as "expect," "anticipate," "project," "will," "should," "believe," "intend," "plan," "assume," "estimate," "predict," "seek," "continue," "outlook," "may," "might," "can have," "likely," "potential," "target," "hope," "goal" or "priority" and variations of such words and similar expressions. Examples of forward looking statements include, but are not limited to, statements, beliefs, projections and expectations regarding our corporate reorganization; business strategy and potential repurchases of our common stock; cost savings and efficiencies relating to the Arysta Sale or otherwise; the impact of new accounting standards and accounting changes; our dividend policy; the effects of global economic conditions on our business and financial condition; our hedging activities; timing and outcome of environmental and legal matters; our goodwill and other intangible assets; price volatility and cost environment; our liquidity and capital resources; our funding sources; our capital expenditures; our debt; off-balance sheet arrangements and contractual obligations; general views about future operating results; our risk management programs; our business and management strategies; future prospects; and other events or developments that we expect or anticipate will occur in the future.
Forward-looking statements are not guarantees of future performance, actions or events and are subject to risks and uncertainties. If one or more of these risks or uncertainties materialize, or if management’s underlying estimates, assumptions or expectations prove to be inaccurate or are unrealized, actual results may differ materially from those contemplated by these statements. A discussion of such risks and uncertainties include, without limitation, the risks set forth in Part I, Item 1A, Risk Factors, of our 2018 Annual Report. Any forward-looking statement made by us in this Quarterly Report is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. Please consult any further disclosures on related subjects in our Form 10-K, 10-Q and 8-K reports filed with the SEC.
Non-GAAP Financial Measures
This Quarterly Report contains non-GAAP financial measures, such as operating results on a constant currency and organic basis. Non-GAAP financial measures should not be considered in isolation from, as a substitute for, or superior to, performance measures calculated in accordance with GAAP. For definitions of these non-GAAP financial measures and additional information on why they are presented, their respective limitations and reconciliations to the most comparable applicable GAAP measures, see "Non-GAAP Financial Measures" in the Management's Discussion and Analysis of Financial Condition and Results of Operations section in Part I, Item 2, and Note 15, Segment Information, to the unaudited Condensed Consolidated Financial Statements, both included in this Quarterly Report.


ii



PART I. FINANCIAL INFORMATION



Item 1. Condensed Consolidated Financial Statements
 
ELEMENT SOLUTIONS INC AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(dollars in millions, except per share amounts)
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2019
 
2018
 
2019
 
2018
Net sales
$
456.7

 
$
501.6

 
$
916.5

 
$
994.1

Cost of sales
263.7

 
286.9

 
525.2

 
568.3

Gross profit
193.0

 
214.7

 
391.3

 
425.8

Operating expenses:
 

 
 
 
 

 
 

Selling, technical, general and administrative
126.4

 
144.3

 
268.8

 
285.1

Research and development
11.1

 
11.2

 
21.9

 
22.6

Total operating expenses
137.5

 
155.5

 
290.7

 
307.7

Operating profit
55.5

 
59.2

 
100.6

 
118.1

Other expense:
 

 
 

 
 

 
 

Interest expense, net
(18.2
)
 
(78.3
)
 
(56.3
)
 
(155.5
)
Foreign exchange (loss) gain
(28.3
)
 
(2.4
)
 
(1.2
)
 
5.1

Other (expense) income, net
(1.1
)
 
1.9

 
(49.1
)
 
13.7

Total other expense
(47.6
)
 
(78.8
)
 
(106.6
)
 
(136.7
)
Income (loss) before income taxes and non-controlling interests
7.9

 
(19.6
)
 
(6.0
)
 
(18.6
)
Income tax benefit (expense)
6.8

 
(30.0
)
 
17.2

 
(39.9
)
Net income (loss) from continuing operations
14.7

 
(49.6
)
 
11.2

 
(58.5
)
(Loss) income from discontinued operations, net of tax
(13.3
)
 
61.4

 
14.1

 
108.3

Net income
1.4

 
11.8

 
25.3

 
49.8

Net loss (income) attributable to the non-controlling interests
0.1

 
0.2

 
(0.6
)
 
(0.5
)
Net income attributable to common stockholders
$
1.5

 
$
12.0

 
$
24.7

 
$
49.3

 
 
 
 
 
 
 
 
Earnings (loss) per share
 

 
 

 
 

 
 

Basic from continuing operations
$
0.06

 
$
(0.17
)
 
$
0.04

 
$
(0.21
)
Basic from discontinued operations
(0.05
)
 
0.21

 
0.05

 
0.38

Basic attributable to common stockholders
$
0.01

 
$
0.04

 
$
0.09

 
$
0.17

 
 
 
 
 
 
 
 
Diluted from continuing operations
$
0.06

 
$
(0.17
)
 
$
0.04

 
$
(0.21
)
Diluted from discontinued operations
(0.05
)
 
0.21

 
0.05

 
0.38

Diluted attributable to common stockholders
$
0.01

 
$
0.04

 
$
0.09

 
$
0.17

 
 
 
 
 
 
 
 
Weighted average common shares outstanding
 

 
 
 
 

 
 

Basic
257.3

 
288.2

 
262.7

 
288.0

Diluted
259.6

 
288.2

 
265.3

 
288.0


See accompanying notes to the Condensed Consolidated Financial Statements


1


ELEMENT SOLUTIONS INC AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME
(Unaudited)
(dollars in millions)
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2019
 
2018
 
2019
 
2018
Net income
$
1.4

 
$
11.8

 
$
25.3

 
$
49.8

 
 

 
 

 
 

 
 

Other comprehensive (loss) income
 
 
 
 
 
 
 
Foreign currency translation:
 
 
 
 
 
 
 
Other comprehensive (loss) income before reclassifications, net of tax (benefit) of $(0.7) and $0.0 for the three months ended June 30, 2019 and 2018, and $0.0 for the six months ended June 30, 2019 and 2018, respectively
(0.1
)
 
(377.8
)
 
94.1

 
(318.6
)
Reclassifications, net of tax of $0.0 for the three and six months ended June 30, 2019 and 2018, respectively

 

 
479.8

 

Total foreign currency translation adjustments
(0.1
)
 
(377.8
)
 
573.9

 
(318.6
)
Pension and post-retirement plans:
 
 
 
 
 
 
 
Reclassifications, net of tax of $0.0 for the three and six months ended June 30, 2019 and 2018, respectively

 

 
(2.1
)
 

Total pension and post-retirement plans

 

 
(2.1
)
 

Derivative financial instruments:
 
 
 
 
 
 
 
Other comprehensive (loss) income before reclassifications, net of tax expense (benefit) of $2.4 and $0.9 for the three months ended June 30, 2019 and 2018, and $0.0 and $3.1 for the six months ended June 30, 2019 and 2018, respectively
(18.5
)
 
10.4

 
(27.7
)
 
7.8

Reclassifications, net of tax of $0.00 and $0.0 for the three months ended June 30, 2019 and 2018, and $1.4 and $0.0 for the six months ended June 30, 2019 and 2018, respectively
0.3

 
(7.8
)
 
(5.4
)
 
0.9

Total unrealized (loss) gain arising on qualified hedging derivatives
(18.2
)
 
2.6

 
(33.1
)
 
8.7

Other comprehensive (loss) income
(18.3
)
 
(375.2
)
 
538.7

 
(309.9
)
Comprehensive (loss) income
(16.9
)
 
(363.4
)
 
564.0

 
(260.1
)
Comprehensive loss (income) attributable to the non-controlling interests

 
35.1

 
(40.2
)
 
32.8

Comprehensive (loss) income attributable to common stockholders
$
(16.9
)
 
$
(328.3
)
 
$
523.8

 
$
(227.3
)
 
See accompanying notes to the Condensed Consolidated Financial Statements


2


ELEMENT SOLUTIONS INC AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(dollars in millions)
 
June 30,
 
December 31,
 
2019
 
2018
Assets
 
 
 
Cash and cash equivalents
$
247.6

 
$
233.6

Accounts receivable, net of allowance for doubtful accounts of $8.3 and $7.7 at June 30, 2019 and December 31, 2018, respectively
374.7

 
382.4

Inventories
201.6

 
188.1

Prepaid expenses
23.7

 
14.3

Other current assets
69.1

 
42.5

Current assets of discontinued operations
9.6

 
1,621.3

Total current assets
926.3

 
2,482.2

Property, plant and equipment, net
256.7

 
266.9

Goodwill
2,177.9

 
2,182.6

Intangible assets, net
967.0

 
1,024.5

Other assets
105.6

 
32.9

Non-current assets of discontinued operations
6.8

 
3,412.4

Total assets
$
4,440.3

 
$
9,401.5

Liabilities and stockholders' equity
 

 
 

Accounts payable
$
106.1

 
$
100.9

Current installments of long-term debt and revolving credit facilities
57.8

 
25.3

Accrued expenses and other current liabilities
116.2

 
189.5

Current liabilities of discontinued operations
57.9

 
826.8

Total current liabilities
338.0

 
1,142.5

Debt
1,515.3

 
5,350.7

Pension and post-retirement benefits
48.6

 
49.5

Deferred income taxes
120.3

 
133.0

Other liabilities
186.9

 
128.5

Non-current liabilities of discontinued operations

 
416.2

Total liabilities
2,209.1

 
7,220.4

Commitments and contingencies (Note 12)


 


Stockholders' Equity
 

 
 

Preferred stock - Series A

 

Common stock: 400.0 shares authorized (2019: 258.3 shares issued; 2018: 289.3 shares issued)
2.6

 
2.9

Additional paid-in capital
4,109.4

 
4,062.1

Treasury stock (2019: 1.7 shares; 2018: 0.3 shares)
(16.8
)
 
(3.5
)
Accumulated deficit
(1,604.0
)
 
(1,195.4
)
Accumulated other comprehensive loss
(258.4
)
 
(756.9
)
Total stockholders' equity
2,232.8

 
2,109.2

Non-controlling interests
(1.6
)
 
71.9

Total equity
2,231.2

 
2,181.1

Total liabilities and stockholders' equity
$
4,440.3

 
$
9,401.5


See accompanying notes to the Condensed Consolidated Financial Statements


3


ELEMENT SOLUTIONS INC AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(dollars in millions)
 
Six Months Ended June 30,
 
2019
 
2018
Cash flows from operating activities:
 

 
Net income
$
25.3

 
$
49.8

Net income from discontinued operations, net of tax
14.1

 
108.3

Net income (loss) from continuing operations
11.2

 
(58.5
)
Reconciliation of net loss from continuing operations to net cash flows used in operating activities:
 

 
 

Depreciation and amortization
77.5

 
79.8

Deferred income taxes
(10.8
)
 
(18.0
)
Foreign exchange gain
(8.6
)
 
(7.7
)
Other, net
79.8

 
5.6

Changes in assets and liabilities, net of acquisitions:
 
 
 
Accounts receivable
5.4

 
(11.3
)
Inventories
(13.9
)
 
(27.1
)
Accounts payable
5.4

 
12.2

Accrued expenses
(93.5
)
 
1.0

Prepaid expenses and other current assets
(24.9
)
 
17.5

Other assets and liabilities
(22.3
)
 
(6.2
)
Net cash flows provided by (used in) operating activities of continuing operations
5.3

 
(12.7
)
Cash flows from investing activities:
 

 
 

Capital expenditures
(11.4
)
 
(11.0
)
Proceeds from disposal of property, plant and equipment

 
1.6

Acquisition of business, net of cash acquired

 
(28.2
)
Proceeds from Arysta Sale (net of cash $148.7 million)
4,281.8

 

Proceeds from the sale of equity investment

 
25.0

Other, net
7.9

 
0.8

Net cash flows provided by (used in) investing activities of continuing operations
4,278.3

 
(11.8
)
Cash flows from financing activities:
 

 
 

Debt proceeds, net of discount
749.1

 

Repayments of borrowings
(4,603.0
)
 
(0.2
)
Change in lines of credit, net
25.1

 
60.0

Repurchases of common stock
(445.1
)
 

Payment of financing fees
(39.5
)
 
(1.0
)
Other, net
(8.8
)
 
0.3

Net cash flows (used in) provided by financing activities of continuing operations
(4,322.2
)
 
59.1

Cash flows from discontinued operations:
 
 
 
Net cash flows used in operating activities of discontinued operations
(135.3
)
 
(79.0
)
Net cash flows used in investing activities of discontinued operations
(5.0
)
 
(20.9
)
Net cash flows provided by financing activities of discontinued operations
4.8

 
44.1

Net cash flows used in discontinued operations
(135.5
)
 
(55.8
)
Effect of exchange rate changes on cash, cash equivalents and restricted cash
6.2

 
(15.8
)
Net decrease in cash, cash equivalents and restricted cash
(167.9
)
 
(37.0
)
Cash, cash equivalents and restricted cash at beginning of period (1)
415.5

 
483.9

Cash, cash equivalents and restricted cash at end of period (2)
$
247.6

 
$
446.9

(1) Includes cash, cash equivalents and restricted cash of discontinued operations of $181.9 million and $225.4 million at December 31, 2018 and 2017, respectively.
(2) Includes cash, cash equivalents and restricted cash of discontinued operations of $166.6 million at June 30, 2018.

 See accompanying notes to the Condensed Consolidated Financial Statements


4


ELEMENT SOLUTIONS INC AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
(Unaudited)
(dollars in millions, except share amounts)
Three Months Ended June 30, 2019
Preferred Stock
 
Common Stock
 
Additional
Paid-in
Capital
 
Treasury Stock
 
Accumulated
Deficit
 
Accumulated Other Comprehensive (Loss) Income
 
Total
Stockholders'
Equity
 
Non-
controlling Interests
 
Total Equity
Shares
 
Amount
 
Shares
 
Amount
 
 
Shares
 
Amount
 
 
 
 
 
Balance at March 31, 2019
2,000,000

 
$

 
257,955,093

 
$
2.6

 
$
4,105.1

 
512,956

 
$
(5.4
)
 
$
(1,605.5
)
 
$
(240.1
)
 
$
2,256.7

 
$
(1.5
)
 
$
2,255.2

Net income

 

 

 

 

 

 

 
1.5

 

 
1.5

 
(0.1
)
 
1.4

Other comprehensive loss, net of taxes

 

 

 

 

 

 

 

 
(18.3
)
 
(18.3
)
 

 
(18.3
)
Exercise/ vesting of share based compensation

 

 
336,703

 

 
1.9

 

 

 

 

 
1.9

 

 
1.9

Issuance of common stock under ESPP

 

 
32,027

 

 
0.3

 

 

 

 

 
0.3

 

 
0.3

Repurchases of common stock

 

 

 

 

 
1,154,585

 
(11.4
)
 

 

 
(11.4
)
 
 
 
(11.4
)
Equity compensation expense

 

 

 

 
2.1

 

 

 

 

 
2.1

 

 
2.1

Changes in non-controlling interests

 

 

 

 

 

 

 

 

 

 

 

Balance at June 30, 2019
2,000,000

 
$

 
258,323,823

 
$
2.6

 
$
4,109.4

 
1,667,541

 
$
(16.8
)
 
$
(1,604.0
)
 
$
(258.4
)
 
$
2,232.8

 
$
(1.6
)
 
$
2,231.2


Three Months Ended June 30, 2018
Preferred Stock
 
Common Stock
 
Additional
Paid-in
Capital
 
Treasury Stock
 
Accumulated
Deficit
 
Accumulated Other Comprehensive (Loss) Income
 
Total
Stockholders'
Equity
 
Non-
controlling Interests
 
Total Equity
Shares
 
Amount
 
Shares
 
Amount
 
 
Shares
 
Amount
 
 
 
 
 
Balance at March 31, 2018
2,000,000

 
$

 
288,115,844

 
$
2.9

 
$
4,043.6

 
6,618.0

 
$
(0.1
)
 
$
(833.7
)
 
$
(356.9
)
 
$
2,855.8

 
$
111.2

 
$
2,967.0

Net income (loss)

 

 

 

 

 

 

 
12.0

 

 
12.0

 
(0.2
)
 
11.8

Other comprehensive loss, net of taxes

 

 

 

 
 
 

 

 

 
(340.4
)
 
(340.4
)
 
(34.8
)
 
(375.2
)
Exercise/ vesting of share based compensation

 

 
29,549

 

 

 

 

 

 

 

 

 

Conversion of shares of common stock of PDH into common stock

 

 
29,069

 

 
0.4

 

 

 

 

 
0.4

 
(0.4
)
 

Issuance of common stock under ESPP

 

 
33,443

 

 
0.3

 

 

 

 

 
0.3

 

 
0.3

Equity compensation expense

 

 

 

 
4.3

 

 

 

 

 
4.3

 

 
4.3

Changes in non-controlling interests

 

 

 

 

 

 

 

 

 

 
(3.8
)
 
(3.8
)
Balance at June 30, 2018
2,000,000

 
$

 
288,207,905

 
$
2.9

 
$
4,048.6

 
6,618.0

 
$
(0.1
)
 
$
(821.7
)
 
$
(697.3
)
 
$
2,532.4

 
$
72.0

 
$
2,604.4


See accompanying notes to the Condensed Consolidated Financial Statements







5



ELEMENT SOLUTIONS INC AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (continued)
(Unaudited)
(dollars in millions, except share amounts)
Six Months Ended June 30, 2019
Preferred Stock
 
Common Stock
 
Additional
Paid-in
Capital
 
Treasury Stock
 
Accumulated
Deficit
 
Accumulated Other Comprehensive (Loss) Income
 
Total
Stockholders'
Equity
 
Non-
controlling Interests
 
Total Equity
Shares
 
Amount
 
Shares
 
Amount
 
 
Shares
 
Amount
 
 
 
 
 
Balance at December 31, 2018
2,000,000

 
$

 
289,316,170

 
$
2.9

 
$
4,062.1

 
341,967

 
$
(3.5
)
 
$
(1,195.4
)
 
$
(756.9
)
 
$
2,109.2

 
$
71.9

 
$
2,181.1

Net income

 

 

 

 

 

 

 
24.7

 

 
24.7

 
0.6

 
25.3

Other comprehensive income, net of taxes

 

 

 

 

 

 

 

 
49.1

 
49.1

 

 
49.1

Arysta Sale

 

 

 

 
(5.7
)
 

 

 

 
463.3

 
457.6

 
(46.6
)
 
411.0

Exercise/ vesting of share based compensation

 

 
1,929,518

 

 
1.9

 
170,989

 
(1.9
)
 

 

 

 

 

Conversion of shares of common stock of PDH into common stock

 

 
4,019,710

 
0.1

 
41.1

 

 

 

 
(13.9
)
 
27.3

 
(27.3
)
 

Issuance of common stock under ESPP

 

 
58,425

 

 
0.6

 

 

 

 

 
0.6

 

 
0.6

Repurchases of common stock

 

 
(37,000,000
)
 
(0.4
)
 

 
1,154,585

 
(11.4
)
 
(433.3
)
 

 
(445.1
)
 

 
(445.1
)
Equity compensation expense

 

 

 

 
9.4

 

 

 

 

 
9.4

 

 
9.4

Changes in non-controlling interests

 

 

 

 

 

 

 

 

 

 
(0.2
)
 
(0.2
)
Balance at June 30, 2019
2,000,000

 
$

 
258,323,823

 
$
2.6

 
$
4,109.4

 
1,667,541

 
$
(16.8
)
 
$
(1,604.0
)
 
$
(258.4
)
 
$
2,232.8

 
$
(1.6
)
 
$
2,231.2


Six Months Ended June 30, 2018
Preferred Stock
 
Common Stock
 
Additional
Paid-in
Capital
 
Treasury Stock
 
Accumulated
Deficit
 
Accumulated Other Comprehensive (Loss) Income
 
Total
Stockholders'
Equity
 
Non-
controlling Interests
 
Total Equity
Shares