PolyOne reports $264 million of cash, equivalents at quarter’s end

By Lisa Kerner

Charlotte, N.C., Oct. 24 – PolyOne Corp. ended the third quarter with cash and cash equivalents of $264 million and long-term debt of about $966 million.

This compares with $365 million and $976 million, respectively, at year’s end, according to the company’s earnings news release.

Total liquidity at quarter’s end was “roughly $560 million,” and the debt-to-EBITDA ratio was 1.7 times, chief financial officer Bob Patterson said during the company’s earnings conference call on Friday.

“Overall we continue to strengthen our balance sheet and improve cash flow, which is critical to fuel our transformation,” he said.

“Working capital management improved sequentially to 10.3% of sales on a trailing 12-month basis from 10.7% of sales in the second quarter.”

PolyOne reported $71 million of free cash flow for the quarter.

The company repurchased 1.5 million shares in the third quarter and 9.7 million shares since early 2013, according to Patterson.

There are 10.3 million shares remaining to be repurchased under PolyOne’s board-approved plan.

PolyOne exited certain unprofitable products associated with the Spartech acquisition and operations in Brazil. These actions, coupled with recent weakness in Europe, resulted in revenues of $958 million for the quarter, the release stated. Revenues for the prior-year period were about $1 billion.

Adjusted earnings per share were up 36% year over year at $0.49.

PolyOne is an Avon Lake, Ohio-based provider of specialized polymer materials and services.

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