Nexeo Solutions, Inc.

CIK:0001604416|SEC Filings

Condensed Consolidated Statements of Operations - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Income Statement [Abstract]
Sales and operating revenues	$ 935.8	$ 929.6
Cost of sales and operating expenses	837.1	822.7
Gross profit	98.7	106.9
Selling, general and administrative expenses	79.8	84.8
Transaction related costs	8.2	0.1
Change in fair value of contingent consideration obligations	(22.9)	(18.6)
Operating income	33.6	40.6
Other income, net	0.1	0.1
Interest income (expense)
Interest income	0.2	0.1
Interest expense	(13.5)	(13.0)
Net income before income taxes	20.4	27.8
Income tax expense	4.2	1.3
Net income	$ 16.2	$ 26.5
Net income per share available to common stockholders
Basic (USD per share)	$ 0.21	$ 0.35
Diluted (USD per share)	$ 0.21	$ 0.34
Weighted average number of common shares outstanding
Basic (in shares)	76,945,078	76,793,518
Diluted (in shares)	77,094,430	77,139,236

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Cash flows from operations
Net income	$ 16.2	$ 26.5
Adjustments to reconcile to cash flows from operations:
Depreciation and amortization	17.2	19.5
Debt issuance costs amortization, debt issuance costs write-offs and original issue discount amortization	1.2	1.1
Provision for bad debt	(0.2)	0.3
Deferred income taxes	1.6	(1.8)
Equity-based compensation expense	1.8	1.7
Change in fair value of contingent consideration obligations	(22.9)	(18.6)
Changes in assets and liabilities:
Accounts and notes receivable	55.8	36.9
Inventories	(23.1)	(50.5)
Other current assets	(0.3)	(1.6)
Accounts payable	(70.7)	(60.8)
Accrued expenses and other liabilities	(26.4)	(12.6)
Changes in other operating assets and liabilities, net	(0.4)	0.7
Net cash used in operating activities	(50.2)	(59.2)
Cash flows from investing activities
Additions to property and equipment	(4.8)	(4.1)
Proceeds from the disposal of property and equipment	0.0	0.6
Cash paid for asset acquisitions	(1.7)	0.0
Net cash used in investing activities	(6.5)	(3.5)
Cash flows from financing activities
Cash paid to TPG related to TRA	0.0	(4.2)
Proceeds from short-term debt	29.6	27.9
Repayments of short-term debt	(28.0)	(31.6)
Proceeds from issuance of long-term debt	252.7	231.7
Repayments of long-term debt and capital lease obligations	(200.7)	(172.9)
Payment of debt issuance costs	0.0	(0.8)
Net cash provided by financing activities	53.6	50.1
Effect of exchange rate changes on cash and cash equivalents	(1.2)	0.1
Decrease in cash and cash equivalents	(4.3)	(12.5)
Cash and cash equivalents at the beginning of the period	58.9	53.9
Cash and cash equivalents at the end of the period	54.6	41.4
Supplemental disclosure of cash flow information:
Cash paid during the period for interest	12.4	14.0
Cash paid during the period for taxes (net of refunds)	3.0	1.6
Supplemental disclosure of non-cash investing activities:
Non-cash capital expenditures	$ 1.9	$ 1.4

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Dec. 31, 2018	Sep. 30, 2018
Current Assets
Cash and cash equivalents	$ 54.6	$ 58.9
Accounts and notes receivable (net of allowance for doubtful accounts of $3.9 million and $4.2 million, respectively)	549.5	607.8
Inventories	360.5	338.8
Income taxes receivable	6.4	5.9
Other current assets	16.9	17.3
Total current assets	987.9	1,028.7
Non-Current Assets
Property, plant and equipment, net	279.1	284.9
Goodwill	697.6	699.9
Other intangible assets, net of amortization	204.0	211.6
Deferred income taxes	1.5	2.3
Other non-current assets	9.0	16.2
Total non-current assets	1,191.2	1,214.9
Total Assets	2,179.1	2,243.6
Current Liabilities
Short-term borrowings, current portion of long-term debt and capital lease obligations	49.3	47.7
Accounts payable	308.1	380.1
Accrued expenses and other liabilities	38.8	67.2
Due to related party pursuant to contingent consideration obligations	14.5	14.7
Income taxes payable	2.7	2.9
Total current liabilities	413.4	512.6
Non-Current Liabilities
Long-term debt and capital lease obligations, less current portion, net	805.1	752.4
Deferred income taxes	29.0	30.7
Due to related party pursuant to contingent consideration obligations	100.1	122.8
Other non-current liabilities	12.0	10.6
Total non-current liabilities	946.2	916.5
Total Liabilities	1,359.6	1,429.1
Commitments and contingencies
Equity
Preferred stock, $0.0001 par value (1,000,000 shares authorized, none issued and outstanding as of December 31, 2018 and September 30, 2018)	0.0	0.0
Common stock, $0.0001 par value (300,000,000 shares authorized; 89,755,231 shares issued and 89,698,331 shares outstanding as of December 31, 2018 and 89,747,062 shares issued and 89,727,546 shares outstanding as of September 30, 2018)	0.0	0.0
Additional paid-in capital	773.3	771.5
Retained earnings	50.4	34.2
Accumulated other comprehensive income (loss)	(3.6)	9.0
Treasury stock, at cost: 56,900 and 19,516 shares as of December 31, 2018 and September 30, 2018	(0.6)	(0.2)
Total equity	819.5	814.5
Total Liabilities and Equity	$ 2,179.1	$ 2,243.6