NYSE$TSEOF

Trinseo Plc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Trinseo reported a net loss and lower sales due to COVID-19 impacts and planned turnarounds.

Trinseo reported a net loss of $36 million and adjusted EPS of $0.26, with net sales decreasing by 16% compared to the previous year. The company's performance was affected by lower volumes in several segments, lower styrene margins, and a planned turnaround at Americas Styrenics. However, proactive steps were taken to minimize the impact of COVID-19 and improve liquidity.

  • Liquidity-focused actions improved cash position to $440 million with $937 million liquidity.
  • Net loss of $36 million and diluted EPS of ($0.94) included a $38 million impairment charge.
  • Adjusted EPS was $0.26.
  • Adjusted EBITDA was $57 million, including a $15 million unfavorable impact from net timing.

Headline financials

Total Revenue

$854M

Previous: $1.01B-15.8%
EPS (adj)

$0.26

Previous: $1.09-76.1%
Adjusted EBITDA

$57M

Previous: $102M-44.1%
Free Cash Flow

-$36.3M

Previous: $35.8M-201.4%
Net Income

-$36.3M

Previous: $35.8M-201.4%
Operating Income

-$36.3M

Previous: $60.8M-159.7%
Gross Profit

$69.7M

Previous: $97.4M-28.4%
Cash & Equivalents

$440M

Previous: $516M-14.8%
Total Assets

$2.66B

Previous: $2.81B-5.3%
Stock-Based Comp

$3.2M

Previous: $4.1M-22.0%

Revenue & EPS history

Trinseo · Revenue · Quarterly

$854M

Q1 2020-15.8%vs Q1 2019
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Trinseo · $219M total across 1 segment · Q1 2020

  • Latex Binders
    $219M-2.1%

Forward guidance

Trinseo is seeing sustained demand for polystyrene and latex binders for food packaging, polycarbonate for isolation sheeting, and engineered materials for medical applications. However, there has been a significant decline in demand in other applications, particularly in automotive, tires, and textiles, and the company anticipates that this will have a more pronounced impact on second quarter performance.

Tailwinds

  • Sustained demand for polystyrene for food packaging
  • Sustained demand for latex binders for food packaging
  • Sustained demand for polycarbonate for isolation sheeting
  • Sustained demand for engineered materials for medical applications

Headwinds

  • Significant decline in demand in automotive
  • Significant decline in demand in tires
  • Significant decline in demand in textiles
  • Second quarter performance will be impacted
  • Duration of impacts and rate of recovery are unknown

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

-1.4%

Avg return

Earnings day

-3.4%

Avg return

5 days after

-5.3%

Avg return

30 days after

51%

25 / 49 earnings

Positive

+16.0%

Q1 2024

Best reaction

-34.9%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-16.7%-16.7%-91.7%
Q4 2025+0.0%+0.0%-3.6%
Q3 2025-2.4%-9.5%-47.1%
Q1 2025-34.9%-42.0%-27.7%
Q4 2024+6.9%+18.5%-11.2%
Q3 2024-8.9%-13.4%+5.9%
Q2 2024-3.2%-3.6%+44.2%
Q1 2024+16.0%-7.2%-3.4%
Q4 2023-16.8%-18.0%-10.8%
Q3 2023+2.9%-6.2%+1.0%
Q2 2023-8.4%-18.0%-35.7%
Q1 2023+2.4%-13.9%-17.0%
Q4 2022-12.7%+7.8%-5.6%
Q3 2022+8.5%+20.6%+20.0%
Q2 2022-12.9%-7.5%-26.0%
Q1 2022-5.8%-12.1%-4.4%
Q4 2021+9.0%+9.0%-9.3%
Q3 2021-4.2%-5.2%-11.5%
Q2 2021-7.1%-3.3%-4.1%
Q1 2021+0.3%+0.0%-1.3%
Q4 2020-1.0%+6.2%+25.1%
Q3 2020+15.5%+23.0%+35.4%
Q2 2020-11.6%-12.8%+3.2%
Q1 2020+3.8%+6.9%+38.4%
Q4 2019-3.5%-2.7%-34.2%
Q3 2019+2.8%+4.0%-19.0%
Q2 2019-7.3%-9.1%+10.1%
Q1 2019+7.3%+2.8%-14.9%
Q4 2018+0.6%+4.4%-5.1%
Q3 2018-6.6%-24.7%-22.3%
Q2 2018+2.1%+7.7%+5.7%
Q1 2018+0.7%+1.4%+2.8%
Q4 2017-2.7%+1.0%-6.8%
Q3 2017+1.5%-0.1%-0.2%
Q2 2017-7.7%-9.9%-3.5%
Q1 2017-8.2%-6.7%-2.1%
Q4 2016-0.5%-0.8%-7.8%
Q3 2016-4.3%-5.1%+12.4%
Q2 2016-0.7%+2.1%+16.2%
Q1 2016+3.4%
Q4 2015+6.3%
Q3 2015+3.1%
Q2 2015+7.6%
Q1 2014+2.5%
Q1 2015+7.7%
Q4 2014+1.5%
Q3 2014+1.0%
Q4 2013+2.1%
Q2 2014+2.4%
Q3 2013
Q2 2013
Q1 2013
Q4 2012
Q3 2012
Q1 2011
Q2 2010
Q1 2010

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