Milacron Holdings Corp., a leading industrial technology company serving the plastic processing industry, announced financial results for the fourth quarter ended December 31, 2017.
“We delivered a strong fourth quarter and exceeded our full-year sales, adjusted EBITDA and free cash flow guidance ranges” said Milacron President and Chief Executive Officer, Tom Goeke. “We delivered nearly double digit constant currency sales growth in the quarter, driven by our APPT segment with 16 percent sales growth and our Fluid Technologies segment grew five percent on a constant currency basis.
For the full year, we achieved nine percent order and five percent sales growth, on a constant currency basis, and despite numerous inflationary headwinds, continued to expand EBITDA margins with a 20 basis point improvement. We also delivered significant free cash flow improvement as our focus on lowering working capital provided exceptional results to the quarter and full year.
Looking ahead to 2018, we begin the year with a strong backlog position of $287.0 million, are focused on concluding our three year restructuring initiatives and will continue to take the necessary actions to meaningfully strengthen our balance sheet. Our guidance for 2018 reflects the continued execution of our strategic fundamentals, which includes driving increased sales from consumables, expanding margins in all of our businesses and increasing free cash flow conversion to position our company for growth."
Fourth Quarter Results
For the fourth quarter of 2017, sales of $324.9 million increased 12.4% from sales of $289.1 million in the same period a year ago. Excluding the favorable effects of currency movements, sales for the fourth quarter increased 9.0% versus the prior year period. Operating earnings for the fourth quarter of 2017 increased 14.8% to $10.1 million compared to operating earnings of $8.8 million in the prior year period. Adjusted EBITDA for the fourth quarter of 2017 increased 12.7% to $60.4 million, or 18.6% of sales, compared to Adjusted EBITDA of $53.6 million, or 18.5% of sales, in the prior year period. Net earnings totaled $3.3 million, or $0.05 per basic and diluted share, in the fourth quarter of 2017 compared to a net earnings of $1.1 million, or $0.02 per basic and diluted share, in the prior year period. Adjusted Net Income totaled $42.0 million in the fourth quarter of 2017 compared to Adjusted Net Income of $32.8 million in the prior year period.
Full Year Results
For the year ended December 31, 2017, sales of $1,234.2 million increased 5.8% from sales of $1,166.7 million in the prior year. Excluding the favorable effects of currency movements, sales for the year ended December 31, 2017 rose 5.2% over the prior year. Operating earnings for the year ended December 31, 2017 decreased 16.7% to $88.0 million compared to operating earnings of $105.6 million in the prior year. Operating earnings for the year ended December 31, 2017 were negatively impacted by $9.7 million of incremental restructuring costs when compared to the prior year. Adjusted EBITDA for the year ended December 31, 2017 increased 6.8% to $227.3 million, or 18.4% of sales, compared to Adjusted EBITDA of $212.8 million, or 18.2% of sales, in the prior year. Net earnings totaled $1.1 million, or $0.02 per basic and diluted share for the year ended December 31, 2017 compared to a net earnings of $30.5 million, or $0.45 and $0.43 per basic and diluted share, respectively, in the prior year. Adjusted Net Income totaled $128.2 million for the year ended December 31, 2017 compared to Adjusted Net Income of $105.7 million in the prior year.
