Axiall Reports Second-Quarter 2013 Results

Axiall Reports Second-Quarter 2013 Results

ATLANTA--(BUSINESS WIRE)-- Axiall Corporation (NYS: AXLL) today announced financial results for the quarter ended June 30, 2013.

Axiall reported net sales of $1.3 billion for the second quarter of 2013, compared to net sales of $867.7 million for the second quarter of 2012. The company reported Net income attributable to Axiall of $72.8 million, or $1.03 per diluted share, for the second quarter of 2013, compared to Net income attributable to Axiall of $13.6 million, or $0.39 per diluted share, for the second quarter of 2012. The company reported Adjusted Net Income of $84.0 million, and Adjusted Earnings per Share of $1.19, for the second quarter of 2013, compared to Adjusted Net Income of $17.7 million, and Adjusted Earnings per Share of $0.51, for the second quarter of 2012. The company reported Adjusted EBITDA of $197.9 million for the second quarter of 2013, compared to Adjusted EBITDA of $54.3 million for the same quarter in the prior year.

The financial results announced today include the results of the combined company since the January 28, 2013, merger.

"We are pleased to complete the first full quarter as Axiall. We have made significant progress integrating the organizations and building on our complementary assets while maintaining a steady focus on safety and execution," said Paul Carrico, president and chief executive officer. "We are on track to achieve our synergy targets of a $60 million run rate by year end 2013 and $115 million run rate by the end of 2014."

Chlorovinyls

In the Chlorovinyls segment, second quarter 2013 net sales were $801.8 million compared to $339.8 million during the second quarter of 2012. The increase in net sales was primarily driven by the sales contributed by the merged business as well as higher resin sales prices and volumes. The segment posted Adjusted EBITDA of $177.6 million in the second quarter of 2013, compared to Adjusted EBITDA of $45.8 million for the same quarter in the prior year. The $131.8 million increase in Adjusted EBITDA was primarily due to the contribution from the merged business.

Building Products

In the Building Products segment, net sales were $244.5 million for the second quarter of 2013, compared to $252.4 million for the same quarter in the prior year. The net sales decrease was driven by lower sales prices in Canada, on flat sales volume. The segment's Adjusted EBITDA was $28.2 million for the second quarter of 2013, compared to $24.5 million of Adjusted EBITDA during the same quarter of the prior year. The $3.7 million increase was primarily due to lower conversion costs and lower selling, general and administrative costs.

Aromatics

In the Aromatics segment, net sales decreased to $226.5 million for the second quarter of 2013 from $275.5 million for the second quarter of 2012, due primarily to lower sales volumes for cumene, partially offset by higher sales prices for all products. During the second quarter of 2013, the segment recorded Adjusted EBITDA of $4.6 million, compared to Adjusted EBITDA of negative $2.0 million during the same quarter in 2012. The improvement was primarily due to a smaller inventory holding loss in the second quarter of 2013, partially offset by lower sales volumes.

Conference Call

The company will discuss second-quarter financial results and business developments via conference call and webcast on Thursday, August 1, at 10:00 a.m. Eastern time. To access the company's second-quarter conference call, please dial (877) 312-5406 (domestic) or (706) 679-9856 (international). Playbacks will be available from 11:00 a.m. Eastern time on Thursday, August 1, until 11:59 p.m. Eastern time on Wednesday, August 15. Playback numbers are (855) 859-2056 or (800) 585-8367. The conference call ID number is 23458796.

About Axiall

Axiall Corporation is a leading integrated chemicals and building products company. It is an international manufacturer of chlor-alkali and derivatives, chlorovinyls and aromatics products including chlorine, caustic soda, vinyl chloride monomer, chlorinated solvents, calcium hypochlorite, ethylene dichloride, muriatic acid, phosgene derivatives, polyvinyl chloride, vinyl compounds, acetone, cumene and phenol. It also manufactures vinyl-based building and home improvement products that are marketed under Royal Building Products, Celect™, Zuri™, Kor Flo™, Overture, S4S and Exterior Portfolio brands, including window and door profiles, mouldings, siding, pipe and pipe fittings, and decking. Axiall, headquartered in Atlanta, Georgia, has manufacturing facilities located throughout North America and in Asia to provide industry-leading materials and services to customers. For more information, visit www.axiall.com.

Cautionary Statements About Forward-Looking Information

This press release contains certain statements relating to future events and our intentions, beliefs, expectations, and predictions for the future. Any such statements other than statements of historical fact are forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. Words or phrases such as "anticipate," "believe," "plan," "estimate," "project," "may," "will," "intend," "target," "expect," "would" or "could" (including the negative variations thereof) or similar terminology used in connection with any discussion of future plans, actions or events generally identify forward-looking statements. These statements relate to, among other things, our outlook for future periods, global demand for our products, pricing trends and market forces within the chemical and building products industries, expected benefits of the merger with the PPG chemicals business, integration plans, the expected cost advantage of natural gas in North America and the expected duration of any such cost advantage and other statements of expectations concerning matters that are not historical facts. These statements are based on the current expectations of our management. There are a number of risks and uncertainties that could cause our actual results to differ materially from the forward-looking statements included in this press release. These risks and uncertainties include, among other things: (i) a material adverse change, event or occurrence affecting Axiall or the newly acquired chemicals business; (ii) the ability of Axiall to successfully integrate the businesses of the chemicals business formerly owned by PPG with which Axiall has merged, which may result in the combined company not operating as effectively and efficiently as expected; (iii) the possibility that the merger and related transactions may involve other unexpected costs, liabilities or delays; and (iv) uncertainties regarding future prices, industry capacity levels and demand for Axiall's products, raw materials and energy costs and availability, feedstock availability and prices, changes in governmental and environmental regulations, the adoption of new laws or regulations that may make it more difficult or expensive to operate Axiall's businesses or manufacture its products, Axiall's ability to generate sufficient cash flows from its business after the merger, future economic conditions in the specific industries to which its products are sold, and global economic conditions.

In light of these risks, uncertainties, assumptions, and factors, the forward-looking events discussed in this press release may not occur. Other unknown or unpredictable factors could also have a material adverse effect on Axiall's actual future results, performance, or achievements. For a further discussion of these and other risks and uncertainties applicable to Axiall and its business, see Axiall's Annual Report on Form 10-K for the fiscal year ended December 31, 2012, and subsequent filings with the SEC. As a result of the foregoing, readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Axiall does not undertake, and expressly disclaims, any duty to update any forward-looking statement whether as a result of new information, future events, or changes in its expectations, except as required by law.