Ashland(ASH)2025-01-28 22:11Financial Performance - First quarter sales were $405 million, down 14% from $473 million in the prior-year quarter, with Portfolio Optimization reducing sales by approximately $50 million or 11%[3] - Loss from continuing operations was $166 million, or a loss of $3.51 per diluted share, compared to income of $28 million in the prior-year quarter[5] - Adjusted EBITDA was $61 million, down 13% from $70 million in the prior-year quarter, primarily driven by Portfolio Optimization and increased expenses[5] - Life Sciences sales declined 33% year-over-year to $134 million, primarily due to Portfolio Optimization and reduced pharma sales volumes[9] - Personal Care sales increased 4% year-over-year to $134 million, with a 6% increase excluding Portfolio Optimization impacts[12] - Specialty Additives sales were $115 million, down 6% from the prior-year quarter, primarily due to Portfolio Optimization[14] - Adjusted operating income for Personal Care was $12 million, compared to $2 million in the prior-year quarter, reflecting strong performance[13] - Ashland reported a net loss of $165 million for the three months ended December 31, 2024, compared to a net income of $26 million in the same period of 2023[40] - The diluted earnings per share from continuing operations was $(3.51) for Q4 2024, a significant decline from $0.54 in Q4 2023[40] - Total sales decreased by 14.4% to $405 million in Q4 2024, down from $473 million in Q4 2023[40] - Operating loss for the quarter was $(179) million, compared to an operating loss of $(18) million in the prior year[40] - Adjusted EBITDA for Ashland Inc. was $61 million in Q4 2024, down 13% from $70 million in Q4 2023[44] - The Life Sciences segment's adjusted EBITDA decreased to $28 million in Q4 2024 from $48 million in Q4 2023, reflecting a 42% decline[44] - The Personal Care segment saw an increase in adjusted EBITDA to $30 million in Q4 2024, up from $22 million in Q4 2023, marking a 36% growth[44] - Specialty Additives reported an adjusted EBITDA of $13 million in Q4 2024, compared to $6 million in Q4 2023, representing a 117% increase[44] Cash Flow and Assets - Cash flows used by operating activities totaled $30 million, compared to cash flows provided of $201 million in the prior-year quarter[7] - Cash and cash equivalents decreased to $219 million at the end of Q4 2024, down from $300 million at the end of Q3 2024[41] - Total assets decreased to $5.231 billion as of December 31, 2024, from $5.645 billion as of September 30, 2024[41] - Free cash flows for Ashland Inc. were negative $53 million in Q4 2024, a significant decline from positive $165 million in Q4 2023[48] - Operating cash flow conversion was 18% in Q4 2024, a sharp decrease from 773% in Q4 2023[48] - Ashland's total liabilities decreased to $2.639 billion as of December 31, 2024, from $2.777 billion as of September 30, 2024[41] Strategic Initiatives - The company signed a definitive agreement to sell its Avoca business, part of its portfolio optimization strategy[3] - The company plans to focus on restructuring and optimization efforts to improve future performance[46] Key Items and Adjustments - The company incurred a loss of $183 million on acquisitions and divestitures in Q4 2024, compared to a loss of $2 million in the same quarter of the previous year[40] - The company incurred key items totaling $208 million before tax, including an Avoca impairment of $183 million[53] - Adjusted operating income (non-GAAP) for Q4 2024 was $11 million, down from $16 million in Q4 2023[51] - Total key items after tax amounted to $3.50 million in Q4 2024, compared to $(0.42) million in Q4 2023[57] - Key items before tax included an Avoca impairment of $3.89 million in Q4 2024, with no equivalent in Q4 2023[57] - The tax effect of key items was $(1.07) million in Q4 2024, compared to $(0.02) million in Q4 2023[57] - Amortization expense adjustment (net of tax) was $0.29 million for Q4 2024, slightly down from $0.33 million in Q4 2023[57] - Uncertain tax positions contributed $0.02 million to key items in Q4 2024, with no contribution in Q4 2023[57] - Other and tax reform related activity resulted in a $0.15 million impact in Q4 2024, compared to a $(0.47) million impact in Q4 2023[57] - Adjusted Diluted EPS from Continuing Operations (excluding intangibles amortization expense) was $0.28 million in Q4 2024, down from $0.45 million in Q4 2023[57]