Kraton Performance Polymers, Inc., a leading global producer of styrenic block copolymers, announces financial results for the quarter and year ended December 31, 2013.

 

2013 FOURTH QUARTER OVERVIEW

Fourth quarter 2013 sales revenue was $290.4 million on sales volume of 74.3 kilotons, down $6.0 million compared to sales revenue of $296.4 million in the fourth quarter 2012 on sales volume of 67.2 kilotons.

 

Adjusted EBITDA at estimated current replacement cost (" ECRC") (non-GAAP) was $35.0 million in the fourth quarter 2013, up $12.6 million compared to $22.4 million in the fourth quarter 2012.

 

Fourth quarter 2013 net income attributable to Kraton was $4.9 million, or $0.15 per diluted share, compared to a net loss of $(29.5) million, or $(0.91) per diluted share, in the fourth quarter 2012.

 

Fourth quarter 2013 adjusted net income attributable to Kraton (non-GAAP) was $2.5 million, or $0.08 per diluted share, compared to adjusted net loss of $(12.7) million, or $(0.39) per diluted share, in the fourth quarter 2012.

 

Net income (loss) attributable to Kraton and adjusted net income (loss) attributable to Kraton includes a negative spread between FIFO and ECRC of $(0.22) per diluted share in the fourth quarter 2013 and $(0.32) per diluted share in the fourth quarter 2012.

 

Cash provided by operating activities was $47.4 million in the fourth quarter 2013, compared to $44.1 million in the fourth quarter 2012.

 

"Our results for the fourth quarter 2013 reflect both favorable business momentum in the second half of the year in our base sales offerings, and continued focus on market development in our innovation and differentiated sales portfolio.  Specifically, fourth quarter 2013 sales volume was 74 kilotons, up 10.6% year-on-year, with the increase led by strong year-on-year volume growth in our Paving & Roofing and Cariflex end uses.  

 

Strong growth in second half 2013 sales volume served to offset volume weakness in the first half of 2013 that was driven by the impact of adverse weather on Paving & Roofing sales.  As a result, we delivered full-year 2013 sales volume of 313.5 kilotons," said Kevin M. Fogarty, Kraton's President and Chief Executive Officer.  

 

"During the year we continued our focus on innovation and the ongoing shift in our portfolio to higher-margin product sales and we closed the year with a Vitality Index of 15%.  Our differentiated Cariflex IR and IR latex products demonstrated continued growth in 2013, with sales volume up nearly 14%.  Cariflex now accounts for 9% of Kraton revenue, and we expect Cariflex to  grow further in 2014 as we continue to expand sales into new markets and applications," said Fogarty.  

 

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