Element Solutions Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Element Solutions Inc. filed its Q1 2024 10-Q report, detailing financial performance and operational status.</b>

AI Summary

Element Solutions Inc (ESI) filed a Quarterly Report (10-Q) with the SEC on April 30, 2024. Element Solutions Inc. filed a 10-Q report for the period ending March 31, 2024. The filing covers the first quarter of 2024. The company's fiscal year ends on December 31st. Element Solutions Inc. was formerly known as Platform Specialty Products Corp. The company's SIC code is 2890 (Miscellaneous Chemical Products).

Why It Matters

For investors and stakeholders tracking Element Solutions Inc, this filing contains several important signals. This filing provides investors with a quarterly update on Element Solutions Inc.'s financial health and business operations, crucial for investment decisions. Understanding the company's performance in Q1 2024 allows for comparison with previous periods and industry benchmarks, informing future outlook.

Risk Assessment

Risk Level: low — Element Solutions Inc shows low risk based on this filing. The filing is a standard quarterly report (10-Q) and does not contain immediate, significant negative news or disclosures that would elevate the risk level.

Analyst Insight

Review the detailed financial statements and management discussion within the 10-Q to assess the company's performance trends and outlook.

Key Numbers

• 2024-03-31 — Report End Date (Period of report)
• 2024-04-30 — Filing Date (Date filed)
• 2024-01-01 — Quarter Start Date (First quarter of 2024)
• 2890 — SIC Code (Standard Industrial Classification)

Key Players & Entities

• Element Solutions Inc (company) — Filer name
• Platform Specialty Products Corp (company) — Former company name

FAQ

Industry Context

Element Solutions Inc. operates in the miscellaneous chemical products sector, focusing on industrial applications and services.

Regulatory Implications

As a publicly traded company, Element Solutions Inc. is subject to SEC regulations and reporting requirements, including the filing of quarterly 10-Q reports.

What Investors Should Do

1. Analyze the balance sheet and income statement for Q1 2024.
2. Review any disclosures regarding changes in accounting policies or significant events.
3. Compare Q1 2024 performance against the same period in 2023.

Key Dates

• 2024-03-31: Quarter End — End of the reporting period for the 10-Q
• 2024-04-30: Filing Date — Date the 10-Q was officially submitted to the SEC

Year-Over-Year Comparison

This is the first 10-Q filing for the fiscal year 2024, providing an initial look at the company's performance compared to the end of 2023 and the first quarter of 2023.

Key Financial Figures

• $0.01 — ich registered Common Stock, par value $0.01 per share ESI New York Stock Exchange
• $800 million — % USD Notes due 2028 Element Solutions' $800 million aggregate principal amount of 3.875% se

Filing Documents

• esi-20240331.htm (10-Q) — 916KB
• esi10-q2024331exx311.htm (EX-31.1) — 11KB
• esi10-q2024331exx312.htm (EX-31.2) — 11KB
• esi10-q2024331exx321.htm (EX-32.1) — 10KB
• esi-20240331_g1.jpg (GRAPHIC) — 286KB
• 0001590714-24-000089.txt (&nbsp;) — 5793KB
• esi-20240331.xsd (EX-101.SCH) — 35KB
• esi-20240331_cal.xml (EX-101.CAL) — 74KB
• esi-20240331_def.xml (EX-101.DEF) — 155KB
• esi-20240331_lab.xml (EX-101.LAB) — 488KB
• esi-20240331_pre.xml (EX-101.PRE) — 345KB
• esi-20240331_htm.xml (XML) — 585KB

Forward-Looking Statements

Forward-Looking Statements ii Non-GAAP Financial Measures ii Part I. Financial Information Item 1. Condensed Consolidated Financial Statements (Unaudited) Condensed Consolidated Statements of Operations Three Months Ended March 31, 2024 and 2023 1 Condensed Consolidated Statements of Comprehensive Income Three Months Ended March 31, 2024 and 2023 2 Condensed Consolidated Balance Sheets March 31, 2024 and December 31, 2023 3 Condensed Consolidated Statements of Cash Flows Three Months Ended March 31, 2024 and 2023 4 Condensed Consolidated Statements of Changes in Stockholders' Equity Three Months Ended March 31, 2024 and 2023 5 Notes to the Condensed Consolidated Financial Statements 6 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 15 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 25 Item 4.

Controls and Procedures

Controls and Procedures 25 Part II. Other Information Item 1.

Legal Proceedings

Legal Proceedings 26 Item 1A.

Risk Factors

Risk Factors 26 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 26 Item 3. Defaults Upon Senior Securities 26 Item 4. Mine Safety Disclosures 26 Item 5. Other Information 26 Item 6. Exhibits 27

Signatures

Signatures 28 GLOSSARY OF DEFINED TERMS Terms Definitions Element Solutions; We; Us; Our; the Company Element Solutions Inc, a Delaware corporation, and where the context requires, its subsidiaries or operating businesses. Credit Agreement Credit Agreement, dated as of January 31, 2019, as amended from time to time, among, inter alia, Element Solutions and MacDermid, Incorporated, as borrowers, certain subsidiaries of Element Solutions and the lenders from time to time parties thereto. EBITDA Earnings before interest, taxes, depreciation and amortization. Exchange Act Securities Exchange Act of 1934, as amended. GAAP U.S. Generally Accepted Accounting Principles. Kuprion Acquisition Acquisition of Kuprion, Inc. on May 19, 2023. Quarterly Report This quarterly report on Form 10-Q for the three months ended March 31, 2024. RSUs Restricted stock units issued by Element Solutions from time to time under its Amended and Restated 2013 Incentive Compensation Plan. SEC Securities and Exchange Commission. ViaForm Distribution Rights The rights to sell the Company's ViaForm electrochemical deposition products directly to customers. WACC Weighted average cost of capital. 2023 Annual Report Element Solutions' annual report on Form 10-K for the fiscal year ended December 31, 2023, filed with the SEC on February 21, 2024. 3.875% USD Notes due 2028 Element Solutions' $800 million aggregate principal amount of 3.875% senior notes due 2028, denominated in U.S. dollars, issued on August 18, 2020. i

Forward-Looking Statements

Forward-Looking Statements This Quarterly Report contains forward-looking statements that can be identified by words such as "expect," "anticipate," "project," "will," "should," "believe," "intend," "plan," "assume," "estimate," "predict," "seek," "continue," "outlook," "may," "might," "aim," "can have," "likely," "potential," "target," "hope," "goal," "priority" or "confident" and variations of such words and similar expressions. Many of the forward-looking statements include, but are not limited to, statements, beliefs, projections and expectations regarding the expected benefits of the reacquired ViaForm Distribution Rights and the Kuprion Acquisition; deferred payments related to the Kuprion Acquisition; the war between Russia and Ukraine and the Israel-Hamas conflict and other hostilities in the Middle East as well as actions in response thereto and their impact on market conditions and the global economy; the continuing economic impact of the coronavirus (COVID-19) and its variants on the global economy, secular trends and expected growth of our businesses; capital requirements and need for and availability of financing; probability of achievement of the performance target related to certain performance-based RSUs; the impact of new accounting standards and accounting changes; potential share repurchases; our dividend policy and dividend declarations; our hedging activities; timing and outcome of environmental and legal matters; tax planning strategies and assessments; the impact of changes to privacy, cybersecurity, environmental, global trade, tax and other governmental regulations; impairments, including those on goodwill and other intangible assets; price volatility and cost environment; inflation and fluctuations in foreign exchange rates; our liquidity, cash flows and capital allocation; funding sources; expected capital expenditures; debt and debt leverage ratio; pension plan contributions; contractual obligations; general views about future operating

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Condensed Consolidated Financial Statements

Item 1. Condensed Consolidated Financial Statements ELEMENT SOLUTIONS INC AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (dollars in millions, except per share amounts) Three Months Ended March 31, 2024 2023 Net sales $ 575.0 $ 574.4 Cost of sales 330.0 346.6 Gross profit 245.0 227.8 Operating expenses: Selling, technical, general and administrative 149.1 148.9 Research and development 18.1 12.5 Total operating expenses 167.2 161.4 Operating profit 77.8 66.4 Other (expense) income: Interest expense, net ( 13.9 ) ( 11.7 ) Foreign exchange gains 7.9 4.9 Other (expense) income, net ( 2.3 ) 0.3 Total other expense ( 8.3 ) ( 6.5 ) Income before income taxes and non-controlling interests 69.5 59.9 Income tax expense ( 13.5 ) ( 16.9 ) Net income 56.0 43.0 Net income attributable to non-controlling interests — ( 0.1 ) Net income attributable to common stockholders $ 56.0 $ 42.9 Earnings per share Basic $ 0.23 $ 0.18 Diluted $ 0.23 $ 0.18 Weighted average common shares outstanding Basic 241.8 241.1 Diluted 242.5 241.8 See accompanying notes to the Condensed Consolidated Financial Statements 1 ELEMENT SOLUTIONS INC AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (dollars in millions) Three Months Ended March 31, 2024 2023 Net income $ 56.0 $ 43.0 Other comprehensive (loss) income Foreign currency translation: Other comprehensive (loss) income before reclassifications, net of tax expense (benefit) of $ 5.4 and $( 3.0 ) for the three months ended March 31, 2024 and 2023, respectively ( 46.3 ) 10.9 Total foreign currency translation adjustments ( 46.3 ) 10.9 Derivative financial instruments: Other comprehensive income (loss) before reclassifications, net of tax expense (benefit) of $ 4.7 and $( 3.0 ) for the three months ended March 31, 2024 and 2023, respectively 15.2 ( 1.5 ) Reclassifications, net of tax benefit of $ 1.9 and $ 0.0 for the three mo

View Full Filing

View this 10-Q filing on SEC EDGAR