Element Solutions Inc. Files Q3 2024 10-Q Report

TL;DR

**ESI Q3 2024 10-Q FILED: Financials for period ending 9/30/24 are now public.**

AI Summary

Element Solutions Inc. reported its third-quarter results for the period ending September 30, 2024. The company's financial performance for the quarter and the nine months ended September 30, 2024, is detailed in this 10-Q filing. Specific financial figures and operational highlights are provided within the document.

Why It Matters

This filing provides investors and analysts with the latest financial performance data for Element Solutions Inc., crucial for understanding the company's current health and future prospects.

Risk Assessment

Risk Level: medium — As a 10-Q filing, it contains detailed financial information which can reveal both positive and negative trends, impacting investment decisions.

Key Numbers

• 2024-09-30 — Reporting Period End Date (Indicates the end of the fiscal quarter for which financial data is reported.)
• 2024-10-29 — Filing Date (The date the 10-Q report was officially submitted to the SEC.)

Key Players & Entities

• Element Solutions Inc. (company) — Filer of the 10-Q report
• 2024-09-30 (date) — End of the reporting period for the 10-Q
• 2024-10-29 (date) — Date the 10-Q was filed
• Platform Specialty Products Corp (company) — Former name of Element Solutions Inc.

FAQ

Key Financial Figures

• $0.01 — ich registered Common Stock, par value $0.01 per share ESI New York Stock Exchange
• $325 m — d Graphics Solutions, for approximately $325 million, subject to adjustments, as annou
• $800 million — % USD Notes due 2028 Element Solutions' $800 million aggregate principal amount of 3.875% se

Filing Documents

• esi-20240930.htm (10-Q) — 1348KB
• esi10-q2024930exx311.htm (EX-31.1) — 11KB
• esi10-q2024930exx312.htm (EX-31.2) — 11KB
• esi10-q2024930exx321.htm (EX-32.1) — 10KB
• esi-20240930_g1.jpg (GRAPHIC) — 286KB
• 0001590714-24-000146.txt ( ) — 7258KB
• esi-20240930.xsd (EX-101.SCH) — 38KB
• esi-20240930_cal.xml (EX-101.CAL) — 95KB
• esi-20240930_def.xml (EX-101.DEF) — 189KB
• esi-20240930_lab.xml (EX-101.LAB) — 571KB
• esi-20240930_pre.xml (EX-101.PRE) — 409KB
• esi-20240930_htm.xml (XML) — 808KB

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 and Nine Months Ended September 30, 2024 and 2023 1 Condensed Consolidated Statements of Comprehensive Income (Loss) Three and Nine Months Ended September 30, 2024 and 2023 2 Condensed Consolidated Balance Sheets September 30, 2024 and December 31, 2023 3 Condensed Consolidated Statements of Cash Flows Nine Months Ended September 30, 2024 and 2023 4 Condensed Consolidated Statements of Changes in Stockholders' Equity Three and Nine Months Ended September 30, 2024 and 2023 5 Notes to the Condensed Consolidated Financial Statements 7 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 18 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 30 Item 4.

Controls and Procedures

Controls and Procedures 30 Part II. Other Information Item 1.

Legal Proceedings

Legal Proceedings 31 Item 1A.

Risk Factors

Risk Factors 31 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 31 Item 3. Defaults Upon Senior Securities 31 Item 4. Mine Safety Disclosures 31 Item 5. Other Information 31 Item 6. Exhibits 32

Signatures

Signatures 33 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. FDII Foreign-derived intangible income. GAAP U.S. Generally Accepted Accounting Principles. GILTI Global intangible low-taxed income. Kuprion Acquisition Acquisition of Kuprion, Inc. on May 19, 2023. MGS Transaction ESI's pending sale of its flexographic printing plate business, MacDermid Graphics Solutions, for approximately $325 million, subject to adjustments, as announced on September 3, 2024. The MGS Transaction is expected to close in the fourth quarter of 2024 or the first half of 2025, subject to customary closing conditions, adjustments and regulatory approvals. Quarterly Report This quarterly report on Form 10-Q for the three and nine months ended September 30, 2024. RSUs Restricted stock units issued by Element Solutions from time to time under its Amended and Restated 2013 Incentive Compensation Plan or 2024 Incentive Compensation Plan, as applicable. 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. 2022 Annual Report Element Solutions' annual report on Form 10-K for the fiscal year ended December 31, 2022,

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, the Kuprion Acquisition and the MGS Transaction; the timing for completion of the MGS Transaction, the ability of the parties to close this transaction, including obtaining regulatory approvals and meeting other closing conditions; the tax treatment and tax implications of the MGS Transaction; deferred payments related to the Kuprion Acquisition; the war between Russia and Ukraine, 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 and supply chains; 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; expectations with respect to the Company's full year financial results; improved profitability; 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

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 September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Net sales $ 645.0 $ 599.3 $ 1,832.7 $ 1,759.8 Cost of sales 377.5 357.4 1,053.0 1,061.6 Gross profit 267.5 241.9 779.7 698.2 Operating expenses: Selling, technical, general and administrative 157.6 149.9 462.1 445.8 Research and development 14.9 12.9 48.6 54.3 Goodwill impairment — 80.0 — 80.0 Total operating expenses 172.5 242.8 510.7 580.1 Operating profit (loss) 95.0 ( 0.9 ) 269.0 118.1 Other (expense) income: Interest expense, net ( 14.2 ) ( 13.3 ) ( 42.4 ) ( 37.0 ) Foreign exchange gains (losses) 11.1 ( 5.3 ) 24.0 8.6 Other (expense) income, net ( 14.7 ) 3.1 ( 29.7 ) 1.8 Total other expense ( 17.8 ) ( 15.5 ) ( 48.1 ) ( 26.6 ) Income (loss) before income taxes and non-controlling interests 77.2 ( 16.4 ) 220.9 91.5 Income tax expense ( 36.8 ) ( 15.3 ) ( 32.8 ) ( 53.4 ) Net income (loss) from continuing operations 40.4 ( 31.7 ) 188.1 38.1 Income from discontinued operations, net of tax — — 1.6 2.9 Net income (loss) 40.4 ( 31.7 ) 189.7 41.0 Net income attributable to non-controlling interests ( 0.1 ) ( 0.1 ) ( 0.2 ) — Net income (loss) attributable to common stockholders $ 40.3 $ ( 31.8 ) $ 189.5 $ 41.0 Earnings (loss) per share Basic from continuing operations $ 0.17 $ ( 0.13 ) $ 0.77 $ 0.16 Basic from discontinued operations — — 0.01 0.01 Basic attributable to common stockholders $ 0.17 $ ( 0.13 ) $ 0.78 $ 0.17 Diluted from continuing operations $ 0.17 $ ( 0.13 ) $ 0.77 $ 0.16 Diluted from discontinued operations — — 0.01 0.01 Diluted attributable to common stockholders $ 0.17 $ ( 0.13 ) $ 0.78 $ 0.17 Weighted average common shares outstanding Basic 242.1 241.5 242.0 241.4 Diluted 242.6 241.5 242.5 241.8 See accompanying notes to the Condens

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