GCP Inc. (NYSE: GCP) (GCP or the Company), a leading global provider of construction products, today announced preliminary financial and operating results for the second quarter 2022.
Second Quarter 2022 Highlights
For the three months ended June 30, 2022, GCP reported net sales of $268.4 million compared with $253.4 million in the prior-year quarter. Net Sales Constant Currency* were $275.5 million versus $253.4 million, an increase of 8.7% over the prior-year quarter. Income from continuing operations attributable to GCP shareholders was $7.2 million in the second quarter of 2022 compared with income of $10.4 million in the prior-year quarter, while Adjusted EBIT* was $19.9 million, a decrease of 26.0% versus prior-year quarter. Adjusted EBITDA* totaled $30.7 million, a decrease of 19.2% over the prior-year quarter. Diluted earnings per share from continuing operations attributable to GCP shareholders was $0.07 compared with $0.14 in the second quarter of 2021, while Adjusted EPS* was $0.15 compared with $0.20 in the prior-year quarter.
"Our earning's performance in the quarter was impacted by a series of supply chain disruptions and significant additional cost inflation, including the spike in global oil prices. Our teams have worked hard to effectively navigate the supply chain issues and we have implemented a series of price increases," commented Simon Bates, GCP's President and Chief Executive Officer. "Despite the positive price, volume, and operating improvements, the cost of inflation and freight costs continued to impact SCC's results in the quarter as pricing lagged due to contractual customer obligations. We expect the actions we have taken to positively impact our results in the third and fourth quarter of 2022, and into 2023".
Total GCP Applied Technologies ($ millions)
Second Quarter 2022 Financial Update
Second Quarter 2022 Segment Performance
Specialty Construction Chemicals ($ millions)
Specialty Building Materials ($ millions)
Capital Allocation and Liquidity
GCP's cash balance at the end of the second quarter 2022 was $459.4 million.
Investor Call
In light of GCP's entry into a definitive merger agreement with Saint-Gobain in December 2021, GCP will not host a conference call or webcast to discuss its second quarter 2022 results.
About GCP Applied Technologies
GCP Applied Technologies (NYSE: GCP) is a leading global provider of construction products that include high-performance specialty construction chemicals and building materials. GCP partners with producers, contractors, designers and engineers to achieve performance and sustainability goals. The company has a legacy of first to market and award-winning solutions that have been used to build some of the world’s most renowned structures. GCP is focused on continuous improvement for its customers, end-users and the environment. For more information, visit GCP's website at www.gcpat.com.
Forward Looking Statements
This announcement contains “forward-looking statements,” within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the context of the statement and generally arise when GCP or its management is discussing its beliefs, estimates or expectations. Such statements generally include the words “believes,” “plans,” “intends,” “targets,” “will,” “expects,” “estimates,” “suggests,” “anticipates,” “outlook,” “continues,” or similar expressions. These statements are not historical facts or guarantees of future performance but instead represent only the beliefs of GCP and its management at the time the statements were made regarding future events which are subject to certain risks, uncertainties and other factors, many of which are outside GCP’s control. Actual results and outcomes may differ materially from what is expressed or forecast in such forward-looking statements. Forward-looking statements include, without limitation, statements about expected financial positions; results of operations; cash flows; financing plans; business strategy; operating plans; strategic alternatives; capital and other expenditures; competitive positions; growth opportunities for existing products; benefits from new technology and cost reduction initiatives, plans and objectives; the potential impacts of global supply chain disruptions, increased cost inflation and potential price increases; and markets for securities. Like other businesses, we are subject to risks and uncertainties that could cause our actual results to differ materially from our projections or that could cause other forward-looking statements to prove incorrect, including, without limitation, risks related to: the cyclical and seasonal nature of the industries that GCP serves; foreign operations, especially in emerging regions; changes in currency exchange rates; business disruptions due to public health or safety emergencies, such as the novel strain of coronavirus ("COVID-19") pandemic; the cost and availability of raw materials and energy; the effectiveness of GCP’s research and development, new product introductions and growth investments; acquisitions and divestitures of assets and gains and losses from dispositions; developments affecting GCP’s outstanding liquidity and indebtedness, including debt covenants and interest rate exposure; developments affecting GCP’s funded and unfunded pension obligations; warranty and product liability claims; legal proceedings; the inability to establish or maintain certain business relationships and relationships with customers and suppliers or the inability to retain key personnel; the handling of hazardous materials and the costs of compliance with environmental regulations; extreme weather events and natural disasters. These and other factors are identified and described in more detail in GCP's Annual Report on Form 10-K for the year ended December 31, 2021 as well as GCP’s subsequent filings and quarterly reports and is available online at www.sec.gov. Readers are cautioned not to place undue reliance on GCP’s projections and other forward-looking statements, which speak only as of the date thereof. GCP undertakes no obligation to publicly release any revision to its projections and other forward-looking statements contained in this announcement, or to update them to reflect events or circumstances occurring after the date of this announcement.
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