Research Desk Line-up: RPM Intl. Post Earnings Coverage

LONDON, UK / ACCESSWIRE / October 11, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on OMNOVA Solutions Inc. (NYSE: OMN), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=OMN, following the Company's release of its financial results on September 28, 2017, for the third quarter fiscal 2017. The Company's total net revenue increased 2.7% on a y-o-y basis. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Get more of our free earnings reports coverage from other constituents of the Specialty Chemicals industry. Pro-TD has currently selected RPM International Inc. (NYSE: RPM) for due-diligence and potential coverage as the Company reported on October 04, 2017, its financial results for Q1 FY18 which ended on August 31, 2017. Register for a free membership today, and be among the early birds that get access to our report on RPM Intl. when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on OMN; also brushing on RPM. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=OMN

http://protraderdaily.com/optin/?symbol=RPM

Earnings Reviewed

For three months ended August 31, 2017, OMNOVA's total net revenue increased 2.7% to $200.9 million from $195.6 million in Q3 FY16.

During Q3 FY17, the Company's gross profit increased 10.9% to $57.8 million from $52.1 million in Q3 FY16. For the reported quarter, the Company's gross margin increased 210 basis points to 28.8% of revenue from 26.6% of revenue in Q3 FY16. The increase was due to increased pricing, primarily in performance materials and improved mix from specialty products.

For the reported quarter, OMNOVA's adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) increased 30.2% to $28.4 million from $21.8 million in Q3 FY16. During Q3 FY17, the Company's adjusted EBITDA margin increased 300 basis points to 14.1% of revenue from 11.1% of revenue in Q3 FY16.

During Q3 FY17, OMNOVA's selling, general, and administrative (SG&A) expenses decreased 1.3% to $28.9 million from $29.3 million in Q3 FY16. During Q3 FY17, the Company's depreciation and amortization (D&A) expenses increased 4.4% to $7.1 million from $6.8 million in the same period of last year.

For the reported quarter, the Company's effective tax rate was 43.6% compared to 28.8% in Q3 FY16.

During Q3 FY17, OMNOVA's net income increased 68% to $7.9 million on a y-o-y basis from $4.7 million in Q3 FY16. For the reported quarter, the Company's adjusted net income increased 73.4% to $11.1 million on a y-o-y basis from $6.4 million in Q3 FY16. During Q3 FY17, OMNOVA's diluted EPS increased 80% to $0.18 on a y-o-y basis from $0.10 in Q3 FY16. For the reported quarter, the Company's adjusted diluted EPS increased 78.5% to $0.25 on a y-o-y basis from $0.14 in Q3 FY16. The adjusted diluted EPS surpassed analysts' expectations of $0.19.

OMNOVA's Segment Details

Specialty Solutions - During Q3 FY17, Specialty Solutions segment's net revenue increased 7.4% to $115.1 million from $107.1 million in the same period last year. For the reported quarter, the segment's operating income increased 11.8% to $18.9 million from $16.9 million in Q3 FY16. During Q3 FY17, the segment's adjusted operating margin increased 60 basis points to 16.4% of revenue from 15.8% of revenue in Q3 FY16. For the reported quarter, the segment's adjusted EBITDA increased 11.3% to $22.6 million from $20.3 million in Q3 FY16. During Q3 FY17, the segment's adjusted EBITDA margin increased 60 basis points to 19.6% of revenue from 19.0% of revenue in Q3 FY16.

Performance Materials - During Q3 FY17, the Performance Materials segment's net revenue decreased 3% to $85.8 million from $88.5 million in the same period last year. For the reported quarter, the segment's operating income increased 93% to $8.3 million from $4.3 million in Q3 FY16. During Q3 FY17, the segment's adjusted operating margin increased 440 basis points to 9.7% of revenue from 5.3% of revenue in Q3 FY16. For the reported quarter, the segment's adjusted EBITDA increased 37.5% to $11.0 million from $8.0 million in Q3 FY16. During Q3 FY17, the segment's adjusted EBITDA margin increased 380 basis points to 12.8% of revenue from 9.0% of revenue in Q3 FY16.

Balance Sheet

As on August 31, 2017, OMNOVA's cash and cash equivalents increased 3.6% to $74.6 million from $72.0 million in Q4 FY16.

During Q3 FY17, the Company's net accounts receivables increased 21.3% to $105.8 million from $87.2 million in Q4 FY16.

For the reported quarter, OMNOVA's net inventories increased 4.3% to $77.2 million from $74.0 million in Q4 FY16.

For the reported quarter, OMNOVA's accounts payable increased 13.2% to $77.8 million from $68.7 million in Q4 FY16.

During Q3 FY17, the Company's long-term debt decreased 0.6% to $350.3 million from $352.5 million in Q4 FY16

During Q3 FY17, the Company's cash provided by operating activities decreased 7.8% to $19.9 million from $21.6 million in Q3 FY16.

For the reported quarter, the Company's net debt to adjusted EBITDA ratio was 3.3x compared to 3.7x in Q2 FY17.

Stock Performance

On Tuesday, October 10, 2017, the stock closed the trading session flat at $10.95. A total volume of 216.92 thousand shares have exchanged hands, which was higher than the 3-month average volume of 136.00 thousand shares. OMNOVA Solutions' stock price surged 8.42% in the last three months, 13.47% in the past six months, and 27.47% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have gained 9.50%. At Tuesday's closing price, the stock's net capitalization stands at $491.33 million.

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