Innophos Holdings, Inc. announced unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2017. For the quarter, the company reported net sales of $183,839,000 against $186,037,000 a year ago. Operating income was $19,010,000 against $21,895,000 a year ago. Income before income taxes was $17,280,000 against $19,870,000 a year ago. Net income was $11,582,000 against $13,643,000 a year ago. Diluted earnings per participating share were $0.58 against $0.69 a year ago. EBITDA was $28,788,000 against $31,828,000 a year ago. Adjusted EBITDA was $35,246,000 against $34,204,000 a year ago. Adjusted net income was $15,434,000 against $14,754,000 a year ago. Adjusted diluted earnings per participating share were $0.78 against $0.75 a year ago. Net cash provided from operations was $27,301,000 against $39,765,000 a year ago. Cash flow was positive but down year-over-year due to large working capital improvements in third quarter of 2016. Capital expenditure of $8,573,000 against $7,137,000 a year ago, reflecting the investments in the Geismar deep well, which remains on track for completion in 2017 and is running favorable to budget. Capital expenditure this quarter included approximately 40% for maintenance, 45% for growth-related projects and 15% for the Geismar deep well investment. Finally in the third quarter, net debt increased to $262 million, due primarily to the $125 million borrowed for the Novel acquisition, which was completed in August 2017. Capex was up $2 million versus the prior year quarter, mostly due to the Geismar deep well investments. The Geismar project is forecasted to come in under budget. Net income was down $2 million or an unfavorable 15% versus the prior year. This was due to purchase accounting and M&A-related expenses.

For the nine months, the company reported net sales of $528,923,000 against $557,555,000 a year ago. Operating income was $53,806,000 against $62,777,000 a year ago. Income before income taxes was $49,406,000 against $56,724,000 a year ago. Net income was $33,728,000 against $38,589,000 a year ago. Diluted earnings per participating share were $1.7 against $1.96 a year ago. EBITDA was $82,850,000 against $90,958,000 a year ago. Adjusted EBITDA was $92,785,000 against $95,433,000 a year ago. Adjusted net income was $38,425,000 against $39,898,000 a year ago. Adjusted diluted earnings per participating share were $1.94 against $2.03 a year ago. Net cash provided from operations was $46,657,000 against $81,804,000 a year ago. Capital expenditures were $24,650,000 against $25,675,000 a year ago.

Full year 2017 revenue guidance increased to reflect Novel's contribution, and adjusted EBITDA maintained; both forecasted to be in line with prior year. 2017 guidance reflects the contributions from Novel Ingredients in both Third Quarter and Fourth Quarter with estimated sales of $35 million. The company expects 2017 capital expenditure to be near the lower end of the $35 million to $40 million range the company indicated last quarter.

Fourth quarter is expected to reflect typical seasonality with lower sequential sales and unfavorable mix. Fourth quarter 2017 is forecasted to show double-digit sales and adjusted EBITDA growth versus prior year. And the company expects the tax rate will remain at a normalized level of approximately 32% to 33% in the fourth quarter.