2024 Q1 Form 10-K Financial Statement

#000155837024001604 Filed on February 23, 2024

View on sec.gov

Income Statement

Concept 2024 Q1 2023 Q4 2023
Revenue $904.0M $837.5M $3.675B
YoY Change -9.26% -14.12% -25.98%
Cost Of Revenue $843.4M $817.2M $3.533B
YoY Change -12.06% -16.48% -24.72%
Gross Profit $60.60M $20.30M $142.3M
YoY Change 62.9% -734.38% -47.74%
Gross Profit Margin 6.7% 2.42% 3.87%
Selling, General & Admin $70.10M $92.80M $310.3M
YoY Change -17.24% -22.08% -22.19%
% of Gross Profit 115.68% 457.14% 218.06%
Research & Development $57.60M
YoY Change 12.06%
% of Gross Profit 40.48%
Depreciation & Amortization $45.00M $74.50M $221.2M
YoY Change -19.64% -17.04% -6.63%
% of Gross Profit 74.26% 367.0% 155.45%
Operating Expenses $70.10M $92.80M $310.3M
YoY Change -17.24% -22.08% -22.19%
Operating Profit -$3.300M -$72.50M -$455.4M
YoY Change -89.07% -40.72% 25.14%
Interest Expense -$63.00M -$50.30M -$188.4M
YoY Change 64.49% 197.63% 66.87%
% of Operating Profit
Other Income/Expense, Net -$3.800M -$1.800M $17.20M
YoY Change -231.03% -120.0% 138.89%
Pretax Income -$70.10M -$137.1M -$632.9M
YoY Change 6.86% -69.35% 34.77%
Income Tax $5.400M $127.9M $68.40M
% Of Pretax Income
Net Earnings -$75.50M -$265.0M -$701.3M
YoY Change 54.4% -27.46% 62.75%
Net Earnings / Revenue -8.35% -31.64% -19.08%
Basic Earnings Per Share -$2.14 -$19.88
Diluted Earnings Per Share -$2.14 -$7.53 -$19.88
COMMON SHARES
Basic Shares Outstanding 35.26M 35.20M 35.30M
Diluted Shares Outstanding 35.30M 35.30M

Balance Sheet

Concept 2024 Q1 2023 Q4 2023
SHORT-TERM ASSETS
Cash & Short-Term Investments $166.4M $259.1M $259.1M
YoY Change -23.35% 22.39% 22.39%
Cash & Equivalents $166.4M $259.1M $259.1M
Short-Term Investments
Other Short-Term Assets $42.60M $39.50M $39.50M
YoY Change 24.93% 0.25% 0.25%
Inventory $431.2M $404.7M $404.7M
Prepaid Expenses
Receivables $556.5M $490.8M $490.8M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $1.197B $1.194B $1.194B
YoY Change -13.05% -14.14% -14.14%
LONG-TERM ASSETS
Property, Plant & Equipment $684.9M $1.467B $1.467B
YoY Change -9.16% 91.18% 91.18%
Goodwill $62.30M $63.80M
YoY Change -84.96% -84.45%
Intangibles
YoY Change
Long-Term Investments $258.4M $252.2M $252.2M
YoY Change 2.26% -1.14% -1.14%
Other Assets $118.8M $116.2M $116.2M
YoY Change -35.75% -29.49% -29.49%
Total Long-Term Assets $1.793B $1.835B $1.835B
YoY Change -24.21% -22.55% -22.55%
TOTAL ASSETS
Total Short-Term Assets $1.197B $1.194B $1.194B
Total Long-Term Assets $1.793B $1.835B $1.835B
Total Assets $2.989B $3.029B $3.029B
YoY Change -20.1% -19.44% -19.44%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $478.9M $449.7M $376.0M
YoY Change 5.35% 2.65% 2.93%
Accrued Expenses $218.2M $191.1M $191.1M
YoY Change -10.54% -15.22% -15.22%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $21.10M $20.90M $20.90M
YoY Change 27.11% 30.63% 30.63%
Total Short-Term Liabilities $732.0M $672.6M $672.6M
YoY Change 1.98% -2.44% -2.44%
LONG-TERM LIABILITIES
Long-Term Debt $2.277B $2.278B $2.278B
YoY Change -1.01% -1.04% -1.04%
Other Long-Term Liabilities $240.0M $251.8M $347.0M
YoY Change 1.39% 10.0% 20.03%
Total Long-Term Liabilities $2.605B $2.625B $2.625B
YoY Change -1.59% -0.98% 1.31%
TOTAL LIABILITIES
Total Short-Term Liabilities $732.0M $672.6M $672.6M
Total Long-Term Liabilities $2.605B $2.625B $2.625B
Total Liabilities $3.337B $3.297B $3.297B
YoY Change -0.83% -1.28% -1.28%
SHAREHOLDERS EQUITY
Retained Earnings -$518.8M -$443.0M
YoY Change -346.58% -267.49%
Common Stock $508.2M $504.6M
YoY Change 2.94% 3.59%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity -$348.0M -$268.0M -$268.0M
YoY Change
Total Liabilities & Shareholders Equity $2.989B $3.029B $3.029B
YoY Change -20.1% -19.44% -19.44%

Cashflow Statement

Concept 2024 Q1 2023 Q4 2023
OPERATING ACTIVITIES
Net Income -$75.50M -$265.0M -$701.3M
YoY Change 54.4% -27.46% 62.75%
Depreciation, Depletion And Amortization $45.00M $74.50M $221.2M
YoY Change -19.64% -17.04% -6.63%
Cash From Operating Activities -$66.20M $17.50M $148.7M
YoY Change -245.81% -48.68% 241.84%
INVESTING ACTIVITIES
Capital Expenditures $15.70M $20.60M $69.70M
YoY Change -27.98% -61.99% -52.97%
Acquisitions
YoY Change
Other Investing Activities $4.700M $0.00 $38.00M
YoY Change -340.51%
Cash From Investing Activities -$11.00M -$20.60M -$31.70M
YoY Change -49.54% -61.99% -80.67%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -9.200M -17.80M -66.00M
YoY Change -55.12% -11.88% -71.76%
NET CHANGE
Cash From Operating Activities -66.20M 17.50M 148.7M
Cash From Investing Activities -11.00M -20.60M -31.70M
Cash From Financing Activities -9.200M -17.80M -66.00M
Net Change In Cash -89.60M -20.90M 49.40M
YoY Change -1759.26% -48.14% -113.67%
FREE CASH FLOW
Cash From Operating Activities -$66.20M $17.50M $148.7M
Capital Expenditures $15.70M $20.60M $69.70M
Free Cash Flow -$81.90M -$3.100M $79.00M
YoY Change -447.03% -84.58% -175.45%

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<p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:18pt 0pt 0pt 0pt;"><b style="font-weight:bold;">NOTE 1—ORGANIZATION AND BUSINESS ACTIVITIES </b></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:6pt 0pt 0pt 0pt;"><i style="font-style:italic;">Organization </i></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-indent:24.5pt;margin:6pt 0pt 6pt 0pt;">Trinseo PLC (“Trinseo,” and together with its subsidiaries, the “Company”) is a public limited company existing under the laws of Ireland. On October 8, 2021, the Company’s former publicly-traded parent entity, Trinseo S.A., was merged with and into Trinseo PLC, with Trinseo PLC as the surviving entity. As a result of the merger, all of Trinseo S.A.’s outstanding ordinary shares, excluding treasury shares, were exchanged on a one-for-one basis for newly issued ordinary shares of Trinseo PLC. </p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-indent:24.5pt;margin:6pt 0pt 6pt 0pt;">Prior to the formation of Trinseo S.A., the Company’s business was wholly owned by The Dow Chemical Company (together with its affiliates, “Dow”). In 2010, the Styron business was sold by Dow to investment funds advised or managed by affiliates of Bain Capital Partners, LP (the “Dow Separation”). In 2016, Bain Capital fully divested its ownership in the Company.</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:6pt 0pt 6pt 0pt;"><i style="font-style:italic;">Business Activities </i></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-indent:24.5pt;margin:6pt 0pt 0pt 0pt;">The Company is a specialty material solutions provider with a focus on partnering with companies to bring ideas to life in an imaginative, smart, and sustainability-focused manner. The Company has leading market positions in many of the markets in which it competes. The Company’s products are incorporated into a wide range of its customers’ products throughout the world, including products for automotive applications, consumer electronics, appliances, medical devices, packaging, footwear, carpet, paper and board, building and construction, and wellness applications, among others.</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-indent:24.5pt;margin:6pt 0pt 0pt 0pt;">The Company’s operations are located in Europe, North America, and Asia Pacific, supplemented by Americas Styrenics, a styrenics joint venture with Chevron Phillips Chemical Company LP. Refer to Note 13 for further information regarding the Company’s investment in Americas Styrenics.</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-indent:24.5pt;margin:6pt 0pt 0pt 0pt;">The Company has significant manufacturing and production operations around the world, which allow service to its global customer base. As of December 31, 2023, the Company’s production facilities included 34 manufacturing plants and one recycling facility at 30 sites across 14 countries, including its joint venture. Additionally, as of December 31, 2023, the Company operated 11 research and development (“R&amp;D”) facilities globally, including mini plants, development centers, and pilot coaters.</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-indent:24.5pt;margin:6pt 0pt 12pt 0pt;">The Company’s Chief Executive Officer, who is the chief operating decision maker, manages the Company’s operations under six segments, Engineered Materials, Latex Binders, Plastics Solutions, Polystyrene, Feedstocks, and Americas Styrenics, as described in Note 24. Beginning in the second quarter of 2021, the Company reported the results of its synthetic rubber business (“Rubber Business”) as discontinued operations in the consolidated statements of operations for all periods presented, and therefore it is no longer presented as a separate reportable segment. The sale of the Rubber Business was completed on December 1, 2021. Refer to Note 5 for further information.</p>
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