Platform Specialty Products Corporation
Nov 5, 2014
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Platform Specialty Products Corporation Announces Third Quarter 2014 Financial Results

- Net sales of $197 million, up 4.4% organically

- Record Adjusted EBITDA of $52.5 million and Adjusted EBITDA margin of 26.7%

MIAMI, Nov. 5, 2014 (GLOBE NEWSWIRE) -- Platform Specialty Products Corporation (NYSE:PAH) ("Platform" or "the Company"), a global specialty chemicals company, today announced its financial results for the three and nine months ended September 30, 2014.

Please note: the 2013 as reported quarterly and year-to-date information is based on the Predecessor MacDermid company information and does not reflect the purchase accounting effect of Platform's acquisition of MacDermid Incorporated in October 2013. In order to perform a proper comparison between 2013 and 2014 for the reader of the statements, the Company has made certain adjustments to its reported numbers, as detailed in the press release financial tables, to assist in this comparison of the P&L. The Company believes that this "as adjusted" format better reflects a comparable analysis of the numbers being presented and does not include figures for Chemtura AgroSolutions or Agriphar Group, both of which acquisitions closed in the fourth quarter.

For the three months ended September 30, 2014:

For the nine months ended September 30, 2014:

Daniel H. Leever, Platform's Chief Executive Officer, commented, "Third quarter revenue was solid for the core MacDermid business. We continue to meet our expectations for earnings and cash flow generation. Over the past several months we have successfully entered into three acquisitions that will form our new AgroSolutions business segment, while at the same time keeping our core business focused and performing. This record EBITDA and margin generation in the midst of our M&A activity is a testament to the quality and depth of our management teams."

Frank J. Monteiro, Platform's Chief Financial Officer, added, "Our three and nine months ended adjusted EBITDA numbers represent record levels for Platform. Adjusted non-GAAP Free Cash Flow is also on pace to reach a record level for the full year. When you consider the fact that the underlying business has been tasked with infrastructure additions to support acquisitions that have not yet closed, our year-to-date results are that much stronger as we enter the fourth quarter."

The Company has presented both US GAAP and adjusted financials to better provide investors with measures that allow them to more readily compare the performance of the Company. These adjusted amounts will provide investors insight into the cash generated from operations after taking into consideration reinvestment in the business for Free Cash Flow, Recurring Free Cash Flow, and Adjusted EBITDA.

Conference Call

Platform will host a webcast/dial-in conference call to discuss its three month and nine month ended September 30, 2014 financial results at 9:00 a.m. (Eastern Time) on Wednesday, November 5, 2014. Participants on the call will include Chief Executive Officer Daniel H. Leever and Chief Financial Officer Frank J. Monteiro.

To listen to the call by telephone, please dial (855) 357-3116 (domestic) or (484) 365-2867 (international) and provide the Conference ID: 17590151. The call will be simultaneously webcast at www.platformspecialtyproducts.com. A replay of the call and webcast will be available for three weeks shortly after completion of the live call at www.platformspecialtyproducts.com.

About Platform

Platform is a global producer of high-technology specialty chemicals and provider of technical services. The business involves the manufacture of a broad range of specialty chemicals, created by blending raw materials, and the incorporation of these chemicals into multi-step technological processes. These specialty chemicals and processes are sold into multiple industries including agricultural, electronics, graphic arts, metal and plastic plating, and offshore oil production and drilling. More on Platform is available at www.platformspecialtyproducts.com.

Forward-Looking Statements

This release is intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995 as it contains "forward-looking statements" within the meaning of the federal securities laws, which include statements regarding Platform's adjusted earnings per share, expected or estimated revenue, the outlook for Platform's markets and the demand for its products, estimated sales, segment earnings, net interest expense, income tax provision, restructuring and other charges, cash flows from operations, consistent profitable growth, free cash flow, future revenues and gross operating and adjusted EBITDA margin improvement requirement and expansion, organic net sales growth, bank debt covenants, the success of new product introductions, growth in costs and expenses, the impact of commodities and currencies and Platform's ability to manage its risk in these areas, and the impact of acquisitions, divestitures, restructuring and other unusual items, including Platform's ability to successfully consummate the previously-announced proposed acquisition of Arysta LifeScience Limited and integrate and obtain the anticipated results and synergies from its recently consummated acquisitions, including the acquisitions of Chemtura AgroSolutions business and Agriphar, as well as future acquisitions. These projections and statements are based on management's estimates and assumptions with respect to future events and financial performance, and are believed to be reasonable, though are inherently difficult to predict. Actual results could differ materially from those projected as a result of certain factors. A discussion of factors that could cause results to vary is included in Platform's periodic and other reports filed with the Securities and Exchange Commission, including Platform's annual report on Form 10-K for the fiscal year ended December 31, 2013 and quarterly report on Form 10-Q for the fiscal quarter ended June 30, 2014. Platform undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

—FINANCIAL TABLES TO FOLLOW—

PLATFORM SPECIALTY PRODUCTS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
     
 ($ In thousands)  
     
 September 30, 2014December 31, 2013
     
Assets    
Cash & cash equivalents  $ 281,676  $ 123,040
Restricted cash  315,000  --
Accounts receivable, net of allowance for doubtful accounts of $9,935 and $10,113 at September 30, 2014 and December 31, 2013, respectively  145,095  140,525
Inventories  79,325  89,618
Prepaid purchase price  63,854  --
Prepaid expenses & other current assets  26,754  30,269
Total current assets  911,704  383,452
     
Property, plant & equipment, net  133,942  136,166
Goodwill  971,678  989,808
Intangible assets, net  664,920  720,302
Other assets  47,376  30,426
Total assets  2,729,620  2,260,154
     
Liabilities & Stockholders' Equity    
Accounts payable  58,217  56,156
Accrued salaries, wages and employee benefits  20,363  22,656
Current portion of long-term debt and capital lease obligations  7,904  7,958
Accrued income taxes payable  11,841  6,669
Accrued expenses and other current liabilities  42,985  26,234
Total current liabilities  141,310  119,673
     
Long-term debt and capital lease obligations  738,474  744,291
Long-term deferred income taxes  151,845  169,800
Long term contingent consideration  60,900  34,800
Other long-term liabilities  57,509  55,516
Total liabilities   1,150,038  1,124,080
     
Commitments and contingencies     
Redeemable 401(k) plan interest  --  20,972
   --  --
Stockholders' Equity    
Preferred shares (2,000,000 designated as Series A), 5,000,000 shares authorized at September 30, 2014 and December 31, 2013, respectively; 2,000,000 shares issued and outstanding at September 30, 2014 and December 31, 2013  20  --
Common shares, 400,000,000 shares authorized, 137,304,330 and 103,571,941 shares issued and outstanding at September 30, 2014 and December 31, 2013, respectively  1,353  --
Additional paid-in capital  1,703,407  1,212,038
Accumulated deficit  (190,145)  (194,222)
Accumulated other comprehensive income  (33,440)  1,265
Total stockholders' equity  1,481,195  1,019,081
Income in non-controlling interest  98,387  96,021
Total equity  1,579,582  1,115,102
     
Total liabilities, redeemable 401(k) interest and stockholders' equity  $ 2,729,620  $ 2,260,154
 
 
PLATFORM SPECIALTY PRODUCTS CORPORATION
CONDENSED CONSOLIDATED INCOME STATEMENTS
(Unaudited)
             
 ($ In thousands)            
 For the three 
months ended 
September 30, 2014
For the three 
months ended 
September 30, 2013
For the three 
months ended 
September 30, 2013
For the nine
months ended 
September 30, 2014
Period from Inception
(April 23, 2013)
through September 30, 2013
For the nine
months ended 
September 30, 2013
 SuccessorSuccessorPredecessorSuccessorSuccessorPredecessor
             
Net sales $ 196,782 $ -- $ 188,433 $ 569,640 $ -- $ 560,557
Cost of sales  93,558  --  89,461  285,507  --  271,730
Gross profit  103,224  --  98,972  284,133  --  288,827
             
Operating expenses:            
Selling, technical, general and administrative  72,926  4,773  54,436  231,737  4,870  164,405
Research and development  6,368  --  5,678  18,464  --  17,504
Restructuring  567  --  238  971  --  1,890
Total operating expenses  79,861  4,773  60,352  251,172  4,870  183,799
             
Operating profit (loss)  23,363  (4,773)  38,620  32,961  (4,870)  105,028
             
Other (expense) income:            
Interest, net  (7,971)  63  (16,127)  (23,375)  80  (40,694)
Loss on extinguishment of debt  --  --  --  --  --  (18,788)
Other (expense) income, net  (3,070)  --  (993)  (3,671)  --  (405)
   (11,041)  63  (17,120)  (27,046)  80  (59,887)
Income (loss) before income taxes, non-controlling interests and accrued payment-in-kind dividends on cumulative preferred shares  12,322  (4,710)  21,500  5,915  (4,790)  45,141
Income tax benefit (provision)  1,595  --  (6,864)  3,542  --  (20,932)
Net income (loss)  13,917  (4,710)  14,636  9,457  (4,790)  24,209
Net income attributable to the non-controlling interests  (2,046)  --  (139)  (5,380)  --  (319)
Net income (loss) attributable to common shareholders  11,871  (4,710)  14,497  4,077  (4,790)  23,890
Accrued payment-in-kind dividend on cumulative preferred shares  --  --  (1,028)  --  --  (22,100)
Net income (loss) attributable to common shares $ 11,871 $ (4,710) $ 13,469 $ 4,077 $ (4,790) $ 1,790
             
Earnings (loss) per share            
Basic $ 0.09 $ (0.05)  n/a  $ 0.03 $ (0.05)  n/a 
Diluted $ 0.08 $ (0.05)  n/a  $ 0.03 $ (0.05)  n/a 
             
Weighted average shares outstanding (In thousands)            
Basic  137,299  88,529  n/a   124,462  88,529  n/a 
Diluted  152,694  88,529  n/a   140,534  88,529  n/a 
   
   
PLATFORM SPECIALTY PRODUCTS CORPORATION  
NON-GAAP AS ADJUSTED INCOME STATEMENTS   
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2014 AND 2013  
                     
(In thousands, except per share amounts)                    
(Unaudited)                    
 Three Months Ended September 30, 2014

Adjustments
2014
 As Adjusted Three Months Ended September 30, 2014  Three Months Ended September 30, 2013

Adjustments
2013
 As Adjusted Three Months Ended September 30, 2013  
 Successor    Successor  Predecessor    Predecessor  
                     
Net sales $ 196,782 $ --   $ 196,782   $ 188,433 $ --    $ 188,433  
Cost of sales  93,558  --    93,558    89,461  --    89,461  
Gross profit  103,224  --   103,224    98,972  --    98,972  
                     
Operating expenses:                   
Selling, technical, general and administrative  72,926  (24,798)a,b,c  48,128    54,436  (6,697) b   47,739  
Research and development  6,368  --    6,368    5,678  --    5,678  
Restructuring  567  (567)    --    238  (238)    --  
Total operating expenses  79,861  (25,365)   54,496    60,352  (6,935)    53,417  
                    
Operating profit  23,363  25,365   48,728    38,620  6,935    45,555  
                     
Other income (expense):                   
Interest, net  (7,971)  --   (7,971)    (16,127)  8,165 e   (7,962)  
Other (expense)  (3,070)  2,626d  (444)    (993)  --    (993)  
   (11,041)  2,626    (8,415)    (17,120)  8,165    (8,955)  
Income from continuing operations before income taxes, non-controlling interest and accumulated payment-in-kind dividend on cumulative preferred shares  12,322  27,991   40,313    21,500  15,100    36,600  
Income tax benefit (provision)  1,595  (14,092)f  (12,497)    (6,864)  (5,214) f   (12,078)  
Net income   13,917  13,899   27,816    14,636  9,886    24,522  
Net income attributable to the non-controlling interest  (2,046)  2,091g  45    (139)      (139)  
Net income attributable to common shareholders  11,871  15,990    27,861    14,497  9,886    24,383  
Accrued payment-in-kind dividend on cumulative preferred shares  --  --    --    (1,028)  1,028 h   --  
Net income attributable to common shares $ 11,871 $ 15,990    $ 27,861   $ 13,469 $ 10,914   $ 24,383  
                     
Earnings (loss) per share                    
Basic $ 0.09  --   $ 0.20    --  --    $ 0.18  
Diluted $ 0.08  --   $ 0.19    --  --    $ 0.16  
                     
Weighted average shares outstanding                     
Basic  137,299  --    137,299    --  --    137,299  
Diluted  152,694  --    148,420 i   --  --    148,420 i 
                     
a Includes $8.2m in Q3 2014 for costs primarily associated with the Chemtura and Agriphar Acquisitions.  
                     
b Includes $14.3m in Q3 2014 and $6.7m in Q3 2013 for intangible amortization expense that is added back in the "As Adjusted" Income Statement.  
                     
c Adjustment to reverse contingent consideration fair value adjustment of $2.3 million in connection with the MacDermid Acquisition.  
                     
d Adjustment to reverse net mark-to-market loss on foreign exchange forward contracts entered into to finance Chemtura and Agriphar Acquisitions.  
                     
e Adjustment to eliminate interest associated with debt not assumed with the MacDermid Acquisition.  
                     
f Adjustment to calculation of estimated effective tax rate of 31% in 2014 and 33% in 2013.  
                     
g Adjustment for reversal of the income attributable to the non-controlling interest resulting from the MacDermid Acquisition.  
                     
h Reversal of accrued accretion on Predecessor preferred stock dividends that were not paid until the MacDermid Acquisition.  
                     
i Non-GAAP Diluted Shares are calculated as follows:                  
                     
Outstanding shares at September 30, 2014 137,304                  
Conversion of exchange rights held by selling stockholders of MacDermid  8,775                  
Common shares equivalent of founder's preferred shares  2,000                  
Vested Director stock options  250                  
Equity awards granted in 2014  91                  
Adjusted Diluted shares at September 30, 2014 148,420                  
                     
                     
PLATFORM SPECIALTY PRODUCTS CORPORATION  
NON-GAAP AS ADJUSTED INCOME STATEMENTS   
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2014 AND 2013  
                     
(In thousands, except per share amounts)                    
                     
(Unaudited)                     
 Nine Months Ended September 30, 2014

Adjustments 2014
 As Adjusted Nine Months Ended September 30, 2014  Nine Months Ended September 30, 2013

Adjustments 2013
 As Adjusted Nine Months Ended September 30, 2013  
 Successor    Successor  Predecessor    Predecessor  
                     
Net sales $ 569,640 $ --   $ 569,640   $ 560,557 $ --    $ 560,557  
Cost of sales  285,507  (11,956)a  273,551    271,730  --    271,730  
Gross profit  284,133  11,956   296,089    288,827  --    288,827  
                     
Operating expenses:                   
Selling, technical, general and administrative  231,737  (88,660)b,c,d  143,077    164,405  (20,303) c   144,102  
Research and development  18,464  --    18,464    17,504  --    17,504  
Restructuring  971  (971)    --    1,890  (1,890)    --  
Total operating expenses  251,172  (89,631)   161,541    183,799  (22,193)    161,606  
                    
Operating profit  32,961  101,587   134,548    105,028  22,193    127,221  
                     
Other income (expense):                   
Interest, net  (23,375)  --   (23,375)    (40,694)  17,310 e   (23,384)  
Loss on extinguishment of debt  --  --    --    (18,788)  18,788 f   --  
Other (expense)  (3,671)  3,138g  (533)    (405)  (1,151) h   (1,556)  
   (27,046)  3,138    (23,908)    (59,887)  34,947    (24,940)  
Income from continuing operations before income taxes, non-controlling interest and accumulated payment-in-kind dividend on cumulative preferred shares  5,915  104,725   110,640    45,141  57,140    102,281  
Income tax benefit (provision)  3,542  (37,287)i  (33,745)    (20,932)  (12,821) i   (33,753)  
Net income  9,457  67,438   76,895    24,209  44,319    68,528  
Net income attributable to the non-controlling interest  (5,380)  5,159j  (221)    (319)  --    (319)  
Net income attributable to common shareholders  4,077  72,597    76,674    23,890  44,319    68,209  
Accrued payment-in-kind dividend on cumulative preferred shares  --  --    --    (22,100)  22,100 k   --  
Net income attributable to common shares $ 4,077 $ 72,597    $ 76,674   $ 1,790 $ 66,419    $ 68,209  
                     
Earnings (loss) per share                    
Basic $ 0.03  --    $ 0.62    --  --   $ 0.55  
Diluted $ 0.03  --    $ 0.52    --  --    $ 0.46  
                     
Weighted average shares outstanding                     
Basic  124,462  --    124,462    --  --    124,462  
Diluted  140,534  --    148,420 l   --  --    148,420 l 
                     
a Adjustment to reverse manufacturer's profit in inventory purchase accounting adjustment associated with MacDermid Acquisition.   
                     
b Includes $18.9m in 2014 for costs primarily associated with Chemtura and Agriphar Acquisitions.  
                     
c Includes $43.6m in 2014 and $20.1m in 2013 for intangible amortization expense that is added back in the "As Adjusted" Income Statement.  
                     
d Adjustment to reverse contingent consideration fair value adjustment of $26.1 million in connection with the MacDermid Acquisition.  
                     
e Adjustment to eliminate interest associated with debt not assumed with the MacDermid Acquisition.  
                     
f Adjustment to eliminate extinguishment of debt associated with recapitalization of MacDermid in Q2 2013.  
                     
g Adjustment primarily to reverse net mark-to-market loss on foreign exchange forward contracts entered into to finance Chemtura and Agriphar Acquisitions.  
                     
h Reversal of non-cash, mark-to-market gains on foreign debt.  
                     
i Adjustment to calculation of estimated blended effective tax rate of 30.5% in 2014 and 33% in 2013  
                     
j Adjustment for reversal of the income attributable to the non-controlling interest resulting from the MacDermid Acquisition.  
                     
k Reversal of accrued accretion on Predecessor preferred stock dividends that were not paid until the MacDermid Acquisition.  
                     
l Non-GAAP Diluted Shares are calculated as follows:                  
                     
Outstanding shares at September 30, 2014 137,304                  
Conversion of exchange rights held by selling stockholders of MacDermid  8,775                  
Common shares equivalent of founder's preferred shares  2,000                  
Vested Director stock options  250                  
Equity awards granted in 2014  91                  
Adjusted Diluted shares at September 30, 2014 148,420                  
 
 
PLATFORM SPECIALTY PRODUCTS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)      
       
 ($ In thousands)      
       
 For the nine
months ended 
September 30, 2014
Period from
Inception (April 23, 2013)
through September 30, 2013
For the nine
months ended 
September 30, 2013
 SuccessorSuccessorPredecessor
       
Cash flows from operating activities:      
Net income (loss)  $ 9,457 $ (4,790) $ 24,209
Adjustments to reconcile net income (loss) from operations to net cash flows provided by operating activities:      
Depreciation and amortization  57,614  --  32,014
Deferred income taxes  (31,308)  --  3,192
Non-cash fair value adjustment to contingent consideration  26,100  --  --
Manufacturer's profit in inventory adjustment  11,956  --  --
Loss on extinguishment of debt  --  --  18,788
Net unrealized loss on foreign exchange contracts  2,627    
Other, net   4,171  105  1,794
       
Changes in assets & liabilities, net of acquisitions:      
Accounts receivable  (10,688)  --  (7,437)
Inventories  (3,904)  --  (4,428)
Accounts payable  2,404  --  2,433
Accrued expenses  9,437  4,175  (273)
Other assets and liabilities  1,590  (209)  (5,901)
Net cash flows provided by (used in) operating activities  79,456  (719)  64,391
       
Cash flows from investing activities:      
Capital expenditures, net  (6,791)  --  (6,872)
Purchases of marketable securities  --  (359,933)  (472)
Redemption of marketable securities  --  179,976  824
Cash restricted to fund acquisition  (315,000)  --  --
Acquisition of businesses, net  (59,027)  --  --
Other, net  10  --  462
Net cash flows used in investing activities  (380,808)  (179,957)  (6,058)
       
Cash flows from financing activities:      
Proceeds from issuance of debt, net of discount and fees  --  200  1,109,513
Repayments of borrowings  (5,796)  (200)  (731,594)
Repurchase of Predecessor Series A preferred stock  --  --  (270,167)
Payment of Predecessor Series A preferred stock  --  --  (229,833)
Proceeds from issuance of common stock, net   473,384  861,218  --
Proceeds from issuance of preferred stock, net  --  20,000  --
Payment of debt financing fees  (4,104)  --  (13,519)
Other, net  76  --  (488)
Net cash flows provided by (used in) financing activities  463,560  881,218  (136,088)
       
Effect of exchange rate changes on cash and cash equivalents  (3,572)  --  (395)
       
Net increase (decrease) in cash and cash equivalents  158,636  700,542  (78,150)
       
Cash and cash equivalents at beginning of period  123,040  --  143,351
Cash and cash equivalents at end of period $ 281,676 $ 700,542 $ 65,201
   
   
PLATFORM SPECIALTY PRODUCTS CORPORATION  
RECONCILIATION OF NON-GAAP MEASURES  
Includes Predecessor and Successor data            
 PredecessorSuccessor  PredecessorSuccessor  
(in millions) Q3 2013 Q3 2014   YTD 2013 YTD 2014  
Net income   $ 14.5  $ 11.9    $ 23.9  $ 4.1  
             
Adjustments to reconcile to net income (loss):             
Income tax expense (benefit)  6.9  (1.6)    20.9  (3.5)  
Interest expense  16.2  8.1    41.0  23.8  
Depreciation and amortization expense  9.7  19.0 (1)  29.5  57.3 (1)
Unrealized (gain) loss on foreign currency denominated debt  --   --     (1.1)  --  (2)
Unrealized loss on foreign exchange forward contracts  --   2.6 (3)  --   2.6 (3)
Restructuring and related expenses  0.2  0.6    1.9  1.0 (4)
Manufacturer's profit in inventory (purchase accounting)  --   --     --   12.0 (5)
Non-cash fair value adjustment to contingent consideration  --   2.3    --   26.1 (6)
Acquisition costs   --   8.2    --   18.8 (7)
Debt Extinguishment  --   --     18.8  --  (8)
Other expense (income)  0.1  1.4 (9)  0.7  4.4 (9)
             
Adjusted EBITDA   $ 47.6  $ 52.5    $ 135.6  $ 146.6  
 
Footnotes:
(1) Includes $14.3m in Q3 2014 and $6.7m in Q3 2013 and $43.6m in YTD 2014 and $20.2m in YTD 2013 for amortization expense that is added back in the "As Adjusted" Income Statement.
(2) Predecessor adjustment to other income for non-cash gain on foreign denominated debt.
(3) Adjustment to reverse net unrealized loss on foreign exchange forward contracts in connection with Chemtura and Agriphar Acquisitions.
(4) Includes restructuring expenses of $1.9m of reorganization costs adjusted out of operating expenses for YTD 2013.
(5) Adjustment to reverse manufacturer's profit in inventory purchase accounting adjustment associated with MacDermid Acquisition. 
(6) Adjustment to fair value of contingent consideration in connection with the MacDermid Acquisition primarily associated with achieving the share price targets.
(7) Adjustment to reverse deal costs primarily in connection with the Chemtura and Agriphar Acquisitions. 
(8) Adjustment to reverse debt extinguishment charge in connection with debt from Predecessor recapitalization. 
(9) Adjustment for 2014 primarily for reversal of the income attributable to the non-controlling interest resulting from the MacDermid Acquisition. For 2013, adjustment to reverse miscellaneous non-recurring charges.
       
       
 Non-GAAP Free Cash Flow Schedule
 (In thousands, except per share amounts)                
 Q3'14Q3'13YTD'14YTD'13LTM      
Net Income (Loss) 1  $ 13,917  $ 14,636  $ 9,457  $ 24,209  $ (196,863)      
Plus: D&A  18,970  9,717  57,256  29,458  73,411      
Plus: Other Non-Cash Expenses 2  (9,935)  (3,121)  13,904  23,774  206,471      
Less: Change in Working Capital 3  (8,946)  (115)  (12,188)  (9,432)  (8,227)      
Cash Flow from Operations  $ 14,006  $ 21,117  $ 68,429  $ 68,009  $ 74,792      
Less: Capex 4  (2,204)  (3,185)  (6,791)  (6,872)  (10,817)      
Free Cash Flow  $ 11,802  $ 17,932  $ 61,638  $ 61,137  $ 63,975      
Plus: Acquisition-Related Expenses 5  8,241  --  18,845  --  50,970      
Recurring Free Cash Flow  $ 20,043 $ 17,932 $ 80,483 $ 61,137 $ 114,945      
% of EBITDA 38% 38% 55% 45% 60%      
                 
Adjusted EBITDA  $ 52,456  $ 47,614  $ 146,560  $ 135,635  $ 191,031      
                 
Adjusted Diluted Shares Outstanding  148,420  148,420  148,420  148,420  148,420      
                 
Recurring Free Cash Flow per Share  $ 0.14  $ 0.12  $ 0.54  $ 0.41  $ 0.77      
                 
1 Represents net income (loss) prior to non-controlling interest allocation and PIK dividend accrual for 2013.      
                 
2 Other Non-Cash expenses by Period represent the following:      
                 
 (In thousands, except per share amounts)                
 Q3'14Q3'13YTD'14YTD'13LTM      
Non-Cash charge for PS Dividend Rights  $ --  $ --  $ --  $ --  $ 172,006      
Manufacturer's profit in inventory Adj.  --  --  11,956  --  35,868      
Non-cash MTM charge to Contingent Consideration  2,300  --  26,100  --  26,100      
Deferred income tax (benefit) provision  (17,507)  (1,762)  (31,308)  3,192  (46,826)      
Loss on Extinguishment of Debt  --  --  --  18,788  --      
Unrealized Loss on Foreign Exchange Contracts  2,627  --  2,627  --  2,627      
Compensation Expense  422  (42)  816  109  10,097      
Other  2,223  (1,317)  3,713  1,685  6,599      
   $ (9,935)  $ (3,121)  $ 13,904  $ 23,774  $ 206,471      
                 
3 Change in working capital reflects changes in accounts receivable, inventories and accounts payable      
                 
4 Reflects gross capital expenditures excluding asset disposals and unpaid capital expenditures in Q3 2014 of approximately $5.8 million.      
                 
5 Reflects deal costs in connection with CAS and Agriphar acquisitions in Q3 and YTD 2014 and MacDermid acquisition in the LTM period.       
                 
Non-GAAP Free Cash Flow Schedule
(In thousands, except per share amounts)                
 Q3'14Q2'14Q1'14Q4'13LTM      
Net Income (Loss)  $ 13,917  $ 1,488  $ (5,948)  $ (206,320)  $ (196,863)      
Plus: D&A  18,970  $ 21,396  16,890  16,155  73,411      
Plus: Other Non-Cash Expenses  (9,935)  $ 1,015  22,824  192,567  206,471      
Less: Change in Working Capital  (8,946)  $ 1,645  (4,887)  3,961  (8,227)      
Cash Flow from Operations  $ 14,006  $ 25,544  $ 28,879  $ 6,363  $ 74,792      
Less: Capex  (2,204)  (2,562)  (2,025)  (4,026)  (10,817)      
Free Cash Flow  $ 11,802  $ 22,982  $ 26,854  $ 2,337  $ 63,975      
Plus: Acquisition-Related Expenses¹  8,241  10,604  --  32,125  50,970      
Recurring Free Cash Flow $ 20,043  $ 33,586  $ 26,854  $ 34,462  $ 114,945      
% of EBITDA 38% 70% 59% 77% 60%      
                 
Adjusted EBITDA  $ 52,456  $ 48,216  $ 45,888  $ 44,471  $ 191,031      
                 
Adjusted Diluted Shares Outstanding  148,420  148,420  148,420  148,420  148,420      
                 
Recurring Free Cash Flow per Share  $ 0.14  $ 0.23  $ 0.18  $ 0.23  $ 0.77      
                 
                 
Non-GAAP Free Cash Flow Schedule
(In thousands, except per share amounts)                
 Q3'14Q2'14Q1'14YTD' 14Q3'13Q2'13Q1'13YTD' 13
Net Income (Loss)  $ 13,917  $ 1,488  $ (5,948)  $ 9,457  $ 14,636  $ (5,764)  $ 15,337  $ 24,209
Plus: D&A  18,970  21,396  16,890  57,256  9,717  9,854  9,887  29,458
Plus: Other Non-Cash Expenses  (9,935)  1,015  22,824  13,904  (3,121)  26,270  625  23,774
Less: Change in Working Capital  (8,946)  1,645  (4,887)  (12,188)  (115)  685  (10,002)  (9,432)
Cash Flow from Operations  $ 14,006  $ 25,544  $ 28,879  $ 68,429  $ 21,117  $ 31,045  $ 15,847  $ 68,009
Less: Capex  (2,204)  (2,562)  (2,025)  (6,791)  (3,185)  (2,356)  (1,331)  (6,872)
Free Cash Flow  $ 11,802  $ 22,982  $ 26,854  $ 61,638  $ 17,932  $ 28,689  $ 14,516  $ 61,137
Plus: Acquisition-Related Expenses¹  8,241  10,604  --  18,845  --  --  --  --
Recurring Free Cash Flow  $ 20,043  $ 33,586  $ 26,854  $ 80,483  $ 17,932  $ 28,689  $ 14,516  $ 61,137
% of EBITDA 38% 70% 59% 55% 38% 61% 36% 45%
                 
Adjusted EBITDA  $ 52,456  $ 48,216  $ 45,888  $ 146,560  $ 47,614  $ 47,132  $ 40,889  $ 135,635
                 
Adjusted Diluted Shares Outstanding  148,420  148,420  148,420  148,420  148,420  148,420  148,420  148,420
                 
Recurring Free Cash Flow per Share  $ 0.14  $ 0.23  $ 0.18  $ 0.54  $ 0.12  $ 0.19  $ 0.10  $ 0.41
CONTACT: Source/Investor Relations Contact:



         Frank J. Monteiro - Chief Financial Officer

         Platform Specialty Products Corporation

         +1-203-575-5850



         Media Contacts:

         Liz Cohen

         Weber Shandwick

         +1-212-445-8044



         Kelly Gawlik

         Weber Shandwick

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