Platform Specialty Products Corporation
Mar 18, 2015
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Platform Specialty Products Corporation Announces Fourth Quarter and Full Year 2014 Financial Results

-  2014 Net sales reach $843 million representing 13.0% growth over combined prior year sales

-  2014 adjusted EBITDA rises 17.8% to $212 million representing organic growth of 9% 

 Adjusted EBITDA margin for 2014 of 25.2% with MacDermid delivering a record for the business

-  Revising Ag integration synergy estimates up to $80 million from $65 million

MIAMI, March 18, 2015 (GLOBE NEWSWIRE) -- Platform Specialty Products Corporation (NYSE:PAH) ("Platform" or "the Company"), a global, diversified specialty chemicals company, today announced its financial results for the three and twelve months ended December 31, 2014.

Please note: the 2013 as reported quarterly and year-to-date information is based on the predecessor information of MacDermid, Incorporated ("MacDermid") and does not reflect the purchase accounting effect of Platform's acquisition of MacDermid in October 2013. In order to perform a proper comparison of the P&L between 2013 and 2014, the Company has made certain adjustments to its reported numbers, as detailed in the financial tables included in this press release. The Company believes that this "as adjusted" format provides a more complete understanding of its operational results and a meaningful comparison of its performance between periods.

For the three months ended December 31, 2014:

For the twelve months ended December 31, 2014:

Daniel H. Leever, Platform's Chief Executive Officer, commented, "Our remarkable performance in 2014 continued into the fourth quarter. MacDermid delivered record top- and bottom-line results and both CAS and Agriphar added meaningful contributions. Importantly, we achieved these results in spite of currency headwinds and increased investments back into the business. With the Arysta acquisition —our third and largest AgroSolutions acquisition— completed we have expanded our leadership capabilities and have already accelerated our integration plans. Based on our progress in integration and integration planning in just the past month, we are revising our projected three-year synergy target upwards from $65 million to $80 million."

Frank J. Monteiro, Platform's Chief Financial Officer, added, "Throughout 2014 we built solid momentum and achieved record-level adjusted EBITDA, adjusted EBITDA margins, and adjusted non-GAAP free cash flow. In addition to growing our underlying business, in recent months we have financed and closed key acquisitions that are almost immediately accretive to our adjusted earnings. Moving forward, we are focused on maintaining a prudent capital structure so that we can meet our long-term leverage target, execute on our build-up strategy, and create value for our shareholders."

In the fourth quarter of 2014, Platform closed its acquisitions of the Agriphar Group ("Agriphar") and Chemtura AgroSolutions ("CAS") and announced its acquisition of Arysta LifeScience ("Arysta"). The Company also completed several financings related to these transactions including a $650 million private placement of common shares, $402 million registered equity offering, and two term loan deals for an aggregate of approximately $700 million.

Wayne Hewett, Platform's President, noted, "While it's evident that Platform took significant strides to establish a meaningful presence in the agrochemicals space in 2014, it's important to underscore the quality of the assets that we have acquired. CAS, Agriphar, and Arysta all delivered record EBITDA levels in 2014 demonstrating the strength of these individual businesses. We believe that combining the three will yield a powerful offering in terms of product portfolio, crop exposure, and geographic reach that will help us accelerate growth and ultimately drive cash flow generation."

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 fourth quarter and full year 2014 financial results at 8:00 a.m. (Eastern Time) on Wednesday, March 18, 2015. Participants on the call will include Daniel H. Leever, Chief Executive Officer, Wayne Hewett, President, and Frank J. Monteiro, Chief Financial Officer.

To listen to the call by telephone, please dial (855) 357-3116 (domestic) or (484) 365-2867 (international) and provide the Conference ID: 82833025. 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 information 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 complete as well as integrate and obtain the anticipated results and synergies from its consummated and 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 reports on Form 10-Q for the fiscal quarters ended June 30, 2014 and September 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
CONSOLIDATED BALANCE SHEETS
 
 
($ In thousands)
 
 December 31, 2014December 31, 2013
     
Assets    
Cash & cash equivalents  $ 397,280  $ 123,040
Restricted cash  599,946  --
Accounts receivable, net of allowance for doubtful accounts of $9,598 and $10,113 at December 31, 2014 and December 31, 2013, respectively  327,346  140,525
Inventories  205,843  89,618
Prepaid expenses & other current assets  47,954  30,269
Total current assets  1,578,369  383,452
     
Property, plant & equipment, net  174,958  136,166
Goodwill  1,405,294  989,808
Intangible assets, net  1,341,480  720,302
Other assets  57,420  30,426
Total assets  4,557,521  2,260,154
     
Liabilities & Stockholders' Equity    
Accounts payable  106,671  56,156
Accrued salaries, wages and employee benefits  31,319  22,656
Current portion of long-term debt   15,071  7,958
Accrued income taxes payable  16,668  6,669
Accrued acquisition payable  14,278  --
Accrued expenses and other current liabilities  58,596  26,234
Total current liabilities  242,603  119,673
     
Long-term debt  1,400,823  744,291
Long-term deferred income taxes  202,292  169,800
Long term contingent consideration  63,900  34,800
Long term retirement plans  38,845  25,129
Other long-term liabilities  56,460  30,387
Total liabilities   2,004,923  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 December 31, 2014 and December 31, 2013, respectively; 2,000,000 shares issued and outstanding at December 31, 2014 and December 31, 2013  20  --
Common shares, 400,000,000 shares authorized, 182,066,980 and 103,571,941 shares issued and outstanding at December 31, 2014 and 2013, respectively  1,901  --
Additional paid-in capital  2,812,375  1,212,038
Accumulated deficit  (224,130)  (194,222)
Accumulated other comprehensive (loss) income  (130,565)  1,265
Total stockholders' equity  2,459,601  1,019,081
Income in non-controlling interest  92,997  96,021
Total equity  2,552,598  1,115,102
     
Total liabilities, redeemable 401(k) interest and stockholders' equity $ 4,557,521 $ 2,260,154
     
PLATFORM SPECIALTY PRODUCTS CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
 
 
($ In thousands)
 
   Period from  
 For theInceptionFor the ten
 year ended (April 23, 2013) throughmonths ended 
 December 31, 2014December 31 2013October 31, 2013
 SuccessorSuccessorPredecessor
       
Cash flows from operating activities:      
Net (loss) income  $ (24,202)  $ (195,625)  $ 13,514
Adjustments to reconcile net (loss) income from operations to net cash flows provided by operating activities:      
Non-cash charge related to preferred stock dividend rights  --  172,006  --
Depreciation and amortization  87,950  12,778  32,835
Deferred income taxes  (43,176)  (7,481)  (4,845)
Non-cash fair value adjustment to contingent consideration  29,100  (700)  --
Manufacturer's profit in inventory adjustment  35,514  23,912  --
Loss on extinguishment of debt  --  --  18,788
Restructuring charges  1,478  762  3,636
Equity compensation expense  1,293  542  9,317
Other, net   4,424  (585)  3,545
       
Changes in assets & liabilities, net of acquisitions:      
Accounts receivable  4,922  6,222  (11,345)
Inventories  11,369  2,090  (4,612)
Accounts payable  10,885  (193)  2,367
Accrued expenses  (15,660)  (8,719)  3,915
Other assets and liabilities  (5,734)  2,514  (11,053)
Net cash flows provided by operating activities  98,163  7,523  56,062
       
Cash flows from investing activities:      
Capital expenditures  (18,547)  (2,263)  (8,931)
Proceeds from sale of non-financial assets  602  4,393  2,133
Purchases of marketable securities  --  (359,934)  --
Redemption of marketable securities  --  359,934  --
Cash restricted to fund acquisition  (599,946)  --  --
Acquisition of businesses, net  (1,361,852)  (922,361)  --
Other, net  (3,033)  --  (1,017)
Net cash flows used in investing activities  (1,982,776)  (920,231)  (7,815)
       
Cash flows from financing activities:      
Proceeds from issuance of debt, net of discount and fees  678,828  200  1,109,513
Repayments of borrowings  (9,102)  (2,180)  (732,873)
Repurchase of Predecessor Series A preferred stock  --  --  (270,167)
Advance from Platform Acquisition Holdings Limited  --  --  33,268
Proceeds from issuance of common stock, net   1,512,587  1,019,491  --
Payment of accumulated dividends on Series A preferred stock  --  --  (229,833)
Proceeds from issuance of preferred stock, net  --  20,000  --
Payment of debt financing fees  (13,172)  (1,830)  (13,589)
Other, net  (198)  (25)  (559)
Net cash flows provided by (used in) financing activities  2,168,943  1,035,656  (104,240)
       
Effect of exchange rate changes on cash and cash equivalents  (10,090)  92  (303)
       
Net increase (decrease) in cash and cash equivalents  274,240  123,040  (56,296)
       
Cash and cash equivalents at beginning of period  123,040  --  143,351
Cash and cash equivalents at end of period  $ 397,280  $ 123,040  $ 87,055
       
Noncash Investing Activities      
Unpaid capital expenditures included in accounts payable and accrued expenses  2,373  --  --
       
PLATFORM SPECIALTY PRODUCTS CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
 
 
($ In thousands)
 
   Period from    
   InceptionFor the ten  
 Year Ended(April 23, 2013) throughmonths ended Year Ended
 12/31/2014December 31, 2013October 31, 201312/31/2012
 SuccessorSuccessorPredecessorPredecessor
         
Net sales  $ 843,186  $ 118,239  $ 627,712  $ 731,220
Cost of sales  446,633  82,587  304,875  376,166
Gross profit  396,553  35,652  322,837  355,054
         
Operating expenses:        
Selling, technical, general and administrative  357,872  54,521  207,554  214,614
Non-cash charge related to preferred stock dividend rights  --  172,006  --  --
Research and development  26,229  3,995  19,898  25,051
Restructuring  2,955  762  3,636  292
Total operating expenses  387,056  231,284  231,088  239,957
         
Operating profit (loss)  9,497  (195,632)  91,749  115,097
         
Other (expense) income:        
Interest, net  (37,902)  (5,372)  (45,929)  (49,139)
Loss on extinguishment of debt  --  --  (18,788)  --
Other (expense) income, net  (2,484)  (440)  (557)  4,981
   (40,386)  (5,812)  (65,274)  (44,158)
(Loss) income before income taxes, non-controlling interests and dividends on preferred shares   (30,889)  (201,444)  26,475  70,939
Income tax benefit (provision)  6,687  5,819  (12,961)  (24,673)
Net (loss) income  (24,202)  (195,625)  13,514  46,266
Net income attributable to the non-controlling interests  (5,706)  1,403  (295)  (289)
         
Net (loss) income attributable to shareholders  (29,908)  (194,222)  13,219  45,977
         
Accrued stock dividend on Founder's preferred shares  (232,747)  --  --  --
Accrued payment-in-kind dividend on cumulative preferred shares  --  --  (22,454)  (44,605)
Net (loss) income attributable to common shares  $ (262,655)  $ (194,222)  $ (9,235)  $ 1,372
         
Earnings (loss) per share        
Basic  $ (1.94)  $ (2.10)  n/a   n/a 
Diluted  $ (1.94)  $ (2.10)  n/a   n/a 
         
Weighted average shares outstanding (In thousands)        
Basic  135,305  92,563  n/a   n/a 
Diluted  135,305  92,563  n/a   n/a 
         
PLATFORM SPECIALTY PRODUCTS CORPORATION
NON-GAAP AS ADJUSTED INCOME STATEMENTS 
FOR THE THREE MONTHS ENDED DECEMBER 31, 2014 AND 2013
 
 
(In thousands, except per share amounts)
 Three Months Ended
December 31, 2014
Adjustments
2014
 As Adjusted
Three Months Ended
December 31, 2014
 Combined (1)
Three Months Ended
December 31, 2013
Adjustments
2013
 As Adjusted
Three Months Ended
December 31, 2013
 
 Successor    Successor            
                     
Net sales  $ 273,545  $ --    $ 273,545    $ 185,394  $ --    $ 185,394  
Cost of sales  161,125  (23,558)a  137,567    115,732  (24,191) a   91,541  
Gross profit  112,420  23,558   135,978    69,662  24,191    93,853  
                     
Operating expenses:                   
Selling, technical, general and administrative  126,135  (56,712)b,c,d  69,423    92,800  (49,431) b,c,e   43,369  
Non-cash charge related to preferred stock dividend rights  --  --    --    172,006  (172,006) f   --  
Research and development  7,765  --    7,765    6,389  --    6,389  
Restructuring  1,984  (1,984)    --    2,508  (2,508)    --  
Total operating expenses  135,884  (58,696)   77,188    273,703  (223,945)    49,758  
                    
Operating (loss) profit  (23,464)  82,254   58,790    (204,041)  248,136    44,095  
                     
Other income (expense):                   
Interest, net  (14,527)  --   (14,527)    (10,686)  --    (10,686)  
Other income (expense)  1,186  (2,295)g  (1,109)    (593)  (911) g   (1,504)  
   (13,341)  (2,295)    (15,636)    (11,279)  (911)    (12,190)  
(Loss) income before income taxes, non-controlling interests and dividends on preferred shares   (36,805)  79,959   43,154    (215,320)  247,225    31,905  
Income tax benefit (provision)  3,145  (18,565)h  (15,420)    13,789  (25,164) h   (11,375)  
Net (loss) income   (33,660)  61,394   27,734    (201,531)  222,061    20,530  
Net income attributable to the non-controlling interests  (326)  345i  19    1,428      1,428  
                     
Net (loss) income attributable to shareholders  (33,986)  61,739    27,753    (200,103)  222,061    21,958  
                     
Accrued stock dividend on Founder's preferred shares  (232,747)  232,747j  --    --        
Accrued payment-in-kind dividend on cumulative preferred shares  --  --    --    --   k   --  
Net (loss) income attributable to common shares  $ (266,733)  $ 294,486    $ 27,753    $ (200,103)  $ 222,061    $ 21,958  
                     
Earnings (loss) per share                    
Basic  $ (1.59)  --    $ 0.17    --  --    $ 0.13  
Diluted  $ (1.59)  --    $ 0.14    --  --    $ 0.11  
                     
Weighted average shares outstanding                     
Basic  167,480  --    167,480    --  --    167,480 l 
Diluted  167,480  --    193,100 m   --  --    193,100 m 
                     
                     
a Adjustment to reverse manufacturer's profit in inventory purchase accounting adjustment associated with Chemtura and Agriphar Acquisitions in Q4 2014 and MacDermid in Q4 2013. 
 
b Includes $29.5 million in Q4 2014 and $32.1 million in Q4 2013 for costs primarily associated with the Chemtura, Arysta and Agriphar Acquisitions.
 
c Includes $23.8 million in Q4 2014 and $11.1 million in Q4 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 $3 million in connection with the MacDermid Acquisition.
 
e Adjustment for predecessor stock compensation and long term incentive plan expense included in operating expenses of $9.3 million.
 
f Non-cash charge related to preferred stock dividend rights over adjusted out of operating expenses.
 
g Adjustment to reverse net mark-to-market gain on foreign exchange forward contracts entered into to finance Chemtura and Agriphar Acquisitions in Q4 2014. Adjustment to eliminate gain on sale of building in Q4 2013.
 
h Adjustment to calculation of estimated effective tax rate of 36% in Q4 2014 and 36% in Q4 2013.
 
i Adjustment for reversal of the income attributable to the non-controlling interest resulting from the MacDermid Acquisition.
 
j Reversal of accrued stock dividend to Founders issued in January 2015.
 
k Reversal of accrued accretion on Predecessor preferred stock dividends that were not paid until the MacDermid Acquisition.
 
l Weighted average basic shares for Q4 2014 are being used for Q4 2013 for comparison.
 
m Non-GAAP Diluted Shares are calculated as follows:
                     
Outstanding shares at December 31, 2014 (excl. Founders Stock Dividend) 182,067                  
Conversion of exchange rights held by selling stockholders of MacDermid  8,641                  
Common shares equivalent of founder's preferred shares  2,000                  
Vested Director stock options  250                  
Equity awards granted in 2014  142                  
Adjusted Diluted shares at December 31, 2014 193,100                  
                     
(1) For the quarter ended December 31, 2013, adjustments to net income included combining predecessor (MacDermid) results for the period from October 1, 2013 through October 31, 2013 with the Company's results as Platform did not own MacDermid for any of the predecessor period or for the entirety of the successor period. The successor period reflects Platform's new accounting basis as of the MacDermid acquisition and combined results are presented for comparative purposes.
                     
PLATFORM SPECIALTY PRODUCTS CORPORATION
NON-GAAP AS ADJUSTED INCOME STATEMENTS 
FOR THE YEAR ENDED DECEMBER 31, 2014 AND 2013
 
 
(In thousands, except per share amounts)
 Year Ended
December 31, 2014
Adjustments
2014
 As Adjusted
Year Ended
December 31, 2014
 Combined (1)
Year Ended
December 31, 2013
Adjustments
2013
 As Adjusted
Year Ended
December 31, 2013
 
 Successor    Successor            
                     
Net sales  $ 843,186  $ --    $ 843,186    $ 745,951  $ --    $ 745,951  
Cost of sales  446,633  (35,514)a  411,119    387,463  (24,192)    363,271  
Gross profit  396,553  35,514   432,067    358,488  24,192    382,680  
                     
Operating expenses:                   
Selling, technical, general and administrative  357,872  (145,372)b,c,d  212,500    262,076  (69,602) c   192,474  
Non-cash charge related to preferred stock dividend rights  --  --    --    172,006  (172,006) e     
Research and development  26,229  --    26,229    23,893  (290)    23,603  
Restructuring  2,955  (2,955)    --    4,398  (4,398)    --  
Total operating expenses  387,056  (148,327)   238,729    462,373  (246,296)    216,077  
                    
Operating profit (loss)  9,497  183,841   193,338    (103,885)  270,488    166,603  
                     
Other income (expense):                   
Interest, net  (37,902)  --   (37,902)    (51,300)  21,031 f   (30,269)  
Loss on extinguishment of debt  --  --    --    (18,788)  18,788 g   --  
Other (expense) income  (2,484)  842h  (1,642)    (996)  (1,143) h   (2,139)  
   (40,386)  842    (39,544)    (71,084)  38,676    (32,408)  
(Loss) income before income taxes, non-controlling interests and dividends on preferred shares   (30,889)  184,683   153,794    (174,969)  309,164    134,195  
Income tax benefit (provision)  6,687  (46,717)i  (40,030)    (7,142)  (37,142) i   (44,284)  
Net (loss) income  (24,202)  137,966   113,764    (182,111)  272,022    89,911  
Net income attributable to the non-controlling interests  (5,706)  5,503j  (203)    1,108  (1,434)    (326)  
                     
Net (loss) income attributable to shareholders  (29,908)  143,469    113,561    (181,003)  270,588    89,585  
                     
Accrued stock dividend on Founder's preferred shares  (232,747)  232,747k  --    --  --    --  
Accrued payment-in-kind dividend on cumulative preferred shares  --  --    --    (22,454)  22,454 l   --  
Net (loss) income attributable to common shares  $ (262,655)  $ 376,216    $ 113,561    $ (203,457)  $ 293,042    $ 89,585  
                     
Earnings (loss) per share                    
Basic  $ (1.94)  --    $ 0.84    --  --    $ 0.66  
Diluted  $ (1.94)  --    $ 0.59    --  --    $ 0.46  
                     
Weighted average shares outstanding                     
Basic  135,305  --    135,305    --  --    135,305 m 
Diluted  135,305  --    193,100 n   --  --    193,100 n 
                     
                     
a Adjustment to reverse manufacturer's profit in inventory purchase accounting adjustment associated with MacDermid, Chemtura and Agriphar Acquisitions. 
 
b Includes $47.8 million in 2014 for costs primarily associated with Chemtura, Arysta and Agriphar Acquisitions.
 
c Includes $67.4 million in 2014 and $31.3 million 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 $29.1 million in connection with the MacDermid Acquisition.
 
e Non-cash charge related to preferred stock dividend rights over adjusted out of operating expenses.
 
f Adjustment to eliminate interest associated with debt not assumed with the MacDermid Acquisition.
 
g Adjustment to eliminate extinguishment of debt associated with recapitalization of MacDermid in Q2 2013.
 
h Adjustment primarily to reverse net mark-to-market loss on foreign exchange forward contracts entered into to finance Chemtura and Agriphar Acquisitions in 2014. Reversal of non-cash, mark-to-market gains on foreign debt in 2013.
 
i Adjustment to calculation of estimated blended effective tax rate of 26% 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 stock dividend to Founders issued in January 2015.
 
l Reversal of accrued accretion on Predecessor preferred stock dividends that were not paid until the MacDermid Acquisition.
 
m Weighted average basic shares for 2014 are being used for 2013 for comparison.
 
n Non-GAAP Diluted Shares are calculated as follows:
                     
Outstanding shares at December 31, 2014 (excl. Founders Stock Dividend) 182,067                  
Conversion of exchange rights held by selling stockholders of MacDermid  8,641                  
Common shares equivalent of founder's preferred shares  2,000                  
Vested Director stock options  250                  
Equity awards granted in 2014  142                  
Adjusted Diluted shares at December 31, 2014 193,100                  
                     
(1) For the year ended December 31, 2013, adjustments to net income included combining predecessor (MacDermid) results for the period from January 1, 2013 through October 31, 2013 with the Company's results as Platform did not own MacDermid for any of the predecessor period or for the entirety of the successor period. The successor period reflects Platform's new accounting basis as of the MacDermid acquisition and combined results are presented for comparative purposes.
                     
PLATFORM SPECIALTY PRODUCTS CORPORATION
RECONCILIATION OF NON-GAAP MEASURES
Includes Predecessor and Successor data
 CombinedSuccessorCombinedSuccessor  
(in millions) Q4 2013 Q4 2014 YTD 2013 YTD 2014  
Net loss  $ (200.1)  $ (34.0)  $ (181.0)  $ (29.9)  
           
Adjustments to reconcile to net loss:           
Income tax (benefit) expense  (13.8)  (3.1)  7.1  (6.7)  
Interest expense  10.8  14.9  51.8  38.7  
Depreciation and amortization expense  16.2  30.7  45.6  88.0 (1)
Equity based compensation expense  9.6  0.5  9.6  1.3 (2)
Restructuring and related expenses  2.5  2.0  8.0  3.0 (3)
Non cash charges related to Founder Preferred Dividend  172.0  --   172.0  --  (4)
Predecessor loss on extinguishment of debt  --   --   18.8  --  (5)
Manufacturer's profit in inventory adjustment  23.9  23.6  23.9  35.5 (6)
Non-cash fair value adjustment to contingent consideration  --   3.0  --   29.1 (7)
Acquisition Costs  32.1  29.5  32.1  47.8 (8)
Other expense (income)  (8.7)  (1.4)  (7.8)  5.4 (9)
           
Adjusted EBITDA   $ 44.5  $ 65.7  $ 180.1  $ 212.2  
           
           
Footnotes:
(1) Includes $23.8 million in Q4 2014 and $11.1 million in Q4 2013 and $67.4 million in YTD 2014 and $31.3 million in YTD 2013 for amortization expense that is added back in the "As Adjusted" Income Statement.
(2) Adjustment for predecessor stock compensation and long term incentive plan expense.
(3) Includes restructuring expenses of $1.9 million of reorganization costs adjusted out of operating expenses for YTD 2013.
(4) Non-cash charge related to preferred stock dividend rights.
(5) Adjustment to eliminate extinguishment of debt associated with recapitalization of MacDermid in Q2 2013.
(6) Adjustment to reverse manufacturer's profit in inventory purchase accounting adjustment associated with MacDermid Acquisition for YTD 2013 and Chemtura and Agriphar Acquisitions for YTD 2014 
(7) Adjustment to fair value of contingent consideration in connection with the MacDermid Acquisition primarily associated with achieving the share price targets.
(8) Adjustment to reverse deal costs primarily in connection with the MacDermid Acquisition for YTD 2013 and the Chemtura, Arysta and Agriphar Acquisitions for YTD 2014.
(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.
CONTACT: Source/Investor Relations Contact:

         

         Benjamin Gliklich

         Vice President, Corporate Development,

         Finance and Investor Relations

         Platform Specialty Products Corporation

         +1-561-406-8465

         

         Media Contacts:

         Liz Cohen

         Weber Shandwick

         +1-212-445-8044

         

         Kelly Gawlik

         Weber Shandwick

         +1-212-445-8368