Omnova Solutions reports debt of $454 million at year-end, cash up about $45 million for year

By Lisa Kerner

Charlotte, N.C., Jan. 22 - Omnova Solutions Inc.'s net debt declined by $49.2 million during fiscal 2012, and its net leverage ratio improved to 2.75 times at Nov. 30, from 3.12 times from the year-ago period.

The company announced its results for the fourth quarter and year ended Nov. 30 on Tuesday.

At quarter-end, Omnova had debt of about $454 million, comprised of $250 million of 7.875% senior notes maturing in 2018, a term loan of $196 million maturing in 2017 and $7.6 million of foreign operations borrowings.

Consolidated cash totaled $148.5 million, a $45.4 million improvement in 2012, a company news release said.

As of Nov. 30, there were no outstanding borrowings under the company's U.S. revolving asset-based credit facility, and the available borrowing capacity was $74 million.

Compared to the prior-year period, Omnova's fourth-quarter net sales decreased by 15.8%, or $47.5 million, to $253.9 million. The decrease was driven by pricing declines of 9.3%, reduced volumes of $16.4 million and unfavorable currency translation effects of $3.1 million.

Net sales for the full year were down 6.3% at about $1.13 billion.

Net income for the fourth quarter was $700,000, or $0.01 per diluted share, compared with $400,000, or $0.01 per diluted share, for the third quarter of 2011.

For the full-year 2012, net income was $27.6 million, or $0.60 per diluted share, compared to a loss of $2.8 million, or $0.06 per diluted share, for 2011.

Omnova is a Fairlawn, Ohio-based provider of specialty chemicals, emulsion polymers and decorative surfaces.

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