Kraton First Quarter 2017 Earnings Call 10
2017 Modeling Assumptions(1)
($ In millions)
Adjusted EBITDA(2) $350
Non-cash compensation expense $10
Depreciation & amortization $135
Cash interest of approximately $111 million (excluding $3 million of JV interest) $139
Effective tax rate 20% - 25%
Capex $85 - $95
Estimated second quarter 2017 positive spread between FIFO and ECRC $10
Reduction in net debt(2) $100 - $150
(1) Management's estimates. These estimates are forward-looking statements and speak only as of April 27, 2017. Management assumes no obligation to update or confirm these
estimates in light of new information or future events.
(2) We have not reconciled Adjusted EBITDA guidance to net income (loss) because we do not provide guidance for net income (loss) or for items that we do not consider indicative
of our on-going performance, including, but not limited to, transaction and acquisition costs and costs associated with dispositions, business exits, and production downtime,
as certain of these items are out of our control and/or cannot be reasonably predicted. We have not reconciled net debt guidance to debt due to high variability and difficulty
in making accurate forecasts and projections that are impacted by future decisions and actions. The actual amount of such reconciling items will have a significant impact if
they were included in our Adjusted EBITDA and net debt. Accordingly, a reconciliation of the non-GAAP financial measure guidance to the corresponding GAAP measures is not
available without unreasonable effort.
Note: Non-cash compensation expense is excluded in determining Adjusted EBITDA and included in determining Adjusted EPS.