CAMBRIDGE, Mass., March 31, 2020 (GLOBE NEWSWIRE) -- GCP Applied Technologies Inc. (NYSE: GCP), a leading global provider of construction products technologies, today provided an update on its earnings expectations for the first quarter of 2020. The Company also highlighted its strong balance sheet and significant liquidity, which it believes provides the Company with the support and financial flexibility required to navigate the COVID-19 pandemic.
Randy Dearth, GCP’s President and Chief Executive Officer, said, “The health and safety of our employees is our number one concern during this unprecedented situation. We are taking appropriate steps to protect our employees in accordance with guidelines issued by national and other health and safety authorities. While our employees are our paramount concern, we also continue to work hard to support our customers, suppliers and other stakeholders, and I want to thank all members of the GCP team for the impressive commitment they have shown.”
Dearth continued, “We are closely monitoring the impact of the COVID-19 pandemic and managing its effects on our business globally as the situation continues to evolve. As previously disclosed, our performance in January and February met our forecast, and we expect earnings for the first quarter of 2020 to be consistent with the commentary provided on our fourth quarter 2019 earnings call. Looking ahead, we will continue to focus on the operational and financial performance of the business and execute on the significant actions we have announced. We remain committed to maintaining a disciplined approach to capital allocation, delivering on announced restructuring programs to create a more efficient and effective organization, and refining working capital management processes and capabilities.”
GCP expects its cash balance at the end of the first quarter of 2020 to be approximately $315 million. The Company is revising its plan for 2020 capital expenditures to further support its cash position, reducing planned capital expenditures by approximately $25 million compared to the forecast provided on its fourth quarter 2019 earnings call. GCP has access to additional liquidity in the form of a $350 million revolving credit facility maturing in 2023, bringing total liquidity sources to over $650 million. The Company’s 5.5% Senior Notes with an aggregate principal amount of $350 million mature in 2026.
About GCP Applied Technologies
GCP is a leading global provider of construction products technologies that include additives for cement and concrete, the VERIFI® in-transit concrete management system, high-performance waterproofing products, and specialty systems. GCP products have been used to build some of the world’s most renowned structures. More information is available at www.gcpat.com.
