Third Quarter 2018 Highlights (Versus Third Quarter 2017)

• Revenue growth of 11%, driven by strong price execution, specialty growth and an improved market environment
• Net income for the quarter was $17.5 million, or $0.23 per diluted share. Adjusted net income was $14.8 million, or $0.19 per diluted share
• Record gross profit of $120 million increased 17% from prior year
• Record adjusted EBITDA of $58 million increased 10% from prior year
• Net leverage of 3.9x, a decrease from 4.9x last year and 4.1x last quarter

THE WOODLANDS, Texas, Aug. 06, 2018 (GLOBE NEWSWIRE) -- Nexeo Solutions, Inc. (NASDAQ:NXEO) (the "Company" or "Nexeo Solutions"), today announced its consolidated financial results for the three months ended June 30, 2018.

David Bradley, President and Chief Executive Officer of Nexeo Solutions stated, "The investments we have made in market leading capability, combined with disciplined commercial execution and an improved market environment are yielding record results.  Over the last twelve months we have delivered 17% adjusted EBITDA growth, which is a direct reflection of the quality of our people and the strength of our proprietary operating system."

Sales and operating revenues were $1,046.4 million and $942.7 million for the three months ended June 30, 2018 and June 30, 2017, respectively.  The increase in revenues was primarily attributable to an increase in average selling prices of 10.2% across all segments in all regions largely due to an inflationary pricing environment and a shift in portfolio mix to products with higher average selling prices.  Approximately $14.4 million of the increase was a result of strengthening exchange rates of various currencies versus the USD as compared to the same period in the prior fiscal year.

Gross profit was $120.2 million and $102.7 million for the three months ended June 30, 2018 and June 30, 2017, respectively.  Gross profit increased primarily due to a favorable shift in product mix and continued specialty supplier growth in the Chemicals line of business.  Additionally, our centralized platform allowed us to effectively manage supply chain logistics to mitigate freight cost increases and facilitate strong price execution.  Approximately $1.1 million of the increase in gross profit was due to the strengthening of exchange rates of various currencies versus the USD compared to the same period in the prior fiscal year.

The Company reported net income of $17.5 million and $10.2 million for the three months ended June 30, 2018 and June 30, 2017, respectively.  Adjusted EBITDA was $57.6 million and $52.4 million for the three months ended June 30, 2018 and June 30, 2017, respectively.  For a description of adjusted EBITDA and a reconciliation to its most comparable GAAP financial measure, please read "Non-GAAP Financial Measures".

Third Quarter 2018 Performance

The results of the Company's operating performance are described below and, unless otherwise indicated, are a comparison of the three months ended June 30, 2018 with the three months ended June 30, 2017.

Segment Highlights

Chemicals - Sales and operating revenues for the Chemicals line of business were $494.9 million and $443.9 million for the three months ended June 30, 2018 and June 30, 2017, respectively.  The revenue increase was primarily attributable to a 12.9% increase in average selling prices largely as a result of an inflationary pricing environment and increased specialty mix.  This increase was partially offset by a decrease in volumes of 1.2% due to specialty product supply constraints.  Disciplined commercial execution to balance price and volume resulted in the lower volumes, but yielded higher average selling prices.