GCP gives financial update in the midst of 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 programmes to create a more efficient and effective organisation, 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 US$315 million. The company is revising its plan for 2020 capital expenditures to further support its cash position, reducing planned capital expenditures by approximately US$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 US$350 million revolving credit facility maturing in 2023, bringing total liquidity sources to over US$650 million. The company’s 5.5% Senior Notes with an aggregate principal amount of US$350 million mature in 2026.

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