Company News
November 15, 2021
Casper Q3 Results, Announces Sale to Durational Capital Management
Casper Reports Third Quarter Results
Nov. 15, 2021 8:16 AM ETCasper Sleep Inc. (CSPR)
Emilie Arel Appointed Chief Executive Officer
NEW YORK–(BUSINESS WIRE)– Casper Sleep Inc. (CSPR) (“Casper” or the “Company”) (NYSE: CSPR) today announced financial results for the quarter ended September 30, 2021 (the “third quarter 2021”). The Company also announced that Emilie Arel, who serves as President and Chief Commercial Officer at Casper, has been appointed Chief Executive Officer, assuming the role from Casper Co-Founder, Philip Krim, effective November 15, 2021. Separately, the Company announced that it has entered into a definitive agreement to be acquired by Durational Capital Management LP (“Durational”) for $6.90 per share in an all-cash transaction expected to close in the first quarter of 2022.
Third Quarter 2021 Financial Highlights (as compared to the quarter ended September 30, 2020)
- Revenue increased 26.8% to an all-time quarterly record of $156.5 million;
- Direct-to-Consumer revenue, inclusive of Casper’s 72 retail stores and e-commerce channel, increased 6.7% to $96.5 million;
- Retail Partnership revenue increased 78.6% to $60.0 million;
- Gross Profit decreased $4.6 million, or 6.7%, to $63.9 million;
- Net Loss increased by $9.4 million, or 59.4%, to $25.3 million, inclusive of a $2.4 million one-time lease write-off charge;
- Adjusted EBITDA loss of $12.1 million, compared to a loss of $7.5 million; and
- Cash and cash equivalents were $43.1 million on September 30, 2021.
Commenting on the third quarter 2021 results and proposed transaction, Casper’s Chief Executive Officer, Philip Krim, said, “Our strong top-line growth of 26.8% and ability to onboard additional world-class retail partners, such as Sleep Country, continues to underscore the strength of our brand and value proposition of our award-winning mattresses and sleep products. However, ongoing industry-wide supply chain challenges are resulting in sustained inflationary pressures across the industry impacting our ability to meet demand effectively and efficiently and impairing the Company’s liquidity position.
“Casper’s Board of Directors in consultation with outside advisors, has evaluated a range of strategic and financial alternatives over several months and determined after careful consideration that the transaction proposed by Durational is superior to all other alternatives available. The proposed acquisition offers shareholders immediate and substantial value, and ensures the business has the financial flexibility required to support continued growth. In addition, Durational is committed to building on the strength of the Casper brand, products, omni-channel platform, and employees, to further improve the customer experience and create new opportunities for Casper.”
Mr. Krim added, “I am pleased to announce Emilie Arel’s appointment as Chief Executive Officer. Emilie and I have worked together toward this goal for a long time and her new responsibilities reflect our focus on prioritizing talent development across the company. Emilie’s background and experience at world-class brands including Quidsi, Gap and Target will be of great benefit to Casper – she is a leader who will take bold steps and work across departments to advance our strategic initiatives by leveraging the resources she has available and motivating those around her.”
With over 20 years of leadership experience across retail, merchandising, customer experience, and marketing, Emilie Arel has led Casper’s commercial and brand strategy. Previously, Emilie was the CEO of FULLBEAUTY Brands, a plus-size apparel company, where she led the company through a debt restructuring and put the company on the path to a digital transformation. Prior to that, she served as the CEO of Quidsi, an Amazon company with 10 brands, including Diapers.com and Soap.com. Earlier in her career, Emilie spent seven years with Gap Inc. where she held multiple positions and led a team of 12,000+ employees and 220+ stores. Before joining Gap, Emilie held various roles at Target Corporation. Emilie earned MBAs from Columbia University Business School and the University of California, Berkeley.
Mr. Krim concluded, “I could not be more excited about Casper’s future under Emilie’s leadership and with Durational’s partnership. Durational is committed to building on the strength of the Casper brand by leveraging our accomplishments, unparalleled customer experience, omni-channel platform and market position to further improve the customer experience and create new opportunities for the Casper family of employees. In summary, Emilie’s leadership and our agreement with Durational creates immediate and substantial value for our shareholders and charts a clear path forward to deliver value for all stakeholders as we continue to bring better sleep to more people.”
Commenting on her appointment, Emilie Arel, President and Chief Commercial Officer stated, “I am excited to take on the Chief Executive role at this time of change at Casper. Philip and the founding team disrupted the mattress industry by introducing a new type of shopping experience and built a beloved brand with award-winning products and approximately $500 million in annual sales. Under Durational, Casper will have financial flexibility to accelerate our growth plans, and I look forward to working closely with Durational and with all of Casper’s talented team members to deliver on the tremendous potential of this business in the months and years ahead.”
Withdrawal of Outlook for Certain Financial Metrics
In light of the pending transaction, the Company today withdrew all of its financial guidance for the year ending December 31, 2021.
Cancellation of Third Quarter 2021 Conference Call
The Company will not be conducting its third quarter 2021 conference call and webcast, previously scheduled for today, November 15, 2021 at 5:00 p.m. Eastern Time. The Company plans to file its quarterly report on Form 10-Q with the Securities and Exchange Commission (the “SEC”) on November 15, 2021.
Casper periodically provides information for investors on its corporate website, casper.com, and its investor relations website, ir.casper.com. This includes press releases and other information about financial performance, reports filed or furnished with the SEC and information on corporate governance.
About Casper
Casper believes everyone should sleep better. The Sleep Company has a full portfolio of obsessively engineered sleep products—including mattresses, pillows, bedding, and furniture designed in-house by the Company’s award-winning R&D team at Casper Labs. In addition to its e-commerce business, Casper owns and operates Sleep Shops across North America and its products are available at a growing list of retailers.
Important Information and Where to Find It
In connection with the proposed transaction between the Company and Durational Capital Management LP, a special stockholder meeting will be announced soon to obtain stockholder approval in connection with the proposed transaction. The Company expects to file with the SEC a proxy statement (the “Proxy Statement”), the definitive version of which will be sent or provided to the Company stockholders. The Company may also file other documents with the SEC regarding the proposed transaction. This document is not a substitute for the Proxy Statement or any other document which the Company may file with the SEC. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE PROXY STATEMENT AND ANY OTHER RELEVANT DOCUMENTS THAT ARE FILED OR WILL BE FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION AND RELATED MATTERS. Investors and security holders may obtain free copies of the Proxy Statement (when it is available) and other documents that are filed or will be filed with the SEC by the Company through the website maintained by the SEC at www.sec.gov, the Company’s investor relations website at https://ir.casper.com or by contacting the Company investor relations department at cspr@jcir.com.
Participants in the Solicitation
The Company and certain of its directors, executive officers and other members of management and employees may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction. Information regarding the persons who may, under the rules of the SEC, be considered to be participants in the solicitation of the Company’s stockholders will be set forth in the Proxy Statement for its special stockholder meeting. The Company’s stockholders may obtain additional information regarding the direct and indirect interests of the participants in the solicitation of proxies in connection with the proposed transaction, including the interests of the Company directors and executive officers in the transaction, which may be different than those of the Company stockholders generally, by reading the Proxy Statement and any other relevant documents that are filed or will be filed with the SEC relating to the transaction. You may obtain free copies of these documents using the sources indicated above.
https://seekingalpha.com/pr/18561032-casper-reports-third-quarter-results
November 12, 2021
Hexion Results
Hexion Inc. Announces Third Quarter 2021 Results
Third Quarter 2021 Highlights
- Net sales from continuing operations of $945 million, an increase of 49% compared with $634 million in the prior year period.
- Net income of $49 million compared with a net loss of $94 million in the prior year period.
- Segment EBITDA from continuing operations of $188 million compared to $91 million in the prior year period.
- Liquidity of $721 million
- Hexion Holdings Corporation, the indirect parent of Hexion Inc., announced plans to separate into two independent companies as part of its strategic initiatives to drive long term shareholder value
November 12, 2021 07:00 AM Eastern Standard Time
COLUMBUS, Ohio–(BUSINESS WIRE)–Hexion Inc. (“Hexion” or the “Company”) today announced results for the third quarter ended September 30, 2021.
“Our strong third quarter 2021 Segment EBITDA represented our fourth straight quarter of year-over-year increases as we more than doubled our prior year results reflecting our product portfolio aligned with key sustainability market trends, strong market conditions and pricing actions”
“Our strong third quarter 2021 Segment EBITDA represented our fourth straight quarter of year-over-year increases as we more than doubled our prior year results reflecting our product portfolio aligned with key sustainability market trends, strong market conditions and pricing actions,” said Craig Rogerson, Chairman, President and Chief Executive Officer. “We also drove sequential Segment EBITDA increases of $28 million, or 18 percent, in the third quarter of 2021 compared to the second quarter of 2021. Our Adhesives Segment results were supported by strong gains in each global region and positive demand from increasing residential housing construction starts. Our Coatings and Composites segment reflected significant Segment EBITDA gains in base and specialty epoxy resins, as well as solid volume increases in our Versatic™ Acids and Derivatives. Our overall Segment EBITDA margins were nearly 20% percent compared to approximately 14 percent in the prior year. In addition, our net cash provided by operating activities totaled $106 million through the first nine months of the year, which is significantly higher than the comparable 2020 period due to our higher earnings and growing margins. Our net debt to Pro Forma EBITDA leverage ratio was 2.3 times as of the last twelve months ended September 30, 2021 reflecting the improved earnings and cash flow, as well as the 2021 debt reductions.”
Mr. Rogerson added: “Looking ahead to the fourth quarter of 2021, we expect continued strength in our epoxy business and tailwinds from residential construction demand supporting our adhesives products, partially offset by the impact of a planned turnaround in Versatic™ Acids and Derivatives. We believe we are well-positioned for growth in 2022 and going forward.”
Hexion Exploring Value Creation Strategic Alternatives
Hexion’s management team and its Board of Directors, as previously announced on September 29, 2021, continues to evaluate strategic value creation options, including the potential spin of Hexion’s epoxy business and an IPO of Hexion’s Adhesives and Versatic product lines. Hexion Holdings has filed registration statements on Form S-1 with the U.S. Securities and Exchange Commission (“SEC”) for a proposed initial public offering on the New York Stock Exchange.
The potential spin transaction and IPO remain subject to SEC review, European works councils review, and market conditions. This press release is not an offer to sell securities.
Third Quarter 2021 Results
Total net sales for the quarter ended September 30, 2021 were $945 million, an increase of 49% compared with $634 million in the prior year period. Pricing positively impacted sales by $297 million due primarily to improved market conditions in our base epoxy resins and specialty epoxy resins businesses and significant raw material price increases contractually passed through to customers across many businesses. Foreign currency translation positively impacted net sales by $16 million due to the strengthening of various foreign currencies against the U.S. dollar in the third quarter of 2021 compared to the third quarter of 2020. Volumes negatively impacted net sales by $2 million, primarily due to volume decreases in our specialty epoxy product lines due to lower demand in China and volume decreases in our formaldehyde products driven by Hurricane Ida’s impacts in the Gulf Coast. These were partially offset by volume increases in our North American and Latin American wood adhesives product lines driven by strong market conditions across many key end-markets and increases in our epoxy and VersaticTM Acid and Derivatives product lines driven by strong market demand and continued recovery from COVID-19’s global economic impact across our various industries and markets compared to the third quarter of 2020.
Net income for the three months ended September 30, 2021 was $49 million compared to a net loss of $94 million in the prior year period. Total Segment EBITDA from continuing operations for the quarter ended September 30, 2021 was $188 million, an increase of $97 million compared with the prior year period, or 107 percent, reflecting strong volume gains across both the Adhesives and Coatings and Composites segments, improved market conditions across many of our businesses and raw material productivity positively impacting our wood adhesives and formaldehyde product lines.
Liquidity and Capital Resources
As of September 30, 2021, total debt was approximately $1.6 billion and consisted primarily of the Company’s approximately $1.2 billion Senior Secured Term Loans due 2026 and $450 million Senior Notes due 2027. At September 30, 2021, the Company had $721 million in liquidity, including $352 million of unrestricted cash and cash equivalents. Hexion has no upcoming maturities on its term loan or notes until 2026.
November 12, 2021
Hexion Results
Hexion Inc. Announces Third Quarter 2021 Results
Third Quarter 2021 Highlights
- Net sales from continuing operations of $945 million, an increase of 49% compared with $634 million in the prior year period.
- Net income of $49 million compared with a net loss of $94 million in the prior year period.
- Segment EBITDA from continuing operations of $188 million compared to $91 million in the prior year period.
- Liquidity of $721 million
- Hexion Holdings Corporation, the indirect parent of Hexion Inc., announced plans to separate into two independent companies as part of its strategic initiatives to drive long term shareholder value
November 12, 2021 07:00 AM Eastern Standard Time
COLUMBUS, Ohio–(BUSINESS WIRE)–Hexion Inc. (“Hexion” or the “Company”) today announced results for the third quarter ended September 30, 2021.
“Our strong third quarter 2021 Segment EBITDA represented our fourth straight quarter of year-over-year increases as we more than doubled our prior year results reflecting our product portfolio aligned with key sustainability market trends, strong market conditions and pricing actions”
“Our strong third quarter 2021 Segment EBITDA represented our fourth straight quarter of year-over-year increases as we more than doubled our prior year results reflecting our product portfolio aligned with key sustainability market trends, strong market conditions and pricing actions,” said Craig Rogerson, Chairman, President and Chief Executive Officer. “We also drove sequential Segment EBITDA increases of $28 million, or 18 percent, in the third quarter of 2021 compared to the second quarter of 2021. Our Adhesives Segment results were supported by strong gains in each global region and positive demand from increasing residential housing construction starts. Our Coatings and Composites segment reflected significant Segment EBITDA gains in base and specialty epoxy resins, as well as solid volume increases in our Versatic™ Acids and Derivatives. Our overall Segment EBITDA margins were nearly 20% percent compared to approximately 14 percent in the prior year. In addition, our net cash provided by operating activities totaled $106 million through the first nine months of the year, which is significantly higher than the comparable 2020 period due to our higher earnings and growing margins. Our net debt to Pro Forma EBITDA leverage ratio was 2.3 times as of the last twelve months ended September 30, 2021 reflecting the improved earnings and cash flow, as well as the 2021 debt reductions.”
Mr. Rogerson added: “Looking ahead to the fourth quarter of 2021, we expect continued strength in our epoxy business and tailwinds from residential construction demand supporting our adhesives products, partially offset by the impact of a planned turnaround in Versatic™ Acids and Derivatives. We believe we are well-positioned for growth in 2022 and going forward.”
Hexion Exploring Value Creation Strategic Alternatives
Hexion’s management team and its Board of Directors, as previously announced on September 29, 2021, continues to evaluate strategic value creation options, including the potential spin of Hexion’s epoxy business and an IPO of Hexion’s Adhesives and Versatic product lines. Hexion Holdings has filed registration statements on Form S-1 with the U.S. Securities and Exchange Commission (“SEC”) for a proposed initial public offering on the New York Stock Exchange.
The potential spin transaction and IPO remain subject to SEC review, European works councils review, and market conditions. This press release is not an offer to sell securities.
Third Quarter 2021 Results
Total net sales for the quarter ended September 30, 2021 were $945 million, an increase of 49% compared with $634 million in the prior year period. Pricing positively impacted sales by $297 million due primarily to improved market conditions in our base epoxy resins and specialty epoxy resins businesses and significant raw material price increases contractually passed through to customers across many businesses. Foreign currency translation positively impacted net sales by $16 million due to the strengthening of various foreign currencies against the U.S. dollar in the third quarter of 2021 compared to the third quarter of 2020. Volumes negatively impacted net sales by $2 million, primarily due to volume decreases in our specialty epoxy product lines due to lower demand in China and volume decreases in our formaldehyde products driven by Hurricane Ida’s impacts in the Gulf Coast. These were partially offset by volume increases in our North American and Latin American wood adhesives product lines driven by strong market conditions across many key end-markets and increases in our epoxy and VersaticTM Acid and Derivatives product lines driven by strong market demand and continued recovery from COVID-19’s global economic impact across our various industries and markets compared to the third quarter of 2020.
Net income for the three months ended September 30, 2021 was $49 million compared to a net loss of $94 million in the prior year period. Total Segment EBITDA from continuing operations for the quarter ended September 30, 2021 was $188 million, an increase of $97 million compared with the prior year period, or 107 percent, reflecting strong volume gains across both the Adhesives and Coatings and Composites segments, improved market conditions across many of our businesses and raw material productivity positively impacting our wood adhesives and formaldehyde product lines.
Liquidity and Capital Resources
As of September 30, 2021, total debt was approximately $1.6 billion and consisted primarily of the Company’s approximately $1.2 billion Senior Secured Term Loans due 2026 and $450 million Senior Notes due 2027. At September 30, 2021, the Company had $721 million in liquidity, including $352 million of unrestricted cash and cash equivalents. Hexion has no upcoming maturities on its term loan or notes until 2026.
November 11, 2021
Sabic Introduces MOCA Replacement
SABIC’S NEW NORYL™ POLYOL IMPROVES PERFORMANCE OF MDI-BDO CAST POLYURETHANES AND OFFERS ALTERNATIVE TO TDI-MOCA CURED SYSTEMS
11/11/2021
Home > News & Media > Latest News > SABIC’S NEW NORYL™ POLYOL IMPROVES PERFORMANCE OF MDI-BDO CAST…
SABIC, a global leader in the chemical industry, today announced that its recently launched NORYL™ AP2001G aromatic polyol can significantly improve the performance of hot cast polyurethanes (PUs) based on methylene diphenyl diisocyanate (MDI) and polytetramethylene ether glycol (PTMG). By boosting the hardness, toughness and stiffness properties of cast PU by double digits, NORYL AP2001G polyol can enable MDI formulations cured with 1,4-butanediol (BDO) to deliver equivalent or better performance compared to toluene diisocyanate (TDI) and PTMG PU formulations cured with MOCA (4,4′-methylene bis(ortho-chloroaniline)).
Due to increasing scrutiny in the use of MOCA as a substance of very high concern (SVHC) in the European Union, many PU manufacturers have adopted alternative formulations, including MDI-BDO. However, existing MDI-BDO systems pose performance challenges including lower mechanical and chemical properties vs. TDI-MOCA systems. SABIC’s NORYL AP2001G polyol for MDI-BDO systems addresses both the SVHC issue and performance deficiencies of existing materials, providing formulators with an alternative solution to TDI formulations and an opportunity to reduce or eliminate MOCA.
“As manufacturers began to transition away from SVHCs, SABIC understood the need to assist customers with this challenge,” said Antonello Cerullo, Ph.D., senior business development manager, SABIC. “We collaborated with Troy Polymers to validate the notable performance benefits of our new NORYL polyol for MDI-BDO systems. Thanks to our innovative new modifier, customers may now achieve results comparable to – or even better than – what they experienced with TDI-MOCA and MDI-BDO formulations, while staying ahead of the tighter restrictions that are being placed on the MOCA curative.”
Validating Performance Properties vs. MDI-BDO PUs
SABIC engaged Troy Polymers, a leading research and development laboratory based in Madison Heights, Mich., in the United States, to formulate PU samples using NORYL AP2001G polyol and conduct extensive testing and validation. The results showed that NORYL AP2001G polyol (at a loading of 5.6 percent) improved several properties of MDI-BDO cast PU formulations.
The SABIC modifier delivered up to a 30 percent increase in toughness, up to a 26 percent boost in tensile stress at break, up to an 8 percent improvement in elongation at break, and up to a 1.4 point jump in Shore D hardness.
Testing also revealed that NORYL AP2001G polyol can enhance hardness and toughness performance at high temperatures up to 70°C, which potentially allows MDI-BDO cast PU to be used in extreme conditions, such as for oil and gas exploration, gasketing and mining applications.
In terms of processability, when NORYL AP2001G polyol was added to the pre-polymer, the cast PU showed a longer pot life than a baseline MDI-BDO system. Details on the test methodology and results can be downloaded here.
“Based on our extensive experience in innovative polyurethane solutions, we have verified the benefits of SABIC’s NORYL AP2001G polyol for cast polyurethanes based on MDI-BDO systems,” said Aisa Sendijarevic, Ph.D., research director, Troy Polymers. “While MDI-BDO technology can replace TDI-MOCA in some applications, adding NORYL AP2001G polyol significantly improves MDI-BDO performance and offers an alternative that is free of substances of very high concern. Our test results indicate this SABIC polyol may enhance the performance and regulatory compliance of cast polyurethane.”
November 11, 2021
Sabic Introduces MOCA Replacement
SABIC’S NEW NORYL™ POLYOL IMPROVES PERFORMANCE OF MDI-BDO CAST POLYURETHANES AND OFFERS ALTERNATIVE TO TDI-MOCA CURED SYSTEMS
11/11/2021
Home > News & Media > Latest News > SABIC’S NEW NORYL™ POLYOL IMPROVES PERFORMANCE OF MDI-BDO CAST…
SABIC, a global leader in the chemical industry, today announced that its recently launched NORYL™ AP2001G aromatic polyol can significantly improve the performance of hot cast polyurethanes (PUs) based on methylene diphenyl diisocyanate (MDI) and polytetramethylene ether glycol (PTMG). By boosting the hardness, toughness and stiffness properties of cast PU by double digits, NORYL AP2001G polyol can enable MDI formulations cured with 1,4-butanediol (BDO) to deliver equivalent or better performance compared to toluene diisocyanate (TDI) and PTMG PU formulations cured with MOCA (4,4′-methylene bis(ortho-chloroaniline)).
Due to increasing scrutiny in the use of MOCA as a substance of very high concern (SVHC) in the European Union, many PU manufacturers have adopted alternative formulations, including MDI-BDO. However, existing MDI-BDO systems pose performance challenges including lower mechanical and chemical properties vs. TDI-MOCA systems. SABIC’s NORYL AP2001G polyol for MDI-BDO systems addresses both the SVHC issue and performance deficiencies of existing materials, providing formulators with an alternative solution to TDI formulations and an opportunity to reduce or eliminate MOCA.
“As manufacturers began to transition away from SVHCs, SABIC understood the need to assist customers with this challenge,” said Antonello Cerullo, Ph.D., senior business development manager, SABIC. “We collaborated with Troy Polymers to validate the notable performance benefits of our new NORYL polyol for MDI-BDO systems. Thanks to our innovative new modifier, customers may now achieve results comparable to – or even better than – what they experienced with TDI-MOCA and MDI-BDO formulations, while staying ahead of the tighter restrictions that are being placed on the MOCA curative.”
Validating Performance Properties vs. MDI-BDO PUs
SABIC engaged Troy Polymers, a leading research and development laboratory based in Madison Heights, Mich., in the United States, to formulate PU samples using NORYL AP2001G polyol and conduct extensive testing and validation. The results showed that NORYL AP2001G polyol (at a loading of 5.6 percent) improved several properties of MDI-BDO cast PU formulations.
The SABIC modifier delivered up to a 30 percent increase in toughness, up to a 26 percent boost in tensile stress at break, up to an 8 percent improvement in elongation at break, and up to a 1.4 point jump in Shore D hardness.
Testing also revealed that NORYL AP2001G polyol can enhance hardness and toughness performance at high temperatures up to 70°C, which potentially allows MDI-BDO cast PU to be used in extreme conditions, such as for oil and gas exploration, gasketing and mining applications.
In terms of processability, when NORYL AP2001G polyol was added to the pre-polymer, the cast PU showed a longer pot life than a baseline MDI-BDO system. Details on the test methodology and results can be downloaded here.
“Based on our extensive experience in innovative polyurethane solutions, we have verified the benefits of SABIC’s NORYL AP2001G polyol for cast polyurethanes based on MDI-BDO systems,” said Aisa Sendijarevic, Ph.D., research director, Troy Polymers. “While MDI-BDO technology can replace TDI-MOCA in some applications, adding NORYL AP2001G polyol significantly improves MDI-BDO performance and offers an alternative that is free of substances of very high concern. Our test results indicate this SABIC polyol may enhance the performance and regulatory compliance of cast polyurethane.”
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