Q2 2019 Earnings Call
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Good morning America Conference I'd number.
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Which will be launched by 2020 with an expected annual revenue up $10 million.
Looking at our color segment revenue and operating income were down, 2% and 7% respectively impacted by weaker foreign currencies.
From an end market perspective growth in packaging was more than offset by weaker automotive sales, primarily in Europe and Asia.
Packaging continues to be a great story at sales were up over 6% for the segment driven by the continued market demand for our barrier additives.
These sustainable solutions extend shelf life.
Improve recyclability reduce material consumption and allow for the design freedom made possible in PE bottles.
And as you know barrier technology has been in areas of strategic investment for us for years and it continues to deliver returns.
With regard to PNM their margins expanded 200 basis points sequentially from Q1.
This was driven by sales of our Geon brand formulations in North America, which modestly improved from the delayed and difficult start to the construction season in the first quarter.
That being said it remains down year over year.
Additionally, the weak demand in automotive end market.
Which account for about 16% of P. TNS as sales also negatively impacted year over year results.
Overall, this led to a 9% and 14% decline in sales and operating income compared to the prior year.
Distribution performed very well given the backdrop of some of the end markets that we've just been discussing.
Operating income was up 7% on operating margin improvement driven by mix and pricing.
The mix improvement was primarily related to gains in health care applications and outdoor high performance.
So to summarize sequential margin improvement in each segment demonstrates that the actions and projects. We put in place have been effective in navigating the clearly and continued sluggish end markets and regional demand slowdown.
At the same time, our prior and ongoing investments in sustainable solutions and specialty M&A continue.
Which is making important contributions to grow now and positioning us very well for the future.
Before I hand, the call back to Bob.
I want to point out our recent share repurchase activity.
We've said, we will do so opportunistically as one of the ways, we deploy cash to generate shareholder value.
The second quarter, certainly defined opportunistic from our perspective as we bought back 1 million shares at an average price of $26.91 a share.
So Bob I will turn the call back to you.
Well, thanks, Brad and certainly some of your last points on where we are investing in our important with respect to barrier technologies. In composites. These are two sustainable solutions that have been a consistent theme in our communication.
And they have been consistently growing as a result of these prior investments.
Last quarter on our earnings call, we spend some time discussing fiber lines solutions in detail.
We discuss both the near term demand and the tremendous long term opportunity that fiveg and other fiber optic cable record requirements expand.
This morning, I'd like to highlight another important area, where composites are currently growing and will continue to play in a product designed for the foreseeable future and Thats an reinforcement applications.
We often talk about composites, replacing metal glass or wood, but many times. They are used to reinforce these materials as well.
By applying a thin composite tape to reinforce and underlying base material, we can improve the strength of that material by up to 400%, which takes the wait out.
It has taken US a few years to get here, but we are finally, realizing multiple opportunities in transportation as well as in recreational equipment.
Overall composites reached a record level of profitability at 10% return on sales.
Those sustainability considerations are increasingly important and just like our customers Polyone is taking a proactive role to both design and leverage the inherent sustainable benefits.
In the plastics can have on the planet as well as our performance.
Through our product portfolio and operations, we take pride in our contributions to sustainability and hopefully we can begin to shift the narrative.
Plastics are sustainable both plastic waste is not.
And Thats why we joined as a founding member of the alliance to end plastic waste earlier this year.
Along with other leaders and material supply as well as several of our large global customers and partners.
Earlier this month I attended the alliance's boards first CEO meeting.
And I couldn't be more proud of the single voice and commitment underway to reduce plastic waste through four pillars of focus.
Infrastructure development to collect and manage ways to increase recycling, especially in developing countries, where the need is greatest.
Second is innovation to advancing the scale, new technologies that minimize waste and make recycling and recovering plastics easier.
Third education and engagement of governments at all levels businesses and communities to mobilize action.
And fourth and finally cleanup of concentrated areas of plastic waste already in the environment.
Particularly a major rivers that carry vast amounts of land based plastic waste to the ocean.
Collectively as an alliance and individually in each of our companies day to day endeavors.
We are working to address the waste problem.
At the same time, we're educating consumers and companies on the important role plastics play in these solutions for many years to come.
And we expect that this will bode well very well for polyone as a specialty provider focused on sustainable solutions.
As our industry Collaborates to set us record straight on the importance of plastics and as and consumers understand the inherent and sustainability benefits. This will ultimately lead to growth for us.
And this is one of the reasons why I haven't I haven't increased confidence in our ability to deliver earnings growth this year.
When we started the call today, we initially common commented on the better than expected near term results with where our current quarter ended at 74 cents and we are now raising our outlook for the full year to 4% to 6% growth over last year from an adjusted EPS perspective.
And I think this is saying a lot.
Market conditions are not great right now and of course this assumption of ours assumes that they don't get any worse.
As we already described many end markets, such as China, and Europe auto are down substantially and US construction. This had a slow start to the year.
In addition, the world continues to trade cautiously as a result of global trade fears and no one seems to be able to predict what will happen next.
At times like this we had to focus on what we can control with this in mind I am pleased with what we have accomplished so far this year.
The self help initiatives, we discussed throughout our call today have made a difference and will do so for the balance of the year.
But we also have to look past 2019 and continued to invest in innovation.
Commercial resources in specialty acquisitions to drive long term growth.
In short we are managing for today, while leading for tomorrow.
That concludes our prepared remarks for today I'd like to now open the call up for questions.
The call lines are now open as a reminder, you would need to press star one to ask a question.
Please limit your questions to one question and one follow up.
And our first one comes from Mike Harrison with Seaport Global Your line is open.
Hi, good morning.
Good morning, Mike.
I was wondering regarding some of the cost actions that you've taken and now were there specific segments that were receiving greater focus are these actions completed at this point or are there more to come and I think you commented that you are continuing to invest in commercial resources, but just maybe comment on how you balance trying to take out costs with how you want to continue focusing on organic growth.
Yes, the actions are completed Mike and they really were across all segments as well as.
At corporate and with respect to your last question to put things in perspective.
Sales head count this quarter was actually 3% higher than it was in the year ago second quarter, So that balance really comes in.
Where we're controlling discretionary costs back office.
Resources.
Across the company as a whole and you know that is of course always a challenge with respect to doing those actions and trying to invest for the future, but I think we have.
I think we found the right balance.
All right and then in terms of the strength that you're seeing in engineered materials. Just wondering how sustainable you feel like that could be given the momentum that you're seeing in certain areas.
Of course under the backdrop of slower some macro uncertainty and underlying macro weakness.
Yes, I mean, I think we're right in the middle of macroeconomic weakness so to see the growth that we have gives me a lot of confidence in the underlying portfolio and performance of the segment.
My expectation is that we will see some traditional seasonality in this business in the third and fourth quarter with the second being our strongest.
But if I put that in the context of how well we're doing versus year over year performance I feel.
Very good about the sustainability of their results.
Alright, thanks, very much yeah. Thanks bye.
Thank you and our next question comes from Mike Tyson with Keybanc. Your line is open.
Hey, guys.
Mmm corridor, there and then so if you think about the second half Bob you're looking for earnings growth to accelerate.
Versus the first half and and as he noted.
It doesn't seem like demand is getting much better. So can you maybe walk us through some of the drivers of the improved year over year earnings growth in the second half.
Yes, I mean, I think first of all Mike some of it is.
Obviously, just relative to where comparable results were in the prior year, if you recall from.
Our third quarter discussion last year.
September was one of the worst months, we've ever had and that really led to a really difficult fourth quarter or so.
That play is I think a role like in.
The in terms of how the year shapes up and how that earnings growth takes place over the back half of the year.
We obviously knew that when we talked a quarter ago and what's different now, though it's really I think our ability to deliver on the cost reductions the pricing improvement and.
Margin expansions and lastly.
Really just the underlying performance in engineered materials. So that's all really give us me.
Confidence again that assumes that things don't get any worse and that may be a big assumption, but with that in mind, Thats, where we come up with that full year estimated EPS growth.
Got it and then.
Composite seems to be getting a lot of momentum here can you maybe talk about where you're at in terms of profitability and size of the business and.
Maybe give us some feel of how fast that business is growing year over year.
Yep.
So in total when I combine fiber line was what.
Polyone already had in the composite space, which you know we have put together over the last four or so years through.
A series of acquisitions.
Composites is getting close to being about a $200 million business.
We had thus on an annual basis.
As you know we invested quite heavily in thermoplastic composites over the last few years and that is just now starting to.
Turner profits. So when you put the whole thing together we are now.
Well into the black so.
Really appreciate where we are from a composites perspective admit that fiber line as a big part of that which was a recent acquisition at the beginning of this year.
And their results are really doing better than we expected at the time, we did the deal.
Fiber line was down about $12 million of.
EBITDA and is exceeding that this year.
Great. Thanks, Bob.
Thank you and our next question comes from Frank Mitsch with.
Ternium research your line is open.
Hi, guys. This is these on for Frank.
As a.
Hi.
First off on the buyback.
I just wanted to get your thoughts on the balance of the year end.
Any level of buyback is.
Embedded in that 4% to 6% EPS growth forecast.
So we.
Typically don't ever give any projections on what our plans are with respect to the.
Share buybacks and so don't intend to change that right now.
It may be something that helps us get to a higher level of performance. If we find that it's opportunistic to keep doing so.
But at this point I think with the margin improvement cost reductions and performance in SCM, we feel.
Comfortable getting inside that range.
Where the shares that we bought back already this year. So hopefully that helps put that in perspective for the second half.
Okay.
And on the M&A environment.
Any thoughts on possible acquisition.
Our composite still the favorite sector.
We're always looking and certainly looking at it seems like lots of stuff.
I would absolutely love to build out the composites portfolio in a faster way.
As you know, Chris Paterson joined US in November of last year, who has a long history and background and composites I think with him here as part of our team that's only going to help us get that done faster. So certainly an area of focus you're spot on in that regard.
Okay.
Thank you.
Thank you. Our next question comes from Colin Rusch with Oppenheimer. Your line is open.
Thanks, So much can you talk a little bit about the opportunities for margin expansion, particularly gross margin expansion on the specialty engineered materials and how you're balancing that with.
Your growth plans.
Yes, I mean, I would say look first of all with respect to the the expectations that we have if you just look at where.
We are in the second quarter call and relative to what we did in the first quarter and in many respects.
For the company as a whole sales were effectively flat, we did see margin expansion across the board and really was the categories that I've already mentioned, so we'll continue to see the benefit of the cost reductions in the second half of the year.
I do think that.
Candidly just on our own better pricing and how we have been managing things like freight freight costs implementing surcharges et cetera, being more tactical in that regard.
I will also remain an opportunity.
And so that I think really kind of summarizes some of the tactical stuff, but when it just comes back to you.
What we do and how we do that with our specialty materials I think we have the opportunity for.
Better margins and pricing improvement and Thats not any one particular move it's just how we actually.
Manage the portfolio as a whole so it's kind of hard to describe really in an elevator speech, how that can work for color and engineered materials, but thats, where the focus is.
Okay that that's helpful. And then just shifting gears on the distribution business.
Is there.
Some some growth there like meaningful growth there I mean, obviously you're kind of running.
Of our run rate to the second half of last year and here in the first half is there something more that you guys can do there is that an opportunity or should we be thinking about that as kind of a flattish situation.
Well I mean, if you look at the second quarter I mean sales are actually down versus last year, but operating income was up so I give the team a lot of credit for.
Managing pricing doing the things that I, just talked about around discipline and transactional basis, but also managing inventory levels and that can play a huge role in the profitability of a distribution business in any one quarter. So.
Our operating income growth really comes is a composite if you will of all those things.
Underlying demand right now is not great right even.
North America, and where we're seeing things.
Thats impacting distribution so in the short term just based on what we're seeing from a macro standpoint, I don't have expectations for the high level of growth and distribution.
Longer term portion there remains a lot of opportunity to expand this business with more commercial resources and investment. This is a business that can be influenced by having more sales and marketing resources, we've seen it year after year.
And that's one of the reasons why I said, our sales force is still up 3% on a headcount basis. This year.
Okay. Thanks, so much guys.
Thank you and our next question comes from Ben Kallo with Baird. Your line is open.
Okay. Thanks.
Hey, Ben.
Hey, guys.
So just back on the on the question around acquisitions.
Maybe Brad could you just kind of talk us through.
Whoever is you have four.
For liquidity.
Because of the deal size that you're looking.
You know where your leverage ratio targets, where it go ahead.
Yep.
Happy to do that I mean, we've had as you know is you'll see in our Q our liquidity as a corporation.
It was right at about $400 million as we finished out.
The second quarter, so a very strong position, our net debt to EBITDA with a little over three.
And that's been coming down it went up a little bit because of the fiber line acquisition and that will continue to trend down throughout the year as we generate cash so I don't think our view on.
Acquisition have changed we've said look for the right opportunity will go up over three.
Maybe even the upper band of three but we have to have a clear line of sight in order to be able to get back below three and an 18 to 24 month period. So our financial framework in terms of how we look at that hasn't changed.
Great and then you talked about Bob you talked about.
The integration of some of the stuff you're doing.
Engineered materials.
Could you talk about the.
Color acquisition May soon and just how that's been performing.
Yes, and actually not have done.
A number of deals in the last few years and color areas. So.
Mesa, We also picked up the Rutland inks business and then more recently he cab based in Spain.
All three of those businesses are performing.
Better than they had in the year prior to us acquiring them.
They've done a great job of really becoming part of Polyone and fitting well with our culture. That's so important in the first year, everyone has had an improved safety record. We've retained all of our customers retain all of our key employees and seeing.
Very good integration today, so I'm very pleased with those three acquisitions.
Which really kind of accounts for the last couple of years of activity and.
In color.
Mesa itself has brought us some interesting technology in one or two markets, where we didnt have much of a presence before so.
We're excited about that too.
And then finally one of your competitors report I think just referred to before in their business grew it was a little weaker than expected.
Could you just kind of walk us through maybe the differences.
You're seeing in the business.
This growth in your business. Thanks.
I'm not sure I can comment on anyone else's performance, but.
From our perspective, the engineered materials business did see weakness in some of the areas that really are getting a lot of headline attention right now and like China in Europe specifically.
In transportation applications. So thats true I mean, there is an underlying macro effect there.
What has really made a difference for us in our results. This year has been that we have.
Obviously added fiber line.
You know the growth in fiber optic cable and specifically that longer term pull for Fiveg is just marching forward right and it hasn't been influenced yet.
Really by any of this macroeconomic noise. So thats a good guy and the composite wins I mean, I think that Theres a lot to be said for just winning new business out there.
Regardless of what's going on in the economy and I think those are really to the big.
Reasons for the growth so it's really around fiveg fiber optic cable and wire and cable applications as well as composites in general and that probably is the biggest differentiator.
Great. Thanks, guys.
Okay Man.
Thank you and next we have Dmitry Silversteyn with Buckingham Research Your line is open.
Good morning, guys. Thanks for taking my call.
Congratulations on a solid quarter.
Couple of questions first of all.
In terms of your raw material environment.
It should be getting better for you I guess, given the particularly the recent declines in some of the upstream chemicals can you talk about what you see happening in the second half of the year.
And not just in the sort of the commodity plastics area, but the other stuff that you buy is while the pigments giants or whatever it maybe are you looking at your basket of raw material costs.
In the second half of the year.
Yes, so I mean right now what I would say Dimitri is the baskets.
Probably moderated from a year over year standpoint.
But there really are probably a couple of things moving in opposite directions. So a number of underlying base resins have come down slightly versus the prior year, but where that's been offset in terms of our total spend an impact has been around.
Some of the special sauce ingredients, if you will like dyestuffs for our color segment.
There was a fire and explosion at a plant in China.
Earlier this year that has had a ripple effect through anyone who is buying those materials and so that has actually skyrocketed. So as I stand here right now I'd say, we'll some things have gone up perhaps favourably, but we've had some of the other special sauce items that have gone.
Against US again, the team credit for managing through both of those scenarios and doing well because we are getting margin expansion.
But thats kind of how I see things right now theres nothing that I would say that's different Dimitri about how the second half plays out versus what we just saw in the second quarter if that helps.
Okay that that does help thanks, Bob and then as a follow up on.
Pbms business.
You spent several years sort of moving it away from from the commodity more commodity construction type businesses in more into medical and other stuff and that was sort of driving your margin expansion.
And then we get into this.
Construction market slowdown in North America, and it seems like the bad assets sort of behaving like it behave and prior to your making this move so can you kind of size for us the relative sizes of the of the business that will give you an estimate still going into construction and more traditional applications versus the repositioning that youve gone into into medical in some of the higher growth and more stable markets.
Yes, I can look I'd say that this.
Business still does have.
You know a concentration of sales in those two end markets really ability construction as well as.
Transportation here.
In the U.S. so.
Billy construction site takes rate around 25% to 30% in transportation is around 17, 18 high teens to put things in perspective.
But while were on that word perspective, if you go back in time and recall there was a time when this business was almost entirely housing and auto ride. So we've really come a long way from where we were and yet we're feeling the impact of slower conditions in those two end markets. We just described but I can tie up and been for the work that we've done over the last decade it'd be a lot worse. So.
We have to take that into account that look we're still connected to those two industries when they're down will feel it but nowhere near to the extent that.
We would have say seven or eight years ago.
Okay about that that's helpful. I appreciate that perspective, so it does look like over 50% of your sales are outside of the kind of the old traditional markets for this business correct.
Okay. Thank you.
Sure.
Thanks, Good morning could you provide a little more detail on how you're viewing the fiveg opportunity just how large is that addressable market and how quickly do you expect it to ramp.
Yeah. So.
I think it's going to.
Well first of all for Fiveg is going to take place.
Yes, there's going to be global pull for Ed I would say that you know I probably talked about this on our last call my recent visit to.
China were you can just see towers going off on every other corner in blocks. So they are going to be.
A leader in terms of getting out there and actually getting it installed base.
I think that what you'll see is actually something that probably looks similar to how other generations have.
Expanded so even if you look at Fourg right now our predecessor.
Technologies State will encompass the entire United States, if I pick the US for example, right. There is still plenty of places that don't have access to the latest technology. So one of the things that I like most about Fiveg is that this is a multi year.
Growth opportunity for this business and for our segment, it's not something that's going to happen in one year and I really believe it will take place over the course of 12 or 15 years, but being very solid and steady double digit grower for us so.
That's how to put that in perspective, the owned notwithstanding just kind of all the noise around wawa and all that stuff that's going on right now technology is going to move forward right and people are going to put this in what they perceive it is better and so I don't see that changing as time moves on.
Thanks, and regarding performance products and solutions.
How are you evaluating your strategic options for that business at this point in time.
I don't think there's anything different to say about that with respect to how we think about our portfolio.
So no new news.
And on that segment would you say that second quarter represented just to catch up from maybe business that was lost due to weather in the first quarter or how sustainable or are your second quarter results in TPS.
Oh, I mean, I think theres certainly.
First of all yes, you're right in pointing out that the first quarter was.
Very difficult just in terms of how things started out with the.
From a weather impact in the construction space so.
I think there is some pick up year over year I still say construction is down.
And as a result of that you see the PPS segment impacted by it but.
Much better than what we saw in the first quarter and I believe that sustainable. So my sense is if you just want to put things into perspective here for the balance of the year.
You will see some traditional seasonality with respect to Q3, and Q4, but I'm not expecting else beyond that so I view, where we're at is quite sustainable.
Thank you.
Thank you and our next question comes from Kevin Hocevar with Northcoast Research. Your line is open.
Hey, good morning, everybody and nice quarter.
Hi, Kevin.
Brad cash flow is pretty strong in the quarter and in particular by working capital.
Did you control that quite well, so wondering what drove that and what type of cash generation do you think you can realize this year.
But Kevin as you know I mean, we continue to have.
Laser line of sight focus on our working capital.
I think we're best in class in terms of our working capital as a percent of.
Revenue and the organization clearly focused on that in a book we're on track I would said last quarter and I feel very good about our ability to generate $200 million of free cash flow this year and thats. After funding our capital program. So again, it's a combination of obviously the earnings performance, but then the working capital.
To drive that 200 million of free cash flow.
Okay, Great and then.
Bob did I hear you right did you say that composite.
I had a 10% margin.
Now and if so if my memory serves me right that wasn't.
I mean that seems like a nice improvement from where it was a year or two years ago, maybe correct me if I'm wrong anywhere in there, but if I am right, what's driving that night.
Improvement as its growing you're just getting nice leverage to the bottom line fiber line at that adding.
To the margin profile, maybe help me understand how that improved and how should we think of the margins there over the next two three years.
Yes, well as you know, we don't really get into specific product line detail for obvious reasons I can tell you that certainly fiber line.
Help with that margin improvement as we added to our portfolio. This year, but if you look at the legacy businesses that we have in composites, Kevin you know for probably two years it was running.
Negative EBIT basis. It just based on the level of investment we had an aunt and those have turned positive in the first half of this year. So while those legacy businesses may be in the low single digit type territory.
We're seeing really good growth and particularly around.
Today on the call I talked about these reinforcement applications.
Many of these are wins that have taken us three years or so.
To start to actually bring into the portfolio. So I feel very good about our longer term projections with respect to getting that business.
Up into the double digits here, it's not there yet but not its way.
Okay, great. Thank you very much.
Thank you. Our next question comes from Laurence Alexander with Jefferies. Your line is open.
Hi, Adam Davis on for Laurence today.
I was wondering firstly have proprietary products seen volumes swing more or less than the total business.
Yes, I think that.
No.
It really does depend my end market, it's difficult to answer that question quickly because I'd say well I can look into transportation and say you know a large chunk of that is.
As specified material and proprietary in nature, but if they're making last autos is just down so that doesn't really say anything about the underlying technology of us and whether or not proprietary or standard is moving that so it's difficult to bifurcate that impact where I think though that we have seen the greatest impact from.
Proprietary solutions has been in these sustainable applications, particularly in.
Barrier properties packaging and those are certainly some of the best performing products that we have this year. So that's the best way that I can answer that and don't really have a pie chart that would sort of break things down.
Okay. Great. That's helpful. And then last question in a situation or hypothetical world, where demand where do accelerate in to next year.
And how do you start to think about incremental margin.
Well I really like that hypothetical view you present, so hopefully it comes to fruition.
I think that.
One of the things that I think is always helpful.
For people to think about how margins evolved in our business is just to look at the seasonality across quarters now it varies by segment.
But if you look at the fourth quarter, which is traditionally our weakest of the year and then compared to the first or second.
It can give you a better sense of how margins can be influenced by simply topline growth. So that's a good starting point.
But certainly I think there is more going on than that right now.
With respect to better pricing and cost reductions.
And mix improvement that I think can help us do even better than that so.
If you go back to our last Investor Day, what we said about margin expansion is that is going to be heavily driven by sales growth in the long term, obviously, what we're experiencing right now some benefit from these other actions, but I think thats a good way to.
Do some of that homework and maybe put that into perspective on what happens when the market comes roaring back.
Okay, great. Thanks, guys.
Thank you next question comes from Rosemarie.
Morbelli with GE research your line is open.
Thank you good morning, everyone.
Good morning Rosemarie.
I was wondering if you could give us a little better feel for what.
Contributed to fiber lines better expectation than you previously thought when you bought it.
No.
Really I can't get into the intricacies. If you will of the earn out adjustment that Brad talked about and we disclosed.
You know at the time of the deal you just have to make your best estimate really about the near term performance and how an earn out will ultimately.
Get paid out when it does and so.
Look they are having a great year. It is entirely driven by the fiber optic wire cable applications.
And if I were to cite one particular factor that was better than we expected is probably that underlying demand in that area really.
Hasn't been impacted by some of all this other macroeconomic noise that's going on.
That doesn't mean that it can but it hasn't been to date and so thats, probably the single greatest factor.
Okay. Thanks.
And then you.
Keep mentioning seasonality, but construction given dilute the phils thoughts for the year.
Ill show continuing improvement in the third quarter versus the second quarter and say, okay, well of course, but wouldn't that be the case. This year I mean, the third quarter is still a construction seasonality.
Chunks isn't any type of environment, so, which other areas you'll being impacted in the in the third quarter.
Well look I would tell you that over the last.
11 years of my time here at Polyone, if I just look at construction related business in the second quarter is the strongest third quarter is the second strongest first pork. So it's 2314.
I don't expect that to change given how slow things started out in the first part of this year you might conclude that more activity takes place in Q3 as possible but.
At the same time it could just be that theres, a delay in projects and that gets pushed out to Q4 next year I think we really need to see how that happens and so potentially there can be a little less seasonality than what we see and because of that catch up effect, but.
I.
Okay. So in your projections you are anticipating dissented seasonality as in the past.
Thats, a good thing, but I think thats it captured already in.
Serve our perspective on EPS growth for the company for the full year.
Okay. Thanks, and just quickly for Brad I didn't catch the number of shares you bought back is the year to date.
In the second quarter, Brent if you could.
Linda.
Yes, absolutely we in the second quarter, we bought back a million shares.
At an average price of 20 691.
And do you mind, giving me the year to date.
That's the same.
Oh, I Didnt, we didnt buy shares in the first quarter.
All right great. Thank you.
Well. Thanks, Rosemarie is thanks to everyone, who joined US on the call today. We appreciate your time and attention. This morning, and your continued investment interest in Polyone look forward to updating you on our results at the conclusion of our third quarter take care.
Ladies and gentlemen, thank you for participating in today's conference. This concludes today's program you may all disconnect everyone have a great day.