Kraton Performance Polymers Inc. (NYSE:KRA) Q3 2018 Earnings Conference Call Transcript

Oct 25, 2018 • 09:00 am ET

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Kraton Performance Polymers Inc. (NYSE:KRA) Q3 2018 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good morning, and welcome to the Kraton Corporation Third Quarter 2018 Earnings Conference Call. My name is Kirby, and I'll be your conference facilitator. (Operator Instructions) Today's conference is being recorded. If you have any objections, you may disconnect at this time.I will now turn the call over to Mr. Gene Shiels, Director of IR. You may begin.

Executive
Gene Shiels

Thank you, Kirby. Good morning, everybody, and welcome to the Kraton Corporation Third Quarter 2018 Earnings Call. With me on the call this morning are Kevin Fogarty, Kraton's President and CEO; and Steve Tremblay, Kraton's EVP and CFO.

A copy of the third quarter news release and the related presentation material we'll review this morning is available on the Investor Relations section of our website.

(Forward-Looking Cautionary Statements)

Following our prepared remarks, we'll open the lines for your questions. I'll now turn the call over to Kevin Fogarty.

Executive
Kevin Fogarty

Thanks, Gene, and good morning, everyone. Before I begin and talk about our results for the third quarter, I want to address the impact of Hurricane Michael on our plant in Panama City. Having seen the devastation in Panama City firsthand last week, it is difficult to adequately convey to you the impact hurricane has had on the people and infrastructure of Panama City. Our thoughts are with our employees and everyone in the region who are working through the aftermath of the hurricane. As it appeared likely that Hurricane Michael was headed our way, our top priority was and still is for the safety of our employees. Thankfully, our employees remained safe. However, the damage to many employees' homes range from minor to total losses.

We're working to support and provide assistance to our employees that have been impacted. While Panama City itself was spared from the storm surge and the flooding that hit areas to the west, our plant was damaged by high winds. Thankfully, our plant in Pensacola, Florida was not significantly affected by the hurricane, and it resumed operations on October 11. Likewise, our warehouse in Marianna only sustained minor water damage, and we resumed shipments from our warehouse on October 19.

I want to commend our Panama City team, not only for their efforts in shutting down and securing the plant in advance of Michael making landfall, but also for their ongoing efforts despite personal adversity as they work to restore operations at the plant. Initial high-level assessments of damage include loss of power to the site, damage to two cooling towers, damage to a fractionation column and roof and siding damage to numerous buildings. Over the past few days, we have been able to restore power to a number of areas at our site, but portions still remain without power. Demolition of the damaged cooling towers is underway, and temporary cooling towers are now on site.

We're in the process of completing a full and detailed assessment of critical plant components and site infrastructure. We will need to complete this assessment in order for us to determine when full