Kronos Acquisition Holdings Inc.

Overview Key strengths Key risks Good market position in a fragmented, competitive, and mature industry with modest product diversity Volatile earnings and cash flows owing to variable commodity costs, volume, and foreign exchange Effective pricing pass-through to offset cost inflation and variable cost structure helps maintain profitability Delayed production at Lakes Charles facility could hinder margin improvement Unfavorable weather patterns could challenge consumers demand for pool products For the last 12 months (LTM) ended Sept. 30, 2023, Kronos Acquisition Holdings Inc.'s revenues were up 6.1% year over year to $2.03 billion, supported by the pricing actions implemented in fiscal 2022 and growth in the household and automotive divisions partially offset by lower demand at the pool business. In response to

...Pricing pass-through and increase in volume should result in improved credit measures over the next 12 months. For the last 12 months (LTM) ended Sept. 30, 2023, Kronos Acquisition Holdings Inc.'s revenues were up 6.1% year over year to $2.03 billion, supported by the pricing actions implemented in fiscal 2022 and growth in the household and automotive divisions partially offset by lower demand at the pool business. In response to the elevated cost environment, Kronos had taken strategic pricing actions, which reaped benefits through the third quarter of 2023, and S&P Global Ratings expects maintaining these pricing actions will continue benefit the company's margins through fiscal 2024. Furthermore, we believe that as the rebuilt Lake Charles facility becomes fully operational as in few months its cost burden from sourced Trichloroisocyanuric acid (TCCA) will ease supporting higher profitability and potentially less volatility. As a result, we now expect Kronos will sustain a debt-to-EBITDA...

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