Knowles Corporation announced unaudited consolidated earnings results for the fourth quarter and year ended December 31, 2017. For the quarter, the company reported revenues of $215.5 million against $212.9 million a year ago. Operating earnings were $37.7 million against $27.7 million a year ago. Earnings before income taxes and discontinued operations were $34.2 million against $23.2 million a year ago. Earnings from continuing operations were $31.9 million against $16.4 million a year ago. Net earnings were $85.5 million against $19.3 million a year ago. Diluted earnings per share from continuing operations were $0.35 against basic and diluted earnings per share from continuing operations of $0.18 a year ago. Diluted net earnings per share were $0.94 against $0.22 a year ago. Earnings from continuing operations before interest and income taxes were $39.4 million against $28.5 million a year ago. Adjusted earnings from continuing operations before interest and income taxes were $51.6 million against $36.3 million a year ago. Non-GAAP net earnings were $36.6 million against $29.5 million a year ago. Non-GAAP diluted earnings per share were $0.40 against $0.32 a year ago. For the quarter, cash flow from operations was $62 million and capital spending was $8 million.

For the year, the company reported revenues of $744.2 million against $755.7 million a year ago. Operating earnings were $40.5 million against $45.2 million a year ago. Earnings before income taxes and discontinued operations were $19.4 million against $28.1 million a year ago. Earnings from continuing operations were $6.50 million against $19.8 million a year ago. Net earnings were $68.3 million against loss of $42.3 million a year ago. Basic and diluted earnings per share from continuing operations were $0.07 against $0.22 a year ago. Diluted net earnings per share were $0.68 against LPS of $0.47 a year ago. Earnings from continuing operations before interest and income taxes were $40.0 million against $48.5 million a year ago. Adjusted earnings from continuing operations before interest and income taxes were $110.6 million against $99.7 million a year ago. Non-GAAP net earnings were $81.2 million against $80.5 million a year ago. Non-GAAP diluted earnings per share were $0.88 against $0.89 a year ago. Net cash provided by operating activities was $92.9 million against $107.5 million a year ago. Additions to property, plant, and equipment were $51.6 million against $38.7 million a year ago. The company ended 2017 with net debt of $110 million.

The company provided guidance for the quarter ending March 31, 2018 is on a continuing operations basis: the company expected revenue between $170 million to $190 million, with the midpoint come up 7% from the year ago period. The company expects gross profit margin between 36% to 38% and EPS between $0.00 to $0.04. On the non-GAAP basis, the company expected revenue between $170 million to $190 million, gross profit margin between 37% to 39% and EPS between $0.10 to $0.14. GAAP results for continuing operations are expected to include approximately $0.04 per share in stock-based compensation, $0.04 per share from a higher effective tax rate, $0.01 per share in amortization of debt discount, and $0.01 per share in amortization of intangibles. Expected GAAP results exclude potential restructuring items. Capital spending in the quarter is expected to be approximately $30 million and includes $10 million of spending which was originally planned for the fourth quarter of 2017. The company is projecting adjusted EBIT margin for the quarter to be in the range of 9% to 11%. For the first quarter, the company expects cash utilized in operations to be between $5 million and $15 million.

Due to the impact of U.S. tax reform, the company now expects that its non-GAAP 2018 effective tax rate will be between 15% and 19%.