Innospec Reports Second Quarter 2024 Financial Results
Innospec Inc. (NASDAQ: IOSP) reported its Q2 2024 financial results, showing mixed performance across divisions. Total revenues decreased 9% to $435.0 million, while net income increased to $31.2 million or $1.24 per diluted share. Adjusted non-GAAP EPS rose to $1.39 from $1.28 a year ago. Performance Chemicals saw strong growth, with operating income more than doubling. Fuel Specialties also improved, but Oilfield Services declined due to lower production chemical activity. The company maintains a strong financial position with $240.2 million in net cash and no debt. Innospec continues to focus on technology-led growth opportunities and potential M&A activities while returning value to shareholders through dividend growth.
Innospec Inc. (NASDAQ: IOSP) ha riportato i risultati finanziari del secondo trimestre del 2024, evidenziando performance miste tra le divisioni. I ricavi totali sono diminuiti del 9% a 435,0 milioni di dollari, mentre l'utile netto è aumentato a 31,2 milioni di dollari, pari a 1,24 dollari per azione diluita. L'EPS non-GAAP rettificato è salito a 1,39 dollari rispetto all'1,28 dollari di un anno fa. I prodotti chimici per le prestazioni hanno mostrato una forte crescita, con l'utile operativo che più che raddoppia. Anche le Specialità per carburanti hanno mostrato miglioramenti, ma i Servizi per il settore petrolifero sono diminuiti a causa di un'attività chimica di produzione più bassa. L'azienda mantiene una solidità finanziaria con 240,2 milioni di dollari in liquidità netta e senza debiti. Innospec continua a concentrarsi su opportunità di crescita guidate dalla tecnologia e su potenziali attività di M&A, continuando a restituire valore agli azionisti attraverso la crescita dei dividendi.
Innospec Inc. (NASDAQ: IOSP) reportó sus resultados financieros del segundo trimestre de 2024, mostrando un rendimiento mixto entre las divisiones. Los ingresos totales disminuyeron un 9% a 435.0 millones de dólares, mientras que el ingreso neto aumentó a 31.2 millones de dólares o 1.24 dólares por acción diluida. El EPS ajustado no-GAAP subió a 1.39 dólares desde 1.28 dólares hace un año. Los productos químicos de rendimiento vieron un fuerte crecimiento, con un ingreso operativo que más que se duplicó. Las especialidades de combustible también mejoraron, pero los servicios de campo petrolero disminuyeron debido a una menor actividad química en producción. La empresa mantiene una fuerte posición financiera con 240.2 millones de dólares en efectivo neto y sin deudas. Innospec sigue enfocándose en oportunidades de crecimiento impulsadas por la tecnología y potenciales actividades de fusiones y adquisiciones, al tiempo que devuelve valor a los accionistas a través del crecimiento de dividendos.
Innospec Inc. (NASDAQ: IOSP)는 2024년 2분기 재무 결과를 보고하며 부문 간 혼합 성과를 나타냈습니다. 총 수익이 9% 감소하여 4억 3,500만 달러에 달했습니다, 반면 순이익은 3,120만 달러로 증가했으며, 희석 주당 1.24달러입니다. 조정된 비-GAAP EPS는 1.39달러로 증가했습니다, 작년의 1.28달러에서 상승한 수치입니다. 성능 화학 제품은 강력한 성장을 보였고, 운영 수익이 두 배 이상 증가했습니다. 연료 전문 분야도 개선을 보였으나, 석유 필드 서비스는 생산 화학 활동의 감소로 인해 감소했습니다. 이 회사는 2억 4,020만 달러의 순 현금을 보유한 강력한 재무 상태를 유지하고 있으며 부채가 없습니다. Innospec은 기술 중심 성장 기회와 잠재적인 M&A 활동에 계속 집중하며, 배당금 성장을 통해 주주에게 가치를 반환하고 있습니다.
Innospec Inc. (NASDAQ: IOSP) a annoncé ses résultats financiers pour le deuxième trimestre de 2024, montrant une performance mitigée à travers les divisions. Les revenus totaux ont diminué de 9 % pour atteindre 435,0 millions de dollars, tandis que le bénéfice net a augmenté à 31,2 millions de dollars, soit 1,24 dollar par action diluée. Le BPA non-GAAP ajusté a augmenté à 1,39 dollar par rapport à 1,28 dollar l'année dernière. Les produits chimiques de performance ont connu une forte croissance, avec un revenu opérationnel plus que doublé. Les spécialités de carburant se sont également améliorées, mais les services pétroliers ont baissé en raison d'une baisse de l'activité chimique. L'entreprise maintient une position financière solide avec 240,2 millions de dollars de liquidités nettes et aucun endettement. Innospec continue de se concentrer sur des opportunités de croissance axées sur la technologie et des activités potentielles de fusions et acquisitions tout en restituant de la valeur à ses actionnaires grâce à la croissance des dividendes.
Innospec Inc. (NASDAQ: IOSP) hat seine finanziellen Ergebnisse für das zweite Quartal 2024 veröffentlicht, die eine gemischte Leistung in den verschiedenen Bereichen zeigen. Der Gesamtumsatz sank um 9% auf 435,0 Millionen Dollar, während das Nettoeinkommen auf 31,2 Millionen Dollar oder 1,24 Dollar pro verwässerter Aktie anstieg. Der angepasste Non-GAAP EPS stieg auf 1,39 Dollar im Vergleich zu 1,28 Dollar im vergangenen Jahr. Die Leistungschemikalien verzeichneten ein starkes Wachstum, wobei das Betriebsergebnis sich mehr als verdoppelte. Auch die Kraftstoff-Spezialitäten verbesserten sich, aber die Dienstleitungen im Ölbereich gingen aufgrund einer geringeren Produktion chemischer Aktivitäten zurück. Das Unternehmen hält eine starke finanzielle Position mit 240,2 Millionen Dollar Nettobarvermögen und ohne Schulden. Innospec konzentriert sich weiterhin auf technologiegetriebene Wachstumschancen und potenzielle M&A-Aktivitäten, während es den Aktionären durch Dividendenwachstum Wert zurückgibt.
- Performance Chemicals operating income more than doubled year-over-year
- Fuel Specialties operating income up double digits with margin expansion
- Overall operating income grew 19% with improved operating margins
- Adjusted non-GAAP EPS increased to $1.39 from $1.28 year-over-year
- Strong financial position with $240.2 million in net cash and no debt
- Total revenues decreased 9% to $435.0 million
- Oilfield Services results significantly impacted by lower production chemical activity
- Oilfield Services revenues down 45% year-over-year
- Oilfield Services operating income decreased 74% from prior year period
- Cash provided by operating activities decreased to $4.7 million from $55.0 million a year ago
Insights
Innospec's Q2 2024 results show a mixed performance across its business segments. The company reported
The standout performer was the Performance Chemicals segment, with operating income more than doubling due to strong demand in personal care. Fuel Specialties also showed improvement with double-digit operating income growth. However, Oilfield Services faced significant headwinds, with revenues down
Innospec maintains a strong financial position with no debt and over
Innospec's Q2 results highlight the divergent trends in its end markets. The personal care sector's robust growth is driving Performance Chemicals' success, reflecting broader consumer trends towards mild and natural products. This aligns with the global shift towards sustainable and eco-friendly personal care items.
The Fuel Specialties segment's performance suggests resilience in both fuel and non-fuel applications, potentially benefiting from the ongoing energy transition and increased focus on fuel efficiency. However, the significant decline in Oilfield Services points to broader challenges in the oil and gas sector, possibly related to production cuts and market volatility.
Innospec's geographic diversification strategy, evident in the recent acquisition of QGP Quimica, could help mitigate regional market fluctuations. The company's strong cash position and debt-free status provide a solid foundation for navigating market uncertainties and pursuing growth opportunities. Investors should watch for signs of recovery in the Oilfield Services segment and continued momentum in Performance Chemicals and Fuel Specialties.
Innospec's Q2 results underscore the company's strategic positioning in high-value specialty chemical markets. The exceptional performance in Performance Chemicals, particularly in personal care, demonstrates Innospec's ability to capitalize on consumer trends favoring mild and natural ingredients. This success likely stems from ongoing R&D investments and a deep understanding of market needs.
The Fuel Specialties segment's margin improvement to
The challenges in Oilfield Services are concerning but not entirely unexpected given the volatility in the oil and gas sector. Innospec's commitment to technology-led solutions in this segment could position it well for a potential recovery. The company's overall margin expansion and strong cash position indicate effective cost management and operational efficiency. Looking ahead, Innospec's emphasis on organic investments and complementary M&A could further strengthen its market position across key segments.
Performance Chemicals operating income more than doubles on personal care growth
Fuel Specialties operating income up double digits with margin expansion
As expected, Oilfield Services results impacted by lower production chemical activity
Debt-free balance sheet with over
GAAP EPS
ENGLEWOOD, Colo., Aug. 06, 2024 (GLOBE NEWSWIRE) -- Innospec Inc. (NASDAQ: IOSP) today announced its financial results for the second quarter ended June 30, 2024.
Total revenues for the second quarter were
Results for this quarter include some special items, which are summarized in the table below. Excluding these items, adjusted non-GAAP EPS in the second quarter was
Cash from operating activities was
Adjusted EBITDA, income before income taxes excluding special items and net income excluding special items and related per-share amounts together with net cash, are non-GAAP financial measures that are defined and reconciled with GAAP results herein and in the schedules below.
| Quarter ended June 30, 2024 | Quarter ended June 30, 2023 | |||||||||||||||||
| (in millions, except share and per share data) | Income before income taxes | Net income | Diluted EPS | Income before income taxes | Net income | Diluted EPS | ||||||||||||
| Reported GAAP amounts | $ | 43.7 | $ | 31.2 | $ | 1.24 | $ | 36.6 | $ | 28.9 | $ | 1.16 | ||||||
| Amortization of acquired intangible assets | 3.2 | 2.4 | 0.10 | 2.6 | 2.0 | 0.08 | ||||||||||||
| Legacy costs of closed operations | 0.8 | 0.6 | 0.02 | 0.9 | 0.7 | 0.03 | ||||||||||||
| Adjustment to fair value of contingent consideration | 0.6 | 0.4 | 0.02 | - | - | - | ||||||||||||
| Adjustment of income tax provisions | - | 0.2 | 0.01 | - | 0.3 | 0.01 | ||||||||||||
| Foreign currency exchange losses/(gains) | 0.1 | 0.1 | - | (1.2 | ) | (0.9 | ) | (0.04 | ) | |||||||||
| Acquisition related costs | - | - | - | 1.5 | 1.1 | 0.04 | ||||||||||||
| 4.7 | 3.7 | 0.15 | ||||||||||||||||
| Adjusted non-GAAP amounts | $ | 48.4 | $ | 34.9 | $ | 1.39 | $ | 40.4 | $ | 32.1 | $ | 1.28 | ||||||
Commenting on the second quarter results, Patrick S. Williams, President and Chief Executive Officer, said,
“This was a mixed quarter for Innospec as Fuel Specialties and Performance Chemicals continued to deliver strong results while Oilfield Services declined as expected on significant production chemical headwinds. Nevertheless, overall operating income grew 19 percent and operating margins improved.
Performance Chemicals operating income more than doubled over the prior year on higher sales and improved gross margins. Demand for our mild and natural personal care technologies continued to drive growth in operating income. We are excited by opportunities in all our end-markets and remain cautiously optimistic that we can maintain these improved results in the second half of 2024. Our recent acquisition of QGP Quimica is performing in line with expectations and is well positioned for growth.
In Fuel Specialties, gross margins were at the upper end of our targeted 32 to 35 percent range and operating income and margins improved over the prior year. We continue to target further sales growth and margin improvement in the business as we pursue a diverse set of end-market and geographic opportunities in both fuel and non-fuel applications.
As anticipated, Oilfield Services results were impacted by significantly lower production chemical activity in the quarter. As of the end of July this activity has not recovered. While potential remains for some near-term recovery in this business, we currently expect to see lower sales levels continuing through the second half of 2024. In parallel we plan to remain focused on several exciting, technology-based sales growth and margin improvement opportunities in our other oilfield segments.”
Revenues in Performance Chemicals of
Revenues in Fuel Specialties of
Revenues in Oilfield Services of
Corporate costs for the quarter were
The effective tax rate for the quarter was 28.6 percent compared to 21.0 percent in the same period last year reflecting the geographical location of taxable profits.
For the quarter, cash provided by operating activities was
Mr. Williams concluded,
“I am very pleased with the strong results in Fuel Specialties and Performance Chemicals in the quarter. We continue to execute as expected against a broad set of technology-led growth opportunities in these businesses. While the results and short-term outlook in Oilfield Services are clearly below our targeted range, our team remains intensely focused on leveraging our leading customer service and technology to build a stronger medium to long-term business.
With over
Use of Non-GAAP Financial Measures
The information presented in this press release includes financial measures that are not calculated or presented in accordance with Generally Accepted Accounting Principles in the United States (GAAP). These non-GAAP financial measures comprise adjusted EBITDA, income before income taxes excluding special items, net income excluding special items and related per share amounts together with net cash. Adjusted EBITDA is net income per our consolidated financial statements adjusted for the exclusion of interest (income)/expense, net, income taxes, depreciation and amortization, foreign currency exchange losses/(gains), legacy costs of closed operations, adjustment to fair value of contingent consideration and acquisition related costs. Income before income taxes, net income and diluted EPS, excluding special items, per our consolidated financial statements are adjusted for the exclusion of amortization of acquired intangible assets, legacy costs of closed operations, adjustment to fair value of contingent consideration, adjustment of income tax provisions, foreign currency exchange losses/(gains) and acquisition related costs. Net cash is cash and cash equivalents less total debt. Reconciliations of these non-GAAP financial measures to their most directly comparable GAAP financial measures are provided herein and in the schedules below. The Company believes that such non-GAAP financial measures provide useful information to investors and may assist them in evaluating the Company’s underlying performance and identifying operating trends. In addition, these non-GAAP measures address questions the Company routinely receives from analysts and investors and the Company has determined that it is appropriate to make this data available to all investors. While the Company believes that such measures are useful in evaluating the Company’s performance, investors should not consider them to be a substitute for financial measures prepared in accordance with GAAP. In addition, these non-GAAP financial measures may differ from similarly titled non-GAAP financial measures used by other companies and do not provide a comparable view of the Company’s performance relative to other companies in similar industries. Management uses adjusted EPS (the most directly comparable GAAP financial measure for which is GAAP EPS) and net income excluding special items and adjusted EBITDA (the most directly comparable GAAP financial measure for which is GAAP net income) to allocate resources and evaluate the performance of the Company’s operations and has provided a reconciliation of adjusted EBITDA and net income excluding special items, and related per share amounts, to GAAP net income herein and in the schedules below.
About Innospec Inc.
Innospec Inc. is an international specialty chemicals company with approximately 2,400 employees in 22 countries. Innospec manufactures and supplies a wide range of specialty chemicals to markets in the Americas, Europe, the Middle East, Africa and Asia-Pacific. The Performance Chemicals business creates innovative technology-based solutions for our customers in the Personal Care, Home Care, Agrochemical, Mining and Industrial markets. The Fuel Specialties business specializes in manufacturing and supplying fuel additives that improve fuel efficiency, boost engine performance and reduce harmful emissions. Oilfield Services provides specialty chemicals to all elements of the oil and gas exploration and production industry.
Forward-Looking Statements
This press release contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts included or incorporated herein may constitute forward-looking statements. Such forward-looking statements include statements (covered by words like “expects,” “estimates,” “anticipates,” “may,” “could,” “believes,” “feels,” “plans,” “intends” or similar words or expressions, for example) which relate to earnings, growth potential, operating performance, events or developments that we expect or anticipate will or may occur in the future. Although forward-looking statements are believed by management to be reasonable when made, they are subject to certain risks, uncertainties and assumptions, and our actual performance or results may differ materially from these forward-looking statements. Additional information regarding risks, uncertainties and assumptions relating to Innospec and affecting our business operations and prospects are described in Innospec’s Annual Report on Form 10-K for the year ended December 31, 2023, Innospec’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2024 and other reports filed with the U.S. Securities and Exchange Commission. You are urged to review our discussion of risks and uncertainties that could cause actual results to differ from forward-looking statements under the heading "Risk Factors” in such reports. Innospec undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Contacts:
Corbin Barnes
Innospec Inc.
+44-151-355-3611
corbin.barnes@innospecinc.com
| INNOSPEC INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||
| Schedule 1 | |||||||||||||
| Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||
| (in millions, except share and per share data) | 2024 | 2023 | 2024 | 2023 | |||||||||
| Net sales | $ | 435.0 | $ | 480.4 | $ | 935.2 | $ | 990.0 | |||||
| Cost of goods sold | (308.1 | ) | (330.0 | ) | (652.6 | ) | (691.8 | ) | |||||
| Gross profit | 126.9 | 150.4 | 282.6 | 298.2 | |||||||||
| Operating expenses: | |||||||||||||
| Selling, general and administrative | (73.4 | ) | (105.6 | ) | (166.1 | ) | (201.8 | ) | |||||
| Research and development | (12.2 | ) | (10.6 | ) | (24.0 | ) | (21.2 | ) | |||||
| Adjustment to fair value of contingent consideration | (0.6 | ) | - | (1.4 | ) | - | |||||||
| Profit on disposal of property, plant and equipment | - | - | 0.1 | - | |||||||||
| Total operating expenses | (86.2 | ) | (116.2 | ) | (191.4 | ) | (223.0 | ) | |||||
| Operating income | 40.7 | 34.2 | 91.2 | 75.2 | |||||||||
| Other income, net | 0.9 | 2.7 | 3.6 | 6.4 | |||||||||
| Interest income/(expense), net | 2.1 | (0.3 | ) | 4.2 | - | ||||||||
| Income before income taxes | 43.7 | 36.6 | 99.0 | 81.6 | |||||||||
| Income taxes | (12.5 | ) | (7.7 | ) | (26.4 | ) | (19.5 | ) | |||||
| Net income | $ | 31.2 | $ | 28.9 | $ | 72.6 | $ | 62.1 | |||||
| Earnings per share: | |||||||||||||
| Basic | $ | 1.25 | $ | 1.16 | $ | 2.91 | $ | 2.50 | |||||
| Diluted | $ | 1.24 | $ | 1.16 | $ | 2.89 | $ | 2.48 | |||||
| Weighted average shares outstanding (in thousands): | |||||||||||||
| Basic | 24,937 | 24,868 | 24,918 | 24,835 | |||||||||
| Diluted | 25,097 | 24,980 | 25,091 | 25,010 | |||||||||
| INNOSPEC INC. AND SUBSIDIARIES | ||||||||||||
| Schedule 2A | ||||||||||||
| SEGMENTAL ANALYSIS OF RESULTS | Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||
| (in millions) | 2024 | 2023 | 2024 | 2023 | ||||||||
| Net sales: | ||||||||||||
| Performance Chemicals | $ | 160.1 | $ | 127.8 | $ | 320.9 | $ | 279.2 | ||||
| Fuel Specialties | 166.6 | 154.2 | 343.5 | 344.5 | ||||||||
| Oilfield Services | 108.3 | 198.4 | 270.8 | 366.3 | ||||||||
| 435.0 | 480.4 | 935.2 | 990.0 | |||||||||
| Gross profit: | ||||||||||||
| Performance Chemicals | 36.2 | 22.0 | 73.9 | 46.1 | ||||||||
| Fuel Specialties | 57.6 | 44.8 | 118.2 | 102.2 | ||||||||
| Oilfield Services | 33.1 | 83.6 | 90.5 | 149.9 | ||||||||
| 126.9 | 150.4 | 282.6 | 298.2 | |||||||||
| Operating income: | ||||||||||||
| Performance Chemicals | 21.2 | 9.2 | 42.3 | 19.6 | ||||||||
| Fuel Specialties | 30.4 | 17.1 | 63.8 | 49.5 | ||||||||
| Oilfield Services | 7.3 | 28.0 | 24.2 | 43.9 | ||||||||
| Corporate costs | (17.6 | ) | (20.1 | ) | (37.8 | ) | (37.8 | ) | ||||
| 41.3 | 34.2 | 92.5 | 75.2 | |||||||||
| Adjustment to fair value of contingent consideration | (0.6 | ) | - | (1.4 | ) | - | ||||||
| Profit on disposal of property, plant and equipment | - | - | 0.1 | - | ||||||||
| Total operating income | $ | 40.7 | $ | 34.2 | $ | 91.2 | $ | 75.2 | ||||
| Schedule 2B | ||||||||||||
| NON-GAAP MEASURES | Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||
| (in millions) | 2024 | 2023 | 2024 | 2023 | ||||||||
| Net income | $ | 31.2 | $ | 28.9 | $ | 72.6 | $ | 62.1 | ||||
| Interest (income)/expense, net | (2.1 | ) | 0.3 | (4.2 | ) | - | ||||||
| Income taxes | 12.5 | 7.7 | 26.4 | 19.5 | ||||||||
| Depreciation and amortization | 11.0 | 9.3 | 21.3 | 18.5 | ||||||||
| Foreign currency exchange losses/(gains) | 0.1 | (1.2 | ) | (1.0 | ) | (3.2 | ) | |||||
| Legacy costs of closed operations | 0.8 | 0.9 | 1.6 | 1.7 | ||||||||
| Adjustment to fair value of contingent consideration | 0.6 | - | 1.4 | - | ||||||||
| Acquisition related costs | - | 1.5 | - | 1.5 | ||||||||
| Adjusted EBITDA | 54.1 | 47.4 | 118.1 | 100.1 | ||||||||
| Schedule 3 | ||||||
| INNOSPEC INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
| (in millions) | June 30, 2024 | December 31, 2023 | ||||
| Assets | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 240.2 | $ | 203.7 | ||
| Trade and other accounts receivable | 300.3 | 359.8 | ||||
| Inventories | 313.5 | 300.1 | ||||
| Prepaid expenses | 9.7 | 18.7 | ||||
| Prepaid income taxes | 12.1 | 2.8 | ||||
| Other current assets | 1.0 | 0.6 | ||||
| Total current assets | 876.8 | 885.7 | ||||
| Net property, plant and equipment | 271.9 | 268.3 | ||||
| Operating lease right-of-use assets | 47.9 | 45.1 | ||||
| Goodwill | 388.2 | 399.3 | ||||
| Other intangible assets | 61.4 | 57.3 | ||||
| Deferred tax assets | 10.4 | 10.4 | ||||
| Pension asset | 37.0 | 35.1 | ||||
| Other non-current assets | 6.7 | 6.2 | ||||
| Total assets | $ | 1,700.3 | $ | 1,707.4 | ||
| Liabilities and Stockholders’ Equity | ||||||
| Current liabilities: | ||||||
| Accounts payable | $ | 147.7 | $ | 163.6 | ||
| Accrued liabilities | 143.1 | 185.9 | ||||
| Current portion of operating lease liabilities | 14.9 | 13.6 | ||||
| Current portion of plant closure provisions | 4.6 | 4.6 | ||||
| Current portion of accrued income taxes | 21.3 | 2.6 | ||||
| Current portion of unrecognized tax benefits | 1.2 | 1.2 | ||||
| Total current liabilities | 332.8 | 371.5 | ||||
| Operating lease liabilities, net of current portion | 33.2 | 31.6 | ||||
| Plant closure provisions, net of current portion | 56.5 | 57.0 | ||||
| Accrued income taxes, net of current portion | - | 11.6 | ||||
| Unrecognized tax benefits, net of current portion | 10.7 | 13.6 | ||||
| Deferred tax liabilities | 35.4 | 33.5 | ||||
| Pension liabilities and post-employment benefits | 12.7 | 13.3 | ||||
| Acquisition-related contingent consideration | 20.2 | 23.4 | ||||
| Other non-current liabilities | 2.9 | 2.3 | ||||
| Equity | 1,195.9 | 1,149.6 | ||||
| Total liabilities and equity | $ | 1,700.3 | $ | 1,707.4 | ||
| Schedule 4 | ||||||
| INNOSPEC INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||
| Six Months Ended June 30 | ||||||
| (in millions) | 2024 | 2023 | ||||
| Cash Flows from Operating Activities | ||||||
| Net income | $ | 72.6 | $ | 62.1 | ||
| Adjustments to reconcile net income to cash provided by operating activities: | ||||||
| Depreciation and amortization | 21.5 | 19.2 | ||||
| Adjustment to fair value of contingent consideration | 1.4 | - | ||||
| Deferred taxes | 0.7 | 1.1 | ||||
| Profit on disposal of property, plant and equipment | (0.1 | ) | - | |||
| Non-cash movements on defined benefit pension plans | (1.6 | ) | (1.7 | ) | ||
| Stock option compensation | 4.2 | 3.9 | ||||
| Changes in working capital | (10.0 | ) | 11.5 | |||
| Movements in plant closure provisions | (0.1 | ) | (0.5 | ) | ||
| Movements in income taxes | (0.1 | ) | (21.6 | ) | ||
| Movements in unrecognized tax benefits | (2.9 | ) | 0.6 | |||
| Movements in other assets and liabilities | (0.3 | ) | 2.2 | |||
| Net cash provided by operating activities | 85.3 | 76.8 | ||||
| Cash Flows from Investing Activities | ||||||
| Capital expenditures | (21.6 | ) | (32.6 | ) | ||
| Proceeds on disposal of property, plant and equipment | 0.2 | - | ||||
| Business combinations, net of cash acquired | (0.2 | ) | - | |||
| Internally developed software | (8.1 | ) | (6.7 | ) | ||
| Net cash used in investing activities | (29.7 | ) | (39.3 | ) | ||
| Cash Flows from Financing Activities | ||||||
| Non-controlling interest | 0.8 | 0.2 | ||||
| Refinancing costs | (0.3 | ) | (1.5 | ) | ||
| Dividend paid | (19.0 | ) | (17.2 | ) | ||
| Issue of treasury stock | 0.8 | 0.7 | ||||
| Repurchase of common stock | (0.7 | ) | (1.0 | ) | ||
| Net cash used in financing activities | (18.4 | ) | (18.8 | ) | ||
| Effect of foreign currency exchange rate changes on cash | (0.7 | ) | 0.1 | |||
| Net change in cash and cash equivalents | 36.5 | 18.8 | ||||
| Cash and cash equivalents at beginning of period | 203.7 | 147.1 | ||||
| Cash and cash equivalents at end of period | $ | 240.2 | $ | 165.9 | ||
Amortization of deferred finance costs of
FAQ
What were Innospec's (IOSP) Q2 2024 revenue and earnings?
How did Innospec's (IOSP) Performance Chemicals segment perform in Q2 2024?
What was the performance of Innospec's (IOSP) Oilfield Services segment in Q2 2024?
What is Innospec's (IOSP) financial position as of Q2 2024?
