Orion S.A. Reports Second Quarter Financial Results
Second Quarter 2023 Financial Highlights
-
Net sales of
$458.8 million $82.4 million -
Net income of
$30.1 million $0.4 million -
Diluted EPS of
$0.51 $0.02 -
Adjusted EBITDA1 of
$87 million 5% , year over year -
Adjusted Diluted EPS1 of
$0.53 $0.05
1 The reconciliations of Non-U.S. GAAP (“GAAP”) measures to the respective most comparable GAAP measures are provided in the section titled Reconciliation of Non-GAAP Financial Measures below.
“We achieved our second highest quarterly Adjusted EBITDA,
Jeff Glajch, Orion’s chief financial officer added, “In addition to the solid earnings results outlined by Corning, we continue to generate strong cash flow in the first half of 2023, which allowed us to repurchase
Second Quarter 2023 Overview:
(In millions, except per share data or stated otherwise) |
|
Q2 2023 |
|
Q2 2022 |
|
Y/Y Change |
|
Y/Y Change in % |
Volume (kmt) |
|
227.3 |
|
251.4 |
|
(24.1) |
|
(9.6)% |
Net sales |
|
458.8 |
|
541.2 |
|
(82.4) |
|
(15.2)% |
Gross profit |
|
117.1 |
|
119.8 |
|
(2.7) |
|
(2.3)% |
Gross profit per metric ton(1) |
|
515.2 |
|
476.5 |
|
38.7 |
|
|
Income from operations |
|
58.9 |
|
52.9 |
|
6.0 |
|
|
Net income |
|
30.1 |
|
29.7 |
|
0.4 |
|
|
Adjusted net income |
|
31.5 |
|
35.3 |
|
(3.8) |
|
(10.8)% |
Adjusted EBITDA(1) |
|
87.3 |
|
83.4 |
|
3.9 |
|
|
Basic EPS |
|
0.51 |
|
0.49 |
|
0.02 |
|
|
Diluted EPS |
|
0.51 |
|
0.49 |
|
0.02 |
|
|
Adjusted Diluted EPS(1) |
|
0.53 |
|
0.58 |
|
(0.05) |
|
(8.6)% |
(1) |
|
The reconciliations of these non-GAAP measures to the respective most comparable GAAP measures are provided in the section titled Reconciliation of Non-GAAP Financial Measures. |
Volume decreased by 24.1 kmt, year over year. The global economic slowdown impacted both segments.
Net sales decreased by
Gross profit decreased by
Income from operations increased by
Adjusted EBITDA increased by
Quarterly Business Segment Results
SPECIALTY |
||||||||
|
|
|
|
|
|
|
|
|
(In millions, unless stated otherwise) |
|
Q2 2023 |
|
Q2 2022 |
|
Y/Y Change |
|
Y/Y Change in % |
Volume (kmt) |
|
53.6 |
|
59.7 |
|
(6.1) |
|
(10.2)% |
Net sales |
|
149.5 |
|
181.9 |
|
(32.4) |
|
(17.8)% |
Gross profit |
|
42.6 |
|
60.6 |
|
(18.0) |
|
(29.7)% |
Gross profit per metric ton(1) |
|
794.8 |
|
1,015.1 |
|
(220.3) |
|
(21.7)% |
Adjusted EBITDA |
|
29.9 |
|
45.4 |
|
(15.5) |
|
(34.1)% |
Adjusted EBITDA/metric ton |
|
557.8 |
|
760.5 |
|
(202.6) |
|
(26.6)% |
Adjusted EBITDA margin (%)(1) |
|
|
|
|
|
(500)bps |
|
(20.0)% |
(1) |
|
For Non-GAAP measures definitions refer to Cautionary Statement for the Purposes of the “Safe Harbor” Provisions of the Private Securities Litigation Reform Act of 1995 below. |
Specialty Carbon Black segment volume declined by 6.1 kmt, or
Net sales decreased by
Adjusted EBITDA declined by
Year over year, Adjusted EBITDA per ton decreased by
Year over year, Adjusted EBITDA margin decreased 500 basis points to
RUBBER |
||||||||
|
|
|
|
|
|
|
|
|
(In millions, unless stated otherwise) |
|
Q2 2023 |
|
Q2 2022 |
|
Y/Y Change |
|
Y/Y Change in % |
Volume (kmt) |
|
173.7 |
|
191.7 |
|
(18.0) |
|
(9.4)% |
Net sales |
|
309.3 |
|
359.3 |
|
(50.0) |
|
(13.9)% |
Gross profit |
|
74.5 |
|
59.2 |
|
15.3 |
|
|
Gross profit per metric ton(1) |
|
428.9 |
|
308.8 |
|
120.1 |
|
|
Adjusted EBITDA |
|
57.4 |
|
38.0 |
|
19.4 |
|
|
Adjusted EBITDA/metric ton |
|
330.5 |
|
198.2 |
|
132.3 |
|
|
Adjusted EBITDA margin (%)(1) |
|
|
|
|
|
800bps |
|
|
(1) |
|
For Non-GAAP measures definitions refer to Cautionary Statement for the Purposes of the “Safe Harbor” Provisions of the Private Securities Litigation Reform Act of 1995 below. |
Rubber Carbon Black segment volume declined by 18.0 kmt, or
Net sales declined by
Adjusted EBITDA increased by
Year over year, Adjusted EBITDA per ton increased by
Adjusted EBITDA margin rose 800 basis points to
Debt
As of June 30, 2023, the company net debt was
Outlook
“Despite some softness in our end markets, we remain confident that we can deliver another record year. We are now setting our 2023 Adjusted EBITDA guidance range to be
Conference Call
As previously announced, Orion will hold a conference call tomorrow, Thursday, August 10, 2023, at 8:30 a.m. (EDT). The dial-in details for the live conference call are as follows:
|
|
|
|
|
|
|
1-877-407-4018 |
|
|
International: |
|
1-201-689-8471 |
|
|
A replay of the conference call may be accessed by phone at the following numbers to August 18, 2023:
|
|
|
|
|
|
|
1-844-512-2921 |
|
|
International: |
|
1-412-317-6671 |
|
|
Conference ID: |
|
13740048 |
|
|
Additionally, an archived webcast of the conference call will be available on the Investor Relations section of the company’s website at www.orioncarbons.com.
To learn more about Orion S.A., visit the company’s website at www.orioncarbons.com, where we regularly post information including notification of events, news, financial performance, investor presentations and webcasts, non-GAAP reconciliations, SEC filings and other information regarding our company, its businesses and the markets it serves.
About Orion S.A.
Orion S.A. (NYSE: OEC) is a leading global supplier of carbon black, a solid form of carbon produced as powder or pellets. The material is made to customers’ exacting specifications for tires, coatings, ink, batteries, plastics and numerous other specialty, high-performance applications.
Cautionary Statement for the Purposes of the “Safe Harbor” Provisions of the Private Securities Litigation Reform Act of 1995
This document contains and refers to certain forward-looking statements with respect to our financial condition, results of operations and business, including those in the “Outlook” and “Quarterly Business Segment Results” sections above. These statements constitute forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among others, statements concerning the potential exposure to market risks, statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions and statements that are not limited to statements of historical or present facts or conditions. Forward-looking statements are typically identified by words such as “anticipate,” “assume,” “assure,” “believe,” “confident,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “objectives,” “outlook,” “probably,” “project,” “will,” “seek,” “target,” “to be” and other words of similar meaning.
These forward-looking statements include, without limitation, statements about the following matters: • our strategies for (i) strengthening our position in Specialty carbon black or Rubber carbon black, (ii) increasing our Specialty or Rubber carbon black margins and (iii) strengthening the competitiveness of our operations; • our cash flow projections; • the installation and operation of pollution control technology in our
All these forward-looking statements are based on estimates and assumptions that, although believed to be reasonable, are inherently uncertain. Therefore, undue reliance should not be placed upon any forward-looking statements. There are important factors that could cause actual results to differ materially from those contemplated by such forward-looking statements. These factors include, among others: • the negative or uncertain worldwide economic conditions and developments; • the volatility and cyclicality of the industries in which we operate; • the operational risks inherent in chemicals manufacturing, including disruptions due to technical facilities, severe weather conditions or natural disasters; • our dependence on major customers and suppliers; • the unanticipated fluctuations in demand for our specialty products, including due to factors beyond our control; • our ability to compete in the industries and markets in which we operate; • our ability to address changes in the nature of future transportation and mobility concepts, which may impact our customers and our business; • our ability to develop new products and technologies successfully and the availability of substitutes for our products; • our ability to implement our business strategies; • our ability to respond to changes in feedstock prices and quality; • our ability to realize benefits from investments, joint ventures, acquisitions or alliances; • our ability to negotiate with counterparties on terms satisfactory to us and the satisfactory performance by such counterparties of their obligations to us as well as our ability to meet our performance obligations towards such counterparties; • our ability to realize benefits from planned plant capacity expansions and site development projects and the impact of potential delays to such expansions and projects; • our information technology systems failures, network disruptions and breaches of data security; • our relationships with our workforce, including negotiations with labor unions, strikes and work stoppages; • our ability to recruit or retain key management and personnel; • our exposure to political or country risks inherent in doing business in some countries; • any and all impacts from the Russian war against
You should not place undue reliance on forward-looking statements. We present certain financial measures that are not prepared in accordance with
Factors that could cause our actual results to differ materially from those expressed or implied in such forward-looking statements include those factors detailed under the captions “Cautionary Statement for Purposes of the “Safe Harbor” Provisions of the Private Securities Litigation Reform Act of 1995” and “Risk Factors” in our Annual Report in Form 10-K for the year ended December 31, 2022, in Note Q. Commitments and Contingencies to our audited Consolidated Financial Statements regarding contingent liabilities, including litigation and in Form 10-Q for the period ended June 30, 2023. It is not possible for our management to predict all risk factors and uncertainties, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statement — including those in the “Outlook” and “Quarterly Business Segment Results” sections above — as a result of new information, future events or other information, other than as required by applicable law.
Reconciliation of Non-GAAP Financial Measures
We present certain financial measures that are not prepared in accordance with GAAP or the accounting standards of any other jurisdiction and may not be comparable to other similarly titled measures of other companies. For a reconciliation of these non-GAAP financial measures to their nearest comparable GAAP measures, see section Reconciliation of Non-GAAP Financial Measures below.
These non-GAAP measures include, but are not limited to, Gross profit per metric ton, Adjusted EBITDA, Capital Expenditures, Segment Adjusted EBITDA Margin (in percentage), Discretionary Cash Flow, Free Cash Flow and Adjusted Diluted EPS.
We define Gross profit per metric ton as Gross profit divided by volume measured in metric tons. We define Adjusted EBITDA as Income from operations before depreciation and amortization, share-based compensation and non-recurring items (such as, restructuring expenses, consulting fees related to Company strategy, legal settlement gain, etc.) plus Earnings in affiliated companies, net of tax. We definite Net Working Capital as Inventories, net plus Accounts receivable, net minus Accounts payable. We define Net debt as Current portion of long-term debt and other financial liabilities plus Long-term debt, net plus Deferred debt issuance costs less Cash and cash equivalents. We define Capital Expenditures as Cash paid for the acquisition of intangible assets and property, plant and equipment. We define Segment Adjusted EBITDA Margin (in percentage) as Segment Adjusted EBITDA divided by segment revenue. We define Discretionary Cash Flow as Adjusted EBITDA less capital expenditures for maintenance and EPA less cash paid for interest and taxes. We define Free Cash Flow as Adjusted EBITDA less Total Capital Expenditures and cash paid for dividends, interest, and taxes. We define Adjusted Diluted EPS as Net income before long-term incentive plan, other adjustment items, reclassification of actuarial gains (losses) from AOCI, intangible assets amortization, foreign exchange rate impacts, amortization of transaction costs, tax effect on add back items at estimated tax rate divided by weighted average diluted number of shares.
Adjusted EBITDA is used by our chief operating decision maker (“CODM”) to evaluate our operating performance and to make decisions regarding allocation of capital, because it excludes the effects of items that have less bearing on the performance of our underlying core business. We use this measure, together with other measures of performance under GAAP, to compare the relative performance of operations in planning, budgeting and reviewing our business. We believe these measures are useful measures of financial performance in addition to Net income, Income from operations and other profitability measures under GAAP, because they facilitate operating performance comparisons from period to period. By eliminating potential differences in results of operations between periods caused by factors such as depreciation and amortization methods, historic cost and age of assets, financing and capital structures and taxation positions or regimes, we believe that Adjusted EBITDA provides a useful additional basis for evaluating and comparing the current performance of the underlying operations. In addition, we believe these non-GAAP measures aid investors by providing additional insight into our operational performance and help clarify trends affecting our business.
However, other companies and analysts may calculate non-GAAP financial measures differently, so making comparisons among companies on this basis should be done carefully. Non-GAAP measures are not performance measures under GAAP and should not be considered in isolation or construed as substitutes for Net sales, Net income, Income from operations, Gross profit and other GAAP measures as an indicator of our operations in accordance with GAAP.
We are not able to reconcile the forward-looking non-GAAP financial measures to the closest corresponding GAAP measure without unreasonable efforts, because we are unable to predict the ultimate outcome of certain significant items. These items include, but are not limited to, significant legal settlements, tax and regulatory reserve changes, restructuring costs and acquisition and financing related impacts.
Reconciliation of Non-GAAP to GAAP Financial Measures |
|||||||||||||||
|
|||||||||||||||
The following tables present a reconciliation of each Non-GAAP measure to the most directly comparable GAAP measure: |
|||||||||||||||
Reconciliation of Net income to Adjusted EBITDA: |
|||||||||||||||
|
|||||||||||||||
|
Second Quarter |
|
Six Months Ended June 30, |
||||||||||||
(In millions) |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
||||||||||||||
Net income |
$ |
30.1 |
|
|
$ |
29.7 |
|
|
$ |
72.4 |
|
|
$ |
62.2 |
|
Add back Income tax expense |
|
17.8 |
|
|
|
12.8 |
|
|
|
36.1 |
|
|
|
26.6 |
|
Add back Equity in earnings of affiliated companies, net of tax |
|
(0.2 |
) |
|
|
(0.1 |
) |
|
|
(0.3 |
) |
|
|
(0.2 |
) |
Income before earnings in affiliated companies and income taxes |
|
47.7 |
|
|
|
42.4 |
|
|
|
108.2 |
|
|
|
88.6 |
|
Add back Interest and other financial expense, net |
|
13.5 |
|
|
|
10.5 |
|
|
|
28.7 |
|
|
|
18.9 |
|
Add back Reclassification of actuarial gain from AOCI |
|
(2.3 |
) |
|
|
— |
|
|
|
(4.5 |
) |
|
|
— |
|
Income from operations |
|
58.9 |
|
|
|
52.9 |
|
|
|
132.4 |
|
|
|
107.5 |
|
Add back Depreciation of property, plant and equipment and amortization of intangible assets and right of use assets |
|
27.2 |
|
|
|
27.4 |
|
|
|
52.9 |
|
|
|
54.7 |
|
EBITDA |
|
86.1 |
|
|
|
80.3 |
|
|
|
185.3 |
|
|
|
162.2 |
|
Equity in earnings of affiliated companies, net of tax |
|
0.2 |
|
|
|
0.1 |
|
|
|
0.3 |
|
|
|
0.2 |
|
Long term incentive plan |
|
2.6 |
|
|
|
1.6 |
|
|
|
4.7 |
|
|
|
3.1 |
|
Other adjustments |
|
(1.6 |
) |
|
|
1.4 |
|
|
|
(1.9 |
) |
|
|
1.1 |
|
Adjusted EBITDA |
$ |
87.3 |
|
|
$ |
83.4 |
|
|
$ |
188.4 |
|
|
$ |
166.6 |
|
Reconciliation of Gross profit per metric ton: |
|||||||||||||||
|
|||||||||||||||
|
Second Quarter |
|
Six Months Ended June 30, |
||||||||||||
(In millions, unless otherwise indicated) |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
||||||||||||||
Net sales |
$ |
458.8 |
|
|
$ |
541.2 |
|
|
$ |
959.5 |
|
|
$ |
1,025.7 |
|
Cost of sales |
|
(341.7 |
) |
|
|
(421.4 |
) |
|
|
(706.0 |
) |
|
|
(788.0 |
) |
Gross profit |
$ |
117.1 |
|
|
$ |
119.8 |
|
|
$ |
253.5 |
|
|
$ |
237.7 |
|
Volume (in kmt) |
|
227.3 |
|
|
|
251.4 |
|
|
|
460.8 |
|
|
|
504.6 |
|
Gross profit per metric ton |
$ |
515.2 |
|
|
$ |
476.5 |
|
|
$ |
550.1 |
|
|
$ |
471.1 |
|
Reconciliation of Total debt per the Consolidated Balance Sheet to Net debt: |
|||||||||
|
|||||||||
(In millions) |
June 30, 2023 |
|
December 31, 2022 |
|
Delta |
||||
|
|
|
|
|
|
||||
Current portion of long term debt and other financial liabilities |
$ |
189.0 |
|
$ |
258.3 |
|
|
||
Long-term debt, net |
|
666.9 |
|
|
657.0 |
|
|
||
Total debt as per Consolidated Balance Sheets |
|
855.9 |
|
|
915.3 |
|
|
||
Add: Deferred debt issuance costs - Term loans |
|
4.1 |
|
|
4.4 |
|
|
||
Less: Cash and cash equivalents |
|
77.3 |
|
|
60.8 |
|
|
||
Net debt |
$ |
782.7 |
|
$ |
858.9 |
|
$ |
(76.2 |
) |
Reconciliation of Net income to Adjusted net income and Diluted EPS to Adjusted Diluted EPS: |
|||||||||||||||
|
|||||||||||||||
|
Second Quarter |
|
Six Months Ended June 30, |
||||||||||||
(In millions, except per share amounts) |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
||||||||||||||
Net income |
$ |
30.1 |
|
|
$ |
29.7 |
|
|
$ |
72.4 |
|
|
$ |
62.2 |
|
add back long term incentive plan |
|
2.6 |
|
|
|
1.6 |
|
|
|
4.7 |
|
|
|
3.1 |
|
add back other adjustment items |
|
(1.6 |
) |
|
|
1.4 |
|
|
|
(1.9 |
) |
|
|
1.1 |
|
add back reclassification of actuarial gains from AOCI |
|
(2.3 |
) |
|
|
— |
|
|
|
(4.5 |
) |
|
|
— |
|
add back intangible assets amortization |
|
1.8 |
|
|
|
1.8 |
|
|
|
3.6 |
|
|
|
3.7 |
|
add back foreign exchange rate impacts |
|
0.9 |
|
|
|
2.7 |
|
|
|
3.0 |
|
|
|
2.1 |
|
add back amortization of transaction costs |
|
0.7 |
|
|
|
0.4 |
|
|
|
1.3 |
|
|
|
0.8 |
|
Tax effect on add back items at estimated tax rate |
|
(0.7 |
) |
|
|
(2.3 |
) |
|
|
(2.0 |
) |
|
|
(3.2 |
) |
Adjusted net income |
$ |
31.5 |
|
|
$ |
35.3 |
|
|
$ |
76.6 |
|
|
$ |
69.8 |
|
|
|
|
|
|
|
|
|
||||||||
Total add back items |
$ |
1.4 |
|
|
$ |
5.6 |
|
|
$ |
4.2 |
|
|
$ |
7.6 |
|
Impact add back items per share |
$ |
0.02 |
|
|
$ |
0.09 |
|
|
$ |
0.07 |
|
|
$ |
0.13 |
|
Diluted EPS |
$ |
0.51 |
|
|
$ |
0.49 |
|
|
$ |
1.20 |
|
|
$ |
1.02 |
|
Adjusted Diluted EPS |
$ |
0.53 |
|
|
$ |
0.58 |
|
|
$ |
1.27 |
|
|
$ |
1.15 |
|
Condensed Consolidated Statements of Operations (Unaudited) |
|||||||||||||
|
|||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||
(In millions, except share and per share data) |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
|
2022 |
|
|
|
||||||||||||
Net sales |
$ |
458.8 |
|
|
$ |
541.2 |
|
$ |
959.5 |
|
|
$ |
1,025.7 |
Cost of sales |
|
341.7 |
|
|
|
421.4 |
|
|
706.0 |
|
|
|
788.0 |
Gross profit |
|
117.1 |
|
|
|
119.8 |
|
|
253.5 |
|
|
|
237.7 |
Selling, general and administrative expenses |
|
55.0 |
|
|
|
59.7 |
|
|
112.7 |
|
|
|
117.2 |
Research and development costs |
|
5.9 |
|
|
|
5.9 |
|
|
12.1 |
|
|
|
11.4 |
Other (income) expenses, net |
|
(2.7 |
) |
|
|
1.3 |
|
|
(3.7 |
) |
|
|
1.6 |
Income from operations |
|
58.9 |
|
|
|
52.9 |
|
|
132.4 |
|
|
|
107.5 |
Interest and other financial expense, net |
|
13.5 |
|
|
|
10.5 |
|
|
28.7 |
|
|
|
18.9 |
Reclassification of actuarial gain from AOCI |
|
(2.3 |
) |
|
|
— |
|
|
(4.5 |
) |
|
|
— |
Income before earnings in affiliated companies and income taxes |
|
47.7 |
|
|
|
42.4 |
|
|
108.2 |
|
|
|
88.6 |
|
|
|
|
|
|
|
|
||||||
Income tax expense |
|
17.8 |
|
|
|
12.8 |
|
|
36.1 |
|
|
|
26.6 |
Earnings in affiliated companies, net of tax |
|
0.2 |
|
|
|
0.1 |
|
|
0.3 |
|
|
|
0.2 |
Net income |
$ |
30.1 |
|
|
$ |
29.7 |
|
$ |
72.4 |
|
|
$ |
62.2 |
|
|
|
|
|
|
|
|
||||||
Weighted-average shares outstanding (in thousands): |
|
|
|
|
|
|
|
||||||
Basic |
|
59,012 |
|
|
|
60,807 |
|
|
59,646 |
|
|
|
60,880 |
Diluted |
|
59,510 |
|
|
|
61,010 |
|
|
60,085 |
|
|
|
61,237 |
Earnings per share: |
|
|
|
|
|
|
|
||||||
Basic |
$ |
0.51 |
|
|
$ |
0.49 |
|
$ |
1.21 |
|
|
$ |
1.02 |
Diluted |
$ |
0.51 |
|
|
$ |
0.49 |
|
$ |
1.20 |
|
|
$ |
1.02 |
Condensed Consolidated Statements of Financial Position (Unaudited) |
||||||||
|
||||||||
(In millions, except share amounts) |
|
June 30, 2023 |
|
December 31, 2022 |
||||
|
|
|
||||||
ASSETS |
|
|
|
|
||||
Current assets |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
77.3 |
|
|
$ |
60.8 |
|
Accounts receivable, net |
|
|
269.6 |
|
|
|
367.8 |
|
Inventories, net |
|
|
268.6 |
|
|
|
277.9 |
|
Income tax receivables |
|
|
15.2 |
|
|
|
5.2 |
|
Prepaid expenses and other current assets |
|
|
68.8 |
|
|
|
66.8 |
|
Total current assets |
|
|
699.5 |
|
|
|
778.5 |
|
Property, plant and equipment, net |
|
|
838.8 |
|
|
|
818.5 |
|
Right-of-use assets |
|
|
112.2 |
|
|
|
97.6 |
|
Goodwill |
|
|
74.8 |
|
|
|
73.4 |
|
Intangible assets, net |
|
|
25.8 |
|
|
|
27.8 |
|
Investment in equity method affiliates |
|
|
5.3 |
|
|
|
5.0 |
|
Deferred income tax assets |
|
|
35.6 |
|
|
|
29.1 |
|
Other assets |
|
|
51.2 |
|
|
|
58.8 |
|
Total non-current assets |
|
|
1,143.7 |
|
|
|
1,110.2 |
|
Total assets |
|
$ |
1,843.2 |
|
|
$ |
1,888.7 |
|
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
||||
Current liabilities |
|
|
|
|
||||
Accounts payable |
|
$ |
170.3 |
|
|
$ |
184.1 |
|
Current portion of long-term debt and other financial liabilities |
|
|
189.0 |
|
|
|
258.3 |
|
Accrued liabilities |
|
|
35.8 |
|
|
|
44.7 |
|
Income taxes payable |
|
|
34.5 |
|
|
|
31.3 |
|
Other current liabilities |
|
|
46.5 |
|
|
|
34.4 |
|
Total current liabilities |
|
|
476.1 |
|
|
|
552.8 |
|
Long-term debt, net |
|
|
666.9 |
|
|
|
657.0 |
|
Employee benefit plan obligation |
|
|
51.8 |
|
|
|
50.0 |
|
Deferred income tax liabilities |
|
|
73.7 |
|
|
|
70.0 |
|
Other liabilities |
|
|
110.5 |
|
|
|
99.5 |
|
Total non-current liabilities |
|
|
902.9 |
|
|
|
876.5 |
|
Stockholders' Equity |
|
|
|
|
||||
Common stock |
|
|
|
|
||||
Authorized: 65,035,579 and 65,035,579 shares with no par value |
|
|
|
|
||||
Issued – 60,992,259 and 60,992,259 shares with no par value |
|
|
|
|
||||
Outstanding – 58,640,846 and 60,571,556 shares |
|
|
85.3 |
|
|
|
85.3 |
|
Treasury stock, at cost, 2,351,413 and 420,703 |
|
|
(54.0 |
) |
|
|
(8.8 |
) |
Additional paid-in capital |
|
|
75.3 |
|
|
|
76.4 |
|
Retained earnings |
|
|
387.7 |
|
|
|
319.0 |
|
Accumulated other comprehensive loss |
|
|
(30.1 |
) |
|
|
(12.5 |
) |
Total stockholders' equity |
|
|
464.2 |
|
|
|
459.4 |
|
Total liabilities and stockholders' equity |
|
$ |
1,843.2 |
|
|
$ |
1,888.7 |
|
Condensed Consolidated Statements of Cash Flows (Unaudited) |
||||||||
|
||||||||
|
|
Six Months Ended June 30, |
||||||
(In millions) |
|
|
2023 |
|
|
|
2022 |
|
|
|
|||||||
Cash flows from operating activities: |
|
|
|
|
||||
Net income |
|
$ |
72.4 |
|
|
$ |
62.2 |
|
Adjustments to reconcile net income to net cash provided by (used in) operating activities: |
|
|
|
|
||||
Depreciation of property, plant and equipment and amortization of intangible assets and right of use assets |
|
|
52.9 |
|
|
|
54.7 |
|
Amortization of debt issuance costs |
|
|
1.3 |
|
|
|
0.8 |
|
Share-based incentive compensation |
|
|
4.7 |
|
|
|
3.1 |
|
Deferred tax provision |
|
|
1.4 |
|
|
|
4.1 |
|
Foreign currency transactions |
|
|
4.9 |
|
|
|
(13.4 |
) |
Reclassification of actuarial gain from AOCI |
|
|
(4.5 |
) |
|
|
— |
|
Other operating non-cash items, net |
|
|
(0.5 |
) |
|
|
(0.9 |
) |
Changes in operating assets and liabilities, net: |
|
|
|
|
||||
Trade receivables |
|
|
99.0 |
|
|
|
(137.8 |
) |
Inventories |
|
|
6.2 |
|
|
|
(68.7 |
) |
Trade payables |
|
|
(8.3 |
) |
|
|
46.1 |
|
Other provisions |
|
|
(9.3 |
) |
|
|
(6.9 |
) |
Income tax liabilities |
|
|
(7.4 |
) |
|
|
7.2 |
|
Other assets and liabilities, net |
|
|
(6.6 |
) |
|
|
(1.4 |
) |
Net cash provided by (used in) operating activities |
|
|
206.2 |
|
|
|
(50.9 |
) |
Cash flows from investing activities: |
|
|
|
|
||||
Acquisition of property, plant and equipment |
|
|
(69.1 |
) |
|
|
(108.7 |
) |
Net cash used in investing activities |
|
|
(69.1 |
) |
|
|
(108.7 |
) |
Cash flows from financing activities: |
|
|
|
|
||||
Proceeds from long-term debt borrowings |
|
|
7.8 |
|
|
|
17.2 |
|
Repayments of long-term debt |
|
|
(1.5 |
) |
|
|
(1.5 |
) |
Payments for debt issue costs |
|
|
(0.2 |
) |
|
|
(0.8 |
) |
Cash inflows related to current financial liabilities |
|
|
85.6 |
|
|
|
178.3 |
|
Cash outflows related to current financial liabilities |
|
|
(160.4 |
) |
|
|
(52.2 |
) |
Dividends paid to shareholders |
|
|
(2.5 |
) |
|
|
(2.5 |
) |
Repurchase of common stock |
|
|
(49.5 |
) |
|
|
(0.4 |
) |
Net cash provided by (used in) financing activities |
|
|
(120.7 |
) |
|
|
138.1 |
|
Increase (decrease) in cash, cash equivalents and restricted cash |
|
|
16.4 |
|
|
|
(21.5 |
) |
Cash, cash equivalents and restricted cash at the beginning of the period |
|
|
63.4 |
|
|
|
68.5 |
|
Effect of exchange rate changes on cash |
|
|
0.1 |
|
|
|
(2.5 |
) |
Cash, cash equivalents and restricted cash at the end of the period |
|
|
79.9 |
|
|
|
44.5 |
|
Less restricted cash at the end of the period |
|
|
2.6 |
|
|
|
3.6 |
|
Cash and cash equivalents at the end of the period |
|
$ |
77.3 |
|
|
$ |
40.9 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20230809183015/en/
Wendy Wilson
Investor Relations
+1 281-974-0155
Source: Orion Engineered Carbons S.A.
