Orion S.A. Reports Third Quarter 2024 Financial Results
Orion S.A. (NYSE: OEC) reported Q3 2024 financial results with net sales of $463.4 million, down $2.8 million year over year. The company reported a net loss of $20.2 million, including a $42.5 million impact from asset misappropriation. Adjusted EBITDA increased 4% to $80.1 million, while volume decreased 8.2% to 225.2 kmt. The company revised its 2024 guidance to an Adjusted EBITDA range of $305-315 million and Adjusted Diluted EPS of $1.65-1.75. Free cash flow is expected to be negative $35 million before fraud impact.
Orion S.A. (NYSE: OEC) ha riportato i risultati finanziari del terzo trimestre 2024 con vendite nette di 463,4 milioni di dollari, in calo di 2,8 milioni rispetto all'anno precedente. L'azienda ha registrato una perdita netta di 20,2 milioni di dollari, che include un impatto di 42,5 milioni di dollari a causa di appropriazione indebita di beni. L'EBITDA rettificato è aumentato del 4% a 80,1 milioni di dollari, mentre il volume è diminuito dell'8,2% a 225,2 kmt. L'azienda ha rivisto le sue previsioni per il 2024, indicando un intervallo di EBITDA rettificato di 305-315 milioni di dollari e un EPS diluito rettificato di 1,65-1,75 dollari. Si prevede un flusso di cassa libero negativo di 35 milioni di dollari, escludendo l'impatto delle frodi.
Orion S.A. (NYSE: OEC) reportó los resultados financieros del tercer trimestre de 2024, con ventas netas de 463,4 millones de dólares, una disminución de 2,8 millones en comparación con el año anterior. La compañía reportó una pérdida neta de 20,2 millones de dólares, incluyendo un impacto de 42,5 millones debido a la apropiación indebida de activos. El EBITDA ajustado aumentó un 4% a 80,1 millones de dólares, mientras que el volumen disminuyó un 8,2% a 225,2 kmt. La empresa revisó su guía para 2024 a un rango de EBITDA ajustado de 305-315 millones de dólares y un EPS diluido ajustado de 1,65-1,75 dólares. Se espera que el flujo de caja libre sea negativo en 35 millones de dólares antes del impacto del fraude.
오리온 S.A. (NYSE: OEC)는 2024년 3분기 재무 결과를 보고하며 순매출 4억 6,340만 달러를 기록했으며, 이는 전년 대비 280만 달러 감소한 수치입니다. 회사는 순손실 2천만 달러를 기록했으며, 여기에는 자산 유용으로 인한 4,250만 달러의 영향이 포함됩니다. 조정된 EBITDA는 4% 증가하여 8,010만 달러에 달했으며, 물량은 8.2% 감소하여 225.2 kmt가 되었습니다. 이 회사는 2024년 전망을 조정하여 조정된 EBITDA 범위를 3억 5천만 달러에서 3억 1천5백만 달러로, 조정 희석 EPS를 1.65-1.75 달러로 수정했습니다. 사기 영향을 제외한 자유 현금 흐름은 -3,500만 달러로 예상됩니다.
Orion S.A. (NYSE: OEC) a annoncé les résultats financiers du troisième trimestre 2024 avec des ventes nettes de 463,4 millions de dollars, en baisse de 2,8 millions par rapport à l'année précédente. L'entreprise a enregistré une perte nette de 20,2 millions de dollars, y compris un impact de 42,5 millions de dollars en raison d'un détournement d'actifs. L'EBITDA ajusté a augmenté de 4% pour atteindre 80,1 millions de dollars, tandis que le volume a diminué de 8,2% pour atteindre 225,2 kmt. L'entreprise a révisé ses prévisions pour 2024 à une fourchette d'EBITDA ajusté de 305 à 315 millions de dollars et un EPS dilué ajusté de 1,65 à 1,75 dollar. Le flux de trésorerie libre devrait être négatif de 35 millions de dollars avant l'impact de la fraude.
Orion S.A. (NYSE: OEC) hat die finanziellen Ergebnisse für das dritte Quartal 2024 veröffentlicht, mit Nettoverkäufen von 463,4 Millionen Dollar, was einem Rückgang von 2,8 Millionen im Vergleich zum Vorjahr entspricht. Das Unternehmen meldete einen Nettoverlust von 20,2 Millionen Dollar, einschließlich einer Belastung von 42,5 Millionen Dollar aufgrund von Vermögensveruntreuung. Das bereinigte EBITDA stieg um 4% auf 80,1 Millionen Dollar, während das Volumen um 8,2% auf 225,2 kmt zurückging. Das Unternehmen hat seine Prognose für 2024 auf eine Spanne des bereinigten EBITDA von 305-315 Millionen Dollar und einen bereinigten verwässerten EPS von 1,65-1,75 Dollar revidiert. Der freie Cashflow wird vor dem Betrugsimpact voraussichtlich bei -35 Millionen Dollar liegen.
- Adjusted EBITDA increased 4% YoY to $80.1 million in Q3 2024
- Specialty Carbon Black segment Adjusted EBITDA grew 4.2% to $27.2 million
- Rubber Carbon Black segment Adjusted EBITDA increased 3.3% to $52.9 million
- Company initiated $11 million in share repurchases during Q3
- $42.5 million loss due to fraudulent wire transfers
- Net loss of $20.2 million in Q3 2024 compared to $26.2 million profit in Q3 2023
- Volume decreased 8.2% YoY to 225.2 kmt
- Rubber segment volumes down 11% versus prior year
- Downward revision of 2024 guidance
- Negative free cash flow forecast of -$35 million for 2024
Insights
The Q3 results reveal significant challenges with a
Concerning metrics include rising net debt to
The
Third Quarter 2024 Highlights
-
Net sales of
, down$463.4 million year over year$2.8 million -
Net loss of
, which includes a$20.2 million impact from the loss due to misappropriation of assets, net of income tax benefit, down$42.5 million year over year$46.4 million -
Diluted Loss per share of (
), which includes impact due to misappropriation of assets of ($0.35 ), down$0.72 year over year$0.79 -
Adjusted EBITDA1 of
, up$80.1 million 4% year over year -
Adjusted Diluted EPS1 of
, down$0.47 year over year$0.02
Nine Months 2024 Highlights
-
Net sales of
, up$1,443.3 million year over year$17.6 million -
Net income of
, which includes a$27.0 million impact from the loss due to misappropriation of assets, net of income tax benefit, down$42.5 million year over year$71.6 million -
Diluted EPS of
, which includes impact due to misappropriation of assets of ($0.46 ), down$0.72 year over year$1.19 -
Adjusted EBITDA1 of
, down$240.5 million 10% year over year -
Adjusted Diluted EPS1 of
, down$1.40 year over year$0.36
1 The reconciliations of Non-
“While our net income was a loss due to the fraud event, Orion delivered strong third quarter Adjusted EBITDA, even with Rubber segment volumes being down
“As we complete our growth investments, we expect much stronger free cash flow in 2025 and 2026,” continued Painter. “With conviction around this dynamic, and as conveyed last quarter, we continue to see share repurchases as an appropriate allocation of excess capital. We re-initiated buyback activity during the third quarter, repurchasing approximately
Jeff Glajch, Orion’s Chief Financial Officer added, “this quarter’s GAAP Net loss of
“On an operating basis, before the impact from the misappropriation of assets,” continued Glajch, “our
Third Quarter 2024 Overview: |
||||||||
(In millions, except volume and EPS data) |
|
Q3 2024 |
|
Q3 2023 |
|
Y/Y Change |
|
Y/Y Change in % |
Volume (kmt) |
|
225.2 |
|
245.2 |
|
(20.0) |
|
(8.2)% |
Net sales |
|
463.4 |
|
466.2 |
|
(2.8) |
|
(0.6)% |
Gross profit |
|
107.5 |
|
110.2 |
|
(2.7) |
|
(2.5)% |
Income (loss) from operations |
|
(15.3) |
|
45.7 |
|
(61.0) |
|
(133.5)% |
Net income (loss) |
|
(20.2) |
|
26.2 |
|
(46.4) |
|
(177.1)% |
Adjusted net income(1) |
|
27.4 |
|
28.9 |
|
(1.5) |
|
(5.2)% |
Adjusted EBITDA(1) |
|
80.1 |
|
77.3 |
|
2.8 |
|
|
Basic Earnings (loss) per share |
|
(0.35) |
|
0.45 |
|
(0.80) |
|
(177.8)% |
Diluted Earnings (loss) per share |
|
(0.35) |
|
0.44 |
|
(0.79) |
|
(179.5)% |
Adjusted Diluted EPS(1) |
|
0.47 |
|
0.49 |
|
(0.02) |
|
(4.1)% |
(1) |
The reconciliations of Non- |
Volume decreased by 20.0 kmt year over year due to lower volume in the
During the third quarter of 2024, we were the target of a criminal scheme that resulted in multiple fraudulently induced outbound wire transfers to accounts controlled by unknown third parties. These losses and professional fees incurred in connection with related third-party investigations aggregated to
Income (loss) from operations decreased by
Quarterly Business Segment Results | ||||||||
SPECIALTY |
||||||||
|
|
|
|
|
|
|
|
|
(In millions, except volume) |
|
Q3 2024 |
|
Q3 2023 |
|
Y/Y Change |
|
Y/Y Change in % |
Volume (kmt) |
|
59.7 |
|
59.9 |
|
(0.2) |
|
(0.3)% |
Net sales |
|
162.5 |
|
150.4 |
|
12.1 |
|
|
Gross profit |
|
36.6 |
|
38.6 |
|
(2.0) |
|
(5.2)% |
Adjusted EBITDA |
|
27.2 |
|
26.1 |
|
1.1 |
|
|
Specialty Carbon Black segment volume declined by 0.2 kmt, or
RUBBER |
||||||||
|
|
|
|
|
|
|
|
|
(In millions, except volume) |
|
Q3 2024 |
|
Q3 2023 |
|
Y/Y Change |
|
Y/Y Change in % |
Volume (kmt) |
|
165.5 |
|
185.3 |
|
(19.8) |
|
(10.7)% |
Net sales |
|
300.9 |
|
315.8 |
|
(14.9) |
|
(4.7)% |
Gross profit |
|
70.9 |
|
71.6 |
|
(0.7) |
|
(1.0)% |
Adjusted EBITDA |
|
52.9 |
|
51.2 |
|
1.7 |
|
|
Rubber Carbon Black segment volume declined by 19.8 kmt, or
Nine Months 2024 Highlights |
||||||||
|
|
Nine Months Ended September 30, |
|
Year-Over Year |
||||
(In millions, except volume and EPS data) |
|
2024 |
|
2023 |
|
Delta |
||
Volume (kmt) |
|
706.7 |
|
706.0 |
|
0.7 |
|
|
Net sales |
|
1,443.3 |
|
1,425.7 |
|
17.6 |
|
|
Gross profit |
|
339.5 |
|
363.7 |
|
(24.2) |
|
(6.7)% |
Income from operations |
|
79.1 |
|
178.1 |
|
(99.0) |
|
(55.6)% |
Net income |
|
27.0 |
|
98.6 |
|
(71.6) |
|
(72.6)% |
Adjusted net income(1) |
|
82.7 |
|
105.5 |
|
(22.8) |
|
(21.6)% |
Adjusted EBITDA(1) |
|
240.5 |
|
265.7 |
|
(25.2) |
|
(9.5)% |
Basic EPS |
|
0.46 |
|
1.66 |
|
(1.20) |
|
(72.3)% |
Diluted EPS |
|
0.46 |
|
1.65 |
|
(1.19) |
|
(72.1)% |
Adjusted Diluted EPS(1) |
|
1.40 |
|
1.76 |
|
(0.36) |
|
(20.5)% |
(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 increased by 0.7 kmt to 706.7 kmt compared to the nine months ended September 30, 2023, primarily due to higher Specialty Carbon Black segment volume, partially offset by lower Rubber Carbon Black segment volume. Net sales increased by
During the third quarter of 2024, we were the target of a criminal scheme that resulted in multiple fraudulently induced outbound wire transfers to accounts controlled by unknown third parties. These losses and professional fees incurred in connection with related third-party investigations aggregated to
Income from operations decreased by
Nine Months Business Segment Results | ||||||||
SPECIALTY |
||||||||
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, |
||||||
(In millions, except volume) |
|
2024 |
|
2023 |
|
Delta |
||
Volume (kmt) |
|
185.9 |
|
166.5 |
|
19.4 |
|
|
Net sales |
|
498.9 |
|
461.9 |
|
37.0 |
|
|
Gross profit |
|
117.8 |
|
133.3 |
|
(15.5) |
|
(11.6)% |
Adjusted EBITDA |
|
83.1 |
|
93.3 |
|
(10.2) |
|
(10.9)% |
Volumes increased by 19.4 kmt, or
RUBBER |
||||||||
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, |
||||||
(In millions, except volume) |
|
2024 |
|
2023 |
|
Delta |
||
Volume (kmt) |
|
520.8 |
|
539.5 |
|
(18.7) |
|
(3.5)% |
Net sales |
|
944.4 |
|
963.8 |
|
(19.4) |
|
(2.0)% |
Gross profit |
|
221.7 |
|
230.4 |
|
(8.7) |
|
(3.8)% |
Adjusted EBITDA |
|
157.4 |
|
172.4 |
|
(15.0) |
|
(8.7)% |
Volume decreased by 18.7 kmt, or
Debt
As of September 30, 2024, the company’s net debt was
Outlook
“We are revising our 2024 guidance for the year to an Adjusted EBITDA range of
Conference Call
As previously announced, Orion will hold a conference call tomorrow, Friday, November 8, 2024, 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 Friday, November 22, 2024:
|
1-844-512-2921 |
International: |
1-412-317-6671 |
Conference ID: |
13748613 |
Additionally, an archived webcast of the conference call will be available on the investor section of the company’s website at www.orioncarbons.com.
To learn more about Orion S.A., visit the company’s investor 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. You should not place undue reliance on forward-looking 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 outlook and expectations for 2024 and 2025, including with respect to profitability, plant utilization, net leverage, EBITDA growth and free cash flow; • share repurchases; • growth and strategies; • supply; • customer actions, behavior and demand for our products; • macroeconomic conditions; • expectations and plans with respect to our capital, including investments and potential returns to our shareholders; • our internal controls over financial reporting, including the remediation of a material weakness; and • loss due to misappropriation of assets and potential recoveries of such loss.
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: • possible 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; • unanticipated fluctuations in demand for our products, including due to factors beyond our control; • our ability to compete in the industries and markets in which we operate; • changes in the nature of transportation in the future, which may impact our customers and our business; • our ability to successfully develop new products and technologies; • 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 satisfactory terms with counterparties, 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 planned and current site development projects, including our conductive additives facility at
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, 2023 and in Note Q. Commitments and Contingencies to our audited Consolidated Financial Statements and in Note J. Commitments and Contingencies to our unaudited Consolidated Financial Statements Form 10-Q for the period ended September 30, 2024. 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 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, Net Working Capital, Capital Expenditures, Net debt and Net leverage.
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, stock-based compensation, and non-recurring items (such as, restructuring expenses, 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 Capital Expenditures as Cash paid for the acquisition of intangible assets and property, plant and equipment. We define Net debt as Total debt per Consolidated Balance Sheets plus Deferred debt issuance cost - Term loans minus Cash and cash equivalents. We define Net leverage as Net debt divided by trailing twelve month Adjusted EBITDA.
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. By eliminating potential differences in results of operations between periods caused by factors such as depreciation and amortization, 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.
We believe our non-GAAP 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. 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.
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.
With respect to Adjusted EBITDA and Adjusted Diluted EPS outlook for 2024, 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.
Condensed Consolidated Statements of Operations (Unaudited) |
|||||||||||||||
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
(In millions, except share and per share data) |
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
|
||||||||||||||
Net sales |
$ |
463.4 |
|
|
$ |
466.2 |
|
|
$ |
1,443.3 |
|
|
$ |
1,425.7 |
|
Cost of sales |
|
355.9 |
|
|
|
356.0 |
|
|
|
1,103.8 |
|
|
|
1,062.0 |
|
Gross profit |
|
107.5 |
|
|
|
110.2 |
|
|
|
339.5 |
|
|
|
363.7 |
|
Selling, general and administrative expenses |
|
57.9 |
|
|
|
55.6 |
|
|
|
179.7 |
|
|
|
168.3 |
|
Research and development costs |
|
7.0 |
|
|
|
6.2 |
|
|
|
20.1 |
|
|
|
18.3 |
|
Loss due to misappropriation of assets, net |
|
60.7 |
|
|
|
— |
|
|
|
60.7 |
|
|
|
— |
|
Other (income) expenses, net |
|
(2.8 |
) |
|
|
2.7 |
|
|
|
(0.1 |
) |
|
|
(1.0 |
) |
Income (loss) from operations |
|
(15.3 |
) |
|
|
45.7 |
|
|
|
79.1 |
|
|
|
178.1 |
|
Interest and other financial expense, net |
|
15.9 |
|
|
|
12.9 |
|
|
|
40.8 |
|
|
|
41.6 |
|
Reclassification of actuarial gain from AOCI |
|
— |
|
|
|
(2.2 |
) |
|
|
— |
|
|
|
(6.7 |
) |
Income (loss) before earnings in affiliated companies and income taxes |
|
(31.2 |
) |
|
|
35.0 |
|
|
|
38.3 |
|
|
|
143.2 |
|
|
|
|
|
|
|
|
|
||||||||
Income tax expense (benefit) |
|
(10.8 |
) |
|
|
8.9 |
|
|
|
11.8 |
|
|
|
45.0 |
|
Earnings in affiliated companies, net of tax |
|
0.2 |
|
|
|
0.1 |
|
|
|
0.5 |
|
|
|
0.4 |
|
Net income (loss) |
$ |
(20.2 |
) |
|
$ |
26.2 |
|
|
$ |
27.0 |
|
|
$ |
98.6 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average shares outstanding (in thousands): |
|
|
|
|
|
|
|
||||||||
Basic |
|
58,191 |
|
|
|
58,572 |
|
|
|
58,406 |
|
|
|
59,284 |
|
Diluted |
|
58,738 |
|
|
|
59,252 |
|
|
|
58,942 |
|
|
|
59,934 |
|
Earnings (loss) per share: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
(0.35 |
) |
|
$ |
0.45 |
|
|
$ |
0.46 |
|
|
$ |
1.66 |
|
Diluted |
$ |
(0.35 |
) |
|
$ |
0.44 |
|
|
$ |
0.46 |
|
|
$ |
1.65 |
|
Condensed Consolidated Statements of Financial Position (Unaudited) |
||||||||
(In millions, except share amounts) |
|
September 30, 2024 |
|
December 31, 2023 |
||||
|
|
|
||||||
ASSETS |
|
|
|
|
||||
Current assets |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
53.2 |
|
|
$ |
37.5 |
|
Accounts receivable, net |
|
|
267.9 |
|
|
|
241.0 |
|
Inventories, net |
|
|
306.7 |
|
|
|
287.1 |
|
Income tax receivables |
|
|
14.6 |
|
|
|
6.1 |
|
Prepaid expenses and other current assets |
|
|
75.7 |
|
|
|
74.4 |
|
Total current assets |
|
|
718.1 |
|
|
|
646.1 |
|
Property, plant and equipment, net |
|
|
962.7 |
|
|
|
900.1 |
|
Right-of-use assets |
|
|
124.3 |
|
|
|
110.6 |
|
Goodwill |
|
|
77.1 |
|
|
|
76.1 |
|
Intangible assets, net |
|
|
21.6 |
|
|
|
25.5 |
|
Investment in equity method affiliates |
|
|
7.4 |
|
|
|
5.1 |
|
Deferred income tax assets |
|
|
56.3 |
|
|
|
30.0 |
|
Other assets |
|
|
28.8 |
|
|
|
39.9 |
|
Total non-current assets |
|
|
1,278.2 |
|
|
|
1,187.3 |
|
Total assets |
|
$ |
1,996.3 |
|
|
$ |
1,833.4 |
|
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
||||
Current liabilities |
|
|
|
|
||||
Accounts payable |
|
$ |
174.7 |
|
|
$ |
183.7 |
|
Current portion of long-term debt and other financial liabilities |
|
|
293.8 |
|
|
|
137.0 |
|
Accrued liabilities |
|
|
42.5 |
|
|
|
41.7 |
|
Income taxes payable |
|
|
12.1 |
|
|
|
34.2 |
|
Other current liabilities |
|
|
54.8 |
|
|
|
43.7 |
|
Total current liabilities |
|
|
577.9 |
|
|
|
440.3 |
|
Long-term debt, net |
|
|
676.7 |
|
|
|
677.3 |
|
Employee benefit plan obligation |
|
|
62.9 |
|
|
|
60.4 |
|
Deferred income tax liabilities |
|
|
78.8 |
|
|
|
66.3 |
|
Other liabilities |
|
|
123.7 |
|
|
|
110.6 |
|
Total non-current liabilities |
|
|
942.1 |
|
|
|
914.6 |
|
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 – 57,720,219 and 57,898,772 shares |
|
|
85.3 |
|
|
|
85.3 |
|
Treasury stock, at cost, 3,272,040 and 3,093,487 |
|
|
(73.8 |
) |
|
|
(70.1 |
) |
Additional paid-in capital |
|
|
81.0 |
|
|
|
85.6 |
|
Retained earnings |
|
|
439.8 |
|
|
|
417.6 |
|
Accumulated other comprehensive loss |
|
|
(56.0 |
) |
|
|
(39.9 |
) |
Total stockholders' equity |
|
|
476.3 |
|
|
|
478.5 |
|
Total liabilities and stockholders' equity |
|
$ |
1,996.3 |
|
|
$ |
1,833.4 |
|
Condensed Consolidated Statements of Cash Flows (Unaudited) |
||||||||
|
|
Nine Months Ended September 30, |
||||||
(In millions) |
|
2024 |
|
2023 |
||||
|
|
|||||||
Cash flows from operating activities: |
|
|
|
|
||||
Net income |
|
$ |
27.0 |
|
|
$ |
98.6 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
||||
Depreciation of property, plant and equipment and amortization of intangible assets and right of use assets |
|
|
90.0 |
|
|
|
80.8 |
|
Amortization of debt issuance costs |
|
|
1.1 |
|
|
|
2.0 |
|
Share-based compensation |
|
|
11.3 |
|
|
|
8.3 |
|
Deferred tax provision |
|
|
(12.0 |
) |
|
|
5.5 |
|
Foreign currency transactions |
|
|
(7.4 |
) |
|
|
3.2 |
|
Reclassification of actuarial gain from AOCI |
|
|
— |
|
|
|
(6.7 |
) |
Changes in operating assets and liabilities, net: |
|
|
|
|
||||
Trade receivables |
|
|
(26.2 |
) |
|
|
98.1 |
|
Inventories |
|
|
(17.6 |
) |
|
|
(6.3 |
) |
Trade payables |
|
|
(8.2 |
) |
|
|
(3.8 |
) |
Other provisions |
|
|
2.6 |
|
|
|
0.2 |
|
Income tax liabilities |
|
|
(29.5 |
) |
|
|
2.5 |
|
Other assets and liabilities, net |
|
|
(0.3 |
) |
|
|
(8.7 |
) |
Net cash provided by operating activities |
|
|
30.8 |
|
|
|
273.7 |
|
Cash flows from investing activities: |
|
|
|
|
||||
Acquisition of property, plant and equipment |
|
|
(135.7 |
) |
|
|
(111.0 |
) |
Net cash used in investing activities |
|
|
(135.7 |
) |
|
|
(111.0 |
) |
Cash flows from financing activities: |
|
|
|
|
||||
Proceeds from long-term debt borrowings |
|
|
— |
|
|
|
12.6 |
|
Repayments of long-term debt |
|
|
(2.8 |
) |
|
|
(2.3 |
) |
Payments for debt issue costs |
|
|
(0.2 |
) |
|
|
(0.2 |
) |
Cash inflows related to current financial liabilities |
|
|
242.1 |
|
|
|
103.2 |
|
Cash outflows related to current financial liabilities |
|
|
(98.3 |
) |
|
|
(215.6 |
) |
Dividends paid to shareholders |
|
|
(3.6 |
) |
|
|
(3.7 |
) |
Repurchase of common stock |
|
|
(17.9 |
) |
|
|
(58.9 |
) |
Net cash provided by (used in) financing activities |
|
|
119.3 |
|
|
|
(164.9 |
) |
Increase (decrease) in cash, cash equivalents and restricted cash |
|
|
14.4 |
|
|
|
(2.2 |
) |
Cash, cash equivalents and restricted cash at the beginning of the period |
|
|
40.2 |
|
|
|
63.4 |
|
Effect of exchange rate changes on cash |
|
|
0.1 |
|
|
|
(0.6 |
) |
Cash, cash equivalents and restricted cash at the end of the period |
|
|
54.7 |
|
|
|
60.6 |
|
Less restricted cash at the end of the period |
|
|
1.5 |
|
|
|
1.5 |
|
Cash and cash equivalents at the end of the period |
|
$ |
53.2 |
|
|
$ |
59.1 |
|
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 (loss) to Adjusted EBITDA: |
|||||||||||||||
|
Third Quarter |
|
Nine Months Ended September 30, |
||||||||||||
(In millions) |
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
|
||||||||||||||
Net income (loss) |
$ |
(20.2 |
) |
|
$ |
26.2 |
|
|
$ |
27.0 |
|
|
$ |
98.6 |
|
Add back Income tax (benefit) expense |
|
(10.8 |
) |
|
|
8.9 |
|
|
|
11.8 |
|
|
|
45.0 |
|
Add back Equity in earnings of affiliated companies, net of tax |
|
(0.2 |
) |
|
|
(0.1 |
) |
|
|
(0.5 |
) |
|
|
(0.4 |
) |
Income (loss) before earnings in affiliated companies and income taxes |
|
(31.2 |
) |
|
|
35.0 |
|
|
|
38.3 |
|
|
|
143.2 |
|
Add back Interest and other financial expense, net |
|
15.9 |
|
|
|
12.9 |
|
|
|
40.8 |
|
|
|
41.6 |
|
Add back Reclassification of actuarial gain from AOCI |
|
— |
|
|
|
(2.2 |
) |
|
|
— |
|
|
|
(6.7 |
) |
Income (loss) from operations |
|
(15.3 |
) |
|
|
45.7 |
|
|
|
79.1 |
|
|
|
178.1 |
|
Add back Depreciation of property, plant and equipment and amortization of intangible assets and right of use assets |
|
30.8 |
|
|
|
27.9 |
|
|
|
90.0 |
|
|
|
80.8 |
|
EBITDA |
|
15.5 |
|
|
|
73.6 |
|
|
|
169.1 |
|
|
|
258.9 |
|
Equity in earnings of affiliated companies, net of tax |
|
0.2 |
|
|
|
0.1 |
|
|
|
0.5 |
|
|
|
0.4 |
|
Loss due to misappropriation of assets, net: |
|
|
|
|
|
|
|
||||||||
Misappropriation of assets, net |
|
59.2 |
|
|
|
— |
|
|
|
59.2 |
|
|
|
— |
|
Professional fees related to misappropriation of assets |
|
1.5 |
|
|
|
— |
|
|
|
1.5 |
|
|
|
— |
|
Long term incentive plan |
|
4.8 |
|
|
|
3.6 |
|
|
|
11.3 |
|
|
|
8.3 |
|
Other adjustments |
|
(1.1 |
) |
|
|
— |
|
|
|
(1.1 |
) |
|
|
0.3 |
|
Adjusted EBITDA |
$ |
80.1 |
|
|
$ |
77.3 |
|
|
$ |
240.5 |
|
|
$ |
265.7 |
|
Reconciliation of total debt per the Consolidated Balance Sheet to Net debt: |
||
(In millions) |
September 30, 2024 |
|
|
|
|
Current portion of long term debt and other financial liabilities |
$ |
293.8 |
Long-term debt, net |
|
676.7 |
Total debt as per Consolidated Balance Sheets |
|
970.5 |
Add: Deferred debt issuance costs - Term loans |
|
3.2 |
Less: Cash and cash equivalents |
|
53.2 |
Net debt |
$ |
920.5 |
Reconciliation of Net income (loss) to Adjusted net income and Diluted Earnings (loss) per share to Adjusted Diluted EPS: |
|||||||||||||||
|
Third Quarter |
|
Nine Months Ended September 30, |
||||||||||||
(In millions, except per share data) |
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
|
||||||||||||||
Net income (loss) |
$ |
(20.2 |
) |
|
$ |
26.2 |
|
|
$ |
27.0 |
|
|
$ |
98.6 |
|
add back long-term incentive plan |
|
4.8 |
|
|
|
3.6 |
|
|
|
11.3 |
|
|
|
8.3 |
|
add back loss due to misappropriation of assets, net |
|
59.2 |
|
|
|
— |
|
|
|
59.2 |
|
|
|
— |
|
add back loss due to professional fees related to misappropriation of assets |
|
1.5 |
|
|
|
— |
|
|
|
1.5 |
|
|
|
— |
|
add back other adjustment items |
|
(1.1 |
) |
|
|
— |
|
|
|
(1.1 |
) |
|
|
(1.9 |
) |
add back reclassification of actuarial gains from AOCI |
|
— |
|
|
|
(2.2 |
) |
|
|
— |
|
|
|
(6.7 |
) |
add back intangible assets amortization |
|
1.9 |
|
|
|
1.8 |
|
|
|
5.5 |
|
|
|
5.4 |
|
add back foreign exchange rate impacts |
|
1.4 |
|
|
|
(0.1 |
) |
|
|
2.1 |
|
|
|
2.9 |
|
add back amortization of transaction costs |
|
0.3 |
|
|
|
0.7 |
|
|
|
1.1 |
|
|
|
2.0 |
|
Tax effect on add back items at estimated tax rate |
|
(20.4 |
) |
|
|
(1.1 |
) |
|
|
(23.9 |
) |
|
|
(3.1 |
) |
Adjusted net income |
$ |
27.4 |
|
|
$ |
28.9 |
|
|
$ |
82.7 |
|
|
$ |
105.5 |
|
|
|
|
|
|
|
|
|
||||||||
Total add back items |
$ |
47.6 |
|
|
$ |
2.7 |
|
|
$ |
55.7 |
|
|
$ |
6.9 |
|
Impact of add-back items per share |
$ |
0.82 |
|
|
$ |
0.05 |
|
|
$ |
0.94 |
|
|
$ |
0.11 |
|
Diluted Earnings (loss) per share |
$ |
(0.35 |
) |
|
$ |
0.44 |
|
|
$ |
0.46 |
|
|
$ |
1.65 |
|
Adjusted Diluted EPS |
$ |
0.47 |
|
|
$ |
0.49 |
|
|
$ |
1.40 |
|
|
$ |
1.76 |
|
|
|
|
|
|
|
|
|
||||||||
Total of Loss due to misappropriation of assets, net and loss due to professional fees related to misappropriation of assets, net of tax benefit |
$ |
(42.5 |
) |
|
$ |
— |
|
|
$ |
(42.5 |
) |
|
$ |
— |
|
Diluted weighted-average shares outstanding (in thousands): |
|
58,738 |
|
|
|
59,252 |
|
|
|
58,942 |
|
|
|
59,934 |
|
Impact of Loss due to misappropriation of assets, net per share |
$ |
(0.72 |
) |
|
$ |
— |
|
|
$ |
(0.72 |
) |
|
$ |
— |
|
Volumetric Information: |
|||||||||||||||
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
2024 |
|
2023 |
|
Delta |
|
2024 |
|
2023 |
|
Delta |
|||||
Volume (in kmt) |
225.2 |
|
245.2 |
|
(20.0) |
|
(8.2) |
|
706.7 |
|
706.0 |
|
0.7 |
|
0.1 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241107968522/en/
Christopher Kapsch
Vice President of Investor Relations
+1 281-318-4413
christopher.kapsch@orioncarbons.com
Source: Orion Engineered Carbons S.A.
FAQ
What was Orion's (OEC) Q3 2024 revenue?
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