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Olin Announces First Quarter 2024 Results

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Olin (NYSE: OLN) released its first quarter 2024 financial results, reporting a net income of $48.6 million, or $0.40 per diluted share. The company also announced a quarterly adjusted EBITDA of $242.1 million and share repurchases of $105.4 million in the first quarter of 2024. Despite a decrease in sales compared to the same period in 2023, the company's business segments showed improvement, with expectations of continued momentum in the upcoming quarters. The President and CEO, Ken Lane, expressed optimism for the company's performance in 2024, anticipating adjusted EBITDA levels to be similar to or slightly higher than 2023.
Olin (NYSE: OLN) ha pubblicato i risultati finanziari del primo trimestre del 2024, riportando un utile netto di 48,6 milioni di dollari, ovvero 0,40 dollari per azione diluita. La società ha anche annunciato un EBITDA rettificato trimestrale di 242,1 milioni di dollari e riacquisti di azioni per 105,4 milioni di dollari nel primo trimestre del 2024. Nonostante una riduzione delle vendite rispetto allo stesso periodo del 2023, i segmenti di attività dell'azienda hanno mostrato miglioramenti, con aspettative di mantenere un buon ritmo nei prossimi trimestri. Il Presidente e CEO, Ken Lane, ha espresso ottimismo per le prestazioni dell'azienda nel 2024, prevedendo livelli di EBITDA rettificato simili o leggermente superiori a quelli del 2023.
Olin (NYSE: OLN) ha publicado los resultados financieros del primer trimestre de 2024, reportando un ingreso neto de $48.6 millones, o $0.40 por acción diluida. La compañía también anunció un EBITDA ajustado trimestral de $242.1 millones y recompras de acciones de $105.4 millones en el primer trimestre de 2024. A pesar de una disminución en las ventas comparado con el mismo periodo en 2023, los segmentos de negocio de la empresa mostraron mejoras, con expectativas de mantener el impulso en los próximos trimestres. El presidente y CEO, Ken Lane, expresó optimismo sobre el rendimiento de la empresa en 2024, anticipando niveles de EBITDA ajustado similares o ligeramente superiores a los de 2023.
올린 (NYSE: OLN)은 2024년 1분기 재무 결과를 발표했으며, 순이익은 4,860만 달러이거나 희석주당 0.40달러를 기록했습니다. 회사는 또한 2024년 1분기에 2억 4,210만 달러의 조정 EBITDA와 1억 542만 달러의 주식 매입을 발표했습니다. 2023년 동기 대비 매출 감소에도 불구하고, 회사의 사업 부문은 개선되었으며 앞으로 몇 분기 동안 계속해서 동력을 유지할 것으로 기대됩니다. 회장이자 CEO인 켄 레인은 2024년 회사의 성과에 대해 낙관적이며, 조정 EBITDA 수준이 2023년과 비슷하거나 약간 높을 것으로 예상합니다.
Olin (NYSE: OLN) a publié ses résultats financiers pour le premier trimestre 2024, annonçant un revenu net de 48,6 millions de dollars, soit 0,40 dollar par action diluée. La société a également annoncé un EBITDA ajusté trimestriel de 242,1 millions de dollars et des rachats d'actions de 105,4 millions de dollars pour le premier trimestre de 2024. Malgré une baisse des ventes par rapport à la même période en 2023, les segments d'activité de l'entreprise ont montré une amélioration, avec des attentes de maintenir cette dynamique dans les trimestres à venir. Le président et PDG, Ken Lane, s'est montré optimiste quant aux performances de l'entreprise en 2024, anticipant des niveaux d'EBITDA ajusté similaires ou légèrement supérieurs à ceux de 2023.
Olin (NYSE: OLN) hat seine Finanzergebnisse für das erste Quartal 2024 veröffentlicht und dabei einen Nettogewinn von 48,6 Millionen Dollar oder 0,40 Dollar pro verwässerter Aktie gemeldet. Das Unternehmen kündigte zudem ein angepasstes EBITDA von 242,1 Millionen Dollar und Aktienrückkäufe im Wert von 105,4 Millionen Dollar für das erste Quartal 2024 an. Trotz eines Rückgangs der Verkäufe im Vergleich zum gleichen Zeitraum in 2023 zeigten die Geschäftsbereiche des Unternehmens Verbesserungen, mit der Erwartung, dass der Schwung in den kommenden Quartalen anhalten wird. Der Präsident und CEO, Ken Lane, äußerte sich optimistisch über die Leistung des Unternehmens im Jahr 2024 und erwartet, dass das angepasste EBITDA ähnlich oder leicht höher als 2023 sein wird.
Positive
  • First quarter 2024 net income of $48.6 million, or $0.40 per diluted share
  • Quarterly adjusted EBITDA of $242.1 million
  • Share repurchases of $105.4 million in first quarter 2024
  • Sales in the first quarter 2024 were $1,635.3 million, compared to $1,844.3 million in the first quarter 2023
  • Expectations of improved performance in the second quarter of 2024
  • Anticipation of full year 2024 adjusted EBITDA to be similar to or slightly higher than 2023 levels
Negative
  • None.

Insights

Observing Olin Corporation's report shows a clear dip in net income from $156.3 million in the first quarter of the previous year to $48.6 million. This represents a stark decline, which should raise investors' eyebrows about the company's performance and near-term challenges. However, the decision to buy back shares worth $105.4 million could be seen as a signal of confidence from management in the company's valuation, or as a move to support the stock price.

Adjusted EBITDA at $242.1 million, while lower year-over-year, suggests operational profitability before non-cash items like depreciation and non-recurring costs. This metric serves as a barometer for the company's operational efficiency. Sales figures also reflect a contraction, with a decrease from $1,844.3 million to $1,635.3 million. The drop in sales and EBITDA requires careful scrutiny of the company's pricing power and market demand, as these are critical for gauging future performance.

The CEO's comments hint at a positive forecast for the Chemical and Winchester segments. As an investor, understanding the dynamics of the Chlor Alkali Products and Vinyls business is important since this sector is cyclical and sensitive to economic conditions. With the CEO's projection of recovery and improved EBITDA moving forward, it is essential to monitor industry trends and pricing to validate these expectations. For example, the mention of 'favorable inflection point' and 'momentum' are positive terms but require context — such as specifics around demand growth and capacity expansions industry-wide — to be meaningful for investors.

The juxtaposition of higher military volumes against less favorable mix and higher raw material costs in the Winchester business warrants attention for retail investors. It is a subtle indication of margin pressures that could influence profitability in the firearms segment.

Highlights

  • First quarter 2024 net income of $48.6 million, or $0.40 per diluted share
  • Quarterly adjusted EBITDA of $242.1 million
  • Share repurchases of $105.4 million in first quarter 2024

CLAYTON, Mo., April 25, 2024 /PRNewswire/ -- Olin Corporation (NYSE: OLN) announced financial results for the first quarter ended March 31, 2024. First quarter 2024 reported net income was $48.6 million, or $0.40 per diluted share, which compares to first quarter 2023 reported net income of $156.3 million, or $1.16 per diluted share. First quarter 2024 adjusted EBITDA of $242.1 million excludes depreciation and amortization expense of $129.7 million and restructuring charges of $8.3 million. First quarter 2023 adjusted EBITDA was $434.1 million. Sales in the first quarter 2024 were $1,635.3 million, compared to $1,844.3 million in the first quarter 2023.

Ken Lane, President and Chief Executive Officer, said, "All first quarter 2024 business segment results improved sequentially from fourth quarter 2023, which begins Olin's recovery from trough-level earnings. During the quarter, the Olin team delivered on our commitment to accelerate a favorable inflection point for our Chlor Alkali Products and Vinyls business. We expect this momentum to continue with second quarter 2024 results, as demand and pricing continue to improve. We expect our Chemical businesses to be sequentially higher than first quarter 2024 levels and our Winchester business to be in line with first quarter results, as a less favorable mix and higher raw material costs offset stronger military volumes. Overall, we anticipate Olin's second quarter 2024 adjusted EBITDA to improve from first quarter 2024 levels. Based on our current outlook for the pace of demand and pricing improvement for our Chemical businesses, we currently believe Olin's full year 2024 adjusted EBITDA to be similar to or slightly higher than 2023 levels."

Commenting on his recent appointment as President and CEO, Lane continued, "I am excited about building upon Olin's strong foundation and confident in our ability to sustain strong earnings and cash flow performance. As such, we will continue our disciplined capital allocation strategy, while committing to maintain an investment-grade balance sheet. We remain committed to our approach to preserve electrochemical unit ("ECU") values and will continue to align our operating rates and product purchases to match the weaker side of the ECU, while refraining from selling incremental volume into poor-quality markets."

SEGMENT REPORTING

Olin defines segment earnings as income (loss) before interest expense, interest income, other operating income (expense), non-operating pension income, other income, and income taxes.

CHLOR ALKALI PRODUCTS AND VINYLS

Chlor Alkali Products and Vinyls sales for the first quarter 2024 were $884.6 million, compared to $1,117.1 million in the first quarter 2023. The decrease in Chlor Alkali Products and Vinyls sales was primarily due to lower pricing and volumes. First quarter 2024 segment earnings were $76.6 million, compared to $245.9 million in the first quarter 2023. The $169.3 million decrease in segment earnings was primarily due to lower pricing, primarily caustic soda, and lower volumes, partially offset by decreased costs associated with products purchased from other parties. Chlor Alkali Products and Vinyls first quarter 2024 results included depreciation and amortization expense of $106.8 million compared to $114.4 million in the first quarter 2023.

EPOXY

Epoxy sales for the first quarter 2024 were $341.3 million, compared to $360.7 million in the first quarter 2023. The decrease in Epoxy sales was primarily due to lower product pricing partially offset by improved volumes. First quarter 2024 segment loss was ($11.8) million, compared to segment earnings of $21.4 million in the first quarter 2023. The $33.2 million decrease in Epoxy segment earnings was primarily due to lower pricing, partially offset by increased volumes and lower raw material and operating costs. Epoxy first quarter 2024 results included depreciation and amortization expense of $13.5 million compared to $14.5 million in the first quarter 2023.

WINCHESTER

In fourth quarter 2023, we completed the acquisition of the White Flyer business, which was included in our Winchester segment. White Flyer designs, manufactures and sells recreational trap, skeet, international and sporting clay targets. Winchester sales for the first quarter 2024 were $409.4 million, compared to $366.5 million in the first quarter 2023. The increase in Winchester sales was primarily due to higher commercial ammunition shipments, higher domestic and international military sales, and White Flyer sales. First quarter 2024 segment earnings were $72.2 million, compared to $61.0 million in the first quarter 2023. The $11.2 million increase in segment earnings was primarily due to higher commercial ammunition shipments and White Flyers' earnings, partially offset by lower commercial ammunition pricing. Winchester first quarter 2024 results included depreciation and amortization expense of $7.9 million compared to $6.2 million in the first quarter 2023.

CORPORATE AND OTHER COSTS

Other corporate and unallocated costs in first quarter of 2024 decreased $8.5 million compared to first quarter 2023 primarily due to lower incentive costs, and a favorable foreign currency impact.

LIQUIDITY AND SHARE REPURCHASES

The cash balance on March 31, 2024, was $150.9 million. Olin ended the first quarter 2024 with net debt of approximately $2.6 billion and a net debt to adjusted EBITDA ratio of 2.3 times. During first quarter 2024, net debt increased by $115.0 million, primarily due to typical seasonal working capital. The increase in working capital was $89.0 million in first quarter 2024. On March 31, 2024, Olin had approximately $1.2 billion of available liquidity.

During first quarter 2024, approximately 2.0 million shares of common stock were repurchased at a cost of $105.4 million. On March 31, 2024, Olin had approximately $0.9 billion available under its share repurchase authorization.

CONFERENCE CALL INFORMATION

Olin senior management will host a conference call to discuss first quarter 2024 financial results at 9:00 a.m. Eastern time on Friday, April 26, 2024. Remarks will be followed by a question-and-answer session. Associated slides, which will be available the evening before the call, and the conference call webcast will be accessible via Olin's website, www.olin.com, under the first quarter conference call icon. An archived replay of the webcast will also be available in the Investor Relations section of Olin's website beginning at 12:00 p.m. Eastern time. A final transcript of the call will be posted the next business day.

COMPANY DESCRIPTION

Olin Corporation is a leading vertically-integrated global manufacturer and distributor of chemical products and a leading U.S. manufacturer of ammunition. The chemical products produced include chlorine and caustic soda, vinyls, epoxies, chlorinated organics, bleach, hydrogen, and hydrochloric acid. Winchester's principal manufacturing facilities produce and distribute sporting ammunition, law enforcement ammunition, reloading components, small caliber military ammunition and components, industrial cartridges, and clay targets.

Visit www.olin.com for more information on Olin.

FORWARD-LOOKING STATEMENTS

This communication includes forward-looking statements. These statements relate to analyses and other information that are based on management's beliefs, certain assumptions made by management, forecasts of future results, and current expectations, estimates and projections about the markets and economy in which we and our various segments operate. The statements contained in this communication that are not statements of historical fact may include forward-looking statements that involve a number of risks and uncertainties.

We have used the words "anticipate," "intend," "may," "expect," "believe," "should," "plan," "outlook," "project," "estimate," "forecast," "optimistic," "target," and variations of such words and similar expressions in this communication to identify such forward-looking statements. These forward-looking statements include, but are not limited to, statements regarding the Company's intent to repurchase, from time to time, the Company's common stock. These statements are not guarantees of future performance and involve certain risks, uncertainties, and assumptions, which are difficult to predict and many of which are beyond our control. Therefore, actual outcomes and results may differ materially from those matters expressed or implied in such forward-looking statements. We undertake no obligation to update publicly any forward-looking statements, whether as a result of future events, new information or otherwise. The payment of cash dividends is subject to the discretion of our board of directors and will be determined in light of then-current conditions, including our earnings, our operations, our financial conditions, our capital requirements and other factors deemed relevant by our board of directors. In the future, our board of directors may change our dividend policy, including the frequency or amount of any dividend, in light of then-existing conditions.

The risks, uncertainties and assumptions involved in our forward-looking statements, many of which are discussed in more detail in our filings with the SEC, including without limitation the "Risk Factors" section of our Annual Report on Form 10-K for the year ended December 31, 2023, and our Quarterly Reports on Form 10-Q and other reports furnished or filed with the SEC, include, but are not limited to, the following:

Business, Industry and Operational Risks

  • sensitivity to economic, business and market conditions in the United States and overseas, including economic instability or a downturn in the sectors served by us;
  • declines in average selling prices for our products and the supply/demand balance for our products, including the impact of excess industry capacity or an imbalance in demand for our chlor alkali products;
  • unsuccessful execution of our strategic operating model, which prioritizes Electrochemical Unit (ECU) margins over sales volumes;
  • failure to identify, attract, develop, retain and motivate qualified employees throughout the organization and ability to manage executive officer and other key senior management transitions;
  • failure to control costs and inflation impacts or failure to achieve targeted cost reductions;
  • our reliance on a limited number of suppliers for specified feedstock and services and our reliance on third-party transportation;
  • the occurrence of unexpected manufacturing interruptions and outages, including those occurring as a result of labor disruptions and production hazards;
  • exposure to physical risks associated with climate-related events or increased severity and frequency of severe weather events;
  • availability of and/or higher-than-expected costs of raw material, energy, transportation, and/or logistics;
  • the failure or an interruption, including cyber-attacks, of our information technology systems;
  • our inability to complete future acquisitions or joint venture transactions or successfully integrate them into our business;
  • risks associated with our international sales and operations, including economic, political or regulatory changes;
  • our indebtedness and debt service obligations;
  • weak industry conditions affecting our ability to comply with the financial maintenance covenants in our senior credit facility;
  • adverse conditions in the credit and capital markets, limiting or preventing our ability to borrow or raise capital;
  • the effects of any declines in global equity markets on asset values and any declines in interest rates or other significant assumptions used to value the liabilities in, and funding of, our pension plans;
  • our long-range plan assumptions not being realized, causing a non-cash impairment charge of long-lived assets;

Legal, Environmental and Regulatory Risks

  • changes in, or failure to comply with, legislation or government regulations or policies, including changes regarding our ability to manufacture or use certain products and changes within the international markets in which we operate;
  • new regulations or public policy changes regarding the transportation of hazardous chemicals and the security of chemical manufacturing facilities;
  • unexpected outcomes from legal or regulatory claims and proceedings;
  • costs and other expenditures in excess of those projected for environmental investigation and remediation or other legal proceedings;
  • various risks associated with our Lake City U.S. Army Ammunition Plant contract and performance under other governmental contracts; and
  • failure to effectively manage environmental, social and governance (ESG) issues and related regulations, including climate change and sustainability.

All of our forward-looking statements should be considered in light of these factors. In addition, other risks and uncertainties not presently known to us or that we consider immaterial could affect the accuracy of our forward-looking statements.

2024 - 06

 

Olin Corporation



Consolidated Statements of Operations (a)





Three Months



 Ended March 31,

(In millions, except per share amounts)

2024

2023





Sales

$     1,635.3

$     1,844.3

Operating Expenses:



     Cost of Goods Sold

1,428.0

1,441.7

     Selling and Administrative

101.9

111.8

     Restructuring Charges (b)

8.3

60.9

Other Operating Income

0.2

0.5

     Operating Income

97.3

230.4

Interest Expense

44.6

42.4

Interest Income

0.8

1.1

Non-operating Pension Income

6.8

5.7

     Income before Taxes

60.3

194.8

Income Tax Provision

12.5

40.8

Net Income

47.8

154.0

     Net Loss Attributable to Noncontrolling Interests

(0.8)

(2.3)

Net Income Attributable to Olin Corporation

$          48.6

$        156.3

Net Income Attributable to Olin Corporation per Common Share:



     Basic 

$          0.41

$          1.19

     Diluted

$          0.40

$          1.16

Dividends per Common Share

$          0.20

$          0.20

Average Common Shares Outstanding - Basic


119.9

131.0

Average Common Shares Outstanding - Diluted

121.9

134.4





(a)

Unaudited.  

(b)

Restructuring charges for the three months ended March 31, 2023 were primarily associated with our actions to configure our global Epoxy asset footprint to optimize the most productive and cost effective assets to support our strategic operating model of which $12.8 million were non-cash impairment charges for equipment and facilities.

 

Olin Corporation




Segment Information (a)
















Three Months



Ended March 31,

(In millions)

2024


2023

Sales:





Chlor Alkali Products and Vinyls

$        884.6


$     1,117.1


Epoxy

341.3


360.7


Winchester

409.4


366.5


Total Sales

$     1,635.3


$     1,844.3

Income before Taxes:





Chlor Alkali Products and Vinyls

$          76.6


$        245.9


Epoxy

(11.8)


21.4


Winchester

72.2


61.0


Corporate/Other:





     Environmental Expense

(5.8)


(3.2)


     Other Corporate and Unallocated Costs

(25.8)


(34.3)


     Restructuring Charges (b)

(8.3)


(60.9)


Other Operating Income

0.2


0.5


Interest Expense

(44.6)


(42.4)


Interest Income

0.8


1.1


Non-operating Pension Income

6.8


5.7


Income before Taxes 

$          60.3


$        194.8






(a)  

Unaudited.  

(b)  

Restructuring charges for the three months ended March 31, 2023 were primarily associated with our actions to configure our global Epoxy asset footprint to optimize the most productive and cost effective assets to support our strategic operating model of which $12.8 million were non-cash impairment charges for equipment and facilities.

 

Olin Corporation







Consolidated Balance Sheets (a)

















March 31,


December 31,


March 31,


(In millions, except per share data)

2024


2023


2023










Assets:







  Cash and Cash Equivalents

$               150.9


$               170.3


$               176.0


  Accounts Receivable, Net

907.4


874.7


932.1


  Income Taxes Receivable

15.4


15.3


29.7


  Inventories, Net

823.9


858.8


1,089.9


  Other Current Assets

54.2


54.1


70.5


    Total Current Assets

1,951.8


1,973.2


2,298.2


  Property, Plant and Equipment 







     (Less Accumulated Depreciation of $4,917.5, $4,826.3 and $4,536.5)

2,451.5


2,519.6


2,606.7


  Operating Lease Assets, Net

334.9


344.7


346.8


  Deferred Income Taxes

90.7


87.4


67.3


  Other Assets

1,123.5


1,118.5


1,104.7


  Intangibles, Net

235.6


245.8


264.8


  Goodwill

1,423.3


1,424.0


1,420.9


Total Assets

$            7,611.3


$            7,713.2


$            8,109.4










Liabilities and Shareholders' Equity:







  Current Installments of Long-term Debt

$                 80.9


$                 78.8


$                   9.6


  Accounts Payable

763.7


775.4


817.1


  Income Taxes Payable

161.7


154.7


109.1


  Current Operating Lease Liabilities

68.2


69.3


72.1


  Accrued Liabilities

341.6


450.0


427.2


    Total Current Liabilities

1,416.1


1,528.2


1,435.1


  Long-term Debt

2,684.8


2,591.3


2,764.6


  Operating Lease Liabilities

274.1


283.1


282.8


  Accrued Pension Liability

211.4


225.8


230.4


  Deferred Income Taxes

470.0


476.2


505.0


  Other Liabilities

347.8


340.3


356.9


Total Liabilities

5,404.2


5,444.9


5,574.8


Commitments and Contingencies







Shareholders' Equity:







      Common Stock, $1.00 Par Value Per Share; Authorized 240.0 Shares;







          Issued and Outstanding 119.4, 120.2 and 129.3 Shares

119.4


120.2


129.3


      Additional Paid-in Capital

-


24.8


491.6


      Accumulated Other Comprehensive Loss

(489.7)


(496.3)


(482.7)


      Retained Earnings

2,542.3


2,583.7


2,354.6


Olin Corporation's Shareholders' Equity

2,172.0


2,232.4


2,492.8


      Noncontrolling Interests

35.1


35.9


41.8


Total Equity

2,207.1


2,268.3


2,534.6


Total Liabilities and Equity

$            7,611.3


$            7,713.2


$            8,109.4










(a)   Unaudited. 







 

Olin Corporation




Consolidated Statements of Cash Flows (a)






Three Months Ended



March 31,

(In millions)

2024


2023

Operating Activities:




Net Income

$           47.8


$         154.0

Stock-based Compensation

4.4


3.7

Depreciation and Amortization

129.7


137.1

Deferred Income Taxes

(13.9)


(11.0)

Write-off of Equipment and Facility included in Restructuring Charges

-


12.8

Qualified Pension Plan Contributions

(0.3)


(0.8)

Qualified Pension Plan Income

(6.0)


(5.1)

Changes in:




       Receivables

(37.5)


(4.5)

       Income Taxes Receivable/Payable

9.6


(11.9)

       Inventories

31.2


(146.0)

       Other Current Assets

3.6


(15.9)

       Accounts Payable and Accrued Liabilities

(95.9)


(66.1)

       Other Assets

(0.7)


(10.5)

       Other Noncurrent Liabilities

5.7


6.0

Other Operating Activities

3.3


(4.3)

    Net Operating Activities

81.0


37.5

Investing Activities:




Capital Expenditures

(44.3)


(61.4)

Payments under Other Long-term Supply Contracts

(28.5)


(9.3)

Other Investing Activities

(1.9)


(0.4)

    Net Investing Activities

(74.7)


(71.1)

Financing Activities:




Long-term Debt Borrowings, Net

94.7


192.6

Common Stock Repurchased and Retired

(105.4)


(206.1)

Stock Options Exercised

19.8


11.2

Employee Taxes Paid for Share-based Payment Arrangements

(10.5)


-

Dividends Paid

(23.9)


(26.2)

Contributions Received from Noncontrolling Interests

-


44.1

    Net Financing Activities

(25.3)


15.6

    Effect of Exchange Rate Changes on Cash and Cash Equivalents

(0.4)


-

Net Decrease in Cash and Cash Equivalents

(19.4)


(18.0)

Cash and Cash Equivalents, Beginning of Year

170.3


194.0

Cash and Cash Equivalents, End of Period

$         150.9


$         176.0






(a)   Unaudited.  




 

Olin Corporation



Non-GAAP Financial Measures - Adjusted EBITDA (a)






Olin's definition of Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) is net income (loss) plus an add-back for depreciation and amortization, interest expense (income), income tax provision (benefit), other expense (income), restructuring charges (income) and certain other non-recurring items. Adjusted EBITDA is a non-GAAP financial measure. Management believes that this measure is meaningful to investors as a supplemental financial measure to assess the financial performance without regard to financing methods, capital structures, taxes or historical cost basis. The use of non-GAAP financial measures is not intended to replace any measures of performance determined in accordance with GAAP and Adjusted EBITDA presented may not be comparable to similarly titled measures of other companies. Reconciliation of forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measures are omitted from this release because Olin is unable to provide such reconciliations without the use of unreasonable efforts. This inability results from the inherent difficulty in forecasting generally and quantifying certain projected amounts that are necessary for such reconciliations. In particular, sufficient information is not available to calculate certain adjustments required for such reconciliations, including interest expense (income), income tax provision (benefit), other expense (income) and restructuring charges (income). Because of our inability to calculate such adjustments, forward-looking net income guidance is also omitted from this release. We expect these adjustments to have a potentially significant impact on our future GAAP financial results.

 



Three Months



Ended March 31,

(In millions)

2024

2023





Reconciliation of Net Income to Adjusted EBITDA:



Net Income

$           47.8

$         154.0

Add Back:



Interest Expense

44.6

42.4

Interest Income

(0.8)

(1.1)

Income Tax Provision

12.5

40.8

Depreciation and Amortization

129.7

137.1

EBITDA

233.8

373.2

Add Back:



Restructuring Charges

8.3

60.9

Adjusted EBITDA

$         242.1

$         434.1





(a)   Unaudited.

 

Olin Corporation






Non-GAAP Financial Measures - Net Debt to Adjusted EBITDA (a)












Olin's definition of Net Debt to Adjusted EBITDA is Net Debt divided by Adjusted EBITDA. Net Debt at the end of any reporting period is defined as the sum of our current installments of long-term debt and long-term debt, less cash and cash equivalents. Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) is net income (loss) plus an add-back for depreciation and amortization, interest expense (income), income tax provision (benefit), other expense (income), restructuring charges and certain other non-recurring items. Net Debt to Adjusted EBITDA is a non-GAAP financial measure. Management believes that this measure is meaningful to investors as a measure of our ability to manage our indebtedness. The use of non-GAAP financial measures is not intended to replace any measures of indebtedness or liquidity determined in accordance with GAAP and Net Debt or Net Debt to Adjusted EBITDA presented may not be comparable to similarly titled measures of other companies.










March 31,


December 31,


March 31,

(In millions)

2024


2023


2023








Current Installments of Long-term Debt

$                80.9


$                78.8


$                  9.6

Long-term Debt

2,684.8


2,591.3


2,764.6

Total Debt

2,765.7


2,670.1


2,774.2

Less: Cash and Cash Equivalents

(150.9)


(170.3)


(176.0)

Net Debt

$           2,614.8


$           2,499.8


$           2,598.2








Trailing Twelve Months Adjusted EBITDA (b)

$           1,118.1


$           1,310.1


$           2,151.0








Net Debt to Adjusted EBITDA

2.3


1.9


1.2








(a)

Unaudited.

(b)

Trailing Twelve Months Adjusted EBITDA as of March 31, 2024 is calculated as the three months ended March 31, 2024 plus the year ended December 31, 2023 less the three months ended March 31, 2023. Trailing Twelve Months Adjusted EBITDA as of March 31, 2023 is calculated as the three months ended March 31, 2023 plus the year ended December 31, 2022 less the three months ended March 31, 2022.

 

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SOURCE OLIN CORPORATION

FAQ

What was Olin 's net income in the first quarter of 2024?

Olin reported a net income of $48.6 million in the first quarter of 2024.

What was the quarterly adjusted EBITDA for Olin in the first quarter of 2024?

Olin 's quarterly adjusted EBITDA was $242.1 million in the first quarter of 2024.

How much were the share repurchases made by Olin in the first quarter of 2024?

Olin made share repurchases totaling $105.4 million in the first quarter of 2024.

What were Olin 's sales in the first quarter of 2024 compared to the same period in 2023?

Olin 's sales in the first quarter of 2024 were $1,635.3 million, compared to $1,844.3 million in the first quarter of 2023.

What are the expectations for Olin 's performance in the second quarter of 2024?

Olin anticipates improved performance in the second quarter of 2024.

What is the outlook for Olin 's full year 2024 adjusted EBITDA compared to 2023 levels?

Olin currently believes its full year 2024 adjusted EBITDA will be similar to or slightly higher than 2023 levels.

Olin Corp.

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