Olin Announces Third Quarter 2024 Results
Olin (OLN) reported a third quarter 2024 net loss of ($24.9) million, or ($0.21) per diluted share, compared to net income of $104.1 million in Q3 2023. Q3 2024 sales decreased to $1,589.5 million from $1,671.4 million year-over-year. Adjusted EBITDA was $160.3 million, down from $314.8 million in Q3 2023.
Hurricane Beryl significantly impacted operations, resulting in an estimated $135 million total headwind for 2024. Winchester segment experienced weaker commercial ammunition sales due to lower retail demand and high channel inventories. The company expects Q4 2024 adjusted EBITDA to be between $170-200 million.
Olin (OLN) ha registrato una perdita netta di terzo trimestre 2024 di ($24,9) milioni, ovvero ($0,21) per azione diluita, rispetto a un reddito netto di $104,1 milioni nel Q3 2023. Le vendite del Q3 2024 sono diminuite a $1.589,5 milioni rispetto a $1.671,4 milioni dell'anno precedente. L'EBITDA rettificato è stato di $160,3 milioni, in calo rispetto ai $314,8 milioni del Q3 2023.
L'uragano Beryl ha avuto un impatto significativo sulle operazioni, comportando un ineffetto stimato di $135 milioni per il 2024. Il segmento Winchester ha registrato vendite di munizioni commerciali più deboli a causa di una minore domanda al dettaglio e di alte giacenze nei canali. L'azienda prevede che l'EBITDA rettificato del Q4 2024 si attesti tra $170 e $200 milioni.
Olin (OLN) reportó una pérdida neta del tercer trimestre de 2024 de ($24,9) millones, o ($0,21) por acción diluida, en comparación con una ganancia neta de $104,1 millones en el Q3 2023. Las ventas del Q3 2024 disminuyeron a $1.589,5 millones desde $1.671,4 millones en comparación con el año anterior. El EBITDA ajustado fue de $160,3 millones, una caída desde los $314,8 millones en el Q3 2023.
El huracán Beryl impactó significativamente las operaciones, resultando en un viento en contra estimado de $135 millones para 2024. El segmento Winchester experimentó ventas de municiones comerciales más débiles debido a una menor demanda minorista y altos inventarios en los canales. La compañía espera que el EBITDA ajustado del Q4 2024 esté entre $170 y $200 millones.
Olin (OLN)은 2024년 3분기에 ($24.9) 백만 달러의 순손실을 보고하였으며, 이는 희석 주당 ($0.21)에 해당합니다. 이는 2023년 3분기의 순이익 $104.1 백만 달러와 비교됩니다. 2024년 3분기 매출은 2023년의 $1,671.4 백만 달러에서 $1,589.5 백만 달러로 감소했습니다. 조정 EBITDA는 $160.3 백만 달러로, 2023년 3분기의 $314.8 백만 달러에서 감소했습니다.
허리케인 베릴은 운영에 중대한 영향을 미쳐 2024년 총 $135 백만 달러의 손실을 초래했습니다. 윈체스터 부문은 소매 수요 감소와 높은 유통 재고로 인해 상업용 탄약 판매가 약화되었습니다. 회사는 2024년 4분기 조정 EBITDA가 $170~200 백만 달러 사이가 될 것으로 예상하고 있습니다.
Olin (OLN) a enregistré une perte nette de 24,9 millions de dollars au troisième trimestre 2024, soit 0,21 $ par action diluée, par rapport à un bénéfice net de 104,1 millions de dollars au T3 2023. Les ventes du T3 2024 ont diminué à 1,589,5 millions de dollars contre 1,671.4 millions de dollars l'année précédente. L'EBITDA ajusté était de 160,3 millions de dollars, en baisse par rapport à 314,8 millions de dollars au T3 2023.
L'ouragan Beryl a eu un impact significatif sur les opérations, entraînant un vent défavorable estimé à 135 millions de dollars pour 2024. Le segment Winchester a connu des ventes de munitions commerciales plus faibles en raison d'une demande de détail réduite et d'un inventaire élevé dans les canaux. La société s'attend à ce que l'EBITDA ajusté du T4 2024 se situe entre 170 et 200 millions de dollars.
Olin (OLN) berichtete im dritten Quartal 2024 einen Nettoverlust von ($24,9) Millionen bzw. ($0,21) pro verwässerter Aktie, verglichen mit einem Nettoertrag von $104,1 Millionen im Q3 2023. Die Umsätze im Q3 2024 sanken auf $1.589,5 Millionen von $1.671,4 Millionen im Vorjahr. Das bereinigte EBITDA betrug $160,3 Millionen, ein Rückgang von $314,8 Millionen im Q3 2023.
Der Hurrikan Beryl hatte erhebliche Auswirkungen auf die Betriebe und führte zu einem geschätzten Gesamtschaden von $135 Millionen für 2024. Der Winchester-Bereich verzeichnete schwächere Verkäufe von Handelsmunitions aufgrund der geringeren Einzelhandelsnachfrage und hohen Beständen in den Vertriebswegen. Das Unternehmen erwartet, dass das bereinigte EBITDA im Q4 2024 zwischen $170 und $200 Millionen liegen wird.
- Winchester segment sales increased due to higher international military sales and military project revenue
- Available liquidity of approximately $1.0 billion as of September 30, 2024
- Continued share repurchase program with $0.7 billion still available
- Net loss of ($24.9) million in Q3 2024 vs. net income of $104.1 million in Q3 2023
- Adjusted EBITDA declined 49% YoY to $160.3 million from $314.8 million
- Sales decreased 4.9% YoY to $1,589.5 million
- Hurricane Beryl impact estimated at $135 million for 2024
- Weaker commercial ammunition sales due to lower retail demand
- Net debt of $2.7 billion with net debt to adjusted EBITDA ratio of 3.0x
Insights
The Q3 results paint a challenging picture for Olin, with a significant swing from
The Chlor Alkali segment faced pressure from both hurricane impacts and lower caustic soda pricing, while Winchester's performance deteriorated due to weakening commercial ammunition demand and inventory destocking. The company's net debt position of
Management's Q4 guidance of
The results reveal broader industry dynamics affecting Olin's segments. In chemicals, while global caustic soda demand shows gradual improvement, pricing remains pressured. The hurricane disruption masks underlying market conditions, but the anticipated seasonal decline in Q4 suggests persistent challenges.
The Winchester segment's performance highlights a notable shift in ammunition markets. Despite
Highlights
- Third quarter 2024 net loss of
( , or ($24.9) million ) per diluted share$0.21 - Quarterly adjusted EBITDA of
$160.3 million
Ken Lane, President, and Chief Executive Officer, said, "During the third quarter, our Olin team worked tirelessly to recover from the effects of Hurricane Beryl. However, despite the team's hard work, persistent operating limitations related to the hurricane necessitated an additional outage, which we commenced in late September and successfully completed this month. This downtime added
Lane continued, "Winchester's third quarter results fell short of our expectations, due to weaker commercial ammunition sales, as our retail customers experienced lower sales and elevated channel inventories with slowing rates of replenishment. Winchester's third quarter military shipments and project revenue increased
Commenting on the overall outlook, Lane continued, "We are encouraged to see global caustic soda demand continue to slowly improve albeit with seasonally lower demand expected during the fourth quarter. Excluding the Hurricane Beryl impact, we anticipate our Chemical businesses' fourth quarter 2024 adjusted EBITDA to seasonally decline from third quarter 2024. Based on our current outlook, we expect Olin's fourth quarter 2024 adjusted EBITDA to be in the range of
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 third quarter 2024 were
EPOXY
Epoxy sales for the third quarter 2024 were
WINCHESTER
In fourth quarter 2023, Olin completed the acquisition of the White Flyer business, which was included in the Winchester segment. White Flyer designs, manufactures and sells recreational trap, skeet, international and sporting clay targets. Winchester sales for the third quarter 2024 were
CORPORATE AND OTHER COSTS
Other corporate and unallocated costs in the third quarter of 2024 increased
LIQUIDITY AND SHARE REPURCHASES
The cash balance on September 30, 2024, was
During third quarter 2024, approximately 1.0 million shares of common stock were repurchased at a cost of
CONFERENCE CALL INFORMATION
Olin senior management will host a conference call to discuss third quarter 2024 financial results at 9:00 a.m. Eastern time on Friday, October 25, 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 third 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
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.
2024-15
Olin Corporation | ||||||
Consolidated Statements of Operations (a) | ||||||
Three Months Ended | Nine Months Ended | |||||
September 30, | September 30, | |||||
(In millions, except per share amounts) | 2024 | 2023 | 2024 | 2023 | ||
Sales | ||||||
Operating Expenses: | ||||||
Cost of Goods Sold | 1,455.0 | 1,402.3 | 4,289.2 | 4,236.6 | ||
Selling and Administrative | 111.7 | 90.9 | 308.2 | 303.9 | ||
Restructuring Charges (b) | 7.9 | 11.9 | 23.0 | 92.0 | ||
Other Operating Income (Expense) (c) | 0.6 | (0.3) | 0.8 | 27.2 | ||
Operating Income | 15.5 | 166.0 | 249.2 | 613.1 | ||
Interest Expense | 48.4 | 46.2 | 139.6 | 133.9 | ||
Interest Income | 1.0 | 1.0 | 2.7 | 3.2 | ||
Non-operating Pension Income | 6.7 | 5.9 | 19.4 | 17.0 | ||
Income (Loss) before Taxes | (25.2) | 126.7 | 131.7 | 499.4 | ||
Income Tax Provision | - | 22.2 | 36.8 | 96.2 | ||
Net (Loss) Income | (25.2) | 104.5 | 94.9 | 403.2 | ||
Net (Loss) Income Attributable to Noncontrolling Interests | (0.3) | 0.4 | (3.0) | (4.1) | ||
Net (Loss) Income Attributable to Olin Corporation | $ (24.9) | $ 104.1 | $ 97.9 | $ 407.3 | ||
Net (Loss) Income Attributable to Olin Corporation per Common Share: | ||||||
Basic | $ (0.21) | $ 0.84 | $ 0.83 | $ 3.19 | ||
Diluted | $ (0.21) | $ 0.82 | $ 0.81 | $ 3.12 | ||
Dividends per Common Share | $ 0.20 | $ 0.20 | $ 0.60 | $ 0.60 | ||
Average Common Shares Outstanding - Basic | 116.9 | 124.2 | 118.4 | 127.5 | ||
Average Common Shares Outstanding - Diluted | 116.9 | 127.0 | 120.2 | 130.6 |
(a) | Unaudited. |
(b) | Restructuring charges for the nine months ended September 30, 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 |
(c) | Other operating income (expense) for the nine months ended September 30, 2023 included a gain of |
Olin Corporation | ||||||||
Segment Information (a) | ||||||||
Three Months Ended | Nine Months Ended | |||||||
September 30, | September 30, | |||||||
(In millions) | 2024 | 2023 | 2024 | 2023 | ||||
Sales: | ||||||||
Chlor Alkali Products and Vinyls | $ 871.6 | $ 969.6 | ||||||
Epoxy | 285.1 | 321.6 | 944.1 | 1,016.1 | ||||
Winchester | 432.8 | 380.2 | 1,248.2 | 1,113.3 | ||||
Total Sales | $ 1,589.5 | $ 1,671.4 | ||||||
Income (Loss) before Taxes: | ||||||||
Chlor Alkali Products and Vinyls | $ 45.3 | $ 172.3 | $ 221.2 | $ 598.3 | ||||
Epoxy | (42.8) | (28.8) | (57.6) | (7.9) | ||||
Winchester | 53.4 | 64.5 | 195.9 | 190.2 | ||||
Corporate/Other: | ||||||||
Environmental Expense | (7.2) | (6.9) | (19.4) | (23.1) | ||||
Other Corporate and Unallocated Costs | (25.9) | (22.9) | (68.7) | (79.6) | ||||
Restructuring Charges (b) | (7.9) | (11.9) | (23.0) | (92.0) | ||||
Other Operating Income (Expense) (c) | 0.6 | (0.3) | 0.8 | 27.2 | ||||
Interest Expense | (48.4) | (46.2) | (139.6) | (133.9) | ||||
Interest Income | 1.0 | 1.0 | 2.7 | 3.2 | ||||
Non-operating Pension Income | 6.7 | 5.9 | 19.4 | 17.0 | ||||
Income (Loss) before Taxes | $ (25.2) | $ 126.7 | $ 131.7 | $ 499.4 |
(a) | Unaudited. |
(b) | Restructuring charges for the nine months ended September 30, 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 |
(c) | Other operating income (expense) for the nine months ended September 30, 2023 included a gain of |
Olin Corporation | |||||||
Consolidated Balance Sheets (a) | |||||||
September 30, | December 31, | September 30, | |||||
(In millions, except per share data) | 2024 | 2023 | 2023 | ||||
Assets: | |||||||
Cash and Cash Equivalents | $ 225.9 | $ 170.3 | $ 158.3 | ||||
Accounts Receivable, Net | 863.2 | 874.7 | 894.2 | ||||
Income Taxes Receivable | 18.9 | 15.3 | 28.0 | ||||
Inventories, Net | 827.7 | 858.8 | 977.7 | ||||
Other Current Assets | 66.0 | 54.1 | 42.8 | ||||
Total Current Assets | 2,001.7 | 1,973.2 | 2,101.0 | ||||
Property, Plant and Equipment | |||||||
(Less Accumulated Depreciation of | 2,343.4 | 2,519.6 | 2,490.2 | ||||
Operating Lease Assets, Net | 309.3 | 344.7 | 331.0 | ||||
Deferred Income Taxes | 90.4 | 87.4 | 106.1 | ||||
Other Assets | 1,131.5 | 1,118.5 | 1,117.3 | ||||
Intangibles, Net | 218.3 | 245.8 | 248.6 | ||||
Goodwill | 1,423.7 | 1,424.0 | 1,421.0 | ||||
Total Assets | $ 7,518.3 | $ 7,713.2 | $ 7,815.2 | ||||
Liabilities and Shareholders' Equity: | |||||||
Current Installments of Long-term Debt | $ 123.9 | $ 78.8 | $ 78.9 | ||||
Accounts Payable | 759.1 | 775.4 | 717.6 | ||||
Income Taxes Payable | 138.4 | 154.7 | 171.5 | ||||
Current Operating Lease Liabilities | 65.4 | 69.3 | 68.3 | ||||
Accrued Liabilities | 343.1 | 450.0 | 361.0 | ||||
Total Current Liabilities | 1,429.9 | 1,528.2 | 1,397.3 | ||||
Long-term Debt | 2,765.6 | 2,591.3 | 2,711.2 | ||||
Operating Lease Liabilities | 250.0 | 283.1 | 270.4 | ||||
Accrued Pension Liability | 202.6 | 225.8 | 212.7 | ||||
Deferred Income Taxes | 445.9 | 476.2 | 500.7 | ||||
Other Liabilities | 334.7 | 340.3 | 355.4 | ||||
Total Liabilities | 5,428.7 | 5,444.9 | 5,447.7 | ||||
Commitments and Contingencies | |||||||
Shareholders' Equity: | |||||||
Common Stock, | |||||||
Issued and Outstanding 116.6, 120.2 and 122.5 Shares | 116.6 | 120.2 | 122.5 | ||||
Additional Paid-in Capital | - | 24.8 | 130.1 | ||||
Accumulated Other Comprehensive Loss | (466.2) | (496.3) | (480.3) | ||||
Retained Earnings | 2,406.3 | 2,583.7 | 2,555.2 | ||||
Olin Corporation's Shareholders' Equity | 2,056.7 | 2,232.4 | 2,327.5 | ||||
Noncontrolling Interests | 32.9 | 35.9 | 40.0 | ||||
Total Equity | 2,089.6 | 2,268.3 | 2,367.5 | ||||
Total Liabilities and Equity | $ 7,518.3 | $ 7,713.2 | $ 7,815.2 |
(a) | Unaudited. |
Olin Corporation | ||||
Consolidated Statements of Cash Flows (a) | ||||
Nine Months Ended | ||||
September 30, | ||||
(In millions) | 2024 | 2023 | ||
Operating Activities: | ||||
Net Income | $ 94.9 | $ 403.2 | ||
Depreciation and Amortization | 388.9 | 404.9 | ||
Gains on Disposition of Property, Plant and Equipment | - | (27.0) | ||
Stock-based Compensation | 11.8 | 13.2 | ||
Write-off of Equipment and Facility included in Restructuring Charges | - | 17.7 | ||
Deferred Income Taxes | (43.7) | (60.6) | ||
Qualified Pension Plan Contributions | (0.9) | (1.6) | ||
Qualified Pension Plan Income | (17.5) | (15.0) | ||
Changes in Assets and Liabilities: | ||||
Receivables | 5.1 | 28.4 | ||
Income Taxes Receivable/Payable | (21.5) | 55.3 | ||
Inventories | 32.8 | (43.4) | ||
Other Current Assets | 2.1 | 9.8 | ||
Accounts Payable and Accrued Liabilities | (77.2) | (222.7) | ||
Other Assets | (24.9) | (27.2) | ||
Other Noncurrent Liabilities | 6.2 | 29.5 | ||
Other Operating Activities | 5.4 | (6.8) | ||
Net Operating Activities | 361.5 | 557.7 | ||
Investing Activities: | ||||
Capital Expenditures | (144.1) | (173.0) | ||
Payments under Other Long-term Supply Contracts | (58.6) | (46.2) | ||
Proceeds from Disposition of Property, Plant and Equipment | - | 28.8 | ||
Other Investing Activities | (4.3) | (3.6) | ||
Net Investing Activities | (207.0) | (194.0) | ||
Financing Activities: | ||||
Long-term Debt Borrowings, Net | 216.7 | 206.6 | ||
Common Stock Repurchased and Retired | (256.8) | (595.1) | ||
Stock Options Exercised | 22.6 | 22.3 | ||
Employee Taxes Paid for Share-based Payment Arrangements | (10.5) | - | ||
Dividends Paid | (70.9) | (76.6) | ||
Contributions Received from Noncontrolling Interests | - | 44.1 | ||
Net Financing Activities | (98.9) | (398.7) | ||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | - | (0.7) | ||
Net Increase (Decrease) in Cash and Cash Equivalents | 55.6 | (35.7) | ||
Cash and Cash Equivalents, Beginning of Year | 170.3 | 194.0 | ||
Cash and Cash Equivalents, End of Period | $ 225.9 | $ 158.3 |
(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 | Nine Months Ended | ||||
September 30, | September 30, | ||||
(In millions) | 2024 | 2023 | 2024 | 2023 | |
Reconciliation of Net (Loss) Income to Adjusted EBITDA: | |||||
Net (Loss) Income | $ (25.2) | $ 104.5 | $ 94.9 | $ 403.2 | |
Add Back: | |||||
Interest Expense | 48.4 | 46.2 | 139.6 | 133.9 | |
Interest Income | (1.0) | (1.0) | (2.7) | (3.2) | |
Income Tax Provision | - | 22.2 | 36.8 | 96.2 | |
Depreciation and Amortization | 130.2 | 131.0 | 388.9 | 404.9 | |
EBITDA | 152.4 | 302.9 | 657.5 | 1,035.0 | |
Add Back: | |||||
Restructuring Charges | 7.9 | 11.9 | 23.0 | 92.0 | |
Certain Non-recurring Items (b) | - | - | - | (27.0) | |
Adjusted EBITDA | $ 160.3 | $ 314.8 | $ 680.5 | $ 1,100.0 |
(a) | Unaudited. |
(b) | Certain non-recurring items for the nine months ended September 30, 2023 included a gain of |
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 (income) 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. | ||||||
September 30, | December 31, | September 30, | ||||
(In millions) | 2024 | 2023 | 2023 | |||
Current Installments of Long-term Debt | $ 123.9 | $ 78.8 | $ 78.9 | |||
Long-term Debt | 2,765.6 | 2,591.3 | 2,711.2 | |||
Total Debt | 2,889.5 | 2,670.1 | 2,790.1 | |||
Less: Cash and Cash Equivalents | (225.9) | (170.3) | (158.3) | |||
Net Debt | $ 2,663.6 | $ 2,499.8 | $ 2,631.8 | |||
Trailing Twelve Months Adjusted EBITDA (b) | $ 890.6 | $ 1,310.1 | $ 1,541.8 | |||
Net Debt to Adjusted EBITDA | 3.0 | 1.9 | 1.7 |
(a) | Unaudited. |
(b) | Trailing Twelve Months Adjusted EBITDA as of September 30, 2024 is calculated as the nine months ended September 30, 2024 plus the year ended December 31, 2023 less the nine months ended September 30, 2023. Trailing Twelve Months Adjusted EBITDA as of September 30, 2023 is calculated as the nine months ended September 30, 2023 plus the year ended December 31, 2022 less the nine months ended September 30, 2022. |
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SOURCE Olin Corporation
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