Albemarle reports fourth quarter and full year 2014 results
Fourth quarter 2014 highlights:
- Full year adjusted earnings of
$4.20 per share, up 5% versus 2013; fourth quarter 2014 adjusted earnings of$0.99 per share. - Net sales of
$2.45 billion for full year 2014, up 2% versus 2013; adjusted EBITDA grew 1% to$562 million , a 23% margin. - 2014 cash flow from operations of
$459.2 million , up 6% versus 2013 on lower working capital. - Completed acquisition of Rockwood on
January 12 , forming a premier specialty chemical company with leading positions in attractive end markets.
Three Months Ended |
Year Ended |
||||||||||||||
December 31, |
December 31, |
||||||||||||||
In thousands, except per share amounts |
2014 |
2013 |
2014 |
2013 |
|||||||||||
Net sales |
$ |
598,566 |
$ |
639,635 |
$ |
2,445,548 |
$ |
2,394,270 |
|||||||
Segment income |
$ |
127,212 |
$ |
138,325 |
$ |
539,175 |
$ |
533,663 |
|||||||
Net (loss) income from continuing operations |
$ |
(12,990) |
$ |
162,232 |
$ |
230,437 |
$ |
435,726 |
|||||||
Net (loss) income attributable to Albemarle Corporation |
$ |
(18,508) |
$ |
155,933 |
$ |
133,316 |
$ |
413,171 |
|||||||
Diluted (loss) earnings per share |
$ |
(0.24) |
$ |
1.91 |
$ |
1.69 |
$ |
4.90 |
|||||||
Non-operating pension and OPEB items(a) |
0.90 |
(1.09) |
1.01 |
(1.10) |
|||||||||||
Special items(b)(c)(d)(e)(f) |
0.30 |
0.27 |
0.62 |
0.26 |
|||||||||||
Discontinued operations(g) |
0.02 |
0.01 |
0.88 |
(0.05) |
|||||||||||
Adjusted diluted earnings per share(h) |
$ |
0.99 |
$ |
1.09 |
$ |
4.20 |
$ |
4.01 |
Earnings for the full year 2014 were
On
At the effective time of the merger, each outstanding share of Rockwood common stock, par value
"Our fourth quarter financial results, driven by strong Catalyst Solutions performance, allowed us to deliver 5% adjusted earnings per share growth in 2014 – well within the range of our guidance," said Albemarle president and CEO
Quarterly Segment Results
Performance Chemicals reported net sales of
Catalyst Solutions generated net sales of
Income Taxes
Our adjusted effective income tax rates, which exclude discontinued operations, special and non-operating pension and OPEB items, were 24.0 percent and 19.7 percent for the fourth quarter of 2014 and 2013, respectively, and 22.3 percent and 21.7 percent for the full year of 2014 and 2013, respectively. Our effective tax rate continues to be influenced by the level and geographic mix of income, and benefits from a favorable mix of income in lower tax jurisdictions.
Cash Flow
Our cash flow from operations was approximately
During the fourth quarter of 2014, we issued a series of senior notes consisting of (i)
The Company ended the fourth quarter of 2014 with a Consolidated Leverage Ratio of approximately 2.5x, as defined by the first amendment to the Credit Agreement dated as of
Earnings Call
The Company's performance for the fourth quarter and full year ended December 31, 2014 will be discussed on a conference call at
About Albemarle
Forward-Looking Statements
Some of the information presented in this press release and the conference call and discussions that follow, including, without limitation, statements with respect to the transaction with Rockwood and the anticipated consequences and benefits of the transaction, product development, changes in productivity, market trends, price, expected growth and earnings, input costs, surcharges, tax rates, stock repurchases, dividends, cash flow generation, costs and cost synergies, portfolio diversification, economic trends, outlook and all other information relating to matters that are not historical facts may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. There can be no assurance that actual results will not differ materially. Factors that could cause actual results to differ materially include, without limitation: changes in economic and business conditions; changes in financial and operating performance of our major customers and industries and markets served by us; the timing of orders received from customers; the gain or loss of significant customers; competition from other manufacturers; changes in the demand for our products; limitations or prohibitions on the manufacture and sale of our products; availability of raw materials; changes in the cost of raw materials and energy; changes in our markets in general; fluctuations in foreign currencies; changes in laws and government regulation impacting our operations or our products; the occurrence of claims or litigation; the occurrence of natural disasters; the inability to maintain current levels of product or premises liability insurance or the denial of such coverage; political unrest affecting the global economy; political instability affecting our manufacturing operations or joint ventures; changes in accounting standards; the inability to achieve results from our global manufacturing cost reduction initiatives as well as our ongoing continuous improvement and rationalization programs; changes in the jurisdictional mix of our earnings and changes in tax laws and rates; changes in monetary policies, inflation or interest rates; volatility and substantial uncertainties in the debt and equity markets; technology or intellectual property infringement; decisions we may make in the future; the ability to successfully operate and integrate Rockwood's operations and realize estimated synergies; and the other factors detailed from time to time in the reports we file with the
Albemarle Corporation and Subsidiaries Consolidated Statements of Income (In Thousands Except Per Share Amounts) (Unaudited) |
|||||||||||||||
Three Months Ended |
Year Ended |
||||||||||||||
December 31, |
December 31, |
||||||||||||||
2014 |
2013 |
2014 |
2013 |
||||||||||||
Net sales |
$ |
598,566 |
$ |
639,635 |
$ |
2,445,548 |
$ |
2,394,270 |
|||||||
Cost of goods sold(a) |
436,126 |
386,356 |
1,674,700 |
1,543,799 |
|||||||||||
Gross profit |
162,440 |
253,279 |
770,848 |
850,471 |
|||||||||||
Selling, general and administrative expenses(a) |
144,008 |
(28,479) |
355,135 |
158,189 |
|||||||||||
Research and development expenses |
21,394 |
21,287 |
88,310 |
82,246 |
|||||||||||
Restructuring and other charges, net(b) |
5,322 |
33,361 |
25,947 |
33,361 |
|||||||||||
Acquisition and integration related costs(c) |
15,054 |
— |
30,158 |
— |
|||||||||||
Operating (loss) profit |
(23,338) |
227,110 |
271,298 |
576,675 |
|||||||||||
Interest and financing expenses(d) |
(15,103) |
(9,224) |
(41,358) |
(31,559) |
|||||||||||
Other expenses, net(e) |
(10,307) |
(527) |
(16,761) |
(6,674) |
|||||||||||
(Loss) income from continuing operations before income |
(48,748) |
217,359 |
213,179 |
538,442 |
|||||||||||
Income tax (benefit) expense(f) |
(28,216) |
61,548 |
18,484 |
134,445 |
|||||||||||
(Loss) income from continuing operations before equity in net income of unconsolidated investments |
(20,532) |
155,811 |
194,695 |
403,997 |
|||||||||||
Equity in net income of unconsolidated investments (net of tax) |
7,542 |
6,421 |
35,742 |
31,729 |
|||||||||||
Net (loss) income from continuing operations |
(12,990) |
162,232 |
230,437 |
435,726 |
|||||||||||
(Loss) income from discontinued operations (net of tax)(g) |
(1,058) |
(886) |
(69,531) |
4,108 |
|||||||||||
Net (loss) income |
(14,048) |
161,346 |
160,906 |
439,834 |
|||||||||||
Net income attributable to noncontrolling interests |
(4,460) |
(5,413) |
(27,590) |
(26,663) |
|||||||||||
Net (loss) income attributable to Albemarle Corporation |
$ |
(18,508) |
$ |
155,933 |
$ |
133,316 |
$ |
413,171 |
|||||||
Basic (loss) earnings per share |
|||||||||||||||
Continuing operations |
$ |
(0.22) |
$ |
1.93 |
$ |
2.57 |
$ |
4.88 |
|||||||
Discontinued operations |
(0.02) |
(0.01) |
(0.88) |
0.05 |
|||||||||||
$ |
(0.24) |
$ |
1.92 |
$ |
1.69 |
$ |
4.93 |
||||||||
Diluted (loss) earnings per share |
|||||||||||||||
Continuing operations |
$ |
(0.22) |
$ |
1.92 |
$ |
2.57 |
$ |
4.85 |
|||||||
Discontinued operations |
(0.02) |
(0.01) |
(0.88) |
0.05 |
|||||||||||
$ |
(0.24) |
$ |
1.91 |
$ |
1.69 |
$ |
4.90 |
||||||||
Weighted-average common shares outstanding – basic |
78,144 |
81,226 |
78,696 |
83,839 |
|||||||||||
Weighted-average common shares outstanding – diluted |
78,545 |
81,713 |
79,102 |
84,322 |
See accompanying notes to the condensed consolidated financial information.
Albemarle Corporation and Subsidiaries |
|||||||
December 31, |
December 31, |
||||||
2014 |
2013 |
||||||
ASSETS |
|||||||
Cash and cash equivalents |
$ |
2,489,768 |
$ |
477,239 |
|||
Other current assets |
859,082 |
1,005,676 |
|||||
Total current assets |
3,348,850 |
1,482,915 |
|||||
Property, plant and equipment |
2,620,670 |
2,972,084 |
|||||
Less accumulated depreciation and amortization |
1,388,802 |
1,615,015 |
|||||
Net property, plant and equipment |
1,231,868 |
1,357,069 |
|||||
Other assets and intangibles |
642,385 |
744,813 |
|||||
Total assets |
$ |
5,223,103 |
$ |
3,584,797 |
|||
LIABILITIES AND EQUITY |
|||||||
Current portion of long-term debt |
$ |
711,096 |
$ |
24,554 |
|||
Other current liabilities |
428,790 |
411,809 |
|||||
Total current liabilities |
1,139,886 |
436,363 |
|||||
Long-term debt |
2,223,035 |
1,054,310 |
|||||
Other noncurrent liabilities |
314,663 |
222,160 |
|||||
Deferred income taxes |
56,884 |
129,188 |
|||||
Albemarle Corporation shareholders' equity |
1,359,465 |
1,627,361 |
|||||
Noncontrolling interests |
129,170 |
115,415 |
|||||
Total liabilities and equity |
$ |
5,223,103 |
$ |
3,584,797 |
See accompanying notes to the condensed consolidated financial information.
Albemarle Corporation and Subsidiaries Selected Consolidated Cash Flow Data (In Thousands) (Unaudited) |
|||||||
Year Ended |
|||||||
December 31, |
|||||||
2014 |
2013 |
||||||
Cash and cash equivalents at beginning of year |
$ |
477,239 |
$ |
477,696 |
|||
Cash and cash equivalents at end of year |
$ |
2,489,768 |
$ |
477,239 |
|||
Sources of cash and cash equivalents: |
|||||||
Net income |
$ |
160,906 |
$ |
439,834 |
|||
Cash proceeds from divestitures |
104,718 |
— |
|||||
Proceeds from issuance of senior notes |
1,888,197 |
— |
|||||
Proceeds from borrowings of other long-term debt |
— |
117,000 |
|||||
Proceeds from other borrowings, net |
— |
398,544 |
|||||
Dividends received from unconsolidated investments and nonmarketable securities |
40,688 |
21,632 |
|||||
Working capital changes |
57,160 |
— |
|||||
Uses of cash and cash equivalents: |
|||||||
Working capital changes |
— |
(31,003 |
|||||
Capital expenditures |
(110,576) |
(155,346) |
|||||
Repurchases of common stock |
(150,000) |
(582,298) |
|||||
Repayments of long-term debt |
(6,017) |
(135,733) |
|||||
Payment for settlement of interest rate swap |
(33,425) |
— |
|||||
Dividends paid to shareholders |
(84,102) |
(78,107) |
|||||
Dividends paid to noncontrolling interests |
(15,535) |
(10,014) |
|||||
Pension and postretirement contributions |
(13,916) |
(13,294) |
|||||
Non-cash and other items: |
|||||||
Depreciation and amortization |
103,572 |
107,370 |
|||||
Loss on disposal of businesses |
85,515 |
— |
|||||
Pension and postretirement expense (benefit) |
133,681 |
(132,707) |
|||||
Equity in net income of unconsolidated investments |
(35,742) |
(31,729) |
See accompanying notes to the condensed consolidated financial information.
Albemarle Corporation and Subsidiaries Consolidated Summary of Segment Results (In Thousands) (Unaudited) |
|||||||||||||||
Three Months Ended |
Year Ended |
||||||||||||||
December 31, |
December 31, |
||||||||||||||
2014 |
2013 |
2014 |
2013 |
||||||||||||
Net sales: |
|||||||||||||||
Performance Chemicals |
$ |
302,635 |
$ |
333,462 |
$ |
1,351,596 |
$ |
1,392,664 |
|||||||
Catalyst Solutions |
295,931 |
306,173 |
1,093,952 |
1,001,606 |
|||||||||||
Total net sales |
$ |
598,566 |
$ |
639,635 |
$ |
2,445,548 |
$ |
2,394,270 |
|||||||
Segment operating profit: |
|||||||||||||||
Performance Chemicals |
$ |
61,892 |
$ |
68,610 |
$ |
306,616 |
$ |
334,275 |
|||||||
Catalyst Solutions |
62,238 |
68,707 |
224,407 |
194,322 |
|||||||||||
Total segment operating profit |
124,130 |
137,317 |
531,023 |
528,597 |
|||||||||||
Equity in net income of unconsolidated |
|||||||||||||||
Performance Chemicals |
2,747 |
2,504 |
10,068 |
8,875 |
|||||||||||
Catalyst Solutions |
4,795 |
3,917 |
25,674 |
22,854 |
|||||||||||
Total equity in net income of unconsolidated investments |
7,542 |
6,421 |
35,742 |
31,729 |
|||||||||||
Net income attributable to noncontrolling interests: |
|||||||||||||||
Performance Chemicals |
(4,460) |
(5,413) |
(27,590) |
(26,663) |
|||||||||||
Total net income attributable to noncontrolling interests |
(4,460) |
(5,413) |
(27,590) |
(26,663) |
|||||||||||
Segment income: |
|||||||||||||||
Performance Chemicals |
60,179 |
65,701 |
289,094 |
316,487 |
|||||||||||
Catalyst Solutions |
67,033 |
72,624 |
250,081 |
217,176 |
|||||||||||
Total segment income |
127,212 |
138,325 |
539,175 |
533,663 |
|||||||||||
Corporate & other(a) |
(127,092) |
123,154 |
(203,620) |
81,439 |
|||||||||||
Restructuring and other charges, net(b) |
(5,322) |
(33,361) |
(25,947) |
(33,361) |
|||||||||||
Acquisition and integration related costs(c) |
(15,054) |
— |
(30,158) |
— |
|||||||||||
Interest and financing expenses(d) |
(15,103) |
(9,224) |
(41,358) |
(31,559) |
|||||||||||
Other expenses, net(e) |
(10,307) |
(527) |
(16,761) |
(6,674) |
|||||||||||
Income tax benefit (expense)(f) |
28,216 |
(61,548) |
(18,484) |
(134,445) |
|||||||||||
(Loss) income from discontinued operations (net of tax)(g) |
(1,058) |
(886) |
(69,531) |
4,108 |
|||||||||||
Net (loss) income attributable to Albemarle Corporation |
$ |
(18,508) |
$ |
155,933 |
$ |
133,316 |
$ |
413,171 |
See accompanying notes to the condensed consolidated financial information.
Notes to the Condensed Consolidated Financial Information
(a) Non-operating pension and OPEB items, consisting of MTM actuarial gains/losses as well as interest cost and expected return on assets, were included in Corporate & other as follows:
- For the three months ended
December 31, 2014 and 2013, net charges (benefits) amounted to$111.3 million ($71.0 million after income taxes, or$0.90 per share) and$(140.8) million ($89.5 million after income taxes, or$1.09 per share), respectively. The MTM actuarial loss (gain) was$112.6 million ($71.8 million after income taxes, or$0.91 per share) and$(139.0) million ($88.3 million after income taxes, or$1.08 per share) for the three months endedDecember 31, 2014 and 2013, respectively, and resulted from the annual remeasurement of the plans in the fourth quarter. MTM actuarial gains/losses recorded in the fourth quarter may differ from the year-to-date amounts to the extent that remeasurements occurred in previous quarters. - For the year ended
December 31, 2014 and 2013, net charges (benefits) amounted to$125.5 million ($80.0 million after income taxes, or$1.01 per share) and$(146.2) million ($92.8 million after income taxes, or$1.10 per share), respectively. The MTM actuarial loss (gain) was$130.8 million ($83.3 million after income taxes, or$1.05 per share) and$(139.0) million ($88.3 million after income taxes, or$1.05 per share) for the years endedDecember 31, 2014 and 2013, respectively, and resulted from the annual remeasurement of the plans in the fourth quarter.
Although non-operating pension and OPEB items are included in cost of goods sold and selling, general and administrative expenses in accordance with GAAP, we believe that these components of pension cost are mainly driven by market performance, and we manage these separately from the operational performance of our businesses. Non-operating pension and OPEB items included in cost of goods sold and selling, general and administrative expenses were as follows (in millions):
Three Months Ended |
Year Ended |
||||||||||||||
December 31, |
December 31, |
||||||||||||||
2014 |
2013 |
2014 |
2013 |
||||||||||||
Cost of goods sold: |
|||||||||||||||
MTM actuarial loss (gain) |
$ |
30.7 |
$ |
(42.7) |
$ |
36.4 |
$ |
(42.7) |
|||||||
Interest cost and expected return on assets, net |
(0.4) |
(0.8) |
(1.9) |
(3.1) |
|||||||||||
Total |
$ |
30.3 |
$ |
(43.5) |
$ |
34.5 |
$ |
(45.8) |
|||||||
Selling, general and administrative expenses: |
|||||||||||||||
MTM actuarial loss (gain) |
$ |
81.9 |
$ |
(96.3) |
$ |
94.4 |
$ |
(96.3) |
|||||||
Interest cost and expected return on assets, net |
(0.9) |
(1.0) |
(3.4) |
(4.1) |
|||||||||||
Total |
$ |
81.0 |
$ |
(97.3) |
$ |
91.0 |
$ |
(100.4) |
(b) Restructuring and other charges consisted of the following:
For the three months ended December 31, 2014 -
- Net charges of
$6.5 million ($4.3 million after income taxes, or$0.05 per share) in connection with a reduction of aluminum alkyls high cost supply capacity. - Net adjustments of
($1.2) million ($0.9 million after taxes, or$0.01 per share) associated with the finalization of the workforce reduction plan initiated in the fourth quarter of 2013.
For the year ended December 31, 2014 -
- Net charges amounting to
$23.5 million ($15.5 million after income taxes, or$0.20 per share) in connection with a reduction of aluminum alkyls high cost supply capacity. - Charges of
$3.3 million ($2.1 million after income taxes, or$0.03 per share) related to the write-off of certain multi-product facility project costs that we do not expect to recover in future periods. - Net adjustments of
($1.2) million ($0.9 million after taxes, or$0.01 per share) associated with the finalization of the workforce reduction plan initiated in the fourth quarter of 2013. - Other charges of
$0.3 million ($0.2 million after income taxes).
For the three months and year ended
- Charges of
$33.4 million ($21.9 million after income taxes, or$0.27 per share in the fourth quarter and$0.26 per share for the year) for termination benefits related to the workforce reduction plan initiated in the fourth quarter of 2013.
(c) Acquisition and integration related costs consisted of the following:
For the three months ended December 31, 2014 -
- Transaction and integration fees related to the acquisition of Rockwood of
$14.3 million ($9.0 million after income taxes, or$0.11 per share). - Acquisition-related costs on other significant projects of
$0.8 million ($0.5 million after income taxes, or$0.01 per share).
For the year ended December 31, 2014 -
- Transaction and integration fees related to the acquisition of Rockwood of
$23.6 million ($14.9 million after income taxes, or$0.19 per share). - Acquisition-related costs on other significant projects of
$6.6 million ($4.2 million after income taxes, or$0.05 per share).
(d) Included in Interest and financing expenses for the three months and year ended
(e) Included in Other expenses, net for the three months and year ended December 31, 2014 was
(f) Included in Income tax (benefit) expense for the three months and year ended December 31, 2014 was
(g) On
(h) Totals may not add due to rounding. Items included in footnotes (b) through (f) above have been aggregated and are referred to as "special items" in other sections of this press release.
Additional Information
It should be noted that adjusted net income attributable to
A description of other non-GAAP financial measures that we use to evaluate our operations and financial performance, and reconciliation of these non-GAAP financial measures to the most directly comparable financial measures calculated and reported in accordance with GAAP, can be found in the Investors section of our website at www.albemarle.com, under "Non-GAAP Reconciliations" under "Financials." Also, see attached for supplemental reconciliations of our segment operating profit and segment income amounts to GAAP Operating (loss) profit and GAAP Net (loss) income attributable to
ALBEMARLE CORPORATION AND SUBSIDIARIES
Non-GAAP Reconciliations
(In Thousands)
(Unaudited)
Our segment information includes measures we refer to as segment operating profit, segment income, EBITDA, adjusted EBITDA and adjusted EBITDA by operating segment, which are financial measures that are not required by, or presented in accordance with, GAAP. The Company has reported segment operating profit, segment income, EBITDA, adjusted EBITDA and adjusted EBITDA by operating segment because management believes that these financial measures provide transparency to investors and enable period-to-period comparability of financial performance. Segment operating profit, segment income, EBITDA, adjusted EBITDA and adjusted EBITDA by operating segment should not be considered as alternatives to Operating (loss) profit or Net (loss) income attributable to
See below for a reconciliation of segment operating profit and segment income, the non-GAAP financial measures, to Operating (loss) profit and Net (loss) income attributable to
Three Months Ended |
Year Ended |
||||||||||||||
December 31, |
December 31, |
||||||||||||||
2014 |
2013 |
2014 |
2013 |
||||||||||||
Total segment operating profit |
$ |
124,130 |
$ |
137,317 |
$ |
531,023 |
$ |
528,597 |
|||||||
Corporate & other |
(127,092) |
123,154 |
(203,620) |
81,439 |
|||||||||||
Restructuring and other charges, net |
(5,322) |
(33,361) |
(25,947) |
(33,361) |
|||||||||||
Acquisition and integration related costs |
(15,054) |
— |
(30,158) |
— |
|||||||||||
GAAP Operating (loss) profit |
$ |
(23,338) |
$ |
227,110 |
$ |
271,298 |
$ |
576,675 |
|||||||
|
$ |
127,212 |
$ |
138,325 |
$ |
539,175 |
$ |
533,663 |
|||||||
Corporate & other |
(127,092) |
123,154 |
(203,620) |
81,439 |
|||||||||||
Restructuring and other charges, net |
(5,322) |
(33,361) |
(25,947) |
(33,361) |
|||||||||||
Acquisition and integration related costs |
(15,054) |
— |
(30,158) |
— |
|||||||||||
Interest and financing expenses |
(15,103) |
(9,224) |
(41,358) |
(31,559) |
|||||||||||
Other expenses, net |
(10,307) |
(527) |
(16,761) |
(6,674) |
|||||||||||
Income tax benefit (expense) |
28,216 |
(61,548) |
(18,484) |
(134,445) |
|||||||||||
(Loss) income from discontinued operations |
(1,058) |
(886) |
(69,531) |
4,108 |
|||||||||||
GAAP Net (loss) income attributable to Albemarle Corporation |
$ |
(18,508) |
$ |
155,933 |
$ |
133,316 |
$ |
413,171 |
See below for a reconciliation of adjusted net income attributable to
Three Months Ended |
Year Ended |
||||||||||||||
December 31, |
December 31, |
||||||||||||||
2014 |
2013 |
2014 |
2013 |
||||||||||||
Net (loss) income attributable to Albemarle Corporation |
$ |
(18,508) |
$ |
155,933 |
$ |
133,316 |
$ |
413,171 |
|||||||
Add back: |
|||||||||||||||
Non-operating pension and OPEB items (net of tax) |
70,978 |
(89,464) |
79,994 |
(92,829) |
|||||||||||
Special items (net of tax) |
23,906 |
21,945 |
49,307 |
21,945 |
|||||||||||
Loss (income) from discontinued operations (net of tax) |
1,058 |
886 |
69,531 |
(4,108) |
|||||||||||
Adjusted net income attributable to Albemarle Corporation |
$ |
77,434 |
$ |
89,300 |
$ |
332,148 |
$ |
338,179 |
|||||||
Net (loss) income attributable to Albemarle Corporation |
$ |
(18,508) |
$ |
155,933 |
$ |
133,316 |
$ |
413,171 |
|||||||
Add back: |
|||||||||||||||
Interest and financing expenses |
15,103 |
9,224 |
41,358 |
31,559 |
|||||||||||
Income tax (benefit) expense (from continuing and discontinued operations) |
(27,158) |
61,406 |
(2,424) |
136,322 |
|||||||||||
Depreciation and amortization |
25,228 |
27,893 |
103,572 |
107,370 |
|||||||||||
EBITDA |
(5,335) |
254,456 |
275,822 |
688,422 |
|||||||||||
Non-operating pension and OPEB items |
111,321 |
(140,818) |
125,462 |
(146,193) |
|||||||||||
Special items (excluding special items associated with interest expense) |
30,847 |
33,361 |
73,597 |
33,361 |
|||||||||||
Loss (income) from discontinued operations |
— |
1,028 |
90,439 |
(5,985) |
|||||||||||
Less depreciation and amortization from discontinued operations |
— |
(2,985) |
(3,165) |
(12,054) |
|||||||||||
Adjusted EBITDA |
$ |
136,833 |
$ |
145,042 |
$ |
562,155 |
$ |
557,551 |
|||||||
Net sales |
$ |
598,566 |
$ |
639,635 |
$ |
2,445,548 |
$ |
2,394,270 |
|||||||
EBITDA Margin |
(0.9)% |
39.8% |
11.3% |
28.8% |
|||||||||||
Adjusted EBITDA Margin |
22.9% |
22.7% |
23.0% |
23.3% |
See below for a reconciliation of adjusted EBITDA by operating segment, the non-GAAP financial measure, to Operating (loss) profit, the most directly comparable financial measure calculated and reporting in accordance with GAAP. Adjusted EBITDA by operating segment is defined as Operating (loss) profit, excluding depreciation and amortization, and adjusted for special and non-operating pension and OPEB items as listed below, plus Equity in net income (loss) of unconsolidated investments, less Net income attributable to noncontrolling interests. Adjusted EBITDA for the Corporate & other segment also includes Other expenses, net.
Performance Chemicals |
Catalyst Solutions |
Corporate & Other |
Consolidated |
||||||||||||
Three months ended December 31, 2014: |
|||||||||||||||
Operating profit |
$ |
61,892 |
$ |
62,238 |
$ |
(147,468) |
$ |
(23,338) |
|||||||
Depreciation and amortization |
11,798 |
12,227 |
1,203 |
25,228 |
|||||||||||
Other expenses, net |
— |
— |
(10,307) |
(10,307) |
|||||||||||
Special items (excluding special items associated with interest |
— |
— |
30,847 |
30,847 |
|||||||||||
Non-operating pension and OPEB items |
— |
— |
111,321 |
111,321 |
|||||||||||
Equity in net income of unconsolidated investments |
2,747 |
4,795 |
— |
7,542 |
|||||||||||
Net income attributable to noncontrolling interests |
(4,460) |
— |
— |
(4,460) |
|||||||||||
Adjusted EBITDA by operating segment |
$ |
71,977 |
$ |
79,260 |
$ |
(14,404) |
$ |
136,833 |
|||||||
Three months ended December 31, 2013: |
|||||||||||||||
Operating profit |
$ |
68,610 |
$ |
68,707 |
$ |
89,793 |
$ |
227,110 |
|||||||
Depreciation and amortization |
11,347 |
12,961 |
600 |
24,908 |
|||||||||||
Other expenses, net |
— |
— |
(527) |
(527) |
|||||||||||
Special items (excluding special items associated with interest expense) |
— |
— |
33,361 |
33,361 |
|||||||||||
Non-operating pension and OPEB items |
— |
— |
(140,818) |
(140,818) |
|||||||||||
Equity in net income of unconsolidated investments |
2,504 |
3,917 |
— |
6,421 |
|||||||||||
Net income attributable to noncontrolling interests |
(5,413) |
— |
— |
(5,413) |
|||||||||||
Adjusted EBITDA by operating segment |
$ |
77,048 |
$ |
85,585 |
$ |
(17,591) |
$ |
145,042 |
|||||||
Year ended December 31, 2014: |
|||||||||||||||
Operating profit |
$ |
306,616 |
$ |
224,407 |
$ |
(259,725) |
$ |
271,298 |
|||||||
Depreciation and amortization |
48,233 |
49,622 |
2,552 |
100,407 |
|||||||||||
Other expenses, net |
— |
— |
(16,761) |
(16,761) |
|||||||||||
Special items (excluding special items associated with interest expense) |
— |
— |
73,597 |
73,597 |
|||||||||||
Non-operating pension and OPEB items |
— |
— |
125,462 |
125,462 |
|||||||||||
Equity in net income of unconsolidated investments |
10,068 |
25,674 |
— |
35,742 |
|||||||||||
Net income attributable to noncontrolling interests |
(27,590) |
— |
— |
(27,590) |
|||||||||||
Adjusted EBITDA by operating segment |
$ |
337,327 |
$ |
299,703 |
$ |
(74,875) |
$ |
562,155 |
|||||||
Year ended December 31, 2013: |
|||||||||||||||
Operating profit |
$ |
334,275 |
$ |
194,322 |
$ |
48,078 |
$ |
576,675 |
|||||||
Depreciation and amortization |
43,472 |
49,656 |
2,188 |
95,316 |
|||||||||||
Other expenses, net |
— |
— |
(6,674) |
(6,674) |
|||||||||||
Special items (excluding special items associated with interest expense) |
— |
— |
33,361 |
33,361 |
|||||||||||
Non-operating pension and OPEB items |
— |
— |
(146,193) |
(146,193) |
|||||||||||
Equity in net income of unconsolidated investments |
8,875 |
22,854 |
— |
31,729 |
|||||||||||
Net income attributable to noncontrolling interests |
(26,663) |
— |
— |
(26,663) |
|||||||||||
Adjusted EBITDA by operating segment |
$ |
359,959 |
$ |
266,832 |
$ |
(69,240) |
$ |
557,551 |
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SOURCE
Lorin Crenshaw, 225.388.7322