Ongoing Price Increases and Cost Actions Benefit Bottom Line
Performance
Continued Success with Transition to Lower Cost Value Chain
Structure Positions Innophos to Improve Earnings by End of 2019
CRANBURY, N.J.–(BUSINESS WIRE)–Innophos Holdings, Inc. (NASDAQ: IPHS) today announced financial results
for its first-quarter ended March 31, 2019.
Strategic Highlights
-
Continued progress executing against our Vision 2022 strategic roadmap
and Strategic Pillars -
Contributions from price actions continued to offset input cost
increases -
Advanced the transition to lower cost value chain structure as the
Geismar facility successfully optimized the processing of the new
multi-sourced supply mix and scaled up to targeted run rates -
On track to realize adjusted diluted EPS improvement of 10%, or $0.25
to $0.27 per share run rate by the end of 2019
Q1 2019 Financial Highlights
-
Sales of $191 million were similar sequentially, but down 7% compared
with the prior-year quarter as pricing power was predominantly offset
by the planned discontinuation of low-margin nutrition trading
business and orders shifting out of the quarter due to timing and
Midwest flooding, as well as weaker than expected demand in certain
Industrial Specialties categories, related in part to “indirect”
tariff effects. -
GAAP Net Income of $9 million, or $0.44 per share, was down 20% from
Q1 2018 primarily due to severance costs and Mexico natural gas supply
adjustment charges incurred in the quarter -
Q1 Adjusted EBITDA of $30 million was sequentially flat, but down $2
million year-on-year, while adjusted EBITDA margin of 16% was up 37
bps sequentially and up 4 bps compared with the prior-year quarter,
reflecting improved mix and continued benefits of price and cost
actions -
Q1 Adjusted Diluted EPS decreased 5% year over year to $0.57 due to
lower volumes
Management Comments
“Innophos’ first-quarter performance was marked by our ability to
deliver an adjusted EBITDA margin in line with last year, despite a
difficult year-over-year comparison on the top line,” said Kim Ann Mink,
Ph.D., Chairman, President and Chief Executive Officer. “First-quarter
sales were down compared with the prior-year quarter as Innophos’
pricing power was offset by the planned discontinuation of low-margin
nutrition trading business, order pattern, and impact from Midwest
flooding. In addition, there was weaker than expected demand in certain
industrial categories. Our ability to maintain an adjusted EBITDA margin
equal to last year was due to our cost management efforts implemented in
the second half of 2018, continued success in capturing price increases
and improved mix. Adjusted EBITDA was sequentially flat, marking the
fourth straight quarter of relatively stable adjusted EBITDA.
“During the quarter we made progress with our SPARC new product
development program to continue the shift of our product mix to higher
levels of attractive Food, Health & Nutrition (FHN) business. We also
advanced our efforts to transition to our lower-cost value chain program
and we remain on track to achieve our year-end EPS improvement goal.
“As we proceed in 2019, we will continue to execute against our key
Strategic Pillar initiatives, including completing the transition of the
multi-faceted strategic value chain repositioning, leveraging our value
selling to capture price increases, and driving growth through both our
SPARC new product development program and evaluating strategic
acquisition opportunities. The impact of these efforts, in part,
positions Innophos to maintain Adjusted EBITDA guidance for the year,
despite resetting revenue guidance to better align with softer market
demand that we began to see in Q1,” concluded Mink.
Q1 2019 Results
Variance $ and Variance % in the following tables and comments may
not foot due to rounding
$ Millions except EPS
| Quarter 1 | 2019 | 2018 | Variance $ | Variance % | ||||||
| Sales | 191 | 205 | (14) | (7)% | ||||||
| Net Income | 9 | 11 | (2) | (20)% | ||||||
| Adj. Net Income | 11 | 12 | (1) | (6)% | ||||||
| EBITDA | 26 | 30 | (4) | (14)% | ||||||
| Adj. EBITDA | 30 | 32 | (2) | (7)% | ||||||
| Diluted EPS | 0.44 | 0.55 | (0.11) | (20)% | ||||||
| Adj. Diluted EPS | 0.57 | 0.61 | (0.03) | (5)% | ||||||
| Cash from Ops | (9) | 1 | (11) | BIG | ||||||
| Free Cash Flow | (19) | (14) | (6) | (43)% | ||||||
-
Sales were 7% below prior year as 4% selling price increases were
offset by a 3% volume decline from discontinued low-margin nutrition
trading business, 6% lower volumes from order pattern and impact from
Midwest flooding, and a 2% decline from softer demand in certain
industrial market segments. -
GAAP Net Income of $9 million and diluted EPS of $0.44 were down
versus the prior year due to severance costs and Mexico natural gas
supply adjustment charges incurred in the first quarter of 2019. -
The previously communicated supply imbalance in Mexico’s natural gas
network was sequentially similar, with a $2 million impact in the
quarter, after $1 million of adjustments for non-GAAP purposes. -
Adjusted EBITDA of $30 million was down 7% year over year but remained
relatively stable for the past four quarters. -
Adjusted EBITDA margin of 16% was relatively flat year over year but
up 37 basis points sequentially. -
Adjusted diluted EPS of $0.57 was down year over year due to lower
volumes. -
Free Cash Flow was a use of $19 million due to seasonal working
capital effects.
Q1 2019 Segment Financials
| Q1 Sales | 2019 $ Millions | 2018 $ Millions | Variance $ | Variance % | ||||||
| FHN | 115 | 126 | (11) | (9)% | ||||||
| IS | 63 | 63 | 0 | 0% | ||||||
| Other | 13 | 16 | (3) | (16)% | ||||||
| Total IPHS | 191 | 205 | (14) | (7)% | ||||||
| Q1 Adj. EBITDA | 2019 $ Millions | 2018 $ Millions | 2019 $ Margin | 2018 $ Margin | ||||||
| FHN | 17 | 21 | 15% | 16% | ||||||
| IS | 10 | 11 | 15% | 17% | ||||||
| Other | 4 | 1 | 27% | 5% | ||||||
| Total IPHS | 30 | 32 | 16% | 16% |
Note: See Adjusted EBITDA reconciliation to EBITDA in the financial
tables that follow
-
FHN sales declined 9% year over year (price +4%, volume -13%) as
strong price increases were offset by lower volumes due to the
Company’s decision to discontinue a portion of low-margin nutrition
trading business and order pattern; adjusted EBITDA margins were
sequentially similar to the past three quarters but 173 bps below Q118
due to increased freight market rates and other input costs -
IS sales were flat year over year (price +4%, volume -4%) with volumes
impacted by order timing related to Midwest flooding and softer demand
due in part to the “indirect” unfavorable tariff impact on our
international sales from competition redirecting mostly technical
grade product; adjusted EBITDA margins were up 61 basis points
sequentially but 167 basis points below the same quarter last year due
to the noted “indirect” tariff impact -
Other sales were down 16% (price -1%, volume -16%) due primarily to
order pattern; adjusted EBITDA margins were 27%, up significantly from
the prior year due to improved product mix
Full Year 2019 Outlook
The Company is reiterating its previously provided 2019 Adjusted EBITDA
guidance and reducing its revenue expectations.
Revenues are now forecasted to be 1-2% below 2018 revenue of $802
million. This revised range reflects the impact from the softer demand
the Company began to experience in Q1 in certain industrial categories.
The Company expects the order pattern and Midwest flooding timing delays
experienced in the first quarter to rebound over the next two quarters.
Additionally, Innophos continues to expect positive year-over-year
revenue contribution from price increases and new product wins to be
offset by the discontinuation of lower-margin FHN nutrition trading
business in 2018, lower co-product sales in the Other segment due to
efficiency improvements, and indirect tariffs pressure from competition
redirecting mostly technical grade product to international markets.
Innophos continues to expect Adjusted EBITDA to grow 1-3% in 2019
from $125 million in 2018, with phasing in the range of 42-45% in H1 and
55-58% in H2.
In Q2 2019, Innophos will undergo and complete a planned annual
maintenance shut down on one of its production units at the
Coatzacoalcos, Mexico facility. This will result in $3 million of
maintenance and under-absorption costs, which were already reflected in
the Company’s 2019 guidance.
From a GAAP and cash perspective, the expectation is that costs will be
higher during H1. The anticipated non-recurring portion is expected to
be adjusted for non-GAAP reporting purposes, such as value chain
transition expense, which was completed in Q119, and Mexico natural gas
supply adjustment charges.
Capital investments are expected to be in line with 2018 to
finalize the value chain and manufacturing optimization program that
commenced last year. Average working capital is also estimated to
remain in line with 2018.
The Company expects its effective tax rate to operate in the
28-32% range.
Conference Call
Innophos will host its first-quarter 2019 conference call today April
30, 2019 at 9:00 am ET to discuss its earnings results. Those who wish
to listen to the conference call webcast should visit the “Investors”
section of the Company’s website at www.innophos.com.
The live call also can be accessed by dialing (877) 604-1612 (U.S.) or
(201) 389-0883 (international). No passcode is required. Please dial in
approximately 15 minutes ahead of the start time to ensure timely entry
to the call. The Q1 2019 earnings call presentation will be made
available on the Company’s website prior to the call. If you are unable
to listen to the live call, the webcast will be archived on the
Company’s website. In addition, a replay of
the call will be available between April 30 and May 14, 2019. The replay
is accessible by dialing (877) 660-6853 (U.S.) or (201) 612-7415
(international) and entering the Conference ID number 13689865.
Additional information on Innophos’ first-quarter 2019 results can also
be found on the Company’s website.
About the Company
Innophos is a leading international producer of specialty ingredient
solutions that deliver far-reaching, versatile benefits for the food,
health, nutrition and industrial markets. We leverage our expertise in
the science and technology of blending and formulating phosphate,
mineral, enzyme and botanical based ingredients to help our customers
offer products that are tasty, healthy, nutritious and economical.
Headquartered in Cranbury, New Jersey, Innophos has manufacturing
operations across the United States, in Canada, Mexico and China. For
more information, please visit www.innophos.com.
‘IPHS-G’
Financial Tables Follow
Safe Harbor for Forward-Looking and Cautionary
Statements
This press release contains or may contain forward-looking statements
within the meaning of Section 27a of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. The Company intends these forward-looking statements to be
covered by the safe harbor provisions for such statements. Statements
made in this press release that relate to our future performance or
future financial results or other future events (which may be identified
by such terms as “expect”, “estimate”, “anticipate”, “assume”,
“believe”, “plan”, “intend’, “may”, “will”, “should”, “outlook”,
“guidance”, “target”, “opportunity”, “potential” or similar terms and
variations or the negative thereof) are forward-looking statements,
including the Company’s expectations regarding the business environment
and the Company’s overall guidance regarding future performance and
growth. These statements are based on our current beliefs and
expectations and are subject to significant risks and uncertainties.
Actual results may materially differ from the expectations expressed in
or implied by these forward-looking statements. Factors that could cause
the Company’s actual results to differ materially include, but are not
limited to: (1) global macroeconomic conditions and trends; (2) the
behavior of financial markets, including fluctuations in foreign
currencies, interest rates and turmoil in capital markets; (3) changes
in regulatory controls regarding tariffs, duties, taxes and income tax
rates; (4) the Company’s ability to implement and refine its Vision 2022
strategic roadmap; (5) the Company’s ability to successfully identify
and complete acquisitions in line with its Vision 2022 strategic roadmap
and effectively operate and integrate acquired businesses to realize the
anticipated benefits of those acquisitions; (6) the Company’s ability to
realize expected cost savings and efficiencies from its performance
improvement and other optimization initiatives; (7) the Company’s
ability to effectively compete in its markets, and to successfully
develop new and competitive products that appeal to its customers; (8)
changes in consumer preferences and demand for the Company’s products or
a decline in consumer confidence and spending; (9) the Company’s ability
to benefit from its investments in assets and human capital and the
ability to complete projects successfully and on budget; (10) economic,
regulatory and political risks associated with the Company’s
international operations, most notably Mexico and China; (11) volatility
and increases in the price of raw materials, energy and transportation,
and fluctuations in the quality and availability of raw materials and
process aids; (12) the impact of a disruption in the Company’s supply
chain or its relationship with its suppliers; (13) the Company’s ability
to comply with, and the costs associated with compliance with, U.S. and
foreign environmental protection laws and (14) the Company’s ability to
meet quality and regulatory standards in the various jurisdictions in
which it has operations or conducts business. We caution you to consider
the important risks and other factors as set forth in the
forward-looking statements section and in Item 1A Risk Factors in our
most recent Annual Report on Form 10-K, as amended by subsequent reports
on Forms 10-Q and 8-K. We do not undertake to update the forward-looking
statements to reflect the impact of circumstances or events that may
arise after the date of the forward-looking statements.
Summary Profit & Loss Statement
|
INNOPHOS HOLDINGS, INC. AND SUBSIDIARIES |
||||||||||
| Condensed Consolidated Statement of Operations (Unaudited) | ||||||||||
| (Dollars in thousands, except per share amounts or share amounts) | ||||||||||
| Three Months Ended March 31, | ||||||||||
| 2019 | 2018 | |||||||||
| Net Sales | $ | 191,414 | $ | 205,440 | ||||||
| Cost of goods sold | 155,002 | 163,213 | ||||||||
| Gross profit | 36,412 | 42,227 | ||||||||
| Operating expenses: | ||||||||||
| Selling, general and administrative | 19,442 | 22,520 | ||||||||
| Research & development expenses | 1,340 | 1,411 | ||||||||
| Total operating expenses | 20,782 | 23,931 | ||||||||
| Operating income | 15,630 | 18,296 | ||||||||
| Interest expense, net | 3,702 | 2,904 | ||||||||
| Foreign exchange loss (gain) | (381 | ) | (196 | ) | ||||||
| Other income | (3 | ) | (15 | ) | ||||||
| Income before income taxes | 12,312 | 15,603 | ||||||||
| (Benefit) provision for income taxes | 3,618 | 4,688 | ||||||||
| Net income | $ | 8,694 | $ | 10,915 | ||||||
| Diluted Earnings Per Participating Share | $ | 0.44 | $ | 0.55 | ||||||
| Diluted weighted average participating shares outstanding | 19,654,291 | 19,711,112 | ||||||||
| Dividends paid per share of common stock | $ | 0.48 | $ | 0.48 | ||||||
| Dividends declared per share of common stock | $ | 0.48 | $ | 0.48 | ||||||
Adjusted Net Income Reconciliation to Net Income
| (Dollars in thousands, except EPS) |
Three Months Ended |
|||||||||
| 2019 | 2018 | |||||||||
| Net Income | $ | 8,694 | $ | 10,915 | ||||||
|
Pre-tax Adjustments |
||||||||||
| Foreign exchange loss (gain) | (381 | ) | (196 | ) | ||||||
| Severance/Restructuring expense (income) | 1,943 | 980 | ||||||||
| M&A related costs | 166 | 752 | ||||||||
| Mexico natural gas supply imbalance charges | 1,179 | 0 | ||||||||
| Value chain transition | 1,595 | 0 | ||||||||
| Supplier Q418 payment amortization | (1,110 | ) | 0 | |||||||
| Other | 312 | 0 | ||||||||
| Total Pre-Tax Adjustments | 3,704 | 1,536 | ||||||||
| Income tax effects on Adjustments | 1,088 | 461 | ||||||||
| Adjusted Net Income | $ | 11,310 | $ | 11,990 | ||||||
| Adjusted Diluted Earnings Per Participating Share | $ | 0.57 | $ | 0.61 | ||||||
Adjusted EBITDA Reconciliation to Net Income
| (Dollars in thousands) | Three Months Ended March 31, | |||||||||
| 2019 | 2018 | |||||||||
| Net Income | $ | 8,694 | $ | 10,915 | ||||||
| Interest expense, net | 3,702 | 2,904 | ||||||||
| Provision for income taxes | 3,618 | 4,688 | ||||||||
| Depreciation & amortization | 9,759 | 11,364 | ||||||||
| EBITDA | 25,773 | 29,871 | ||||||||
|
Adjustments |
||||||||||
| Non-cash stock compensation | 787 | 998 | ||||||||
| Foreign exchange loss (gain) | (381 | ) | (196 | ) | ||||||
| Severance/Restructuring expense (income) | 1,943 | 980 | ||||||||
| M&A related costs | 166 | 752 | ||||||||
| Mexico natural gas supply imbalance charges | 1,179 | 0 | ||||||||
| Value chain transition | 1,595 | 0 | ||||||||
| Supplier Q418 payment amortization | (1,110 | ) | 0 | |||||||
| Other | 312 | 0 | ||||||||
| Adjusted EBITDA | $ | 30,264 | $ | 32,405 | ||||||
| Percent of Sales | 15.8 | % | 15.8 | % | ||||||
Segment Adjusted EBITDA Reconciliation to EBITDA
| (Dollars in thousands) | Three Months Ended | Three Months Ended | |||||||||||||||||||||||||||||||
| March 31, 2019 | March 31, 2018 | ||||||||||||||||||||||||||||||||
| FHN | IS | Other | Total | FHN | IS | Other | Total | ||||||||||||||||||||||||||
| EBITDA | $ | 14,406 | $ | 8,056 | $ | 3,311 | $ | 25,773 | $ | 18,992 | $ | 10,093 | $ | 786 | $ | 29,871 | |||||||||||||||||
| Non-cash stock compensation | 445 | 312 | 30 | 787 | 565 | 395 | 38 | 998 | |||||||||||||||||||||||||
| Foreign exchange loss (gain) | (126 | ) | — | (256 | ) | (382 | ) | (87 | ) | — | (109 | ) | (196 | ) | |||||||||||||||||||
| Severance/Restructuring exp(inc) | 1,252 | 590 | 101 | 1,943 | 593 | 368 | 19 | 980 | |||||||||||||||||||||||||
| M&A related costs | 166 | — | — | 166 | 752 | — | — | 752 | |||||||||||||||||||||||||
| Mexico natural gas supply adj. | 263 | 553 | 363 | 1,179 | — | — | — | — | |||||||||||||||||||||||||
| Value chain transition | 961 | 570 | 63 | 1,594 | — | — | — | — | |||||||||||||||||||||||||
| Supplier payment amortization | (577 | ) | (422 | ) | (111 | ) | (1,110 | ) | — | — | — | — | |||||||||||||||||||||
| Other | 171 |
|
117 |
|
23 | 312 | — | — | — | — | |||||||||||||||||||||||
| Adjusted EBITDA | $ | 16,962 | $ | 9,776 | $ | 3,524 | $ | 30,262 | $ | 20,815 | $ | 10,856 | $ | 734 | $ | 32,405 | |||||||||||||||||
Segment Reporting
| Three Months Ended March 31, | ||||||||||
| Segment Net Sales | 2019 | 2018 | ||||||||
| Food, Health and Nutrition | $ | 115,067 | $ | 126,363 | ||||||
| Industrial Specialties | 63,197 | 63,350 | ||||||||
| Other | 13,150 | 15,727 | ||||||||
| Total | $ | 191,414 | $ | 205,440 | ||||||
| Net Sales % change |
|
|
|
|
||||||
| Food, Health and Nutrition | (8.9 | )% | ||||||||
| Industrial Specialties | (0.2 | )% | ||||||||
| Other | (16.4 | )% | ||||||||
| Total | (6.8 | )% | ||||||||
| Segment EBITDA | ||||||||||
| Food, Health and Nutrition | $ | 14,406 | $ | 18,992 | ||||||
| Industrial Specialties | 8,056 | 10,093 | ||||||||
| Other | 3,311 | 786 | ||||||||
| Total | $ | 25,773 | $ | 29,871 | ||||||
| Segment EBITDA % of net sales | ||||||||||
| Food, Health and Nutrition | 12.5 | % | 15.0 | % | ||||||
| Industrial Specialties | 12.7 | % | 15.9 | % | ||||||
| Other | 25.2 | % | 5.0 | % | ||||||
| Total | 13.5 | % | 14.5 | % | ||||||
| Depreciation and amortization expense | ||||||||||
| Food, Health and Nutrition | $ | 6,388 | $ | 7,322 | ||||||
| Industrial Specialties | 3,179 | 3,736 | ||||||||
| Other | 192 | 306 | ||||||||
| Total | $ | 9,759 | $ | 11,364 | ||||||
Price / Volume
The Company calculates pure selling price dollar variances as the
selling price for the current year to date period minus the selling
price for the prior year to date period, and then multiplies the
resulting selling price difference by the prior year to date period
volume. The current quarter selling price dollar variance is derived
from the current quarter year to date selling price dollar variance less
the previous quarter year to date selling price dollar variance. The
selling price dollar variance is then divided by the prior period sales
dollars to calculate the percentage change. Volume/mix variance is
calculated as the total sales variance minus the selling price variance.
The following table illustrates the percentage changes in net sales by
reportable segments compared with the same period of the prior year,
including the effect of selling price and volume/mix changes upon
revenue:
| Three Months Ended | |||||||||||
| March 31, 2019 | |||||||||||
| Reportable Segments | Price | Vol/Mix | Total | ||||||||
| Food, Health and Nutrition | 4.4 | % | (13.3 | )% | (8.9 | )% | |||||
| Industrial Specialties | 3.5 | % | (3.7 | )% | (0.2 | )% | |||||
| Other | (0.9 | )% | (15.5 | )% | (16.4 | )% | |||||
| Total | 3.7 | % | (10.5 | )% | (6.8 | )% | |||||
Summary Cash Flow Statement
|
INNOPHOS HOLDINGS, INC. AND SUBSIDIARIES |
||||||||||
| Condensed Consolidated Statement of Cash Flows (Unaudited) | ||||||||||
| (Dollars in thousands) | ||||||||||
|
Three Months Ended |
||||||||||
| 2019 | 2018 | |||||||||
| Cash flows provided from (used for) operating activities | ||||||||||
| Net income | $ | 8,694 | $ | 10,915 | ||||||
|
Adjustments to reconcile net income to net cash provided from (used for) operating activities: |
||||||||||
| Depreciation and amortization | 9,759 | 11,364 | ||||||||
| Amortization of deferred financing charges | 107 | 108 | ||||||||
| Deferred income tax provision | 69 | — | ||||||||
| Share-based compensation | 787 | 998 | ||||||||
| Changes in assets and liabilities: | ||||||||||
| Accounts receivable | (9,156 | ) | (175 | ) | ||||||
| Inventories | 6,640 | (8,772 | ) | |||||||
| Other current assets | 1,026 | 308 | ||||||||
| Accounts payable | (20,578 | ) | (6,581 | ) | ||||||
| Other current liabilities | (5,542 | ) | (5,856 | ) | ||||||
| Changes in other long-term assets and liabilities | (1,280 | ) | (837 | ) | ||||||
| Net cash (used for) provided by operating activities | (9,474 | ) | 1,472 | |||||||
| Cash flows used for investing activities: | ||||||||||
| Capital expenditures | (9,924 | ) | (15,065 | ) | ||||||
| Net cash used for investing activities | (9,924 | ) | (15,065 | ) | ||||||
| Cash flows provided by (used for) financing activities: | ||||||||||
| Long-term debt borrowings | 35,000 | 40,000 | ||||||||
| Long-term debt repayments | (5,000 | ) | (5,000 | ) | ||||||
| Restricted stock forfeitures | (212 | ) | (251 | ) | ||||||
| Dividends paid | (9,414 | ) | (9,380 | ) | ||||||
| Net cash provided by (used for) financing activities | 20,374 | 25,369 | ||||||||
| Effect of foreign exchange rate changes on cash and cash equivalents | — | 164 | ||||||||
| Net change in cash | 976 | 11,940 | ||||||||
| Cash and cash equivalents at beginning of period | 20,197 | 28,782 | ||||||||
| Cash and cash equivalents at end of period | $ | 21,173 | $ | 40,722 | ||||||
|
Cash From Operations Reconciliation to |
||||||||||
| (Dollars in thousands) |
Three Months Ended |
|||||||||
| 2019 | 2018 | |||||||||
| EBITDA | $ | 25,773 | $ | 29,871 | ||||||
| Operating Working Capital | (34,218 | ) | (28,700 | ) | ||||||
| Taxes paid | (2,625 | ) | (3,378 | ) | ||||||
| Interest paid | (3,614 | ) | (3,081 | ) | ||||||
|
All other including non-cash stock compensation and changes in other long-term assets and liabilities |
5,210 | 6,760 | ||||||||
| Net cash provided from operation | $ |
(9,474 |
) |
$ | 1,472 | |||||
|
Cash From Operations Reconciliation to |
||||||||||
|
|
||||||||||
| (Dollars in thousands) |
Three Months Ended |
|||||||||
| 2019 | 2018 | |||||||||
| Adjusted EBITDA | $ | 30,264 | $ | 32,405 | ||||||
| Operating Working Capital | (37,922 | ) | (30,236 | ) | ||||||
| Taxes paid | (2,625 | ) | (3,378 | ) | ||||||
| Interest paid | (3,614 | ) | (3,081 | ) | ||||||
|
All other including non-cash stock compensation and changes in other long-term assets and liabilities |
4,423 | 5,762 | ||||||||
| Net cash provided from operation | $ |
(9,474 |
) |
$ | 1,472 | |||||
|
Free Cash Flow Reconciliation to Cash |
||||||||||
| (Dollars in thousands) |
Three Months Ended |
|||||||||
| 2019 | 2018 | |||||||||
| Cash from Operations | $ |
(9,474 |
) |
$ | 1,472 | |||||
| Capital Expenditures |
(9,924 |
) |
(15,065 |
) |
||||||
| Free Cash Flow | $ |
(19,398 |
) |
$ |
(13,593 |
) |
||||
Summary Balance Sheets
|
INNOPHOS HOLDINGS, INC. AND SUBSIDIARIES |
|||||||||
| Condensed Consolidated Balance Sheets (Unaudited) | |||||||||
| (Dollars in thousands) | |||||||||
|
March 31, |
December 31, |
||||||||
| ASSETS | |||||||||
| Current assets: | |||||||||
| Cash and cash equivalents | $ | 21,173 | $ | 20,197 | |||||
| Accounts receivable, net | 111,720 | 102,564 | |||||||
| Inventories | 173,563 | 180,203 | |||||||
| Other current assets | 23,068 | 24,094 | |||||||
| Total current assets | 329,524 | 327,058 | |||||||
| Property, plant and equipment, net | 237,327 | 240,235 | |||||||
| Lease right-of-use assets | 53,305 | — | |||||||
| Goodwill | 152,767 | 152,767 | |||||||
| Intangibles and other assets, net | 92,215 | 95,094 | |||||||
| Total assets | $ | 865,138 | $ | 815,154 | |||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||
| Current liabilities: | |||||||||
| Accounts payable, trade and other | 54,582 | 80,007 | |||||||
| Other current liabilities | 50,242 | 49,993 | |||||||
| Total current liabilities | 104,824 | 130,000 | |||||||
| Long-term debt | 330,000 | 300,000 | |||||||
| Long-term lease liabilities | 46,858 | — | |||||||
| Other long-term liabilities | 36,910 | 49,639 | |||||||
| Total stockholders’ equity | 346,546 | 335,515 | |||||||
| Total liabilities and stockholders’ equity | $ | 865,138 | $ | 815,154 | |||||
Additional Information
Net debt is a supplemental financial measure that is not required by, or
presented in accordance with, US GAAP. The Company believes net debt is
helpful in analyzing leverage and as a performance measure for purposes
of presentation in this release. The Company defines net debt as total
long-term debt (including any current portion) less cash and cash
equivalents.
Free cash flow is a supplemental financial measure that is not required
by, or presented in accordance with, US GAAP. The Company believes free
cash flow is helpful in analyzing the cash flow generating capability of
the business and as a performance measure for purposes of presentation
in this release. The Company defines free cash flow as net cash provided
from operating activities plus cash used for capital expenditures plus
cash received from sale leaseback transactions.
EBITDA, adjusted EBITDA, adjusted net income and adjusted diluted EPS
are supplemental financial measures that are not required by, or
presented in accordance with, US GAAP.
Contacts
Investor Contact
Mark Feuerbach
Innophos
609-366-1204
[email protected]
Media Contact
Ryan Flaim
Sharon Merrill Associates
617-542-5300
[email protected]
