Orion Engineered Carbons (NYSE: OEC), a specialty chemical
company, today announced financial results for the first quarter of
2023.
First Quarter 2023 Financial
Highlights
- Net sales of $500.7 million, up $16.2 million, year over
year
- Net income of $42.3 million, up $9.8 million, year over
year
- Diluted EPS of $0.70, up $0.17, year over year
- Record Adjusted EBITDA1 of $101 million, up 22%, year over
year
- Record Adjusted Diluted EPS1 of $0.74, up $0.17, year over
year
- Record rubber Gross profit per ton2 of $467 1 The
reconciliations of Non-U.S. GAAP (“GAAP”) measures to the
respective most comparable GAAP measures are provided in the
section titled Reconciliation of Non-GAAP Financial Measures below.
2 For Non-GAAP measures definitions refer to Cautionary Statement
for the Purposes of the “Safe Harbor” Provisions of the Private
Securities Litigation Reform Act of 1995 below.
“This is an exciting time for Orion and a tremendous step-up in
our results, with record Adjusted EBITDA of $101 million, up 22
percent, and record Adjusted Diluted EPS of $0.74,” said Corning
Painter, Orion’s chief executive officer. “Beyond the numbers, the
dedicated Orion team achieved significant milestones. We realized
higher rubber pricing, started up our plant in Huaibei, China, and
commissioned our Borger, Texas air emissions project. We expect the
achieved rubber carbon black pricing to be the new basis from which
we can grow,” said Corning Painter, Orion’s chief executive
officer.
Jeff Glajch, Orion’s chief financial officer added, “We had
strong cash flow in the first quarter. We repurchased $29 million
of shares and lowered our net debt by $36 million. Our debt to
EBITDA ratio at the end of the first quarter stands at 2.5 times
and we expect to continue to lower this throughout 2023. We are
well positioned to expand free cash flow by approximately $100
million and generate increased Adjusted EBITDA this year. Looking
forward, we will take a balanced approach toward spending for
growth, further reducing debt and exploring additional avenues to
generate positive returns to shareholders.”
First Quarter 2023 Overview:
(In millions, except per share data or
stated otherwise)
Q1 2023
Q1 2022
Y/Y Change
Y/Y Change in %
Volume (kmt)
233.5
253.2
(19.7)
(7.8)%
Net sales
500.7
484.5
16.2
3.3%
Gross profit
136.4
117.9
18.5
15.7%
Gross profit per metric ton(1)
584.2
465.6
118.6
25.5%
Income from operations
73.5
54.6
18.9
34.6%
Net income
42.3
32.5
9.8
30.2%
Adjusted EBITDA(1)
101.1
83.2
17.9
21.5%
Basic EPS
0.70
0.53
0.17
32.1%
Diluted EPS
0.70
0.53
0.17
32.1%
Adjusted Diluted EPS(1)
0.74
0.57
0.17
29.8%
(1)
The reconciliations of these non-GAAP
measures to the respective most comparable GAAP measures are
provided in the section titled Reconciliation of Non-GAAP Financial
Measures.
Volume decreased by 19.7 kmt, year over year. The decrease in
Specialty carbon black was due to the economic slowdown in our
lower profitability end markets, while a smaller reduction in
Rubber carbon black volume was due to short-term demand and
customer turnarounds.
Net sales increased by $16.2 million, or 3.3%, year over year,
driven primarily by strong improvements in 2023 negotiated Rubber
carbon black price. Specialty carbon black product mix was
favorable. Those gains were partially offset by lower volume.
Gross profit increased by $18.5 million, or 15.7%, to $136.4
million, year over year. The increase was primarily driven by
improved contractual Rubber carbon black price and favorable
Specialty carbon black mix and timing benefits. Those were
partially offset by lower volume in both segments. Higher margins
per ton resulted from price increases in Rubber carbon black to
recover environmental and reliability-related capital expenditures
and an improved mix in Specialty carbon black.
Income from operations increased by $18.9 million, or 34.6%, to
$73.5 million, year over year, driven primarily by improved Rubber
carbon black price and favorable product mix, partially offset by
lower volume in both segments.
Adjusted EBITDA increased by $17.9 million, or 21.5%, to $101.1
million, year over year, primarily due to improved Rubber carbon
black price and favorable Specialty carbon black product mix,
partially offset by lower volume in both segments.
Quarterly Business Segment Results
SPECIALTY CARBON BLACK
(In millions, unless stated
otherwise)
Q1 2023
Q1 2022
Y/Y Change
Y/Y Change in %
Volume (kmt)
53.0
65.6
(12.6)
(19.2)%
Net sales
162.0
177.6
(15.6)
(8.8)%
Gross profit
52.1
57.6
(5.5)
(9.5)%
Gross profit per metric ton(1)
983.0
878.0
105.0
12.0%
Adjusted EBITDA
37.3
42.5
(5.2)
(12.2)%
Adjusted EBITDA/metric ton
703.8
647.9
55.9
8.6%
Adjusted EBITDA margin (%)(1)
23.0%
23.9%
(90)bps
(3.8)%
(1)
For Non-GAAP measures definitions refer to
Cautionary Statement for the Purposes of the “Safe Harbor”
Provisions of the Private Securities Litigation Reform Act of 1995
below.
Specialty carbon black segment volume declined by 12.6 kmt, or
19.2%, year over year due to the economic slowdown in all major
ends markets and price competition.
Net sales decreased by $15.6 million, or 8.8%, to $162.0
million, year over year, primarily driven by reduced sales volume
in low end markets, partially offset by favorable product mix.
Adjusted EBITDA declined by $5.2 million, or 12.2%, to $37.3
million, year over year, primarily driven by volume reduction,
partially offset by improved gross profit margins.
Year over year, Adjusted EBITDA per ton increased by $55.9 or
8.6%, to $703.8, primarily driven by higher margins and favorable
product mix, partially offset by lower volumes.
Year over year, Adjusted EBITDA margin decreased 90 basis points
to 23.0%.
RUBBER CARBON BLACK
(In millions, unless stated
otherwise)
Q1 2023
Q1 2022
Y/Y Change
Y/Y Change in %
Volume (kmt)
180.5
187.6
(7.1)
(3.8)%
Net sales
338.7
306.9
31.8
10.4%
Gross profit
84.3
60.3
24.0
39.8%
Gross profit per metric ton(1)
467.0
321.4
145.6
45.3%
Adjusted EBITDA
63.8
40.7
23.1
56.8%
Adjusted EBITDA/metric ton
353.5
217.0
136.5
62.9%
Adjusted EBITDA margin (%)(1)
18.8%
13.3%
550bps
41.4%
(1)
For Non-GAAP measures definitions refer to
Cautionary Statement for the Purposes of the “Safe Harbor”
Provisions of the Private Securities Litigation Reform Act of 1995
below.
Rubber carbon black segment volume declined by 7.1 kmt, or 3.8%,
year over year due to timing of customer shutdowns.
Net sales increased by $31.8 million, or 10.4%, to $338.7
million, year over year, primarily due to contractual price
increases, partially offset by the lower volume.
Adjusted EBITDA increased by $23.1 million, or 56.8%, to $63.8
million, year over year, driven by contractual price improvement,
which resulted in improved gross profit margins, partially offset
by lower volume.
Year over year, Adjusted EBITDA per ton increased by $136.5, or
62.9% to $353.5, year over year.
Adjusted EBITDA margin rose 550 basis points to 18.8%.
Debt
As of March 31, 2023, the company net debt was $822.3 million
and EBITDA to debt ratio was 2.49x.
Outlook
“We are reiterating our 2023 guidance for the year of an
Adjusted EBITDA range of $350 million to $380 million, up 17
percent at the midpoint, compared with 2022. We are also continuing
to project full year 2023 Adjusted EPS of $2.30 to $2.60, up 25
percent at the midpoint. Free cash flow should be approximately
$100 million this year. Our guidance takes into consideration items
recorded in our first quarter that will not repeat this year. We
remain on track to realize our 2025 goal of a mid-cycle Adjusted
EBITDA earnings capacity of $500 million,” Mr. Painter
concluded.
Conference Call
As previously announced, Orion will hold a conference call
tomorrow, Friday, May 5, 2023, at 8:30 a.m. (EDT). The dial-in
details for the live conference call are as follows:
U.S. Toll Free:
1-877-407-4018
International:
1-201-689-8471
A replay of the conference call may be accessed by phone at the
following numbers through May 12, 2023:
U.S. Toll Free:
1-844-512-2921
International:
1-412-317-6671
Conference ID:
13737334
Additionally, an archived webcast of the conference call will be
available on the Investor Relations section of the company’s
website at www.orioncarbons.com.
To learn more about Orion, visit the company’s website at
www.orioncarbons.com, where we regularly post information including
notification of events, news, financial performance, investor
presentations and webcasts, non-GAAP reconciliations, SEC filings
and other information regarding our company, its businesses and the
markets it serves.
About Orion Engineered Carbons
Orion Engineered Carbons (NYSE: OEC) is a leading global
supplier of carbon black, a solid form of carbon produced as powder
or pellets. The material is made to customers’ exacting
specifications for tires, coatings, ink, batteries, plastics and
numerous other specialty, high-performance applications. Carbon
black is used to tint, colorize, provide reinforcement, conduct
electricity, increase durability, and add UV protection. Orion has
innovation centers on three continents and 15 plants worldwide,
offering the most diverse variety of production processes in the
industry. The company’s corporate lineage goes back more than 160
years to Germany, where it operates the world’s longest-running
carbon black plant. Orion is a leading innovator, applying a deep
understanding of customers’ needs to deliver sustainable solutions.
For more information, please visit www.orioncarbons.com.
Cautionary Statement for the Purposes of the “Safe Harbor”
Provisions of the Private Securities Litigation Reform Act of
1995
This document contains and refers to certain forward-looking
statements with respect to our financial condition, results of
operations and business, including those in the “Outlook” and
“Quarterly Business Segment Results” sections above. These
statements constitute forward-looking statements within the meaning
of Section 21E of the Securities Exchange Act of 1934, as amended
(the “Exchange Act”). Forward-looking statements are statements of
future expectations that are based on management’s current
expectations and assumptions and involve known and unknown risks
and uncertainties that could cause actual results, performance or
events to differ materially from those expressed or implied in
these statements. Forward-looking statements include, among others,
statements concerning the potential exposure to market risks,
statements expressing management’s expectations, beliefs,
estimates, forecasts, projections and assumptions and statements
that are not limited to statements of historical or present facts
or conditions. Forward-looking statements are typically identified
by words such as “anticipate,” “assume,” “assure,” “believe,”
“confident,” “could,” “estimate,” “expect,” “intend,” “may,”
“plan,” “objectives,” “outlook,” “probably,” “project,” “will,”
“seek,” “target,” “to be” and other words of similar meaning.
These forward-looking statements include, without limitation,
statements about the following matters: • our strategies for (i)
strengthening our position in Specialty carbon black or Rubber
carbon black, (ii) increasing our Specialty or Rubber carbon black
margins and (iii) strengthening the competitiveness of our
operations; • our cash flow projections; • the installation and
operation of pollution control technology in our United States
(“U.S.”) manufacturing facilities pursuant to the U.S.
Environmental Protection Agency (“EPA”) consent decree; • the
outcome of any in-progress, pending or possible litigation or
regulatory proceedings; the expectations regarding
environmental-related costs and liabilities; • the expectations
regarding the performance of our industry and the global economy,
including with respect to foreign currency rates; • the sufficiency
of our cash on hand and cash provided by operating activities and
borrowings to pay our operating expenses, satisfy our debt
obligations and fund capital expenditures; • the ability to pay
dividends; • the ability to have access to new debt providers; •
our anticipated spending on, and the timely completion and
anticipated impacts of, capital projects including growth projects,
emission reduction projects and the construction of new plants; •
our projections and expectations for pricing, financial results and
performance in 2023 and beyond; • the status of contract
negotiations with counterparties and the impact of new contracts on
our growth; • the implementation of our natural gas and other raw
material consumption reduction contingency plan; • the demand for
our specialty products; • our expectation that the markets we serve
will continue to remain stable or grow; and • our ability to
mitigate the impacts of the outbreak of COVID-19 and variances
thereof;
All these forward-looking statements are based on estimates and
assumptions that, although believed to be reasonable, are
inherently uncertain. Therefore, undue reliance should not be
placed upon any forward-looking statements. There are important
factors that could cause actual results to differ materially from
those contemplated by such forward-looking statements. These
factors include, among others: • the negative or uncertain
worldwide economic conditions and developments; • the volatility
and cyclicality of the industries in which we operate; • the
operational risks inherent in chemicals manufacturing, including
disruptions due to technical facilities, severe weather conditions
or natural disasters; • our dependence on major customers and
suppliers; • the unanticipated fluctuations in demand for our
specialty products, including due to factors beyond our control; •
our ability to compete in the industries and markets in which we
operate; • our ability to address changes in the nature of future
transportation and mobility concepts, which may impact our
customers and our business; • our ability to develop new products
and technologies successfully and the availability of substitutes
for our products; • our ability to implement our business
strategies; • our ability to respond to changes in feedstock prices
and quality; • our ability to realize benefits from investments,
joint ventures, acquisitions or alliances; • our ability to
negotiate with counterparties on terms satisfactory to us and the
satisfactory performance by such counterparties of their
obligations to us as well as our ability to meet our performance
obligations towards such counterparties; • our ability to realize
benefits from planned plant capacity expansions and site
development projects and the impact of potential delays to such
expansions and projects; • our information technology systems
failures, network disruptions and breaches of data security; • our
relationships with our workforce, including negotiations with labor
unions, strikes and work stoppages; • our ability to recruit or
retain key management and personnel; • our exposure to political or
country risks inherent in doing business in some countries; • any
and all impacts from the Russian war against Ukraine and/or any
escalation thereof as well as related energy shortages or other
economic or physical impairments or disruptions; • the geopolitical
events in the European Union (“EU”), relations amongst the EU
member states as well as future relations between the EU and other
countries and organizations; • the environmental, health and safety
regulations, including nanomaterial and greenhouse gas emissions
regulations, and the related costs of maintaining compliance and
addressing liabilities; • the possible future investigations and
enforcement actions by governmental, supranational agencies or
other organizations; • our operations as a company in the chemical
sector, including the related risks of leaks, fires and toxic
releases; • the market and regulatory changes that may affect our
ability to sell or otherwise benefit from co-generated energy; •
any litigation or legal proceedings, including product liability,
environmental or asbestos related claims; • our ability to protect
our intellectual property rights and know-how; • our ability to
generate the funds required to service our debt and finance our
operations; • any fluctuations in foreign currency exchange and
interest rates; • the availability and efficiency of hedging; • any
changes in international and local economic conditions, including
with regard to the dollar and the euro, dislocations in credit and
capital markets and inflation or deflation; the effects of the
COVID-19 pandemic on our business and results of operations; • the
potential impairments or write-offs of certain assets; • any
required increases in our pension fund contributions; • the
adequacy of our insurance coverage; • any changes in our
jurisdictional earnings mix or in the tax laws or accepted
interpretations of tax laws in those jurisdictions; • any
challenges to our decisions and assumptions in assessing and
complying with our tax obligations; • the potential difficulty in
obtaining or enforcing judgments or bringing legal actions against
Orion Engineered Carbons S.A. (a Luxembourg incorporated entity) in
the U.S. or elsewhere outside Luxembourg; and • any current or
future changes to disclosure requirements and obligations, related
audit requirements and our ability to comply with such obligations
and requirements.
You should not place undue reliance on forward-looking
statements. We present certain financial measures that are not
prepared in accordance with U.S. GAAP and may not be comparable to
other similarly titled measures of other companies. These non-U.S.
GAAP measures are Adjusted EBITDA, Adjusted Diluted EPS, Net debt
and Capital expenditures. Adjusted EBITDA, Adjusted EPS and Net
debt are not measures of performance under U.S. GAAP and should not
be considered in isolation or construed as substitutes for Net
sales, consolidated profit (loss) for the period, Income from
operations, Gross profit or other U.S. GAAP measures as an
indicator of our operations in accordance with U.S. GAAP. For a
reconciliation of these non-U.S. GAAP financial measures to the
most directly comparable U.S. GAAP measures, see table titled
Reconciliation of Non-GAAP to GAAP Financial Measures.
Factors that could cause our actual results to differ materially
from those expressed or implied in such forward-looking statements
include those factors detailed under the captions “Cautionary
Statement for Purposes of the “Safe Harbor” Provisions of the
Private Securities Litigation Reform Act of 1995” and “Risk
Factors” in our Annual Report in Form 10-K for the year ended
December 31, 2022, in Note Q. Commitments and Contingencies to our
audited Consolidated Financial Statements regarding contingent
liabilities, including litigation and in Form 10-Q for the period
ended March 31, 2023. It is not possible for our management to
predict all risk factors and uncertainties, nor can we assess the
impact of all factors on our business or the extent to which any
factor, or combination of factors, may cause actual results to
differ materially from those contained in any forward-looking
statements. We undertake no obligation to publicly update or revise
any forward-looking statement — including those in the “Outlook”
and “Quarterly Business Segment Results” sections above — as a
result of new information, future events or other information,
other than as required by applicable law.
Reconciliation of Non-GAAP Financial Measures
We present certain financial measures that are not prepared in
accordance with GAAP or the accounting standards of any other
jurisdiction and may not be comparable to other similarly titled
measures of other companies. For a reconciliation of these non-GAAP
financial measures to their nearest comparable GAAP measures, see
section Reconciliation of Non-GAAP Financial Measures below.
These non-GAAP measures include, but are not limited to, Gross
profit per metric ton, Adjusted EBITDA, Capital Expenditures,
Segment Adjusted EBITDA Margin (in percentage), Discretionary Cash
Flow, Free Cash Flow and Adjusted Diluted EPS.
We define Gross profit per metric ton as Gross profit divided by
volume measured in metric tons. We define Adjusted EBITDA as Income
from operations before depreciation and amortization, share-based
compensation and non-recurring items (such as, restructuring
expenses, consulting fees related to Company strategy, legal
settlement gain, etc.) plus Earnings in affiliated companies, net
of tax. We definite Net Working Capital as Inventories, net plus
Accounts receivable, net minus Accounts payable. We define Net debt
as Total debt per Consolidated Balance Sheets plus Deferred debt
issuance cost - Term loans minus Cash and cash equivalents. We
define Capital Expenditures as Cash paid for the acquisition of
intangible assets and property, plant and equipment. We define
Segment Adjusted EBITDA Margin (in percentage) as Segment Adjusted
EBITDA divided by segment revenue. We define Discretionary Cash
Flow as Adjusted EBITDA less capital expenditures for maintenance
and EPA less cash paid for interest and taxes. We define Free Cash
Flow as Adjusted EBITDA less Total Capital Expenditures and cash
paid for dividends, interest, and taxes. We define Adjusted Diluted
EPS as Net income before long-term incentive plan, other adjustment
items, reclassification of actuarial gains (losses) from AOCI,
intangible assets amortization, foreign exchange rate impacts,
amortization of transaction costs, tax effect on add back items at
estimated tax rate divided by weighted average diluted number of
shares.
Adjusted EBITDA is used by our chief operating decision maker
(“CODM”) to evaluate our operating performance and to make
decisions regarding allocation of capital, because it excludes the
effects of items that have less bearing on the performance of our
underlying core business. We use this measure, together with other
measures of performance under GAAP, to compare the relative
performance of operations in planning, budgeting and reviewing our
business. We believe these measures are useful measures of
financial performance in addition to Net income, Income from
operations and other profitability measures under GAAP, because
they facilitate operating performance comparisons from period to
period. By eliminating potential differences in results of
operations between periods caused by factors such as depreciation
and amortization methods, historic cost and age of assets,
financing and capital structures and taxation positions or regimes,
we believe that Adjusted EBITDA provides a useful additional basis
for evaluating and comparing the current performance of the
underlying operations. In addition, we believe these non-GAAP
measures aid investors by providing additional insight into our
operational performance and help clarify trends affecting our
business.
However, other companies and analysts may calculate non-GAAP
financial measures differently, so making comparisons among
companies on this basis should be done carefully. Non-GAAP measures
are not performance measures under GAAP and should not be
considered in isolation or construed as substitutes for Net sales,
Net income, Income from operations, Gross profit and other GAAP
measures as an indicator of our operations in accordance with
GAAP.
We are not able to reconcile the forward-looking non-GAAP
financial measures to the closest corresponding GAAP measure
without unreasonable efforts, because we are unable to predict the
ultimate outcome of certain significant items. These items include,
but are not limited to, significant legal settlements, tax and
regulatory reserve changes, restructuring costs and acquisition and
financing related impacts.
Reconciliation of Non-GAAP to GAAP Financial
Measures
The following tables present a reconciliation of each Non-GAAP
measure to the most directly comparable GAAP measure:
Reconciliation of Net income to Adjusted EBITDA:
First Quarter
(In millions)
2023
2022
Net income
$
42.3
$
32.5
Add back Income tax expense
18.3
13.8
Add back Equity in earnings of affiliated
companies, net of tax
(0.1
)
(0.1
)
Income before earnings in affiliated
companies and income taxes
60.5
46.2
Add back Interest and other financial
expense, net
15.2
8.4
Add back Reclassification of actuarial
gain from AOCI
(2.2
)
—
Income from operations
73.5
54.6
Add back Depreciation of property, plant
and equipment and amortization of intangible assets and right of
use assets
25.7
27.3
EBITDA
99.2
81.9
Equity in earnings of affiliated
companies, net of tax
0.1
0.1
Long term incentive plan
2.1
1.5
Other adjustment
(0.3
)
(0.3
)
Adjusted EBITDA
$
101.1
$
83.2
Reconciliation of Gross profit per metric ton:
First Quarter
(In millions, unless otherwise
indicated)
2023
2022
Net sales
$
500.7
$
484.5
Cost of sales
(364.3
)
(366.6
)
Gross profit
$
136.4
$
117.9
Volume (in kmt)
233.5
253.2
Gross profit per metric ton
$
584.2
$
465.6
Reconciliation of Total debt per the Consolidated Balance Sheet
to Net debt:
(In millions)
March 31, 2023
December 31, 2022
Current portion of long term debt and
other financial liabilities
$
230.2
$
258.3
Long-term debt, net
664.6
657.0
Total debt as per Consolidated Balance
Sheets
894.8
915.3
Add: Deferred debt issuance costs - Term
loans
4.3
4.4
Less: Cash and cash equivalents
76.8
60.8
Net debt
$
822.3
$
858.9
Reconciliation of Net income to Adjusted net income and Diluted
EPS to Adjusted Diluted EPS:
First Quarter
(In millions, except per share
amounts)
2023
2022
Net income
$
42.3
$
32.5
add back long term incentive plan
2.1
1.5
add back other adjustment items
(0.3
)
(0.3
)
add back reclassification of actuarial
gains from AOCI
(2.2
)
—
add back intangible assets
amortization
1.8
1.9
add back foreign exchange rate impacts
2.1
(0.6
)
add back amortization of transaction
costs
0.6
0.4
Tax effect on add back items at estimated
tax rate
(1.3
)
(0.9
)
Adjusted net income
$
45.1
$
34.5
Total add back items
$
2.8
$
2.0
Impact add back items per share
$
0.04
$
0.04
Diluted EPS
$
0.70
$
0.53
Adjusted Diluted EPS
$
0.74
$
0.57
Condensed Consolidated Statements of
Operations (Unaudited)
Three Months Ended March
31,
(In millions, except share and per
share data)
2023
2022
Net sales
$
500.7
$
484.5
Cost of sales
364.3
366.6
Gross profit
136.4
117.9
Selling, general and administrative
expenses
57.7
57.5
Research and development costs
6.2
5.5
Other (income) expenses, net
(1.0
)
0.3
Income from operations
73.5
54.6
Interest and other financial expense,
net
15.2
8.4
Reclassification of actuarial gain from
AOCI
(2.2
)
—
Income before earnings in affiliated
companies and income taxes
60.5
46.2
Income tax expense
18.3
13.8
Earnings in affiliated companies, net of
tax
0.1
0.1
Net income
$
42.3
$
32.5
Weighted-average shares outstanding (in
thousands):
Basic
60,287
60,879
Diluted
60,623
61,019
Earnings per share:
Basic
$
0.70
$
0.53
Diluted
$
0.70
$
0.53
Condensed Consolidated Statements of
Financial Position (Unaudited)
(In millions, except share
amounts)
March 31, 2023
December 31, 2022
ASSETS
Current assets
Cash and cash equivalents
$
76.8
$
60.8
Accounts receivable, net
335.2
367.8
Inventories, net
271.0
277.9
Income tax receivables
13.0
5.2
Prepaid expenses and other current
assets
61.3
66.8
Total current assets
757.3
778.5
Property, plant and equipment, net
832.2
818.5
Right-of-use assets
99.1
97.6
Goodwill
74.9
73.4
Intangible assets, net
27.3
27.8
Investment in equity method affiliates
5.2
5.0
Deferred income tax assets
41.1
29.1
Other assets
51.7
58.8
Total non-current assets
1,131.5
1,110.2
Total assets
$
1,888.8
$
1,888.7
LIABILITIES AND
STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable
$
184.4
$
184.1
Current portion of long term debt and
other financial liabilities
230.2
258.3
Accrued liabilities
32.7
44.7
Income taxes payable
36.8
31.3
Other current liabilities
46.7
34.4
Total current liabilities
530.8
552.8
Long-term debt, net
664.6
657.0
Employee benefit plan obligation
51.6
50.0
Deferred income tax liabilities
80.2
70.0
Other liabilities
100.6
99.5
Total non-current liabilities
897.0
876.5
Stockholders' Equity
Common stock
Authorized: 65,035,579 and 65,035,579
shares with no par value
Issued – 60,992,259 and 60,992,259 shares
with no par value
Outstanding – 59,416,191 and 60,571,556
shares
85.3
85.3
Treasury stock, at cost, 1,576,068 and
420,703
(35.2
)
(8.8
)
Additional paid-in capital
73.9
76.4
Retained earnings
360.0
319.0
Accumulated other comprehensive loss
(23.0
)
(12.5
)
Total stockholders' equity
461.0
459.4
Total liabilities and stockholders'
equity
$
1,888.8
$
1,888.7
Condensed Consolidated Statements of Cash
Flows (Unaudited)
Three Months Ended March
31,
(In millions)
2023
2022
Cash flows from operating
activities:
Net income
$
42.3
$
32.5
Adjustments to reconcile net income to net
cash provided by (used in) operating activities:
Depreciation of property, plant and
equipment and amortization of intangible assets and right of use
assets
25.7
27.3
Amortization of debt issuance costs
0.6
0.4
Share-based incentive compensation
2.1
1.5
Deferred tax provision
1.1
2.6
Foreign currency transactions
0.8
(5.6
)
Reclassification of actuarial gain from
AOCI
(2.2
)
—
Changes in operating assets and
liabilities, net:
Trade receivables
35.4
(83.6
)
Inventories
5.7
(25.6
)
Trade payables
1.4
20.7
Other provisions
(12.7
)
(13.7
)
Income tax liabilities
(4.1
)
6.2
Other assets and liabilities, net
12.0
9.5
Net cash provided by (used in)
operating activities
108.1
(27.8
)
Cash flows from investing
activities:
Acquisition of property, plant and
equipment
(30.5
)
(48.8
)
Net cash used in investing
activities
(30.5
)
(48.8
)
Cash flows from financing
activities:
Proceeds from long-term debt
borrowings
1.8
0.9
Repayments of long-term debt
(0.8
)
(0.8
)
Cash inflows related to current financial
liabilities
30.8
90.4
Cash outflows related to current financial
liabilities
(63.7
)
(37.9
)
Dividends paid to shareholders
(1.3
)
(1.2
)
Repurchase of common stock
(29.3
)
—
Net cash provided by (used in)
financing activities
(62.5
)
51.4
Increase (decrease) in cash, cash
equivalents and restricted cash
15.1
(25.2
)
Cash, cash equivalents and restricted cash
at the beginning of the period
63.4
68.5
Effect of exchange rate changes on
cash
0.9
0.7
Cash, cash equivalents and restricted
cash at the end of the period
79.4
44.0
Less restricted cash at the end of the
period
2.6
2.7
Cash and cash equivalents at the end of
the period
$
76.8
$
41.3
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230504005779/en/
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