News
Albemarle reports third quarter 2015 results
November 4, 2015
Third quarter 2015 highlights:
- Adjusted earnings of
$0.90 per share. - Three core business units grew adjusted EBITDA by 8% versus prior year, and achieved adjusted EBITDA margins of 31%, excluding unfavorable currency exchange impacts.
- Actions to date will result in approximately
$60 million in 2015 acquisition synergies, exceeding previous expectations. - Full year EPS guidance at
$3.65 to $3.80 ; within prior guidance range. - In October, refinanced
$1.25 billion of 4.625% senior notes assumed from Rockwood at lower rate.
Three Months Ended |
Nine Months Ended |
||||||||||||||
September 30, |
September 30, |
||||||||||||||
In thousands, except per share amounts |
2015 |
2014 |
2015 |
2014 |
|||||||||||
Net sales |
$ |
905,093 |
$ |
642,418 |
$ |
2,720,982 |
$ |
1,846,982 |
|||||||
Adjusted EBITDA |
$ |
234,996 |
$ |
144,604 |
$ |
730,705 |
$ |
425,322 |
|||||||
Net income from continuing operations |
$ |
70,872 |
$ |
88,019 |
$ |
177,387 |
$ |
243,427 |
|||||||
Net income attributable to Albemarle Corporation |
$ |
65,392 |
$ |
72,794 |
$ |
160,654 |
$ |
151,824 |
|||||||
Diluted earnings per share |
$ |
0.58 |
$ |
0.93 |
$ |
1.44 |
$ |
1.91 |
|||||||
Non-operating pension and OPEB items(a) |
— |
0.01 |
(0.03) |
0.11 |
|||||||||||
Special items(b) |
0.32 |
0.12 |
1.49 |
0.32 |
|||||||||||
Discontinued operations(c) |
— |
0.08 |
— |
0.87 |
|||||||||||
Adjusted diluted earnings per share(d) |
$ |
0.90 |
$ |
1.14 |
$ |
2.91 |
$ |
3.21 |
|||||||
See accompanying notes (a) through (d) to the condensed consolidated financial information and non-GAAP reconciliations. |
Earnings for the nine months ended September 30, 2015 were
"Albemarle's core businesses continued to perform well in the third quarter. Through the first nine months of 2015, these businesses delivered 8% adjusted EBITDA growth and 30% margin rates on a constant currency basis," said Albemarle's President and CEO,
The acquisition of Rockwood was completed on
Quarterly Segment Results
In order to provide a meaningful comparison of the results of operations, where applicable, segment results for the third quarter and nine months ended
Performance Chemicals reported net sales of
Refining Solutions generated net sales of
Chemetall® Surface Treatment reported net sales of
All Other net sales were
In summary, total net sales of
Corporate Results
Corporate adjusted EBITDA was
Income Taxes
Our adjusted effective income tax rates, which exclude discontinued operations, special and non-operating pension and OPEB items, were 26.6% and 18.9% for the third quarter of 2015 and 2014, 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. The effective tax rate increase compared to the prior year is primarily driven by the Rockwood acquisition, which caused a reduction in various benefits in our effective tax rate.
Cash Flow
Our cash flow from operations was approximately
Outlook
The outlook for the full year results reflects continued strength in Lithium and Performance Catalyst Solutions, and on track results in Refining Solutions and Chemetall Surface Treatment. However, the outlook is impacted by a lower forecast for Fine Chemistry Services. Full year adjusted EBITDA is now expected to range from
Earnings Call
The Company's performance for the third quarter ended September 30, 2015 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 |
Nine Months Ended |
||||||||||||||
September 30, |
September 30, |
||||||||||||||
2015 |
2014 |
2015 |
2014 |
||||||||||||
Net sales |
$ |
905,093 |
$ |
642,418 |
$ |
2,720,982 |
$ |
1,846,982 |
|||||||
Cost of goods sold(a)(b) |
592,883 |
436,972 |
1,849,740 |
1,238,574 |
|||||||||||
Gross profit |
312,210 |
205,446 |
871,242 |
608,408 |
|||||||||||
Selling, general and administrative expenses(a) |
137,615 |
66,012 |
421,092 |
211,127 |
|||||||||||
Research and development expenses |
25,295 |
22,407 |
77,123 |
66,916 |
|||||||||||
Restructuring and other, net(b) |
(6,804) |
293 |
(6,804) |
20,625 |
|||||||||||
Acquisition and integration related costs(b) |
42,798 |
10,261 |
126,487 |
15,104 |
|||||||||||
Operating profit |
113,306 |
106,473 |
253,344 |
294,636 |
|||||||||||
Interest and financing expenses(b) |
(32,058) |
(8,749) |
(100,986) |
(26,255) |
|||||||||||
Other income (expenses), net(b) |
466 |
(6,618) |
50,964 |
(6,454) |
|||||||||||
Income from continuing operations before income taxes and equity in net income of unconsolidated investments |
81,714 |
91,106 |
203,322 |
261,927 |
|||||||||||
Income tax expense(b) |
16,892 |
11,737 |
48,171 |
46,700 |
|||||||||||
Income from continuing operations before equity in net income of unconsolidated investments |
64,822 |
79,369 |
155,151 |
215,227 |
|||||||||||
Equity in net income of unconsolidated investments (net of tax)(b) |
6,050 |
8,650 |
22,236 |
28,200 |
|||||||||||
Net income from continuing operations |
70,872 |
88,019 |
177,387 |
243,427 |
|||||||||||
Loss from discontinued operations (net of tax)(c) |
— |
(6,679) |
— |
(68,473) |
|||||||||||
Net income |
70,872 |
81,340 |
177,387 |
174,954 |
|||||||||||
Net income attributable to noncontrolling interests |
(5,480) |
(8,546) |
(16,733) |
(23,130) |
|||||||||||
Net income attributable to Albemarle Corporation |
$ |
65,392 |
$ |
72,794 |
$ |
160,654 |
$ |
151,824 |
|||||||
Basic earnings (loss) per share |
|||||||||||||||
Continuing operations |
$ |
0.58 |
$ |
1.02 |
$ |
1.45 |
$ |
2.79 |
|||||||
Discontinued operations |
— |
(0.09) |
— |
(0.87) |
|||||||||||
$ |
0.58 |
$ |
0.93 |
$ |
1.45 |
$ |
1.92 |
||||||||
Diluted earnings (loss) per share |
|||||||||||||||
Continuing operations |
$ |
0.58 |
$ |
1.01 |
$ |
1.44 |
$ |
2.78 |
|||||||
Discontinued operations |
— |
(0.08) |
— |
(0.87) |
|||||||||||
$ |
0.58 |
$ |
0.93 |
$ |
1.44 |
$ |
1.91 |
||||||||
Weighted-average common shares outstanding – basic |
112,202 |
78,244 |
110,840 |
78,880 |
|||||||||||
Weighted-average common shares outstanding – diluted |
112,544 |
78,659 |
111,205 |
79,287 |
|||||||||||
See accompanying notes to the condensed consolidated financial information. |
Albemarle Corporation and Subsidiaries |
|||||||
Condensed Consolidated Balance Sheets |
|||||||
(In Thousands) (Unaudited) |
|||||||
September 30, |
December 31, |
||||||
2015 |
2014 |
||||||
ASSETS |
|||||||
Cash and cash equivalents |
$ |
234,490 |
$ |
2,489,768 |
|||
Other current assets |
1,486,425 |
859,082 |
|||||
Total current assets |
1,720,915 |
3,348,850 |
|||||
Property, plant and equipment |
4,096,921 |
2,620,670 |
|||||
Less accumulated depreciation and amortization |
1,496,069 |
1,388,802 |
|||||
Net property, plant and equipment |
2,600,852 |
1,231,868 |
|||||
Other assets and intangibles |
5,353,297 |
642,385 |
|||||
Total assets |
$ |
9,675,064 |
$ |
5,223,103 |
|||
LIABILITIES AND EQUITY |
|||||||
Current portion of long-term debt |
$ |
284,368 |
$ |
711,096 |
|||
Other current liabilities |
1,038,180 |
428,790 |
|||||
Total current liabilities |
1,322,548 |
1,139,886 |
|||||
Long-term debt |
3,558,964 |
2,223,035 |
|||||
Other noncurrent liabilities |
757,194 |
314,663 |
|||||
Deferred income taxes |
761,844 |
56,884 |
|||||
Albemarle Corporation shareholders' equity |
3,144,489 |
1,359,465 |
|||||
Noncontrolling interests |
130,025 |
129,170 |
|||||
Total liabilities and equity |
$ |
9,675,064 |
$ |
5,223,103 |
|||
See accompanying notes to the condensed consolidated financial information. |
Albemarle Corporation and Subsidiaries |
|||||||
Selected Consolidated Cash Flow Data |
|||||||
(In Thousands) (Unaudited) |
|||||||
Nine Months Ended |
|||||||
September 30, |
|||||||
2015 |
2014 |
||||||
Cash and cash equivalents at beginning of year |
$ |
2,489,768 |
$ |
477,239 |
|||
Cash and cash equivalents at end of period |
$ |
234,490 |
$ |
653,120 |
|||
Sources of cash and cash equivalents: |
|||||||
Net income |
$ |
177,387 |
$ |
174,954 |
|||
Cash proceeds from divestitures, net |
6,133 |
104,718 |
|||||
Proceeds from borrowings of long-term debt |
1,000,000 |
— |
|||||
Dividends received from unconsolidated investments and nonmarketable securities |
57,149 |
37,854 |
|||||
Return of capital from unconsolidated investment |
98,000 |
— |
|||||
Decrease in restricted cash |
57,550 |
— |
|||||
Working capital changes |
14,823 |
89,020 |
|||||
Uses of cash and cash equivalents: |
|||||||
Capital expenditures |
(164,568) |
(76,682) |
|||||
Acquisition of Rockwood, net of cash acquired |
(2,051,645) |
— |
|||||
Other acquisitions, net of cash acquired |
(48,845) |
— |
|||||
Repurchases of common stock |
— |
(150,000) |
|||||
Repayments of long-term debt |
(1,332,293) |
(3,023) |
|||||
Repayments of other borrowings, net |
(16,854) |
(23,554) |
|||||
Pension and postretirement contributions |
(16,673) |
(10,718) |
|||||
Dividends paid to shareholders |
(86,770) |
(62,827) |
|||||
Dividends paid to noncontrolling interests |
(23,195) |
(7,612) |
|||||
Non-cash and other items: |
|||||||
Depreciation and amortization |
200,372 |
78,344 |
|||||
(Gain) loss associated with restructuring and other |
(6,804) |
6,333 |
|||||
Loss on disposal of businesses |
— |
85,515 |
|||||
Pension and postretirement (benefit) expense |
(232) |
21,946 |
|||||
Deferred income taxes |
(53,593) |
(24,412) |
|||||
Equity in net income of unconsolidated investments (net of tax) |
(22,236) |
(28,200) |
|||||
See accompanying notes to the condensed consolidated financial information. |
Albemarle Corporation and Subsidiaries |
|||||||||||||||||||||||
Consolidated Summary of Segment Results |
|||||||||||||||||||||||
(In Thousands) (Unaudited) |
|||||||||||||||||||||||
Three Months Ended |
Nine Months Ended |
||||||||||||||||||||||
September 30, |
September 30, |
||||||||||||||||||||||
Actual |
Actual |
Pro forma |
Actual |
Actual |
Pro forma |
||||||||||||||||||
2015 |
2014 |
2014 |
2015 |
2014 |
2014 |
||||||||||||||||||
Net sales: |
|||||||||||||||||||||||
Performance Chemicals |
$ |
399,536 |
$ |
299,947 |
$ |
417,112 |
$ |
1,224,864 |
$ |
856,221 |
$ |
1,205,930 |
|||||||||||
Refining Solutions |
185,102 |
218,950 |
218,950 |
528,841 |
618,635 |
618,635 |
|||||||||||||||||
Chemetall Surface Treatment |
211,877 |
— |
208,765 |
617,163 |
— |
624,877 |
|||||||||||||||||
All Other |
102,224 |
123,521 |
151,077 |
337,997 |
372,126 |
461,465 |
|||||||||||||||||
Corporate |
6,354 |
— |
2,814 |
12,117 |
— |
9,175 |
|||||||||||||||||
Total net sales |
$ |
905,093 |
$ |
642,418 |
$ |
998,718 |
$ |
2,720,982 |
$ |
1,846,982 |
$ |
2,920,082 |
|||||||||||
Adjusted EBITDA: |
|||||||||||||||||||||||
Performance Chemicals |
$ |
136,209 |
$ |
82,329 |
$ |
128,231 |
$ |
415,419 |
$ |
232,668 |
$ |
362,870 |
|||||||||||
Refining Solutions |
54,517 |
61,674 |
61,674 |
144,910 |
189,259 |
189,259 |
|||||||||||||||||
Chemetall Surface Treatment |
53,898 |
— |
51,454 |
148,344 |
— |
146,970 |
|||||||||||||||||
All Other |
6,262 |
20,971 |
27,421 |
29,540 |
63,482 |
83,659 |
|||||||||||||||||
Corporate(a) |
(15,890) |
(20,370) |
(32,577) |
(7,508) |
(60,087) |
(99,853) |
|||||||||||||||||
Total adjusted EBITDA |
$ |
234,996 |
$ |
144,604 |
$ |
236,203 |
$ |
730,705 |
$ |
425,322 |
$ |
682,905 |
Performance Chemicals - details by product category: |
|||||||||||||||||||||||
Three Months Ended |
Nine Months Ended |
||||||||||||||||||||||
September 30, |
September 30, |
||||||||||||||||||||||
Actual |
Actual |
Pro forma |
Actual |
Actual |
Pro forma |
||||||||||||||||||
2015 |
2014 |
2014 |
2015 |
2014 |
2014 |
||||||||||||||||||
Net sales: |
|||||||||||||||||||||||
Bromine |
$ |
190,716 |
$ |
222,189 |
$ |
222,189 |
$ |
604,267 |
$ |
620,586 |
$ |
620,586 |
|||||||||||
Lithium |
128,404 |
— |
117,165 |
369,811 |
— |
349,709 |
|||||||||||||||||
PCS |
80,416 |
77,758 |
77,758 |
250,786 |
235,635 |
235,635 |
|||||||||||||||||
Total Performance Chemicals |
$ |
399,536 |
$ |
299,947 |
$ |
417,112 |
$ |
1,224,864 |
$ |
856,221 |
$ |
1,205,930 |
|||||||||||
Adjusted EBITDA: |
|||||||||||||||||||||||
Bromine |
$ |
58,801 |
$ |
62,266 |
$ |
62,266 |
$ |
180,431 |
$ |
171,513 |
$ |
171,513 |
|||||||||||
Lithium |
52,110 |
— |
45,902 |
156,333 |
— |
130,202 |
|||||||||||||||||
PCS |
25,298 |
20,063 |
20,063 |
78,655 |
61,155 |
61,155 |
|||||||||||||||||
Total Performance Chemicals |
$ |
136,209 |
$ |
82,329 |
$ |
128,231 |
$ |
415,419 |
$ |
232,668 |
$ |
362,870 |
|||||||||||
See accompanying notes to the condensed consolidated financial information and non-GAAP reconciliations below. |
Notes to the Condensed Consolidated Financial Information
(a) Non-operating pension and OPEB items, consisting of mark-to-market ("MTM") actuarial gains/losses, settlements/curtailments, interest cost and expected return on assets, are not allocated to our reportable segments and are included in the Corporate category. 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 |
Nine Months Ended |
||||||||||||||
September 30, |
September 30, |
||||||||||||||
2015 |
2014 |
2015 |
2014 |
||||||||||||
Cost of goods sold: |
|||||||||||||||
MTM actuarial loss (gain) |
$ |
— |
$ |
2.8 |
$ |
(0.1) |
$ |
5.7 |
|||||||
Interest cost and expected return on assets, net |
(0.4) |
(0.5) |
(1.1) |
(1.5) |
|||||||||||
Total |
$ |
(0.4) |
$ |
2.3 |
$ |
(1.2) |
$ |
4.2 |
|||||||
Selling, general and administrative expenses: |
|||||||||||||||
MTM actuarial loss |
$ |
— |
$ |
— |
$ |
— |
$ |
12.5 |
|||||||
Settlements/curtailments |
— |
— |
(2.6) |
— |
|||||||||||
Interest cost and expected return on assets, net |
(0.7) |
(0.9) |
(2.1) |
(2.6) |
|||||||||||
Total |
$ |
(0.7) |
$ |
(0.9) |
$ |
(4.7) |
$ |
9.9 |
Settlements/curtailments for the nine months ended
(b) In addition to the non-operating pension and OPEB items disclosed above, we have identified certain other items and excluded them from our adjusted earnings calculation for the periods presented. A listing of these items, as well as a detailed description of each follows below (per diluted share):
Three Months Ended |
Nine Months Ended |
||||||||||||||
September 30, |
September 30, |
||||||||||||||
2015 |
2014 |
2015 |
2014 |
||||||||||||
Utilization of inventory markup(1) |
$ |
0.12 |
$ |
— |
$ |
0.70 |
$ |
— |
|||||||
Restructuring and other, net(2) |
(0.04) |
— |
(0.04) |
0.17 |
|||||||||||
Acquisition and integration related costs(3) |
0.24 |
0.09 |
0.77 |
0.12 |
|||||||||||
Interest and financing expenses related to Rockwood acquisition(4) |
— |
— |
0.01 |
— |
|||||||||||
Financing fees related to Rockwood acquisition(5) |
— |
0.06 |
0.03 |
0.06 |
|||||||||||
Discrete tax items(6) |
— |
(0.03) |
0.02 |
(0.03) |
|||||||||||
Total special items |
$ |
0.32 |
$ |
0.12 |
$ |
1.49 |
$ |
0.32 |
(1) In connection with the acquisition of Rockwood, the Company valued Rockwood's existing inventory at fair value as of the acquisition date, which resulted in a markup of the underlying net book value of the inventory. The inventory markup is being expensed over the estimated remaining selling period. For the three months ended September 30, 2015,
(2) Restructuring and other, net, consisted of the following:
Three and nine months ended
- A gain of
$6.8 million ($4.7 million after income taxes, or$0.04 per share) recognized upon the sale of land in Avonmouth,UK , which was utilized by the phosphorus flame retardants business we exited in 2012.
Three months ended
- Other charges of
$0.3 million ($0.2 million after income taxes).
Nine months ended
- Net charges amounting to
$17.0 million ($11.1 million after income taxes, or$0.14 per share) in connection with a reduction of aluminum alkyls high cost supply capacity. - A write-off of
$3.3 million ($2.1 million after income taxes, or$0.03 per share) for certain multi-product facility project costs that we do not expect to recover in future periods. - Other charges of
$0.3 million ($0.2 million after income taxes).
(3) Acquisition and integration related costs consisted of the following:
Three months ended
$41.8 million directly related to the acquisition of Rockwood and$1.0 million in connection with other significant projects. After income taxes, these charges totaled$27.4 million , or$0.24 per share.
Three months ended
$9.3 million directly related to the acquisition of Rockwood and$1.0 million in connection with other significant projects. After income taxes, these charges totaled$6.5 million , or$0.09 per share.
Nine months ended
$120.5 million directly related to the acquisition of Rockwood and$6.0 million in connection with other significant projects. After income taxes, these charges totaled$86.1 million , or$0.77 per share.
Nine months ended
$9.3 million directly related to the acquisition of Rockwood and$5.8 million in connection with other significant projects. After income taxes, these charges totaled$9.6 million , or$0.12 per share.
(4) Included in Interest and financing expenses for the nine months ended September 30, 2015 is
(5) Included in Other income (expenses), net, for the nine months ended September 30, 2015 is
(6) Included in Income tax expense for the nine months ended
(c) On September 1, 2014, the Company closed the sale of its antioxidant, ibuprofen and propofol businesses and assets to SI Group, Inc. and received net proceeds of $104.7 million and a post-closing working capital settlement of $7.6 million which was received in the first quarter of 2015. Financial results of the disposed group have been presented as discontinued operations in the consolidated statements of income for the 2014 periods. Included in Loss from discontinued operations are pre-tax charges of $4.8 million ($3.6 million after income taxes, or $0.05 per share) recorded in the third quarter of 2014 and $85.5 million ($64.6 million after income taxes, or $0.82 per share) recorded in the nine months ended September 30, 2014 related to the loss on the sale of the disposed group, representing the difference between the carrying value of the related assets and their fair value as determined by the sales price less estimated costs to sell. The loss is primarily attributable to the write-off of goodwill, intangibles and long-lived assets, net of cumulative foreign currency translation gains of $17.8 million.
(d) Totals may not add due to rounding.
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 below for supplemental reconciliations of the non-GAAP financial measures to the most directly comparable financial measures calculated and reported in accordance with GAAP.
ALBEMARLE CORPORATION AND SUBSIDIARIES
Non-GAAP Reconciliations
(In Thousands)
(Unaudited)
See below for a reconciliation of adjusted net income attributable to
Three Months Ended |
Nine Months Ended |
||||||||||||||
September 30, |
September 30, |
||||||||||||||
2015 |
2014 |
2015 |
2014 |
||||||||||||
Net income attributable to Albemarle Corporation |
$ |
65,392 |
$ |
72,794 |
$ |
160,654 |
$ |
151,824 |
|||||||
Add back: |
|||||||||||||||
Non-operating pension and OPEB items (net of tax) |
(524) |
927 |
(3,613) |
9,016 |
|||||||||||
Special items (net of tax) |
36,064 |
9,066 |
166,187 |
25,401 |
|||||||||||
Loss from discontinued operations (net of tax) |
— |
6,679 |
— |
68,473 |
|||||||||||
Adjusted net income attributable to Albemarle Corporation |
$ |
100,932 |
$ |
89,466 |
$ |
323,228 |
$ |
254,714 |
|||||||
Net income attributable to Albemarle Corporation |
$ |
65,392 |
$ |
72,794 |
$ |
160,654 |
$ |
151,824 |
|||||||
Add back: |
|||||||||||||||
Interest and financing expenses |
32,058 |
8,749 |
100,986 |
26,255 |
|||||||||||
Income tax expense (from continuing and discontinued operations) |
16,892 |
10,664 |
48,171 |
24,734 |
|||||||||||
Depreciation and amortization |
68,903 |
25,630 |
200,372 |
78,344 |
|||||||||||
EBITDA |
183,245 |
117,837 |
510,183 |
281,157 |
|||||||||||
Non-operating pension and OPEB items |
(1,077) |
1,440 |
(5,900) |
14,141 |
|||||||||||
Special items (excluding special items associated with interest expense) |
52,828 |
17,575 |
226,422 |
42,750 |
|||||||||||
Loss from discontinued operations |
— |
7,752 |
— |
90,439 |
|||||||||||
Less depreciation and amortization from discontinued operations |
— |
— |
— |
(3,165) |
|||||||||||
Adjusted EBITDA |
$ |
234,996 |
$ |
144,604 |
$ |
730,705 |
$ |
425,322 |
|||||||
Net sales |
$ |
905,093 |
$ |
642,418 |
$ |
2,720,982 |
$ |
1,846,982 |
|||||||
EBITDA margin |
20.2 |
% |
18.3 |
% |
18.7 |
% |
15.2 |
% |
|||||||
Adjusted EBITDA margin |
26.0 |
% |
22.5 |
% |
26.9 |
% |
23.0 |
% |
See below for a reconciliation of adjusted EBITDA on a segment basis, the non-GAAP financial measure, to Net income (loss) attributable to
Performance Chemicals |
Refining Solutions |
Chemetall Surface Treatment |
Reportable Segments Total |
All Other |
Corporate |
Consolidated Total |
|||||||||||||||||||||
Three months ended September 30, 2015 (Actual): |
|||||||||||||||||||||||||||
Net income (loss) attributable to Albemarle Corporation |
$ |
87,893 |
$ |
45,713 |
$ |
33,638 |
$ |
167,244 |
$ |
617 |
$ |
(102,469) |
$ |
65,392 |
|||||||||||||
Depreciation and amortization |
31,482 |
8,804 |
20,260 |
60,546 |
5,645 |
2,712 |
68,903 |
||||||||||||||||||||
Special items |
16,834 |
— |
— |
16,834 |
— |
35,994 |
52,828 |
||||||||||||||||||||
Interest and financing expenses |
— |
— |
— |
— |
— |
32,058 |
32,058 |
||||||||||||||||||||
Income tax expense |
— |
— |
— |
— |
— |
16,892 |
16,892 |
||||||||||||||||||||
Non-operating pension and OPEB items |
— |
— |
— |
— |
— |
(1,077) |
(1,077) |
||||||||||||||||||||
Adjusted EBITDA |
$ |
136,209 |
$ |
54,517 |
$ |
53,898 |
$ |
244,624 |
$ |
6,262 |
$ |
(15,890) |
$ |
234,996 |
|||||||||||||
Three months ended September 30, 2014 (Actual): |
|||||||||||||||||||||||||||
Net income (loss) attributable to Albemarle Corporation |
$ |
69,736 |
$ |
52,851 |
$ |
— |
$ |
122,587 |
$ |
17,479 |
$ |
(67,272) |
$ |
72,794 |
|||||||||||||
Depreciation and amortization |
12,593 |
8,823 |
— |
21,416 |
3,492 |
722 |
25,630 |
||||||||||||||||||||
Special items |
— |
— |
— |
— |
— |
17,575 |
17,575 |
||||||||||||||||||||
Interest and financing expenses |
— |
— |
— |
— |
— |
8,749 |
8,749 |
||||||||||||||||||||
Income tax expense |
— |
— |
— |
— |
— |
11,737 |
11,737 |
||||||||||||||||||||
Loss from discontinued operations (net of tax) |
— |
— |
— |
— |
— |
6,679 |
6,679 |
||||||||||||||||||||
Non-operating pension and OPEB items |
— |
— |
— |
— |
— |
1,440 |
1,440 |
||||||||||||||||||||
Adjusted EBITDA |
$ |
82,329 |
$ |
61,674 |
$ |
— |
$ |
144,003 |
$ |
20,971 |
$ |
(20,370) |
$ |
144,604 |
|||||||||||||
Three months ended September 30, 2014 (Pro forma): |
|||||||||||||||||||||||||||
Net income (loss) attributable to Albemarle Corporation |
$ |
104,553 |
$ |
52,851 |
$ |
43,557 |
$ |
200,961 |
$ |
23,107 |
$ |
(65,466) |
$ |
158,602 |
|||||||||||||
Depreciation and amortization |
23,678 |
8,823 |
7,897 |
40,398 |
4,314 |
5,579 |
50,291 |
||||||||||||||||||||
Special items |
— |
— |
— |
— |
— |
(22,750) |
(22,750) |
||||||||||||||||||||
Interest and financing expenses |
— |
— |
— |
— |
— |
22,249 |
22,249 |
||||||||||||||||||||
Income tax expense |
— |
— |
— |
— |
— |
51,137 |
51,137 |
||||||||||||||||||||
Loss from discontinued operations (net of tax) |
— |
— |
— |
— |
— |
(24,821) |
(24,821) |
||||||||||||||||||||
Non-operating pension and OPEB items |
— |
— |
— |
— |
— |
1,495 |
1,495 |
||||||||||||||||||||
Adjusted EBITDA |
$ |
128,231 |
$ |
61,674 |
$ |
51,454 |
$ |
241,359 |
$ |
27,421 |
$ |
(32,577) |
$ |
236,203 |
Performance Chemicals |
Refining Solutions |
Chemetall Surface Treatment |
Reportable Segments Total |
All Other |
Corporate |
Consolidated Total |
|||||||||||||||||||||
Nine months ended September 30, 2015 (Actual): |
|||||||||||||||||||||||||||
Net income (loss) attributable to Albemarle Corporation |
$ |
242,572 |
$ |
119,513 |
$ |
70,747 |
$ |
432,832 |
$ |
9,644 |
$ |
(281,822) |
$ |
160,654 |
|||||||||||||
Depreciation and amortization |
93,608 |
25,397 |
57,567 |
176,572 |
16,867 |
6,933 |
200,372 |
||||||||||||||||||||
Special items (excluding special items associated with interest expense) |
79,239 |
— |
20,030 |
99,269 |
3,029 |
124,124 |
226,422 |
||||||||||||||||||||
Interest and financing expenses |
— |
— |
— |
— |
— |
100,986 |
100,986 |
||||||||||||||||||||
Income tax expense |
— |
— |
— |
— |
— |
48,171 |
48,171 |
||||||||||||||||||||
Non-operating pension and OPEB items |
— |
— |
— |
— |
— |
(5,900) |
(5,900) |
||||||||||||||||||||
Adjusted EBITDA |
$ |
415,419 |
$ |
144,910 |
$ |
148,344 |
$ |
708,673 |
$ |
29,540 |
$ |
(7,508) |
$ |
730,705 |
|||||||||||||
Nine months ended September 30, 2014 (Actual): |
|||||||||||||||||||||||||||
Net income (loss) attributable to Albemarle Corporation |
$ |
194,926 |
$ |
163,908 |
$ |
— |
$ |
358,834 |
$ |
53,203 |
$ |
(260,213) |
$ |
151,824 |
|||||||||||||
Depreciation and amortization |
37,742 |
25,351 |
— |
63,093 |
10,279 |
1,807 |
75,179 |
||||||||||||||||||||
Special items |
— |
— |
— |
— |
— |
42,750 |
42,750 |
||||||||||||||||||||
Interest and financing expenses |
— |
— |
— |
— |
— |
26,255 |
26,255 |
||||||||||||||||||||
Income tax expense |
— |
— |
— |
— |
— |
46,700 |
46,700 |
||||||||||||||||||||
Loss from discontinued operations (net of tax) |
— |
— |
— |
— |
— |
68,473 |
68,473 |
||||||||||||||||||||
Non-operating pension and OPEB items |
— |
— |
— |
— |
— |
14,141 |
14,141 |
||||||||||||||||||||
Adjusted EBITDA |
$ |
232,668 |
$ |
189,259 |
$ |
— |
$ |
421,927 |
$ |
63,482 |
$ |
(60,087) |
$ |
425,322 |
|||||||||||||
Nine months ended September 30, 2014 (Pro forma): |
|||||||||||||||||||||||||||
Net income (loss) attributable to Albemarle Corporation |
$ |
290,460 |
$ |
163,908 |
$ |
123,474 |
$ |
577,842 |
$ |
70,664 |
$ |
(384,983) |
$ |
263,523 |
|||||||||||||
Depreciation and amortization |
72,410 |
25,351 |
23,496 |
121,257 |
12,995 |
16,647 |
150,899 |
||||||||||||||||||||
Special items |
— |
— |
— |
— |
— |
8,627 |
8,627 |
||||||||||||||||||||
Interest and financing expenses |
— |
— |
— |
— |
— |
67,555 |
67,555 |
||||||||||||||||||||
Income tax expense |
— |
— |
— |
— |
— |
111,200 |
111,200 |
||||||||||||||||||||
Loss from discontinued operations (net of tax) |
— |
— |
— |
— |
— |
66,873 |
66,873 |
||||||||||||||||||||
Non-operating pension and OPEB items |
— |
— |
— |
— |
— |
14,228 |
14,228 |
||||||||||||||||||||
Adjusted EBITDA |
$ |
362,870 |
$ |
189,259 |
$ |
146,970 |
$ |
699,099 |
$ |
83,659 |
$ |
(99,853) |
$ |
682,905 |
Bromine |
Lithium |
PCS |
Total |
||||||||||||
Three months ended September 30, 2015 (Actual): |
|||||||||||||||
Net income attributable to Albemarle Corporation |
$ |
49,395 |
$ |
16,507 |
$ |
21,991 |
$ |
87,893 |
|||||||
Depreciation and amortization |
9,406 |
18,769 |
3,307 |
31,482 |
|||||||||||
Special items |
— |
16,834 |
— |
16,834 |
|||||||||||
Adjusted EBITDA |
$ |
58,801 |
$ |
52,110 |
$ |
25,298 |
$ |
136,209 |
|||||||
Three months ended September 30, 2014 (Actual): |
|||||||||||||||
Net income attributable to Albemarle Corporation |
$ |
53,044 |
$ |
— |
$ |
16,692 |
$ |
69,736 |
|||||||
Depreciation and amortization |
9,222 |
— |
3,371 |
12,593 |
|||||||||||
Adjusted EBITDA |
$ |
62,266 |
$ |
— |
$ |
20,063 |
$ |
82,329 |
|||||||
Three months ended September 30, 2014 (Pro Forma): |
|||||||||||||||
Net income attributable to Albemarle Corporation |
$ |
53,044 |
$ |
34,817 |
$ |
16,692 |
$ |
104,553 |
|||||||
Depreciation and amortization |
9,222 |
11,085 |
3,371 |
23,678 |
|||||||||||
Adjusted EBITDA |
$ |
62,266 |
$ |
45,902 |
$ |
20,063 |
$ |
128,231 |
|||||||
Nine months ended September 30, 2015 (Actual): |
|||||||||||||||
Net income attributable to Albemarle Corporation |
$ |
154,353 |
$ |
20,222 |
$ |
67,997 |
$ |
242,572 |
|||||||
Depreciation and amortization |
26,078 |
56,872 |
10,658 |
93,608 |
|||||||||||
Special items |
— |
79,239 |
— |
79,239 |
|||||||||||
Adjusted EBITDA |
$ |
180,431 |
$ |
156,333 |
$ |
78,655 |
$ |
415,419 |
|||||||
Nine months ended September 30, 2014 (Actual): |
|||||||||||||||
Net income attributable to Albemarle Corporation |
$ |
144,701 |
$ |
— |
$ |
50,225 |
$ |
194,926 |
|||||||
Depreciation and amortization |
26,812 |
— |
10,930 |
37,742 |
|||||||||||
Adjusted EBITDA |
$ |
171,513 |
$ |
— |
$ |
61,155 |
$ |
232,668 |
|||||||
Nine months ended September 30, 2014 (Pro Forma): |
|||||||||||||||
Net income attributable to Albemarle Corporation |
$ |
144,701 |
$ |
95,534 |
$ |
50,225 |
$ |
290,460 |
|||||||
Depreciation and amortization |
26,812 |
34,668 |
10,930 |
72,410 |
|||||||||||
Adjusted EBITDA |
$ |
171,513 |
$ |
130,202 |
$ |
61,155 |
$ |
362,870 |
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SOURCE
Matt Juneau, 225.388.7940
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