CLAYTON, Mo., Feb. 2, 2016 /PRNewswire/ -- Olin Corporation
(NYSE: OLN) announced today that its fourth quarter 2015 adjusted
EBITDA was $207.0 million.
Adjusted EBITDA reflects depreciation and amortization expense of
$124.0 million, acquisition-related
costs of $84.6 million and a
$24.0 million fair value adjustment
related to the purchase accounting for inventory.
The fourth quarter 2015 loss from continuing operations was
$59.3 million, or $0.37 per diluted share. The fourth quarter
loss per share includes an effective income tax rate of 28.1%,
which reflects transaction costs that are not deductible for tax
purposes. Sales in the fourth quarter of 2015 were
$1,267.4 million.
Joseph D. Rupp, Chairman and
Chief Executive Officer said, "I am pleased with our fourth quarter
results, which reflect positive cost performance across all
businesses, including corporate expenses. As we enter 2016,
we forecast adjusted EBITDA in the range of $915 million to $985 million. Our new, less
cyclical portfolio includes the benefits of our long-term contracts
with Dow, improved year-over-year results in Epoxy and Winchester
and the realization of cost synergies. Corporate and other
costs for 2016, including pension income and environmental costs,
are forecast to be in the $65 million to $85
million range, an increase from 2015 due to the build out of
our corporate capabilities since the completion of the Dow
transaction. Improvement in chlor alkali products pricing
from current levels represents an upside to our 2016 forecast.
"In the first quarter of 2016, we expect adjusted EBITDA to be
in the $195 million to $215 million
range, which includes approximately $35
million of maintenance turnaround costs, an increase of
approximately $20 million from the
fourth quarter 2015 levels. During 2016, we expect
approximately 35% of our annual maintenance turnaround costs to be
incurred in the first quarter. Chlor Alkali Products and
Vinyls, Epoxy and Winchester segment earnings are expected to
improve in the first quarter of 2016 compared with the fourth
quarter of 2015, reflecting improved volumes. This
improvement will be partially offset by higher corporate and other
costs."
First quarter 2016 forecast key considerations:
- A reported net income in the $0.05 to $0.15 per
diluted share range, including approximately $0.17 per share of acquisition-related
integration costs and acquisition step-up depreciation and
amortization;
- Pretax acquisition-related integration costs of approximately
$10 million; and
- Acquisition step-up depreciation and amortization of
approximately $35 million.
2016 full year forecast key considerations:
- Synergies realized in 2016 are expected to be in the
$40 million to $60 million range,
with an annualized run rate of approximately $70 million going into 2017;
- Pretax acquisition-related integration costs are forecast to be
approximately $40 million; and
- Capital spending for 2016 is expected to be in the $300 million to $340 million range, including
approximately $60 million of
synergy-related capital. Depreciation and amortization expense is
forecast to be in the $490 million to $500
million range, including acquisition step-up depreciation
and amortization of approximately $145
million.
SEGMENT REPORTING
We define segment earnings as income (loss) from continuing
operations before interest expense, interest income, other
operating income (expense), other income (expense) and income taxes
and include the earnings of non-consolidated affiliates in segment
results consistent with management's monitoring of the operating
segments.
Beginning in the fourth quarter of 2015, we modified our
reportable segments to incorporate the acquisition of Dow's
chlorine products businesses. We have three operating
segments: Chlor Alkali Products and Vinyls, Epoxy and
Winchester. The new reporting structure has been
retrospectively applied to the financial results for all periods
presented. The former Olin Chlor Alkali Products and Olin
Chemical Distribution segments have been included in the new Chlor
Alkali Products and Vinyls segment.
CHLOR ALKALI PRODUCTS AND VINYLS
Chlor Alkali Products and Vinyls sales for the fourth quarter of
2015 were $681.1 million compared to
$352.6 million in the fourth quarter
of 2014. The acquisition contributed sales of $373.1 million. Fourth quarter 2015 Chlor
Alkali Products and Vinyls segment earnings were $46.6 million, which included $6.7 million of additional cost of goods sold
related to the fair value adjustment related to the purchase
accounting for inventory and depreciation and amortization expense
of $97.3 million. On a
year-over-year basis, fourth quarter 2015 chlorine pricing
improved, while caustic soda and hydrochloric acid pricing
declined. The year-over-year contribution from hydrochloric
acid declined by approximately $10
million.
EPOXY
Epoxy sales for the fourth quarter of 2015 were $429.6 million. Fourth quarter 2015 Epoxy
segment earnings were a loss of $7.5
million, including depreciation and amortization expense of
$20.9 million. The segment
earnings also included $17.3 million
of additional cost of goods sold related to the fair value
adjustment related to the purchase accounting for inventory.
WINCHESTER
Winchester fourth quarter of 2015 sales were $156.7 million compared to $147.2 million in the fourth quarter of
2014. The increase in Winchester segment sales primarily
reflects increased shipments to commercial customers.
Winchester's fourth quarter 2015 segment earnings were $21.8 million compared to $17.4 million in the fourth quarter of
2014. The increase in segment earnings reflects the impact of
higher commercial shipments and lower commodity and material costs
partially offset by lower pricing. Winchester fourth quarter
2015 and 2014 results included depreciation and amortization
expense of $4.9 million and
$4.8 million, respectively.
CORPORATE AND OTHER COSTS
Pension income included in the fourth quarter 2015 Corporate and
Other segment was $13.4 million
compared to $8.2 million in the
fourth quarter of 2014.
Fourth quarter 2015 charges to income for environmental
investigatory and remedial activities were $2.6 million compared to $1.9 million in the fourth quarter of 2014.
These charges relate primarily to remedial and investigatory
activities associated with former waste sites and past operations
of the legacy Olin businesses.
Other corporate and unallocated costs in the fourth quarter of
2015 increased $2.4 million compared
to the fourth quarter of 2014, primarily due to additional
corporate costs related to managing the acquisition partially
offset by lower legal and litigation costs, lower consulting costs
and lower incentive compensation expense.
ACQUISITION
On October 5, 2015, Olin and The
Dow Chemical Company (TDCC) consummated the previously announced
transaction, with Olin acquiring certain chlor alkali and
downstream derivatives businesses from TDCC (the Acquired Business)
using a Reverse Morris Trust structure. Fourth quarter 2015
results included pretax acquisition-related costs of $84.6 million and incremental acquisition
financing expenses included in interest expense of $10.8 million related to this transaction.
The full year 2015 results included pretax acquisition-related
costs of $120.0 million and
incremental acquisition financing expenses included in interest
expense of $30.5 million related to
this transaction.
The aggregate purchase price for the Acquired Business of
approximately $5.1 billion, subject
to certain post-closing adjustments, consisted of $2,530 million of cash and debt securities
transferred to TDCC, shares of Olin common stock received by TDCC
shareholders valued at approximately $1,527
million, plus the assumption of domestic and foreign pension
liabilities of approximately $447
million and long-term debt of $569
million. TDCC has retained liabilities relating to
litigation, releases of hazardous materials and violations of
environmental law to the extent arising prior to the closing
date. Olin issued approximately 87.5 million shares on the
closing date, which represented approximately 53% of the
outstanding shares of Olin's common stock.
CASH / DEBT
The cash balance at December 31,
2015 was $392.0 million.
In conjunction with the acquisition, we repaid $569 million of acquired debt and $146 million of an existing term loan. Also
in December, we repaid $12 million of
maturing SunBelt notes. During 2016, Olin has maturing debt
of $205 million that is expected to
be repaid using available cash.
DIVIDEND
On January 29, 2016, Olin's Board
of Directors declared a dividend of $0.20 on each share of Olin common stock.
The dividend is payable on March 10,
2016 to shareholders of record at the close of business on
February 10, 2016. This will be
the 357th consecutive quarterly dividend to be paid by the
Company.
CONFERENCE CALL INFORMATION
The Company's fourth quarter earnings conference call with
securities analysts is scheduled for 10:00
A.M. Eastern Time, Wednesday, February 3. The call
will feature remarks by Joseph D.
Rupp, Olin's Chairman and Chief Executive Officer;
John E. Fischer, Olin's President
and Chief Operating Officer; John L.
McIntosh, Olin's Executive Vice President and President,
Chemicals and Ammunition; Todd A.
Slater, Olin's Vice President and Chief Financial Officer;
and Larry P. Kromidas, Olin's
Assistant Treasurer and Director, Investor Relations. Anyone
wishing to listen to the call may do so via the Internet by
following the instructions posted under the Conference Call icon on
Olin's website, www.olin.com. Listeners should log on to the
website 15 minutes prior to the call. The call will also be
audio archived on the Olin website for future replay beginning at
12:00 P.M. Eastern Time. A
final transcript of the conference call will be available on the
Olin website in the Investor section the following day.
COMPANY DESCRIPTION
Olin Corporation is a leading vertically-integrated global
manufacturer and distributor of chemical products and a leading
U.S. manufacturer of ammunition. The chemical products
produced include chlorine and caustic soda, vinyls, epoxies,
chlorinated organics, bleach and hydrochloric acid.
Winchester's principal manufacturing facilities produce and
distribute sporting ammunition, law enforcement ammunition,
reloading components, small caliber military ammunition and
components, and industrial cartridges.
Visit www.olin.com for more information on Olin.
FORWARD-LOOKING STATEMENTS
This communication includes forward-looking statements.
These statements relate to analyses and other information
that are based on management's beliefs, certain assumptions made by
management, forecasts of future results, and current expectations,
estimates and projections about the markets and economy in which we
and our various segments operate. These statements may
include statements regarding the recent acquisition of the Acquired
Business from TDCC, the expected benefits and synergies of the
transaction, and future opportunities for the combined company
following the transaction. The statements contained in this
communication that are not statements of historical fact may
include forward-looking statements that involve a number of risks
and uncertainties.
We have used the words "anticipate," "intend," "may," "expect,"
"believe," "should," "plan," "project," "estimate," "forecast,"
"optimistic," and variations of such words and similar expressions
in this communication to identify such forward-looking statements.
These statements are not guarantees of future performance and
involve certain risks, uncertainties and assumptions, which are
difficult to predict and many of which are beyond our control.
Therefore, actual outcomes and results may differ materially
from those matters expressed or implied in such forward-looking
statements. We undertake no obligation to update publicly any
forward-looking statements, whether as a result of future events,
new information or otherwise. Relative to the dividend, the
payment of cash dividends is subject to the discretion of our board
of directors and will be determined in light of then-current
conditions, including our earnings, our operations, our financial
conditions, our capital requirements and other factors deemed
relevant by our board of directors. In the future, our board
of directors may change our dividend policy, including the
frequency or amount of any dividend, in light of then-existing
conditions.
The risks, uncertainties and assumptions involved in our
forward-looking statements, many of which are discussed in more
detail in our filings with the SEC, including without limitation
the "Risk Factors" section of our Annual Report on Form 10-K for
the year ended December 31, 2014,
include, but are not limited to, the following:
- sensitivity to economic, business and market conditions in
the United States and overseas,
including economic instability or a downturn in the sectors served
by us, such as ammunition, vinyls, urethanes, and pulp and paper,
and the migration by United States
customers to low-cost foreign locations;
- the cyclical nature of our operating results, particularly
declines in average selling prices in the chlor alkali industry and
the supply/demand balance for our products, including the impact of
excess industry capacity or an imbalance in demand for our chlor
alkali products;
- economic and industry downturns that result in diminished
product demand and excess manufacturing capacity in any of our
segments and that, in many cases, result in lower selling prices
and profits;
- new regulations or public policy changes regarding the
transportation of hazardous chemicals and the security of chemical
manufacturing facilities;
- changes in legislation or government regulations or
policies;
- higher-than-expected raw material and energy, transportation,
and/or logistics costs;
- costs and other expenditures in excess of those projected for
environmental investigation and remediation or other legal
proceedings;
- unexpected litigation outcomes;
- the failure or an interruption of our information technology
systems;
- the occurrence of unexpected manufacturing interruptions and
outages, including those occurring as a result of labor disruptions
and production hazards;
- adverse conditions in the credit and capital markets, limiting
or preventing our ability to borrow or raise capital;
- weak industry conditions could affect our ability to comply
with the financial maintenance covenants in our senior credit
facilities and certain tax-exempt bonds;
- the effects of any declines in global equity markets on asset
values and any declines in interest rates used to value the
liabilities in our pension plan;
- an increase in our indebtedness or higher-than-expected
interest rates, affecting our ability to generate sufficient cash
flow for debt service;
- fluctuations in foreign currency exchange rates;
- complications resulting from our multiple enterprise resource
planning (ERP) systems;
- our reliance on a limited number of suppliers for specified
feedstock and services and our reliance on third-party
transportation;
- failure to attract, retain and motivate key employees;
- the possibility that we may be unable to achieve expected
synergies and operating efficiencies in connection with the
transaction with TDCC within the expected time-frames or at
all;
- the integration of the Acquired Business being more difficult,
time-consuming or costly than expected;
- the effect of any changes resulting from the transaction with
TDCC in customer, supplier and other business relationships;
and
- exposure to lawsuits and contingencies associated with the
Acquired Business.
All of our forward-looking statements should be considered in
light of these factors. In addition, other risks and
uncertainties not presently known to us or that we consider
immaterial could affect the accuracy of our forward-looking
statements.
2016-03
Olin
Corporation
|
|
|
|
|
|
Consolidated
Statements of Income (a)
|
|
|
|
|
|
|
|
Three
Months
|
|
Years
Ended
|
|
|
Ended December
31,
|
|
December
31,
|
(In millions,
except per share amounts)
|
2015
|
2014
|
|
2015
|
2014
|
|
|
|
|
|
|
|
Sales
|
$ 1,267.4
|
$ 499.8
|
|
$2,854.4
|
$2,241.2
|
Operating
Expenses:
|
|
|
|
|
|
|
Cost of Goods
Sold
|
1,148.1
|
421.9
|
|
2,486.8
|
1,853.2
|
|
Selling and
Administration
|
63.8
|
39.1
|
|
186.5
|
166.2
|
|
Restructuring
Charges (b)
|
0.5
|
11.2
|
|
2.7
|
15.7
|
|
Acquisition-related Costs (c)
|
84.6
|
2.8
|
|
120.0
|
4.2
|
Other Operating
Income (d)
|
3.6
|
0.7
|
|
45.7
|
1.5
|
|
Operating (Loss)
Income
|
(26.0)
|
25.5
|
|
104.1
|
203.4
|
Earnings of
Non-consolidated Affiliates
|
0.4
|
0.3
|
|
1.7
|
1.7
|
Interest Expense
(e)
|
57.3
|
6.8
|
|
97.0
|
43.8
|
Interest
Income
|
0.2
|
0.4
|
|
1.1
|
1.3
|
Other
Income
|
0.2
|
-
|
|
0.2
|
0.1
|
|
Income (Loss) from
Continuing Operations before Taxes
|
(82.5)
|
19.4
|
|
10.1
|
162.7
|
Income Tax
(Benefit) Provision
|
(23.2)
|
6.6
|
|
8.1
|
57.7
|
|
Income (Loss) from
Continuing Operations, Net
|
(59.3)
|
12.8
|
|
2.0
|
105.0
|
|
Income from
Discontinued Operations, Net (f)
|
-
|
-
|
|
-
|
0.7
|
Net (Loss)
Income
|
$ (59.3)
|
$ 12.8
|
|
$ 2.0
|
$ 105.7
|
Net (Loss) Income
Per Common Share:
|
|
|
|
|
|
|
Basic (Loss)
Income per Common Share:
|
|
|
|
|
|
|
Income (Loss) from
Continuing Operations, Net
|
$ (0.37)
|
$ 0.16
|
|
$ 0.02
|
$ 1.33
|
|
Income from
Discontinued Operations, Net
|
-
|
-
|
|
-
|
0.01
|
|
Net (Loss)
Income
|
$ (0.37)
|
$ 0.16
|
|
$ 0.02
|
$ 1.34
|
|
Diluted (Loss)
Income per Common Share:
|
|
|
|
|
|
|
Income (Loss) from
Continuing Operations, Net
|
$ (0.37)
|
$ 0.16
|
|
$ 0.02
|
$ 1.32
|
|
Income from
Discontinued Operations, Net
|
-
|
-
|
|
-
|
0.01
|
|
Net (Loss)
Income
|
$ (0.37)
|
$
0.16
|
|
$ 0.02
|
$ 1.33
|
Dividends Per
Common Share
|
$ 0.20
|
$ 0.20
|
|
$ 0.80
|
$ 0.80
|
Average Common
Shares Outstanding - Basic
|
161.6
|
77.9
|
|
103.4
|
78.6
|
Average Common
Shares Outstanding - Diluted
|
161.6
|
78.8
|
|
104.3
|
79.7
|
|
|
(a)
|
Unaudited.
|
|
|
(b)
|
Restructuring
charges for the three months and year ended December 31, 2015 were
associated with permanently closing a portion of the Becancour,
Canada chlor alkali facility and the ongoing relocation of our
Winchester centerfire ammunition manufacturing operations from East
Alton, IL to Oxford, MS. Restructuring charges for the three
months and year ended December 31, 2014 were associated with
permanently closing a portion of the Becancour, Canada facility,
exiting the use of mercury cell technology in the chlor alkali
manufacturing process and the ongoing relocation of our Winchester
centerfire ammunition manufacturing operations from East Alton, IL
to Oxford, MS.
|
|
|
(c)
|
Acquisition-related costs for the three months and
years ended December 31, 2015 and 2014 were associated with our
acquisition of the Acquired Business.
|
|
(d)
|
Other operating
income for the three months ended December 31, 2015 included $3.7
million of insurance recoveries for property damage and business
interruption related to the McIntosh, AL chlor alkali
facility. Other operating income for the year ended December
31, 2015 included $46.0 million of insurance recoveries for
property damage and business interruption related to the Becancour,
Canada and McIntosh, AL chlor alkali facilities. Other
operating income for the year ended December 31, 2014 included a
gain of $1.0 million for the resolution of a contract
matter.
|
|
(e)
|
Interest expense
for the three months and year ended December 31, 2015 included
acquisition financing expenses of $10.8 million and $30.5 million,
respectively, primarily for the bridge financing associated with
our acquisition of the Acquired Business. Interest expense
for the year ended December 31, 2014 included $9.5 million for the
call premium and the write-off of unamortized deferred debt
issuance costs associated with the redemption of our $150 million
8.875% senior notes, which would have matured on August 15,
2019.
|
|
(f)
|
Income from
discontinued operations, net for the year ended December 31, 2014
included a $0.7 million after tax gain for the favorable resolution
of certain indemnity obligations related to our Metals business
sold in 2007.
|
|
Olin
Corporation
|
|
|
|
|
|
|
|
Segment
Information (a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months
|
|
Years
Ended
|
|
|
Ended December
31,
|
|
December
31,
|
(In
millions)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Sales:
|
|
|
|
|
|
|
|
|
Chlor Alkali
Products and Vinyls
|
$ 681.1
|
|
$ 352.6
|
|
$ 1,713.4
|
|
$ 1,502.8
|
|
Epoxy
|
429.6
|
|
-
|
|
429.6
|
|
-
|
|
Winchester
|
156.7
|
|
147.2
|
|
711.4
|
|
738.4
|
|
Total
Sales
|
$ 1,267.4
|
|
$ 499.8
|
|
$ 2,854.4
|
|
$ 2,241.2
|
Income (Loss) from
Continuing Operations before Taxes:
|
|
|
|
|
|
|
|
|
Chlor Alkali
Products and Vinyls (b)
|
$ 46.6
|
|
$ 28.8
|
|
$ 115.5
|
|
$ 130.1
|
|
Epoxy
|
(7.5)
|
|
-
|
|
(7.5)
|
|
-
|
|
Winchester
|
21.8
|
|
17.4
|
|
115.6
|
|
127.3
|
|
Corporate/Other:
|
|
|
|
|
|
|
|
|
Pension Income
(c)
|
13.4
|
|
8.2
|
|
35.2
|
|
32.4
|
|
Environmental Expense
(d)
|
(2.6)
|
|
(1.9)
|
|
(15.7)
|
|
(8.2)
|
|
Other Corporate and
Unallocated Costs
|
(15.8)
|
|
(13.4)
|
|
(60.3)
|
|
(58.1)
|
|
Restructuring Charges
(e)
|
(0.5)
|
|
(11.2)
|
|
(2.7)
|
|
(15.7)
|
|
Acquisition-related Costs
(f)
|
(84.6)
|
|
(2.8)
|
|
(120.0)
|
|
(4.2)
|
|
Other Operating
Income (g)
|
3.6
|
|
0.7
|
|
45.7
|
|
1.5
|
|
Interest Expense
(h)
|
(57.3)
|
|
(6.8)
|
|
(97.0)
|
|
(43.8)
|
|
Interest
Income
|
0.2
|
|
0.4
|
|
1.1
|
|
1.3
|
|
Other
Income
|
0.2
|
|
-
|
|
0.2
|
|
0.1
|
|
Income (Loss) from
Continuing Operations before Taxes
|
$ (82.5)
|
|
$ 19.4
|
|
$ 10.1
|
|
$ 162.7
|
|
|
(a)
|
Unaudited.
|
|
|
(b)
|
Earnings of
non-consolidated affiliates are included in the Chlor Alkali
Products and Vinyls segment results consistent with
management's monitoring of the operating segments. The
earnings from non-consolidated affiliates were $0.4 million and
$0.3 million for the three months ended December 31, 2015 and 2014,
respectively, and $1.7 million for both the years ended December
31, 2015 and 2014.
|
|
|
(c)
|
The service cost
and the amortization of prior service cost components of pension
expense related to the employees of the operating segments are
allocated to the operating segments based on their respective
estimated census data. All other components of pension costs
are included in Corporate/Other and include items such as the
expected return on plan assets, interest cost and recognized
actuarial gains and losses.
|
|
(d)
|
Environmental
expense for the three months and year ended December 31, 2014
included $1.4 million of recoveries from third parties for costs
incurred and expensed in prior periods.
|
|
(e)
|
Restructuring
charges for the three months and year ended December 31, 2015 were
associated with permanently closing a portion of the Becancour,
Canada chlor alkali facility and the ongoing relocation of our
Winchester centerfire ammunition manufacturing operations from East
Alton, IL to Oxford, MS. Restructuring charges for the three
months and year ended December 31, 2014 were associated with
permanently closing a portion of the Becancour, Canada facility,
exiting the use of mercury cell technology in the chlor alkali
manufacturing process and the ongoing relocation of our Winchester
centerfire ammunition manufacturing operations from East Alton, IL
to Oxford, MS.
|
|
(f)
|
Acquisition-related costs for the three months and
years ended December 31, 2015 and 2014 were associated with our
acquisition of the Acquired Business.
|
|
(g)
|
Other operating
income for the three months ended December 31, 2015 included $3.7
million of insurance recoveries for property damage and business
interruption related to the McIntosh, AL chlor alkali facility.
Other operating income for the year ended December 31, 2015
included $46.0 million of insurance recoveries for property damage
and business interruption related to the Becancour, Canada and
McIntosh, AL chlor alkali facilities. Other operating income
for the year ended December 31, 2014 included a gain of $1.0
million for the resolution of a contract matter.
|
|
(h)
|
Interest expense
for the three months and year ended December 31, 2015 included
acquisition financing expenses of $10.8 million and $30.5 million,
respectively, primarily for the bridge financing associated with
our acquisition of the Acquired Business. Interest expense
for the year ended December 31, 2014 included $9.5 million for the
call premium and the write-off of unamortized deferred debt
issuance costs associated with the redemption of our $150 million
8.875% senior notes, which would have matured on August 15,
2019.
|
|
Olin
Corporation
|
|
|
|
Consolidated
Balance Sheets (a)
|
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
(In millions,
except per share data)
|
2015
|
|
2014
|
|
|
|
|
Assets:
|
|
|
|
Cash &
Cash Equivalents
|
$
392.0
|
|
$
256.8
|
Accounts
Receivable, Net
|
773.8
|
|
263.1
|
Income
Taxes Receivable
|
32.9
|
|
21.6
|
Inventories
|
685.2
|
|
210.1
|
Current
Deferred Income Taxes
|
-
|
|
54.2
|
Other
Current Assets
|
39.9
|
|
10.3
|
Total Current Assets
|
1,923.8
|
|
816.1
|
Property,
Plant and Equipment
|
|
|
|
(Less Accumulated
Depreciation of $1,500.7 and $1,330.7)
|
3,953.4
|
|
931.0
|
Deferred
Income Taxes
|
95.9
|
|
12.5
|
Other
Assets
|
495.5
|
|
67.9
|
Intangibles,
Net
|
677.5
|
|
123.5
|
Goodwill
|
2,174.1
|
|
747.1
|
Total
Assets
|
$
9,320.2
|
|
$
2,698.1
|
|
|
|
|
Liabilities and
Shareholders' Equity:
|
|
|
|
Current
Installments of Long-Term Debt
|
$
206.5
|
|
$
16.4
|
Accounts
Payable
|
606.6
|
|
146.8
|
Income
Taxes Payable
|
4.9
|
|
0.2
|
Accrued
Liabilities
|
324.7
|
|
214.3
|
Total Current Liabilities
|
1,142.7
|
|
377.7
|
Long-Term
Debt
|
3,675.2
|
|
658.7
|
Accrued
Pension Liability
|
648.5
|
|
182.0
|
Deferred
Income Taxes
|
1,095.5
|
|
107.1
|
Other
Liabilities
|
335.6
|
|
359.3
|
Total
Liabilities
|
6,897.5
|
|
1,684.8
|
Commitments and
Contingencies
|
|
|
|
Shareholders'
Equity:
|
|
|
|
Common Stock, Par
Value $1 Per Share, Authorized 240.0 Shares (120.0 in
2014):
|
|
|
|
Issued and Outstanding 165.1 Shares (77.4 in 2014)
|
165.1
|
|
77.4
|
Additional Paid-In
Capital
|
2,236.4
|
|
788.3
|
Accumulated Other
Comprehensive Loss
|
(492.0)
|
|
(443.1)
|
Retained
Earnings
|
513.2
|
|
590.7
|
Total
Shareholders' Equity
|
2,422.7
|
|
1,013.3
|
Total Liabilities
and Shareholders' Equity
|
$
9,320.2
|
|
$
2,698.1
|
|
|
|
|
(a)
Unaudited.
|
Olin
Corporation
|
|
|
|
Consolidated
Statements of Cash Flows (a)
|
|
|
|
|
|
|
|
|
Years
Ended
|
|
December
31,
|
(In
millions)
|
2015
|
|
2014
|
Operating
Activities:
|
|
|
|
Net
Income
|
$
2.0
|
|
$ 105.7
|
Earnings of
Non-consolidated Affiliates
|
(1.7)
|
|
(1.7)
|
Gains on
Disposition of Property, Plant and Equipment
|
(25.2)
|
|
(1.1)
|
Stock-Based
Compensation
|
7.6
|
|
5.1
|
Depreciation and
Amortization
|
228.9
|
|
139.1
|
Deferred Income
Taxes
|
5.7
|
|
31.0
|
Write-off of
Equipment and Facility Included in Restructuring
Charges
|
-
|
|
3.3
|
Qualified Pension
Plan Contributions
|
(0.7)
|
|
(0.8)
|
Qualified Pension
Plan Income
|
(32.0)
|
|
(28.5)
|
Changes
in:
|
|
|
|
Receivables
|
(105.5)
|
|
25.8
|
Income Taxes
Receivable/Payable
|
(12.6)
|
|
(27.8)
|
Inventories
|
(1.7)
|
|
(23.6)
|
Other Current
Assets
|
(30.6)
|
|
1.7
|
Accounts
Payable and Accrued Liabilities
|
180.1
|
|
(38.5)
|
Other
Assets
|
29.6
|
|
5.2
|
Other
Noncurrent Liabilities
|
(32.7)
|
|
(33.2)
|
Other Operating
Activities
|
5.4
|
|
(2.5)
|
Net Operating
Activities
|
216.6
|
|
159.2
|
Investing
Activities:
|
|
|
|
Capital
Expenditures
|
(130.9)
|
|
(71.8)
|
Business Acquired
in Purchase Transaction, Net of Cash Acquired
|
(408.1)
|
|
-
|
Proceeds from
Disposition of Property, Plant and Equipment
|
26.7
|
|
5.6
|
Proceeds from
Disposition of Affiliated Companies
|
8.8
|
|
-
|
Restricted Cash
Activity
|
-
|
|
4.2
|
Other Investing
Activities
|
-
|
|
0.3
|
Net Investing
Activities
|
(503.5)
|
|
(61.7)
|
Financing
Activities:
|
|
|
|
Long-Term
Debt:
|
|
|
|
Borrowings
|
1,275.0
|
|
150.0
|
Repayments
|
(730.7)
|
|
(162.4)
|
Earn Out Payment -
SunBelt
|
-
|
|
(14.8)
|
Common Stock
Repurchased and Retired
|
-
|
|
(64.8)
|
Stock Options
Exercised
|
2.2
|
|
6.6
|
Excess Tax
Benefits from Stock-Based Compensation
|
0.4
|
|
1.1
|
Dividends
Paid
|
(79.5)
|
|
(63.0)
|
Debt and Equity
Issuance Costs
|
(45.2)
|
|
(1.2)
|
Net Financing
Activities
|
422.2
|
|
(148.5)
|
Net Increase
(Decrease) in Cash and Cash Equivalents
|
135.3
|
|
(51.0)
|
Effect of Exchange
Rate Changes on Cash and Cash Equivalents
|
(0.1)
|
|
-
|
Cash and Cash
Equivalents, Beginning of Year
|
256.8
|
|
307.8
|
Cash and Cash
Equivalents, End of Period
|
$ 392.0
|
|
$ 256.8
|
|
|
|
|
(a)
Unaudited.
|
|
|
|
Olin
Corporation
|
Non-GAAP Financial
Measures (a)
|
|
Olin's definition
of Adjusted EBITDA (Earnings before interest, taxes, depreciation,
and amortization) is income from continuing operations, net plus an
add-back for depreciation and amortization, interest expense
(income), income tax expense (benefit), other expense (income),
acquisition-related costs and fair value inventory purchase
accounting adjustment. Adjusted EBITDA is a non-GAAP
financial measure. Management believes that this measure is
meaningful to investors as a supplemental financial measure to
assess the financial performance of our assets without regard to
financing methods, capital structures, taxes, or historical cost
basis. The use of non-GAAP financial measures is not intended
to replace any measures of performance determined in accordance
with GAAP and Adjusted EBITDA presented may not be comparable to
similarly titled measures of other companies.
|
|
|
|
|
|
|
|
Three
Months
|
|
Years
Ended
|
|
|
Ended December
31,
|
|
December
31,
|
(In
millions)
|
2015
|
2014
|
|
2015
|
2014
|
|
|
|
|
|
|
|
Reconciliation of
Income (Loss) from Continuing Operations, Net to Adjusted
EBITDA:
|
|
Income (Loss) from
Continuing Operations, Net
|
$ (59.3)
|
$ 12.8
|
|
$ 2.0
|
$ 105.0
|
|
Add Back
(Deduct):
|
|
|
|
|
|
|
Interest Expense
(b)
|
57.3
|
6.8
|
|
97.0
|
43.8
|
|
Interest
Income
|
(0.2)
|
(0.4)
|
|
(1.1)
|
(1.3)
|
|
Income Tax
(Benefit) Expense
|
(23.2)
|
6.6
|
|
8.1
|
57.7
|
|
Depreciation and
Amortization
|
124.0
|
34.8
|
|
228.9
|
139.1
|
EBITDA
|
98.6
|
60.6
|
|
334.9
|
344.3
|
|
Add Back
(Deduct):
|
|
|
|
|
|
|
Acquisition-related Costs (c)
|
84.6
|
2.8
|
|
120.0
|
4.2
|
|
Fair Value
Inventory Purchase Accounting Adjustment (d)
|
24.0
|
-
|
|
24.0
|
-
|
|
Other
Income
|
(0.2)
|
-
|
|
(0.2)
|
(0.1)
|
Adjusted
EBITDA
|
$ 207.0
|
$ 63.4
|
|
$ 478.7
|
$ 348.4
|
|
|
|
|
|
|
|
|
|
(a)
|
Unaudited.
|
|
|
(b)
|
Interest expense
for the three months and year ended December 31, 2015 included
acquisition financing expenses of $10.8 million and $30.5 million,
respectively, primarily for the bridge financing associated with
our acquisition of the Acquired Business. Interest expense
for the year ended December 31, 2014 included $9.5 million for the
call premium and the write-off of unamortized deferred debt
issuance costs associated with the redemption of our $150 million
8.875% senior notes, which would have matured on August 15,
2019.
|
|
|
(c)
|
Acquisition-related costs for the three months and
years ended December 31, 2015 and 2014 were associated with our
acquisition of the Acquired Business.
|
|
(d)
|
Fair value
inventory purchase accounting adjustment for the year ended
December 31, 2015 was associated with non-recurring expenses
included within costs of goods sold of $24.0 million due to the
increase of inventory to fair value at the acquisition date related
to the purchase accounting of the Acquired
Business.
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/olin-announces-fourth-quarter-2015-earnings-achieves-207-million-of-adjusted-ebitda-300214158.html
SOURCE Olin Corporation