THE WOODLANDS, Texas,
May 1, 2018 /PRNewswire/ --
First Quarter 2018 Highlights
- Net income was $350 million
compared to $92 million in the prior
year period and $287 million in the
prior quarter.
- Adjusted EBITDA was $405 million
compared to $260 million in the prior
year period and $360 million in the
prior quarter.
- Diluted income per share was $1.11 compared to $0.31 in the prior year period and $1.00 in the prior quarter.
- Adjusted diluted income per share was $0.96 compared to $0.45 in the prior year period and $0.76 in the prior quarter.
- Net cash provided by operating activities was $111 million. Free cash flow generation was
$56 million.
- Balance sheet remains strong with a net leverage of 1.3x.
- Completed share repurchases of approximately $103 million through April
19, 2018, and approximately $347
million remains on the existing share repurchase
authorization.
- Expanded the Polyurethanes downstream business with the
acquisition of Demilec, a leading North American polyurethane spray
foam producer, which was completed on April
23, 2018.
|
|
Three months
ended
|
|
|
March
31,
|
|
December
31,
|
In millions, except
per share amounts
|
|
2018
|
|
2017
|
|
2017
|
|
|
|
|
|
|
|
Revenues
|
|
$2,295
|
|
$1,932
|
|
$
2,203
|
|
|
|
|
|
|
|
Net income
|
|
$
350
|
|
$
92
|
|
$
287
|
Adjusted net
income(1)
|
|
$
237
|
|
$
110
|
|
$
186
|
|
|
|
|
|
|
|
Diluted income per
share
|
|
$
1.11
|
|
$
0.31
|
|
$
1.00
|
Adjusted diluted
income per share(1)
|
|
$
0.96
|
|
$
0.45
|
|
$
0.76
|
|
|
|
|
|
|
|
Adjusted
EBITDA(1)
|
|
$
405
|
|
$
260
|
|
$
360
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
|
|
|
|
|
from continuing
operations
|
|
$
111
|
|
$
70
|
|
$
304
|
Free cash
flow(3)
|
|
$
56
|
|
$
23
|
|
$
190
|
|
|
|
|
|
|
|
See end of press
release for footnote explanations
|
Huntsman Corporation (NYSE: HUN) today reported first quarter
2018 results with revenues of $2,295
million, net income of $350
million and adjusted EBITDA of $405
million.
Peter R. Huntsman, Chairman,
President and CEO, commented:
"We have started 2018 fully engaged in executing the
priorities that we have outlined to our shareholders. Our
core business continues to perform well. All of our divisions
improved over the previous year and we continue to expect all
divisions will finish this year stronger than last year. Our
continued focus on free cash flow produced cash generation well
ahead of last year and puts us fully on pace to achieve our
2018 target of $450-$650
million.
"As we announced in the previous quarter, we have
initiated a share buyback program. Through
April 19, 2018, we spent $103 million on buybacks at an average price of
$29.45 per share. We also
announced the closing of the Demilec acquisition. This acquisition
will provide further downstream growth while generating stronger
margins and stability. We will continue to pursue the prudent
deployment of capital to create further shareholder
value."
Segment Analysis for 1Q18 Compared to 1Q17
Polyurethanes
The increase in revenues in our Polyurethanes segment for the
three months ended March 31, 2018
compared to the same period of 2017 was due to higher average
selling prices and higher sales volumes. MDI average selling prices
increased in response to continued strong market conditions. MTBE
average selling prices increased primarily as a result of higher
pricing for high octane gasoline. MDI sales volumes increased due
to increased demand across most major markets. MTBE sales volumes
increased due to increased demand for MTBE. The increase in segment
adjusted EBITDA was primarily due to higher MDI margins as well as
higher MTBE margins.
Performance Products
The increase in revenues in our Performance Products segment for
the three months ended March 31, 2018
compared to the same period of 2017 was due to higher average
selling prices and higher sales volumes. Average selling prices
increased primarily due to strong market conditions across several
of our derivatives businesses and in response to higher raw
material costs. Sales volumes increased in our amines, maleic
anhydride and ethylene glycol businesses. The increase in
segment adjusted EBITDA was primarily due to higher volumes and
margins.
Advanced Materials
The increase in revenues in our Advanced Materials segment for
the three months ended March 31,
2018, compared to the same period in 2017 was due to higher
average selling prices, partially offset by lower sales volumes.
Average selling prices increased largely in response to higher raw
material costs and the impact of a weaker U.S. dollar against major
international currencies. Sales volumes increased across most
markets in our core specialty business but were more than offset by
lower sales volumes in our wind market. Segment adjusted EBITDA
increased due to higher specialty sales volumes and lower fixed
costs, partially offset by higher raw material costs.
Textile Effects
The increase in revenues in our Textile Effects segment for the
three months ended March 31,
2018 compared to the same period of 2017 was due to higher
sales volumes, partially offset by lower average selling prices.
Sales volumes increased in textile chemicals, particularly in our
Asia and South America regions. Average selling prices
decreased primarily due to product mix effect, partially offset by
the impact of a weaker U.S. dollar against major international
currencies. The increase in segment adjusted EBITDA was primarily
due to higher sales volumes, lower fixed costs and certain credits
during the three months ended March 31,
2018.
Corporate, LIFO and other
For the three months ended March 31, 2018, segment
adjusted EBITDA from Corporate and other for Huntsman Corporation
was a loss of $43 million which was
flat with the prior year period 2017.
Held for Sale and Discontinued Operations
Our former Pigments and Additives segment, now known as Venator,
is classified as held for sale on our balance sheet and treated as
discontinued operations on our income statement. Please refer
to the Form 8-K we filed on October 31,
2017 with certain restated historical financial data.
Huntsman currently owns 53% of Venator's outstanding
shares.
Liquidity, Capital Resources and Outstanding Debt
During the quarter we generated adjusted free cash flow of
$56 million compared to $23 million a year ago. As of March 31, 2018, we had $1,249 million of combined cash and unused
borrowing capacity compared to $1,247
million as of December 31,
2017.
During the three months ended March 31,
2018, we spent $55 million on
capital expenditures compared to $51
million in the same period of 2017. We expect to spend
approximately $325 million on capital
expenditures in 2018.
Through April 19, 2018, we have
spent approximately $103 million to
repurchase approximately 3.5 million shares. We currently
have approximately $347 million
remaining on our existing share repurchase authorization.
On April 23, 2018, we completed
the acquisition of Demilec. We funded the purchase price of
$350 million, plus customary working
capital adjustments, with available liquidity.
Income Taxes
During the three months ended March 31,
2018, we recorded income tax expense of $53 million compared to $19 million during the same period in 2017.
In the first quarter 2018, our adjusted effective tax rate was 19%.
Our 2018 adjusted effective tax rate will be approximately 20% -
22%. We expect our long-term adjusted effective tax rate will
be approximately 23% - 25%.
Earnings Conference Call Information
We will hold a conference call to discuss our first quarter 2018
financial results on Tuesday, May 1,
2018 at 10:00 a.m. ET.
Call-in numbers for
the conference call:
|
U.S.
participants
|
(888) 713 –
4213
|
International
participants
|
(617) 213 -
4865
|
Passcode
|
755 496
16#
|
In order to facilitate the registration process, you may use the
following link to pre-register for the conference call. Callers who
pre-register will be given a unique PIN to gain immediate access to
the call and bypass the live operator. You may pre-register at any
time, including up to and after the call start time. To
pre-register, please go to:
https://www.theconferencingservice.com/prereg/key.process?key=P8QQKLTUE
Webcast Information
The conference call will be available via webcast and can be
accessed from the company's website at ir.huntsman.com.
Replay Information
The conference call will be available for replay beginning
May 1, 2018 and ending May 8, 2018.
Call-in numbers for
the replay:
|
U.S.
participants
|
(888) 286 -
8010
|
International
participants
|
(617) 801 -
6888
|
Replay
code
|
29385180
|
Upcoming Conferences
During the second quarter a member of management is expected to
present at:
Wells Fargo Industrials Conference on May
8, 2018
TPH Hotter 'N Hell Conference on May 15,
2018
KeyBanc Capital Markets' Industrials and Basic Materials Conference
on May 30, 2018
Deutsche Bank's Annual Global Industrials and Materials Summit on
June 6, 2018
Vertical Research Partners Global Materials Conference on
June 14, 2018
A webcast of the presentation, if applicable, along with
accompanying materials will be available at ir.huntsman.com.
2018 Investor Day
Huntsman will host a meeting for investors and analysts on
Wednesday, May 23, 2018, from
8:30 a.m. to 12:00 p.m., local time
in New York City. The agenda for the meeting will include a
review of the company's business strategy and an in-depth
discussion of each of the company's businesses. Presenters
will include Peter Huntsman,
Chairman, President and CEO, and other business leaders. Contact
ir@huntsman.com for more information or to RSVP. A live
webcast and presentation materials will be available the day of the
event at ir.huntsman.com. A replay of the webcast will be
available following the presentations.
Table 1 – Results
of Operations
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
March
31,
|
In millions, except
per share amounts
|
|
2018
|
|
2017
|
|
|
|
|
|
Revenues
|
|
$2,295
|
|
$1,932
|
Cost of goods
sold
|
|
1,755
|
|
1,542
|
Gross
profit
|
|
540
|
|
390
|
Operating
expenses
|
|
242
|
|
219
|
Restructuring,
impairment and plant closing costs
|
|
2
|
|
9
|
Operating
income
|
|
296
|
|
162
|
Interest
expense
|
|
(27)
|
|
(48)
|
Equity in income of
investment in unconsolidated affiliates
|
|
13
|
|
-
|
Other income,
net
|
|
7
|
|
4
|
Income before
income taxes
|
|
289
|
|
118
|
Income tax
expense
|
|
(53)
|
|
(19)
|
Income from
continuing operations
|
|
236
|
|
99
|
Income (loss) from
discontinued operations, net of tax(4)
|
|
114
|
|
(7)
|
Net
income
|
|
350
|
|
92
|
Net income
attributable to noncontrolling interests, net of tax
|
|
(76)
|
|
(16)
|
Net income
attributable to Huntsman Corporation
|
|
$
274
|
|
$
76
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA(1)
|
|
$
405
|
|
$
260
|
Adjusted net
income(1)
|
|
$
237
|
|
$
110
|
|
|
|
|
|
|
|
|
|
|
Basic income per
share
|
|
$
1.14
|
|
$
0.32
|
Diluted income per
share
|
|
$
1.11
|
|
$
0.31
|
Adjusted diluted
income per share(1)
|
|
$
0.96
|
|
$
0.45
|
|
|
|
|
|
Common share
information:
|
|
|
|
|
Basic shares
outstanding
|
|
241
|
|
237
|
Diluted
shares
|
|
246
|
|
243
|
Diluted shares for
adjusted diluted income per share
|
|
246
|
|
243
|
|
|
|
|
|
See end of press
release for footnote explanations
|
Table 2 – Results
of Operations by Segment
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
|
March
31,
|
|
Better
/
|
In
millions
|
|
2018
|
|
2017
|
|
(Worse)
|
|
|
|
|
|
|
|
Segment
Revenues:
|
|
|
|
|
|
|
Polyurethanes
|
|
$1,222
|
|
$
953
|
|
28%
|
Performance
Products
|
|
603
|
|
533
|
|
13%
|
Advanced
Materials
|
|
279
|
|
259
|
|
8%
|
Textile
Effects
|
|
200
|
|
188
|
|
6%
|
Corporate and
eliminations
|
|
(9)
|
|
(1)
|
|
n/m
|
|
|
|
|
|
|
|
Total
|
|
$2,295
|
|
$1,932
|
|
19%
|
|
|
|
|
|
|
|
Segment Adjusted
EBITDA(1):
|
|
|
|
|
|
|
Polyurethanes
|
|
$
261
|
|
$
144
|
|
81%
|
Performance
Products
|
|
102
|
|
84
|
|
21%
|
Advanced
Materials
|
|
59
|
|
54
|
|
9%
|
Textile
Effects
|
|
26
|
|
21
|
|
24%
|
Corporate, LIFO and
other
|
|
(43)
|
|
(43)
|
|
0%
|
|
|
|
|
|
|
|
Total
|
|
$
405
|
|
$
260
|
|
56%
|
n/m = not
meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See end of press
release for footnote explanations
|
Table 3 – Factors
Impacting Sales Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
March 31, 2018 vs.
2017
|
|
|
Average Selling
Price(a)
|
|
|
|
|
|
|
|
|
Local
|
|
Exchange
|
|
Sales
Mix
|
|
Sales
|
|
|
|
|
Currency
|
|
Rate
|
|
&
Other
|
|
Volume(b)
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
Polyurethanes
|
|
15%
|
|
7%
|
|
(3)%
|
|
9%
|
|
28%
|
Performance
Products
|
|
8%
|
|
3%
|
|
(8)%
|
|
10%
|
|
13%
|
Advanced
Materials
|
|
2%
|
|
7%
|
|
2%
|
|
(3)%
|
|
8%
|
Textile
Effects
|
|
(3)%
|
|
4%
|
|
2%
|
|
3%
|
|
6%
|
Total
Company
|
|
8%
|
|
6%
|
|
(4)%
|
|
9%
|
|
19%
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Excludes sales from
tolling arrangements, by-products and raw materials.
|
(b)
|
Excludes sales from
by-products and raw materials.
|
Table 4 –
Reconciliation of U.S. GAAP to Non-GAAP Measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
Tax
|
|
|
|
|
|
Diluted
Income
|
|
|
EBITDA
|
|
Expense
|
|
Net
Income
|
|
Per
Share
|
|
|
Three months
ended
|
|
Three months
ended
|
|
Three months
ended
|
|
Three months
ended
|
|
|
March
31,
|
|
March
31,
|
|
March
31,
|
|
March
31,
|
In millions, except
per share amounts
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
$ 350
|
|
$
92
|
|
|
|
|
|
$ 350
|
|
$
92
|
|
$ 1.42
|
|
$
0.38
|
Net income
attributable to noncontrolling interests
|
|
(76)
|
|
(16)
|
|
|
|
|
|
(76)
|
|
(16)
|
|
(0.31)
|
|
(0.07)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Huntsman Corporation
|
|
274
|
|
76
|
|
|
|
|
|
274
|
|
76
|
|
1.11
|
|
0.31
|
Interest
expense from continuing operations
|
|
27
|
|
48
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense from
discontinued operations(4)
|
|
9
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
from continuing operations
|
|
53
|
|
19
|
|
$ (53)
|
|
$ (19)
|
|
|
|
|
|
|
|
|
Income tax expense
from discontinued operations(4)
|
|
20
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization from continuing operations
|
|
82
|
|
76
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization from discontinued operations(4)
|
|
-
|
|
30
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition and
integration expenses
|
|
1
|
|
3
|
|
-
|
|
(1)
|
|
1
|
|
2
|
|
-
|
|
0.01
|
EBITDA / Income from
discontinued operations, net of tax(4)
|
|
(143)
|
|
(26)
|
|
N/A
|
|
N/A
|
|
(114)
|
|
7
|
|
(0.46)
|
|
0.03
|
Noncontrolling
interest of discontinued operations(1)(4)
|
|
55
|
|
3
|
|
N/A
|
|
N/A
|
|
55
|
|
3
|
|
0.22
|
|
0.01
|
Certain legal and
other settlements and related expenses
|
|
7
|
|
-
|
|
(1)
|
|
-
|
|
6
|
|
-
|
|
0.02
|
|
-
|
Amortization of
pension and postretirement actuarial losses
|
|
17
|
|
19
|
|
(4)
|
|
(4)
|
|
13
|
|
15
|
|
0.05
|
|
0.06
|
Restructuring,
impairment and plant closing and transition costs
|
|
3
|
|
9
|
|
(1)
|
|
(2)
|
|
2
|
|
7
|
|
0.01
|
|
0.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted(1)
|
|
$ 405
|
|
$ 260
|
|
$ (59)
|
|
$ (26)
|
|
$ 237
|
|
$
110
|
|
$ 0.96
|
|
$
0.45
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income tax
expense(1)
|
|
|
|
|
|
|
|
|
|
$
59
|
|
$
26
|
|
|
|
|
Net income
attributable to noncontrolling interests, net of tax
|
|
|
|
|
|
|
|
|
|
76
|
|
16
|
|
|
|
|
Noncontrolling
interest of discontinued operations(1)(4)
|
|
|
|
|
|
|
|
|
|
(55)
|
|
(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted pre-tax
income(1)
|
|
|
|
|
|
|
|
|
|
$ 317
|
|
$
149
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted effective
tax rate
|
|
|
|
|
|
|
|
|
|
19%
|
|
17%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
Tax
|
|
|
|
|
|
Diluted
Income
|
|
|
EBITDA
|
|
Expense
|
|
Net
Income
|
|
Per
Share
|
|
|
Three months
ended
|
|
Three months
ended
|
|
Three months
ended
|
|
Three months
ended
|
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
In millions, except
per share amounts
|
|
2017
|
|
2017
|
|
2017
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
$ 287
|
|
|
|
|
|
|
|
$ 287
|
|
|
|
$ 1.17
|
|
|
Net income
attributable to noncontrolling interests
|
|
(41)
|
|
|
|
|
|
|
|
(41)
|
|
|
|
(0.17)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Huntsman Corporation
|
|
246
|
|
|
|
|
|
|
|
246
|
|
|
|
1.00
|
|
|
Interest
expense from continuing operations
|
|
31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense from
discontinued operations(4)
|
|
11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
from continuing operations
|
|
(14)
|
|
|
|
$ 14
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
from discontinued operations(4)
|
|
26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization from continuing operations
|
|
84
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition and
integration expenses
|
|
2
|
|
|
|
(1)
|
|
|
|
1
|
|
|
|
-
|
|
|
EBITDA / Income from
discontinued operations, net of tax(4)
|
|
(94)
|
|
|
|
N/A
|
|
|
|
(57)
|
|
|
|
(0.23)
|
|
|
Noncontrolling
interest of discontinued operations(1)(4)
|
|
31
|
|
|
|
N/A
|
|
|
|
31
|
|
|
|
0.13
|
|
|
U.S. tax reform
impact on noncontrolling interest
|
|
(6)
|
|
|
|
N/A
|
|
|
|
(6)
|
|
|
|
(0.02)
|
|
|
U.S. tax reform
impact on tax expense
|
|
N/A
|
|
|
|
(52)
|
|
|
|
(52)
|
|
|
|
(0.21)
|
|
|
Gain on disposition
of businesses/assets
|
|
(1)
|
|
|
|
-
|
|
|
|
(1)
|
|
|
|
-
|
|
|
Loss on early
extinguishment of debt
|
|
18
|
|
|
|
(7)
|
|
|
|
11
|
|
|
|
0.04
|
|
|
Expenses associated
with merger
|
|
10
|
|
|
|
(9)
|
|
|
|
1
|
|
|
|
-
|
|
|
Certain legal and
other settlements and related credits
|
|
(12)
|
|
|
|
4
|
|
|
|
(8)
|
|
|
|
(0.03)
|
|
|
Net plant incident
costs
|
|
3
|
|
|
|
(2)
|
|
|
|
1
|
|
|
|
-
|
|
|
Amortization of
pension and postretirement actuarial losses
|
|
18
|
|
|
|
(5)
|
|
|
|
13
|
|
|
|
0.05
|
|
|
Restructuring,
impairment and plant closing and transition costs
|
|
7
|
|
|
|
(1)
|
|
|
|
6
|
|
|
|
0.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted(1)
|
|
$ 360
|
|
|
|
$ (59)
|
|
|
|
$ 186
|
|
|
|
$ 0.76
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income tax
expense(1)
|
|
|
|
|
|
|
|
|
|
$
59
|
|
|
|
|
|
|
Net income
attributable to noncontrolling interests, net of tax
|
|
|
|
|
|
|
|
|
|
41
|
|
|
|
|
|
|
Noncontrolling
interest of discontinued operations(1)(4)
|
|
|
|
|
|
|
|
|
|
(31)
|
|
|
|
|
|
|
U.S. tax reform
impact on noncontrolling interest
|
|
|
|
|
|
|
|
|
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted pre-tax
income(1)
|
|
|
|
|
|
|
|
|
|
$ 261
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted effective
tax rate
|
|
|
|
|
|
|
|
|
|
23%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See end of press
release for footnote explanations
|
Table 5 – Selected
Balance Sheet Items
|
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
In
millions
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
Cash
|
|
$
453
|
|
$
481
|
Accounts and notes
receivable, net
|
|
1,407
|
|
1,283
|
Inventories
|
|
1,203
|
|
1,073
|
Other current
assets
|
|
262
|
|
262
|
Current assets held
for sale
|
|
3,060
|
|
2,880
|
Property, plant and
equipment, net
|
|
3,117
|
|
3,098
|
Other
assets
|
|
1,201
|
|
1,167
|
|
|
|
|
|
Total
assets
|
|
$
10,703
|
|
$
10,244
|
|
|
|
|
|
Accounts
payable
|
|
$
993
|
|
$
964
|
Other current
liabilities
|
|
533
|
|
569
|
Current portion of
debt
|
|
36
|
|
40
|
Current liabilities
held for sale
|
|
1,721
|
|
1,692
|
Long-term
debt
|
|
2,298
|
|
2,258
|
Other
liabilities
|
|
1,353
|
|
1,350
|
Total
equity
|
|
3,769
|
|
3,371
|
|
|
|
|
|
Total liabilities
and equity
|
|
$
10,703
|
|
$
10,244
|
Table 6 –
Outstanding Debt
|
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
In
millions
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
Debt:
|
|
|
|
|
Senior credit
facilities
|
|
$
-
|
|
$
-
|
Accounts receivable
programs
|
|
184
|
|
180
|
Senior
notes
|
|
1,964
|
|
1,927
|
Variable interest
entities
|
|
105
|
|
107
|
Other debt
|
|
81
|
|
84
|
|
|
|
|
|
Total debt -
excluding affiliates
|
|
2,334
|
|
2,298
|
|
|
|
|
|
Total cash
|
|
453
|
|
481
|
|
|
|
|
|
Net debt-
excluding affiliates
|
|
$
1,881
|
|
$
1,817
|
Table 7 –
Summarized Statement of Cash Flows
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
March
31,
|
In
millions
|
|
2018
|
|
2017
|
|
|
|
|
|
Total cash at
beginning of period(a)
|
|
$
719
|
|
$425
|
|
|
|
|
|
Net cash provided by
operating activities - continuing operations
|
|
111
|
|
70
|
Net cash provided by
operating activities - discontinued
operations(4)
|
|
52
|
|
23
|
Net cash used in
investing activities - continuing operations
|
|
(69)
|
|
(47)
|
Net cash (used in)
provided by investing activities - discontinued
operations(4)
|
|
(67)
|
|
24
|
Net cash used in
financing activities
|
|
(86)
|
|
(31)
|
Effect of exchange
rate changes on cash
|
|
16
|
|
5
|
|
|
|
|
-
|
Total cash at end
of period(a)
|
|
$
676
|
|
$469
|
|
|
|
|
|
Supplemental cash
flow information - continuing operations:
|
|
|
|
|
Cash paid for
interest
|
|
$
(12)
|
|
$ (36)
|
Cash paid for income
taxes
|
|
(26)
|
|
(8)
|
Cash paid for capital
expenditures
|
|
(55)
|
|
(51)
|
Depreciation and
amortization
|
|
82
|
|
76
|
|
|
|
|
|
Changes in primary
working capital:
|
|
|
|
|
Accounts and notes
receivable
|
|
(104)
|
|
(55)
|
Inventories
|
|
(105)
|
|
(109)
|
Accounts
payable
|
|
36
|
|
83
|
|
|
|
|
|
Total cash used
in primary working capital
|
|
$
(173)
|
|
$ (81)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
March
31,
|
|
|
2018
|
|
2017
|
Free cash
flow(3):
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
111
|
|
$ 70
|
Capital
expenditures
|
|
(55)
|
|
(51)
|
All other investing
activities, excluding acquisition and disposition
activities(b)
|
|
-
|
|
4
|
|
|
|
|
|
Total free cash
flow
|
|
$
56
|
|
$ 23
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
405
|
|
$260
|
Capital
expenditures
|
|
(55)
|
|
(51)
|
Capital
reimbursements
|
|
1
|
|
1
|
Interest
|
|
(12)
|
|
(36)
|
Income
taxes
|
|
(26)
|
|
(8)
|
Primary working
capital change
|
|
(173)
|
|
(81)
|
Restructuring
|
|
-
|
|
(9)
|
Pensions
|
|
(31)
|
|
(15)
|
Maintenance &
other
|
|
(53)
|
|
(38)
|
|
|
|
|
|
Total free cash
flow(3)
|
|
$
56
|
|
$ 23
|
|
|
(a)
|
Includes restricted
cash and cash held in discontinued operations.
|
(b)
|
Represents
"Acquisition of business, net of cash acquired", "Cash
received from purchase price adjustment for business
acquired", and "Proceeds from sale of
business/assets".
|
Footnotes
|
|
|
(1)
|
We use adjusted
EBITDA to measure the operating performance of our business and for
planning and evaluating the performance of our business
segments. We provide adjusted net income because we feel it
provides meaningful insight for the investment community into the
performance of our business. We believe that net income
(loss) is the performance measure calculated and presented in
accordance with generally accepted accounting principles in the
U.S. ("GAAP") that is most directly comparable to adjusted EBITDA
and adjusted net income. Additional information with respect
to our use of each of these financial measures follows:
|
|
|
|
Adjusted EBITDA,
adjusted net income (loss) and adjusted diluted income (loss) per
share, as used herein, are not necessarily comparable to other
similarly titled measures of other companies.
|
|
|
|
Adjusted EBITDA is
computed by eliminating the following from net income (loss):
(a) net income attributable to noncontrolling interests, net of
tax; (b) interest; (c) income taxes; (d) depreciation and
amortization; (e) acquisition and integration expenses; (f) income
(loss) from discontinued operations, net of tax; (g) noncontrolling
interest of discontinued operations (h) loss (gain) on disposition
of businesses/assets; (i) loss on early extinguishment of debt; (j)
expenses associated with merger; (k) certain legal and other
settlements and related expenses (credits) (l) net plant incident
costs (credits); (m) amortization of pension and postretirement
actuarial losses (gains); and (n) restructuring, impairment and
plant closing costs (credits). The reconciliation of adjusted
EBITDA to net income (loss) is set forth in Table 4
above.
|
|
|
|
Adjusted net income
(loss) and adjusted diluted income (loss) per share are computed by
eliminating the after tax impact of the following items from net
income (loss: (a) net income attributable to noncontrolling
interest; (b) acquisition and integration expenses, purchase
accounting adjustments; (c) impact of certain foreign tax credit
elections; (d) income (loss) from discontinued operations, net of
tax; (e) discount amortization on settlement financing associated
with the terminated merger; (f) loss (gain) on disposition of
businesses/assets; (g) loss on early extinguishment of debt; (h)
expenses associated with the merger; (i) certain legal and other
settlements and related expenses (credits); (j) net plant incident
costs (credits); (k) noncontrolling interest of discontinued
operations; (l) amortization of pension and postretirement
actuarial losses (gains); and (m) restructuring, impairment
and plant closing costs (credits). The income tax impacts, if
any, of each adjusting item represent a ratable allocation of the
total difference between the unadjusted tax expense and the total
adjusted tax expense, computed without consideration of any
adjusting items using a with and without approach. We do not
adjust for changes in tax valuation allowances because we do not
believe it provides more meaningful information than is provided
under GAAP. The reconciliation of adjusted net income (loss)
to net income (loss) is set forth in Table 4 above.
|
|
|
(2)
|
Pro forma adjusted to
exclude the sale of our European differentiated surfactants
business to Innospec on December 30, 2016 as if it had occurred at
the beginning of the relevant period.
|
|
|
(3)
|
Management
internally uses a free cash flow measure: (a) to evaluate the
Company's liquidity, (b) to evaluate strategic investments, (c) to
plan stock buyback and dividend levels and (d) to evaluate the
Company's ability to incur and service debt. Free cash flow is not
a defined term under U.S. GAAP, and it should not be inferred that
the entire free cash flow amount is available for discretionary
expenditures. The Company defines free cash flow as cash flow
provided by operating activities less cash flow used in investing
activities, excluding acquisition/disposition activities and
non-recurring separation costs. Free cash flow is typically derived
directly from the Company's condensed consolidated statement of
cash flows; however, it may be adjusted for items that affect
comparability between periods.
|
|
|
(4)
|
During the third
quarter of 2017 we separated our Pigments and Additives division
through an Initial Public Offering of Venator Materials PLC;
Additionally, during the first quarter 2010 we closed our
Australian styrenics operations. Results from these
associated businesses are treated as discontinued
operations.
|
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer
and marketer of differentiated and specialty chemicals with 2017
revenues more than $8 billion.
Our chemical products number in the thousands and are sold
worldwide to manufacturers serving a broad and diverse range of
consumer and industrial end markets. We operate more than 75
manufacturing, R&D and operations facilities in approximately
30 countries and employ approximately 10,000 associates within our
four distinct business divisions. For more information about
Huntsman, please visit the company's website at
www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Certain information in this release constitutes forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934.
These statements are based on management's current beliefs and
expectations. The forward-looking statements in this release are
subject to uncertainty and changes in circumstances and involve
risks and uncertainties that may affect the company's operations,
markets, products, services, prices and other factors as discussed
under the caption "Risk Factors" in the Huntsman companies' filings
with the U.S. Securities and Exchange Commission. Significant risks
and uncertainties may relate to, but are not limited to, volatile
global economic conditions, cyclical and volatile product markets,
disruptions in production at manufacturing facilities,
reorganization or restructuring of Huntsman's operations, including
any delay of, or other negative developments affecting the ability
to implement cost reductions and manufacturing optimization
improvements in Huntsman businesses and realize anticipated cost
savings, and other financial, economic, competitive, environmental,
political, legal, regulatory and technological factors. The company
assumes no obligation to provide revisions to any forward-looking
statements should circumstances change, except as otherwise
required by applicable laws.
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SOURCE Huntsman Corporation