Corporate costs for the quarter were $17.7 million, compared with $20.2 million a year ago driven
by lower personnel related costs.
The effective tax rate for the quarter was 26.1 percent compared to 25.1 percent in the same period last
year.
For the quarter, net cash provided by operating activities was $28.3 million compared to $80.6 million a year ago. As of March 31,
2025, Innospec had $299.8 million in cash and cash equivalents and no debt.
Mr. Williams concluded,
“With our diversified global supply-chain and manufacturing locations, we believe that we are well positioned to manage the direct impacts of global
tariffs. While we expect the current economic environment to delay the sequential quarterly recovery in our Performance Chemicals and Oilfield Services businesses, we anticipate Fuel Specialties to be relatively stable. We will continue to position
all businesses for growth and margin improvement as market conditions recover.
Cash generation was again positive this quarter, and our net cash position
increased to almost $300 million after repurchasing 34,100 shares at a cost of $3.3 million. Despite current market conditions, our strong balance sheet allows for significant flexibility to pursue further M&A, dividend growth, organic
investment and buybacks. This quarter our Board approved a further 10 percent increase in our semi-annual dividend to 84 cents per share continuing our record of returning value to shareholders.”
Use of Non-GAAP Financial Measures
The information presented in this press release includes financial measures that are not calculated or presented in accordance with Generally Accepted
Accounting Principles in the United States (GAAP). These non-GAAP financial measures comprise adjusted EBITDA, income before income taxes excluding special items, net income excluding special items and related
per share amounts together with net cash. Adjusted EBITDA is net income per our consolidated financial statements adjusted for the exclusion of interest income, net, income taxes, depreciation and amortization, foreign currency exchange gains,
legacy costs of closed operations and adjustment to fair value of contingent consideration. Income before income taxes, net income and diluted EPS, excluding special items, per our consolidated financial statements are adjusted for the exclusion of
amortization of acquired intangible assets, adjustment to fair value of contingent consideration, legacy costs of closed operations, foreign currency exchange gains and adjustment of income tax provisions. Net cash is cash and cash equivalents less
total debt. Reconciliations of these non-GAAP financial measures to their most directly comparable GAAP financial measures are provided herein and in the schedules below. The Company believes that such non-GAAP financial measures provide useful information to investors and may assist them in evaluating the Company’s underlying performance and identifying operating trends. In addition, these non-GAAP measures address questions the Company routinely receives from analysts and investors and the Company has determined that it is appropriate to make this data available to all investors. While the Company
believes that such measures are useful in evaluating the Company’s performance, investors should not consider them to be a substitute for financial measures prepared in accordance with GAAP. In addition, these
non-GAAP financial measures may differ from similarly titled non-GAAP financial measures used by other companies and do not provide a comparable view of the
Company’s performance relative to other companies in similar industries. Management uses adjusted EPS (the most directly comparable GAAP financial measure for which is GAAP EPS) and net income excluding special items and adjusted EBITDA (the
most directly comparable GAAP financial measure for which is GAAP net income to allocate resources and evaluate the performance of the Company’s operations and has provided a reconciliation of adjusted EBITDA and net income excluding special
items, and related per share amounts, to GAAP net income herein and in the schedules below.
About Innospec Inc.
Innospec Inc. is an international specialty chemicals company with approximately 2,450 employees in 22 countries. Innospec manufactures and supplies a wide
range of specialty chemicals to markets in the Americas, Europe, the Middle East, Africa and Asia-Pacific. The Performance Chemicals business creates innovative technology-based solutions for our customers in the Personal Care, Home Care,
Agrochemical, Mining and Industrial markets. The Fuel Specialties business specializes in manufacturing and supplying fuel additives that improve fuel efficiency, boost engine performance and reduce harmful emissions. Oilfield Services provides
specialty chemicals to all elements of the oil and gas exploration and production industry.
