- Ingevity delivers results in line with special, one-time second
quarter guidance driven by cost reduction actions and strong
execution
- Company reaffirms fiscal year 2020 guidance of sales between
$1.10 billion and $1.20 billion and adjusted EBITDA between $310
million and $350 million
- Cost reduction initiatives bolster second quarter
profitability, and will save the company $35 million in 2020 and
$12 million annually going forward
- Net sales of $270.6 million were down 23.3% versus the prior
year quarter as a result of weakened demand, particularly in the
automotive industry, driven by the economic impacts of
COVID-19
- Operating cash flow of $48.9 million; free cash flow of $33.9
million
The results and guidance in this release
include Non-GAAP financial measures. Refer to the section entitled
“Use of Non-GAAP Financial Measures” within this release.
Ingevity Corporation (NYSE:NGVT) today reported its financial
results for the second quarter.
“Ingevity delivered second quarter financial results in line
with the special, one-time guidance we provided at the end of the
first quarter,” said Rick Kelson, Ingevity’s chairman of the board,
and interim president and CEO. “While we experienced a sharp
decline in volumes attributable to the economic impact of the
coronavirus, or COVID-19, our team remained focused and drove cost
reductions that were able to partially bolster adjusted EBITDA.” He
added that the company generated operating cash flow of $48.9
million, which translated to solid free cash flow of $33.9
million.
Kelson said that the downturn in automotive sales and production
in North America and Europe during the quarter significantly
reduced revenues for its automotive activated carbon products. This
was partially offset by an upturn in demand for similar products in
China. He also pointed to reduced demand in industrial specialties
applications – such as printing inks – and volatility in the
oilfield drilling and production industry as other drivers of the
revenue decline.
“As a countermeasure, we took strong steps toward reducing costs
across the corporation,” said Kelson. “We implemented initiatives
that will save us $35 million this year and will result in
annualized savings of $12 million going forward.”
Second quarter net sales of $270.6 million were down 23.3%
versus the prior year second quarter. Net income of $20.2 million
decreased 64.4% and net income margin of 7.5% was down from 16.1%
in the prior year. The second quarter diluted earnings per share
were $0.49 compared to $1.34 in the prior year period.
Adjusted earnings of $26.1 million were down 54.6% versus the
prior year quarter. Diluted adjusted earnings per share were $0.63,
which exclude, net of tax, $0.14 related primarily to restructuring
and other charges, net, recognized during the quarter. This
compares to diluted adjusted earnings per share of $1.36 in the
prior year quarter. Adjusted EBITDA of $67.2 million were down
38.0% versus the second quarter 2019. Adjusted EBITDA margin of
24.8% was down 590 basis points from the prior year’s second
quarter.
Performance Chemicals
“In Performance Chemicals, sales to all of the end-use
applications declined due to the COVID-19 economic impact in
varying degrees,” said Kelson. “We saw comparatively reasonable
strength in Pavement Technologies and Engineered Polymers. However,
reduced demand in Industrial Specialties and Oilfield Technologies
was more significant.”
Sales to Pavement Technologies applications were about even with
the prior year as paving in North America continued largely
unaffected. In addition, sales to pavement customers in the Europe,
Middle East and Africa region (EMEA) increased, albeit from a
smaller base. Sales for the Engineered Polymers product line were
down somewhat due to reduced industrial demand, predominantly for
caprolactone monomer. Sales decreased in Industrial Specialties
applications due to demand weakness for printing inks as printed
retail advertising declined. Reduced sales of tall oil fatty acid
(TOFA) and continued pressure on tall oil rosin (TOR) prices also
contributed. Despite oil prices that stabilized in the quarter,
sales to Oilfield Technologies customers were cut sharply in line
with reduced drilling in North America.
Second quarter 2020 sales in the Performance Chemicals segment
were $186.2 million, down 18.9% versus the second quarter 2019.
Segment EBITDA were $43.9 million, down 25.6% versus the prior year
quarter due to lower volumes. Price/mix impacts, production costs
and foreign currency exchange were fundamentally unchanged.
Selling, general and administrative (SG&A) cost reductions
helped to improve the segment EBITDA. Segment EBITDA margin
declined 210 basis points to 23.6%.
Performance Materials
“Shutdowns at automakers in North America and Europe resulted in
significantly lower volumes in the quarter,” said Kelson. “However,
even as OEMs and our Tier One customers worked through inventory,
we saw significant demand late in the quarter which enabled us to
finish the period strongly. We believe this bodes well for the rest
of the year.”
Kelson said that the decline in North American revenue was
partially offset by rebounding automotive business in China.
Ingevity’s activated carbon pellet sales in China in the second
quarter were the second highest on record reflecting the strong
demand rebound and the implementation of the China 6 standard,
which is essentially completed.
Second quarter 2020 sales in the Performance Materials segment
were $84.4 million, down 31.4% versus the second quarter 2019.
Segment EBITDA were $23.3 million, down 52.7% versus the prior year
period due to the sharp downturn in volumes and resulting decreased
production throughput. These were partially offset by decreased
plant spending, furloughs at several Performance Materials’
manufacturing facilities, and reductions in SG&A costs. Segment
EBITDA margin decreased 1,240 basis points to 27.6%.
Outlook
Ingevity reaffirmed its fiscal year 2020 guidance of sales
between $1.10 billion and $1.20 billion and adjusted EBITDA between
$310 million and $350 million.
“Barring any further economic deterioration, we are confident in
our ability to meet our current guidance,” said Kelson. “We
continue to maintain a strong financial position. Most importantly,
we are working on controlling what we can control in this
challenging environment.”
Ingevity: Purify, Protect and Enhance
Ingevity provides specialty chemicals, high-performance carbon
materials and engineered polymers that purify, protect, and enhance
the world around us. Through a team of talented and experienced
people, Ingevity develops, manufactures, and brings to market
products and processes that help customers solve complex problems.
These products are used in a variety of demanding applications,
including asphalt paving, oil exploration and production,
agrochemicals, adhesives, lubricants, publication inks, coatings,
elastomers, bio-plastics and automotive components that reduce
gasoline vapor emissions. Headquartered in North Charleston, South
Carolina, Ingevity operates from 25 locations around the world and
employs approximately 1,850 people. The company is traded on the
New York Stock Exchange (NYSE: NGVT). For more information visit
www.ingevity.com.
Additional Information
The company will host a live webcast on Thursday, July 30, 2020,
at 10 a.m. (Eastern Time) to discuss second quarter fiscal results.
The webcast can be accessed through the investors section of
Ingevity’s website (www.ingevity.com), or via this link: Ingevity
Q2 2020 webcast. You may also listen to the conference call by
dialing 877-407-2991 (inside the U.S.) or 201-389-0925 (outside the
U.S.), at least 10 minutes prior to the start of the event.
Information on how to access the webcast and conference call, along
with a slide deck containing other relevant financial and
statistical information, will be posted to the Investors section of
Ingevity’s website prior to the call. For those unable to join the
live event, a replay of the webcast will be available beginning at
approximately 2 p.m. (Eastern Time) on July 30, 2020, through
August 30, 2020: Ingevity Q2 2020 webcast replay.
Use of Non-GAAP Financial Measures
Ingevity has presented certain financial measures which have not
been prepared in accordance with U.S. generally accepted accounting
principles (GAAP). Definitions of our non-GAAP financial measures
and a reconciliation to the most directly comparable financial
measure calculated in accordance with GAAP are included in the
financial schedules accompanying this news release, under the
section entitled "Non-GAAP Financial Measures."
Cautionary Statements About Forward-Looking
Statements
This press release contains “forward-looking statements” within
the meaning of the Securities Exchange Act of 1934, as amended, and
the Private Securities Litigation Reform Act of 1995. Such forward
looking statements generally include the words “may,” “could,”
“should,” “believes,” “plans,” “intends,” “targets,” “will,”
“expects,” “suggests,” “anticipates,” “outlook,” “continues,”
“forecast,” “prospect,” “potential” or similar expressions.
Forward-looking statements may include, without limitation,
expected financial positions, results of operations and cash flows;
financing plans; business strategies and expectations; operating
plans; impact of COVID-19; synergies and the potential benefits of
the acquisition of Perstorp Holding AB’s Capa® caprolactone
business (the “acquisition”); capital and other expenditures;
competitive positions; growth opportunities for existing products;
benefits from new technology and cost-reduction initiatives, plans
and objectives; markets for securities and expected future
repurchases of shares, including statements about the manner,
amount and timing of repurchases. Like other businesses, Ingevity
is subject to risks and uncertainties that could cause its actual
results to differ materially from its expectations or that could
cause other forward-looking statements to prove incorrect. Factors
that could cause actual results to materially differ from those
contained in the forward-looking statements, or that could cause
other forward-looking statements to prove incorrect, include,
without limitation, adverse effects from the COVID-19 pandemic;
risks that the expected benefits from the acquisition may not be
realized or will not be realized in the expected time period, the
risk that the acquired business will not be integrated successfully
and the risk of significant transaction costs and unknown or
understated liabilities; adverse effects of general economic and
financial conditions; risks related to international sales and
operations; impacts of currency exchange rates and currency
devaluation; compliance with U.S. and foreign regulations
concerning our operations outside the U.S.; changes in trade
policy, including the imposition of tariffs; the impact of the
United Kingdom’s withdrawal from the European Union; attracting and
retaining key personnel; adverse conditions in the global
automotive market or adoption of alternative and new technologies;
competition from producers of alternative products and new
technologies, and new or emerging competitors; competition from
infringing intellectual property activity; worldwide air quality
standards; a decrease in government infrastructure spending;
declining volumes and downward pricing in the printing inks market;
the limited supply of or lack of access to sufficient crude tall
oil; a prolonged period of low energy prices; the provision of
services by third parties at several facilities; natural disasters,
such as hurricanes, winter or tropical storms, earthquakes,
tornados, floods, fires; other unanticipated problems such as labor
difficulties, equipment failure or unscheduled maintenance and
repair; protection of intellectual property and proprietary
information; information technology security breaches and other
disruptions; complications with designing and implementing our new
enterprise resource planning system; government policies and
regulations, including, but not limited to, those affecting the
environment, climate change, tax policies, tariffs and the
chemicals industry; and lawsuits arising out of environmental
damage or personal injuries associated with chemical or other
manufacturing processes. These and other important factors that
could cause actual results or events to differ materially from
those expressed in forward-looking statements that may have been
made in this document are and will be more particularly described
in our filings with the U.S. Securities and Exchange Commission,
including our Form 10-K for the year ended December 31, 2019 our
Form 10-Q for the period ended March 31, 2020 and our other
periodic filings. Readers are cautioned not to place undue reliance
on Ingevity’s projections and forward-looking statements, which
speak only as the date thereof. Ingevity undertakes no obligation
to publicly release any revision to the projections and
forward-looking statements contained in this press release, or to
update them to reflect events or circumstances occurring after the
date of this press release.
INGEVITY CORPORATION
Condensed Consolidated
Statements of Operations (Unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
In millions, except per share
data
2020
2019
2020
2019
Net sales
$
270.6
$
352.8
$
558.8
$
629.6
Cost of sales
186.7
218.4
360.3
398.1
Gross profit
83.9
134.4
198.5
231.5
Selling, general and administrative
expenses
34.5
42.5
73.0
81.6
Research and technical expenses
5.4
5.0
11.6
10.1
Restructuring and other (income) charges,
net
7.3
0.3
7.8
0.3
Acquisition-related costs
0.4
0.8
1.7
23.6
Other (income) expense, net
0.9
—
2.9
(3.7
)
Interest expense, net
10.0
13.1
20.9
24.2
Income (loss) before income taxes
25.4
72.7
80.6
95.4
Provision (benefit) for income taxes
5.2
15.9
15.1
15.9
Net income (loss)
$
20.2
$
56.8
$
65.5
$
79.5
Per share data
Basic earnings (loss) per share
$
0.49
$
1.36
$
1.58
$
1.90
Diluted earnings (loss) per share
0.49
1.34
1.57
1.88
Weighted average shares
outstanding
Basic
41.2
41.8
41.5
41.8
Diluted
41.4
42.2
41.7
42.2
INGEVITY CORPORATION
Segment Operating Results
(Unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
In millions
2020
2019
2020
2019
Net sales
Performance Materials
$
84.4
$
123.1
$
205.5
$
232.2
Automotive Technologies product line
74.7
113.9
187.6
213.6
Process Purification product line
9.7
9.2
17.9
18.6
Performance Chemicals
$
186.2
$
229.7
$
353.3
$
397.4
Oilfield Technologies product line
14.2
29.7
44.4
58.9
Pavement Technologies product line
63.9
64.6
84.6
83.1
Industrial Specialties product line
76.5
101.1
156.4
196.9
Engineered Polymers product line(1)
31.6
34.3
67.9
58.5
Total net sales
$
270.6
$
352.8
$
558.8
$
629.6
Segment EBITDA (2)
Performance Materials
$
23.3
$
49.3
$
84.5
$
100.5
Performance Chemicals
43.9
59.0
74.9
91.3
Total segment EBITDA (2)
$
67.2
$
108.3
$
159.4
$
191.8
Interest expense, net
(10.0
)
(13.1
)
(20.9
)
(24.2
)
(Provision) benefit for income taxes
(5.2
)
(15.9
)
(15.1
)
(15.9
)
Depreciation and amortization -
Performance Materials
(7.3
)
(5.8
)
(14.5
)
(11.6
)
Depreciation and amortization -
Performance Chemicals
(16.8
)
(15.6
)
(33.9
)
(28.3
)
Restructuring and other income (charges),
net (3)
(7.3
)
(0.3
)
(7.8
)
(0.3
)
Acquisition and other-related costs
(4)
(0.4
)
(0.8
)
(1.7
)
(32.0
)
Net income (loss)
$
20.2
$
56.8
$
65.5
$
79.5
_______________
(1)
Engineered Polymers product line was
acquired on February 13, 2019.
(2)
Segment EBITDA is the primary measure used
by our chief operating decision maker to evaluate the performance
of and allocate resources among our operating segments. Segment
EBITDA is defined as segment revenue less segment operating
expenses (segment operating expenses consist of costs of sales,
selling, general and administrative expenses, other (income)
expense, net, excluding depreciation and amortization). We have
excluded the following items from segment EBITDA: interest expense,
net associated with corporate debt facilities, income taxes,
depreciation, amortization, restructuring and other (income)
charges, net, acquisition and other-related costs, pension and
postretirement settlement and curtailment (income) charges.
(3)
Income (charges) for all periods presented
relate to restructuring activity and costs associated with the
business transformation initiative. For the three and six months
ended June 30, 2020, charges of $2.7 million and $2.9 million
relate to the Performance Material segment, respectively, and
charges of $4.6 million and $4.9 million related the Performance
Chemicals segment. For the three and six months ended June 30,
2019, all charges relate to the Performance Chemicals segment.
(4)
Costs incurred to complete and integrate
the acquisition noted above into our Performance Chemicals segment
are expensed as incurred on our condensed consolidated statement of
operations. The following table summarizes the costs incurred
associated with these combined activities.
Three Months Ended June
30,
Six Months Ended June
30,
In millions
2020
2019
2020
2019
Legal and professional service fees
$
0.4
$
0.8
$
1.7
$
10.9
Loss on hedging purchase price
—
—
—
12.7
Acquisition-related costs
$
0.4
$
0.8
$
1.7
$
23.6
Inventory fair value step-up amortization
(i)
—
—
—
8.4
Acquisition and other-related
costs
$
0.4
$
0.8
$
1.7
$
32.0
_______________
(i) Included within "Cost of sales" on the
condensed consolidated statement of operations.
INGEVITY CORPORATION
Condensed Consolidated Balance
Sheets
In millions
June 30, 2020
December 31, 2019
Assets
(Unaudited)
Cash and cash equivalents
$
177.6
$
56.5
Accounts receivable, net
132.1
150.0
Inventories, net
223.5
212.5
Prepaid and other current assets
46.5
44.2
Current assets
579.7
463.2
Property, plant and equipment, net
658.3
664.7
Goodwill
415.7
436.4
Other intangibles, net
363.7
396.2
Restricted investment
72.5
72.6
Other assets
105.6
108.6
Total Assets
$
2,195.5
$
2,141.7
Liabilities
Accounts payable
$
78.7
$
99.1
Accrued expenses
39.4
33.3
Other current liabilities
69.8
83.1
Current liabilities
187.9
215.5
Long-term debt including finance lease
obligations
1,308.5
1,228.4
Deferred income taxes
103.9
100.3
Other liabilities
72.3
66.7
Total Liabilities
1,672.6
1,610.9
Equity
522.9
530.8
Total Liabilities and Equity
$
2,195.5
$
2,141.7
INGEVITY CORPORATION
Condensed Consolidated
Statements of Cash Flows (Unaudited)
Six Months Ended June
30,
In millions
2020
2019
Cash provided by (used in) operating
activities:
Net income (loss)
$
65.5
$
79.5
Adjustments to reconcile net income (loss)
to cash provided by (used in) operating activities:
Depreciation and amortization
48.4
39.9
Non cash operating lease costs
9.4
10.4
Deferred income taxes
6.5
1.6
Restructuring and other (income) charges,
net
7.8
0.3
Share-based compensation
3.2
7.4
Other non-cash items
9.2
8.1
Changes in operating assets and
liabilities, net of effect of acquisitions:
Accounts receivable, net
15.0
(42.3
)
Inventories, net
(13.6
)
(8.2
)
Prepaid and other current assets
(2.7
)
(6.2
)
Current liabilities
(31.6
)
(15.2
)
Income taxes
2.8
6.4
Operating leases
(9.4
)
(10.2
)
Changes in other operating assets and
liabilities, net
(1.4
)
—
Net cash provided by (used in) operating
activities
$
109.1
$
71.5
Cash provided by (used in) investing
activities:
Capital expenditures
$
(34.5
)
$
(57.7
)
Payments for acquired businesses, net of
cash acquired
—
(537.9
)
Other investing activities, net
(2.9
)
(3.7
)
Net cash provided by (used in) investing
activities
$
(37.4
)
$
(599.3
)
Cash provided by (used in) financing
activities:
Proceeds from revolving credit
facility
$
346.1
$
777.4
Proceeds from long-term borrowings
—
375.0
Payments on revolving credit facility
(257.3
)
(519.9
)
Payments on long-term borrowings
(9.4
)
(113.1
)
Debt issuance costs
—
(1.8
)
Borrowings (repayments) of notes payable
and other short-term borrowings, net
(0.7
)
1.8
Tax payments related to withholdings on
vested equity awards
(3.0
)
(14.3
)
Proceeds and withholdings from share-based
compensation plans, net
2.6
3.0
Repurchases of common stock under publicly
announced plan
(32.4
)
(3.3
)
Net cash provided by (used in) financing
activities
$
45.9
$
504.8
Increase (decrease) in cash, cash
equivalents, and restricted cash
117.6
(23.0
)
Effect of exchange rate changes on
cash
3.4
(0.1
)
Change in cash, cash equivalents, and
restricted cash(1)
121.0
(23.1
)
Cash, cash equivalents, and restricted
cash at beginning of period
64.6
77.5
Cash, cash equivalents, and restricted
cash at end of period (1)
$
185.6
$
54.4
(1) Includes restricted cash of $8.0
million and $1.1 million and cash and cash equivalents of $177.6
million and $53.3 million at June 30, 2020 and 2019, respectively.
Restricted cash is included within "Prepaid and other current
assets" within the condensed consolidated balance sheets.
Supplemental cash flow
information:
Cash paid for interest, net of capitalized
interest
$
23.5
$
20.9
Cash paid for income taxes, net of
refunds
5.7
8.1
Purchases of property, plant and equipment
in accounts payable
3.5
7.0
Leased assets obtained in exchange for new
finance lease liabilities
—
—
Leased assets obtained in exchange for new
operating lease liabilities
5.9
1.1
Ingevity Corporation
Non-GAAP Financial Measures
Ingevity has presented certain financial measures, defined
below, which have not been prepared in accordance with U.S.
generally accepted accounting principles (“GAAP”) and has provided
a reconciliation to the most directly comparable financial measure
calculated in accordance with GAAP on the following pages. These
financial measures are not meant to be considered in isolation or
as a substitute for the most directly comparable financial measure
calculated in accordance with GAAP. Investors should consider the
limitations associated with these non-GAAP measures, including the
potential lack of comparability of these measures from one company
to another.
We believe these non-GAAP financial measures provide management
as well as investors, potential investors, securities analysts and
others with useful information to evaluate the performance of the
business, because such measures, when viewed together with our
financial results computed in accordance with GAAP, provide a more
complete understanding of the factors and trends affecting our
historical financial performance and projected future results.
Ingevity uses the following non-GAAP measures:
Adjusted earnings (loss) is defined as
net income (loss) plus restructuring and other (income) charges,
net, acquisition and other-related costs, pension and
postretirement settlement and curtailment (income) charges and the
income tax expense (benefit) on those items, less the provision
(benefit) from certain discrete tax items.
Diluted adjusted earnings (loss) per
share is defined as diluted earnings (loss) per common share
plus restructuring and other (income) charges, net per share,
acquisition and other-related costs per share, pension and
postretirement settlement and curtailment (income) charges per
share and the income tax expense (benefit) per share on those
items, less the per share tax provision (benefit) from certain
discrete tax items per share.
Adjusted EBITDA is defined as net
income (loss) plus provision (benefit) for income taxes, interest
expense, net, depreciation and amortization, restructuring and
other (income) charges, net, acquisition and other-related costs,
and pension and postretirement settlement and curtailment (income)
charges.
Adjusted EBITDA Margin is defined as
Adjusted EBITDA divided by Net sales
Free Cash Flow is defined as the sum
of cash provided by (used in) the following items: operating
activities less capital expenditures
Ingevity also uses the above financial measures as the primary
measures of profitability used by managers of the business. In
addition, Ingevity believes Adjusted EBITDA and Adjusted EBITDA
Margin are useful measures because they exclude the effects of
financing and investment activities as well as non-operating
activities.
GAAP Reconciliation of 2020 Adjusted EBITDA
Guidance
A reconciliation of net income to adjusted EBITDA as projected
for 2020 is not provided. Ingevity does not forecast net income as
it cannot, without unreasonable effort, estimate or predict with
certainty various components of net income. These components, net
of tax, include further restructuring and other income (charges),
net; additional acquisition and other-related costs in connection
with the acquisition of Perstorp Holding AB’s Capa caprolactone
business; additional pension and postretirement settlement and
curtailment (income) charges; and revisions due to future guidance
and assessment of U.S. tax reform. Additionally, discrete tax items
could drive variability in our projected effective tax rate. All of
these components could significantly impact such financial
measures. Further, in the future, other items with similar
characteristics to those currently included in adjusted EBITDA,
that have a similar impact on comparability of periods, and which
are not known at this time, may exist and impact adjusted
EBITDA.
INGEVITY CORPORATION
Reconciliation of Non-GAAP Financial
Measures
Reconciliation of Net Income
(Loss) (GAAP) to Adjusted Earnings (Loss) (Non-GAAP)
Three Months Ended June
30,
Six Months Ended June
30,
In millions, except per share data
(unaudited)
2020
2019
2020
2019
Net income (loss) (GAAP)
$
20.2
$
56.8
$
65.5
$
79.5
Restructuring and other (income) charges,
net
7.3
0.3
7.8
0.3
Acquisition and other-related costs
0.4
0.8
1.7
32.0
Tax effect on items above
(1.8
)
(0.3
)
(2.2
)
(5.6
)
Certain discrete tax provision (benefit)
(1)
—
(0.1
)
0.5
(6.8
)
Adjusted earnings (loss)
(Non-GAAP)
$
26.1
$
57.5
$
73.3
$
99.4
Diluted earnings (loss) per common
share (GAAP)
$
0.49
$
1.34
$
1.57
$
1.88
Restructuring and other (income)
charges
0.17
0.01
0.19
0.01
Acquisition and other-related costs
0.01
0.02
0.04
0.76
Tax effect on items above
(0.04
)
(0.01
)
(0.05
)
(0.13
)
Certain discrete tax provision
(benefit)
—
—
0.01
(0.16
)
Diluted adjusted earnings (loss) per
share (Non-GAAP)
$
0.63
$
1.36
$
1.76
$
2.36
Weighted average common shares outstanding
- Diluted
41.4
42.2
41.7
42.2
_______________
(1)
Represents certain discrete tax items such
as excess tax benefits on stock compensation and impacts of changes
associated with U.S. Tax Reform. Management believes excluding
these discrete tax items assists investors, potential investors,
securities analysts, and others in understanding the tax provision
and the effective tax rate related to continuing operating results
thereby providing useful supplemental information about operational
performance.
INGEVITY CORPORATION
Reconciliation of Non-GAAP Financial
Measures
Reconciliation of Net Income
(Loss) (GAAP) to Adjusted EBITDA (Non-GAAP)
Three Months Ended June
30,
Six Months Ended June
30,
In millions, except
percentages (unaudited)
2020
2019
2020
2019
Net income (loss) (GAAP)
$
20.2
$
56.8
$
65.5
$
79.5
Provision (benefit) for income taxes
5.2
15.9
15.1
15.9
Interest expense, net
10.0
13.1
20.9
24.2
Depreciation and amortization
24.1
21.4
48.4
39.9
Restructuring and other (income) charges,
net
7.3
0.3
7.8
0.3
Acquisition and other-related costs
0.4
0.8
1.7
32.0
Adjusted EBITDA (Non-GAAP)
$
67.2
$
108.3
$
159.4
$
191.8
Net sales
$
270.6
$
352.8
$
558.8
$
629.6
Net income (loss) margin
7.5
%
16.1
%
11.7
%
12.6
%
Adjusted EBITDA margin
24.8
%
30.7
%
28.5
%
30.5
%
INGEVITY CORPORATION
Reconciliation of Non-GAAP Financial
Measures
Calculation of Free Cash Flow
(Non-GAAP)
Three Months Ended June
30,
Six Months Ended June
30,
In millions (unaudited)
2020
2019
2020
2019
Cash Flow from Operations
$
48.9
$
79.5
$
109.1
$
71.5
Less: Capital Expenditures
15.0
29.6
34.5
57.7
Free Cash Flow
$
33.9
$
49.9
$
74.6
$
13.8
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200729005954/en/
Laura Woodcock 843-746-8197 media@ingevity.com
Investors: Jack Maurer 843-746-8242
investors@ingevity.com
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