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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Ingevity Corporation | NYSE:NGVT | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
-1.24 | -2.26% | 53.56 | 56.295 | 53.195 | 55.36 | 374,454 | 22:30:00 |
☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 47-4027764 | ||||||||||||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||||||||||||||
4920 O'Hear Avenue Suite 400 | North Charleston | South Carolina | 29405 | ||||||||||||||
(Address of principal executive offices) | (Zip code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Common Stock ($0.01 par value) | NGVT | New York Stock Exchange |
Large accelerated filer
|
☒ |
Accelerated filer
|
☐ | ||||||||
Non-accelerated filer
|
☐ |
Smaller reporting company
|
☐ | ||||||||
Emerging growth company
|
☐ |
Page No. | ||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
In millions, except per share data | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Net sales | $ | 331.7 | $ | 359.9 | $ | 890.5 | $ | 989.5 | |||||||||||||||
Cost of sales | 192.1 | 220.4 | 552.4 | 618.5 | |||||||||||||||||||
Gross profit | 139.6 | 139.5 | 338.1 | 371.0 | |||||||||||||||||||
Selling, general and administrative expenses | 34.9 | 40.7 | 107.9 | 122.3 | |||||||||||||||||||
Research and technical expenses | 5.2 | 4.9 | 16.8 | 15.0 | |||||||||||||||||||
Restructuring and other (income) charges, net | 5.5 | 1.7 | 13.3 | 2.0 | |||||||||||||||||||
Acquisition-related costs | — | 1.3 | 1.7 | 24.9 | |||||||||||||||||||
Other (income) expense, net | (3.0) | 1.4 | (0.1) | (2.3) | |||||||||||||||||||
Interest expense, net | 8.9 | 12.1 | 29.8 | 36.3 | |||||||||||||||||||
Income (loss) before income taxes | 88.1 | 77.4 | 168.7 | 172.8 | |||||||||||||||||||
Provision (benefit) for income taxes | 18.2 | 17.5 | 33.3 | 33.4 | |||||||||||||||||||
Net income (loss) | $ | 69.9 | $ | 59.9 | $ | 135.4 | $ | 139.4 | |||||||||||||||
Per share data | |||||||||||||||||||||||
Basic earnings (loss) per share | $ | 1.69 | $ | 1.42 | $ | 3.27 | $ | 3.33 | |||||||||||||||
Diluted earnings (loss) per share | 1.69 | 1.41 | 3.26 | 3.30 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
In millions | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Net income (loss) | $ | 69.9 | $ | 59.9 | $ | 135.4 | $ | 139.4 | |||||||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||||||
Foreign currency adjustments: | |||||||||||||||||||||||
Foreign currency translation adjustment | 27.6 | (22.9) | (14.2) | (29.0) | |||||||||||||||||||
Unrealized gain (loss) on net investment hedges, net of tax provision (benefit) of $(1.9), $1.6, $(0.8), and $1.5
|
(6.2) | 5.3 | (2.7) | 5.1 | |||||||||||||||||||
Total foreign currency adjustments, net of tax provision (benefit) of $(1.9), $1.6, $(0.8), and $1.5
|
21.4 | (17.6) | (16.9) | (23.9) | |||||||||||||||||||
Derivative instruments: | |||||||||||||||||||||||
Unrealized gain (loss), net of tax provision (benefit) of $0.2, $(0.2), $(1.4), and $(1.3)
|
0.7 | (0.9) | (4.5) | (4.4) | |||||||||||||||||||
Reclassifications of deferred derivative instruments (gain) loss, included in net income (loss), net of tax (provision) benefit of $0.1, zero, $0.2, and $(0.1)
|
0.4 | — | 0.7 | (0.5) | |||||||||||||||||||
Total derivative instruments, net of tax provision (benefit) of $0.3, $(0.2), $(1.2), and $(1.4)
|
1.1 | (0.9) | (3.8) | (4.9) | |||||||||||||||||||
Pension & other postretirement benefits: | |||||||||||||||||||||||
Unrealized actuarial gains (losses) and prior service (costs) credits, net of tax of zero for all periods
|
— | — | — | — | |||||||||||||||||||
Reclassifications of net actuarial and other (gain) loss and amortization of prior service cost, included in net income, net of tax of zero for all periods
|
0.1 | — | 0.1 | — | |||||||||||||||||||
Total pension and other postretirement benefits, net of tax of zero for all periods
|
0.1 | — | 0.1 | — | |||||||||||||||||||
Other comprehensive income (loss), net of tax provision (benefit) of $(1.6), $1.4, $(2.0), and $0.1
|
22.6 | (18.5) | (20.6) | (28.8) | |||||||||||||||||||
Comprehensive income (loss) | $ | 92.5 | $ | 41.4 | $ | 114.8 | $ | 110.6 | |||||||||||||||
In millions, except share and par value data | September 30, 2020 | December 31, 2019 | |||||||||
Assets | (Unaudited) | ||||||||||
Cash and cash equivalents | $ | 198.2 | $ | 56.5 | |||||||
Accounts receivable, net of allowance for credit losses of $1.8 million - 2020 and $0.5 million - 2019
|
154.3 | 150.0 | |||||||||
Inventories, net | 204.0 | 212.5 | |||||||||
Prepaid and other current assets | 44.5 | 44.2 | |||||||||
Current assets | 601.0 | 463.2 | |||||||||
Property, plant and equipment, net | 685.3 | 664.7 | |||||||||
Operating lease assets, net | 52.1 | 53.4 | |||||||||
Goodwill | 427.8 | 436.4 | |||||||||
Other intangibles, net | 366.5 | 396.2 | |||||||||
Deferred income taxes | 6.2 | 5.0 | |||||||||
Restricted investment, net of allowance for credit losses of $1.1 million - 2020
|
73.0 | 72.6 | |||||||||
Other assets | 46.3 | 50.2 | |||||||||
Total Assets | $ | 2,258.2 | $ | 2,141.7 | |||||||
Liabilities | |||||||||||
Accounts payable | $ | 84.8 | $ | 99.1 | |||||||
Accrued expenses | 36.0 | 33.3 | |||||||||
Accrued payroll and employee benefits | 16.0 | 28.2 | |||||||||
Current operating lease liabilities | 16.6 | 17.1 | |||||||||
Notes payable and current maturities of long-term debt | 22.4 | 22.5 | |||||||||
Income taxes payable | 3.1 | 15.3 | |||||||||
Current liabilities | 178.9 | 215.5 | |||||||||
Long-term debt including finance lease obligations | 1,277.0 | 1,228.4 | |||||||||
Noncurrent operating lease liabilities | 37.5 | 36.7 | |||||||||
Deferred income taxes | 109.5 | 100.3 | |||||||||
Other liabilities | 38.3 | 30.0 | |||||||||
Total Liabilities | 1,641.2 | 1,610.9 | |||||||||
Commitments and contingencies (Note 16)
|
|||||||||||
Equity | |||||||||||
Preferred stock (par value $0.01 per share; 50,000,000 shares authorized; zero issued and outstanding - 2020 and 2019)
|
— | — | |||||||||
Common stock (par value $0.01 per share; 300,000,000 shares authorized; issued: 42,895,386 - 2020 and 42,675,171 - 2019; outstanding: 41,277,888 - 2020 and 41,826,136 - 2019)
|
0.4 | 0.4 | |||||||||
Additional paid-in capital | 116.8 | 112.8 | |||||||||
Retained earnings | 632.0 | 497.2 | |||||||||
Accumulated other comprehensive income (loss) | (25.6) | (5.0) | |||||||||
Treasury stock, common stock, at cost (1,617,498 shares - 2020; 849,035 shares - 2019)
|
(106.6) | (74.6) | |||||||||
Total Equity | 617.0 | 530.8 | |||||||||
Total Liabilities and Equity | $ | 2,258.2 | $ | 2,141.7 |
(in millions) |
Balance at
December 31, 2019 (1)
|
Impact from Adoption of ASC 326 | Balance at January 1, 2020 | Current Period Provision |
Balance at
September 30, 2020 (2)
|
||||||||||||||||||||||||
Allowance for credit losses | $ | 0.5 | 0.6 | 1.1 | 1.8 | $ | 2.9 |
Purchase Price Allocation | ||||||||
In millions | Weighted Average Amortization Period | Fair Value | ||||||
Cash and cash equivalents | $ | 0.7 | ||||||
Accounts receivable | 15.7 | |||||||
Inventories (1)
|
21.7 | |||||||
Prepaid and other current assets | 1.9 | |||||||
Property, plant and equipment | 86.3 | |||||||
Operating lease assets, net | 1.8 | |||||||
Intangible assets (2)
|
||||||||
Customer relationships | 17 years | 159.0 | ||||||
Developed technology | 12 years | 64.8 | ||||||
Brands | 17 years | 67.0 | ||||||
Non-compete agreement | 3 years | 0.5 | ||||||
Goodwill | 295.1 | |||||||
Other assets | 1.3 | |||||||
Total fair value of assets acquired | $ | 715.8 | ||||||
Accounts payable | 13.6 | |||||||
Accrued expenses | 2.3 | |||||||
Long-term debt | 113.1 | |||||||
Operating lease liabilities | 1.7 | |||||||
Deferred income taxes | 45.7 | |||||||
Total fair value of liabilities assumed | $ | 176.4 | ||||||
Less: Cash and restricted cash acquired (3)
|
(1.5) | |||||||
Payments for acquired businesses, net of cash acquired | $ | 537.9 |
In millions, except per share data | Nine Months Ended September 30, 2019 | ||||||||||||||||||||||
Net sales | $ | 1,007.2 | |||||||||||||||||||||
Income (loss) before income taxes | 205.7 | ||||||||||||||||||||||
Diluted earnings (loss) per share | $ | 3.92 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
In millions | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Legal and professional service fees | $ | — | $ | 1.3 | $ | 1.7 | $ | 12.2 | |||||||||||||||
Loss on hedging purchase price | — | — | — | 12.7 | |||||||||||||||||||
Acquisition-related costs | $ | — | $ | 1.3 | $ | 1.7 | $ | 24.9 | |||||||||||||||
Inventory fair value step-up amortization (1)
|
— | — | — | 8.4 | |||||||||||||||||||
Acquisition and other-related costs | $ | — | $ | 1.3 | $ | 1.7 | $ | 33.3 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
In millions | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Automotive Technologies product line | $ | 136.9 | $ | 120.5 | $ | 324.5 | $ | 334.1 | |||||||||||||||
Process Purification product line | 6.9 | 9.7 | 24.8 | 28.3 | |||||||||||||||||||
Performance Materials segment | $ | 143.8 | $ | 130.2 | $ | 349.3 | $ | 362.4 | |||||||||||||||
Oilfield Technologies product line | 14.0 | 27.6 | 58.4 | 86.5 | |||||||||||||||||||
Pavement Technologies product line | 72.5 | 69.8 | 157.1 | 152.9 | |||||||||||||||||||
Industrial Specialties product line | 76.1 | 99.9 | 232.5 | 296.8 | |||||||||||||||||||
Engineered Polymers product line(1)
|
25.3 | 32.4 | 93.2 | 90.9 | |||||||||||||||||||
Performance Chemicals segment | $ | 187.9 | $ | 229.7 | $ | 541.2 | $ | 627.1 | |||||||||||||||
Net sales | $ | 331.7 | $ | 359.9 | $ | 890.5 | $ | 989.5 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
In millions | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
North America | $ | 191.9 | $ | 224.9 | $ | 510.3 | $ | 623.8 | |||||||||||||||
Asia Pacific | 89.9 | 76.8 | 240.4 | 193.7 | |||||||||||||||||||
Europe, Middle East and Africa | 45.5 | 51.6 | 126.0 | 155.4 | |||||||||||||||||||
South America | 4.4 | 6.6 | 13.8 | 16.6 | |||||||||||||||||||
Net sales | $ | 331.7 | $ | 359.9 | $ | 890.5 | $ | 989.5 |
Contract Asset(1)
September 30,
|
|||||||||||||||||
In millions | 2020 | 2019 | |||||||||||||||
Beginning balance | $ | 6.2 | $ | 5.1 | |||||||||||||
Contract asset additions | 13.5 | 11.8 | |||||||||||||||
Reclassification to accounts receivable, billed to customers | (12.9) | (10.0) | |||||||||||||||
Ending balance | $ | 6.8 | $ | 6.9 |
In millions |
Level 1(1)
|
Level 2(2)
|
Level 3(3)
|
Total | |||||||||||||||||||
September 30, 2020 | |||||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Equity securities (4)
|
$ | 0.1 | $ | — | $ | — | $ | 0.1 | |||||||||||||||
Deferred compensation plan investments (5)
|
2.3 | — | — | 2.3 | |||||||||||||||||||
Total assets | $ | 2.4 | $ | — | $ | — | $ | 2.4 | |||||||||||||||
Liabilities: | |||||||||||||||||||||||
Deferred compensation arrangement (5)
|
$ | 10.4 | $ | — | $ | — | $ | 10.4 | |||||||||||||||
Contingent consideration (7)
|
— | — | 1.1 | 1.1 | |||||||||||||||||||
Total liabilities | $ | 10.4 | $ | — | $ | 1.1 | $ | 11.5 | |||||||||||||||
December 31, 2019 | |||||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Equity securities (4)
|
$ | 0.4 | $ | — | $ | — | $ | 0.4 | |||||||||||||||
Deferred compensation plan investments (5)
|
1.4 | — | — | 1.4 | |||||||||||||||||||
Total assets | $ | 1.8 | $ | — | $ | — | $ | 1.8 | |||||||||||||||
Liabilities: | |||||||||||||||||||||||
Deferred compensation arrangement (5)
|
$ | 10.0 | $ | — | $ | — | $ | 10.0 | |||||||||||||||
Separation-related reimbursement awards (6)
|
0.1 | — | — | 0.1 | |||||||||||||||||||
Total liabilities | $ | 10.1 | $ | — | $ | — | $ | 10.1 |
In millions | September 30, 2020 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Gains (Losses) (Period Ended September 30, 2020) | ||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||
Impairment of operating lease assets, net (1)
|
$ | — | $ | — | $ | — | $ | — | $ | (1.7) | |||||||||||||||||||
Total assets | $ | — | $ | — | $ | — | $ | — | $ | (1.7) |
September 30, 2020 | |||||||||||||||||||||||||||||||||||
In millions | AA+ | AA | A | A- | BBB+ | Total | |||||||||||||||||||||||||||||
HTM debt securities | $ | 13.5 | 10.7 | 24.2 | 13.4 | 10.4 | $ | 72.2 |
In millions | September 30, 2020 | December 31, 2019 | |||||||||
Raw materials | $ | 46.5 | $ | 42.6 | |||||||
Production materials, stores and supplies | 24.5 | 22.3 | |||||||||
Finished and in-process goods | 146.5 | 158.0 | |||||||||
Subtotal | 217.5 | 222.9 | |||||||||
Less: adjustment of inventories to LIFO basis | (13.5) | (10.4) | |||||||||
Inventories, net | $ | 204.0 | $ | 212.5 |
In millions | September 30, 2020 | December 31, 2019 | |||||||||
Machinery and equipment | $ | 1,008.8 | $ | 964.3 | |||||||
Buildings and leasehold improvements | 159.8 | 116.9 | |||||||||
Land and land improvements | 19.5 | 19.0 | |||||||||
Construction in progress | 83.8 | 119.1 | |||||||||
Total cost | 1,271.9 | 1,219.3 | |||||||||
Less: accumulated depreciation | (586.6) | (554.6) | |||||||||
Property, plant and equipment, net (1)
|
$ | 685.3 | $ | 664.7 |
Reporting Units | |||||||||||||||||
In millions | Performance Chemicals | Performance Materials | Total | ||||||||||||||
December 31, 2019 | $ | 432.1 | $ | 4.3 | $ | 436.4 | |||||||||||
Foreign currency translation | (8.6) | — | (8.6) | ||||||||||||||
September 30, 2020 | $ | 423.5 | $ | 4.3 | $ | 427.8 |
September 30, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||||
In millions | Gross | Accumulated amortization | Net | Gross | Accumulated amortization | Net | |||||||||||||||||||||||||||||
Intangible assets subject to amortization | |||||||||||||||||||||||||||||||||||
Customer contracts and relationships | $ | 310.2 | $ | 67.3 | $ | 242.9 | $ | 314.5 | $ | 51.6 | $ | 262.9 | |||||||||||||||||||||||
Brands (1)
|
78.5 | 14.4 | 64.1 | 80.3 | 11.1 | 69.2 | |||||||||||||||||||||||||||||
Developed technology | 69.2 | 10.2 | 59.0 | 68.6 | 5.7 | 62.9 | |||||||||||||||||||||||||||||
Other | 2.7 | 2.2 | 0.5 | 2.7 | 1.5 | 1.2 | |||||||||||||||||||||||||||||
Total Other intangibles, net | $ | 460.6 | $ | 94.1 | $ | 366.5 | $ | 466.1 | $ | 69.9 | $ | 396.2 |
In millions | September 30, 2020 | December 31, 2019 | |||||||||
Performance Chemicals | $ | 364.3 | $ | 396.2 | |||||||
Performance Materials | 2.2 | — | |||||||||
Total Other intangibles, net | $ | 366.5 | $ | 396.2 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
In millions | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Cost of sales | $ | — | $ | 0.2 | $ | 0.1 | $ | 0.5 | |||||||||||||||
Selling, general and administrative expenses | 8.2 | 7.1 | 24.3 | 19.7 | |||||||||||||||||||
Total amortization expense(1)
|
$ | 8.2 | $ | 7.3 | $ | 24.4 | $ | 20.2 |
In millions | Amount of Gain (Loss) Recognized in AOCI | Amount of Gain (Loss) Reclassified from AOCI into Net income | Location of Gain (Loss) Reclassified from AOCI in Net income | ||||||||||||||||||||||||||
Three Months Ended September 30, | |||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||
Cash flow hedging derivatives | |||||||||||||||||||||||||||||
Currency exchange contracts | $ | (0.3) | $ | — | $ | (0.2) | $ | — | Net sales | ||||||||||||||||||||
Natural gas contracts | 0.4 | (0.2) | (0.3) | — | Cost of sales | ||||||||||||||||||||||||
Interest rate swap contracts | 0.8 | (0.9) | — | — | Interest expense, net | ||||||||||||||||||||||||
Total | $ | 0.9 | $ | (1.1) | $ | (0.5) | $ | — | |||||||||||||||||||||
Amount of Gain (Loss) Recognized in AOCI |
Amount of Gain (Loss) Recognized in Income on Derivative
(Amount Excluded from Effectiveness Testing) |
Location of Gain or (Loss) Recognized in Income on Derivative
(Amount Excluded from Effectiveness Testing) |
|||||||||||||||||||||||||||
Three Months Ended September 30, | |||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||
Net investment hedging derivative | |||||||||||||||||||||||||||||
Currency exchange contracts(1)
|
$ | (8.1) | $ | 6.9 | $ | 0.2 | $ | 0.9 | Interest expense, net | ||||||||||||||||||||
Total | $ | (8.1) | $ | 6.9 | $ | 0.2 | $ | 0.9 | |||||||||||||||||||||
In millions | Amount of Gain (Loss) Recognized in AOCI | Amount of Gain (Loss) Reclassified from AOCI into Net income | Location of Gain (Loss) Reclassified from AOCI in Net income | ||||||||||||||||||||||||||
Nine Months Ended September 30, | |||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||
Cash flow hedging derivatives | |||||||||||||||||||||||||||||
Currency exchange contracts | $ | (0.1) | $ | — | $ | — | $ | — | Net sales | ||||||||||||||||||||
Natural gas contracts | (0.1) | (0.7) | (0.9) | 0.6 | Cost of sales | ||||||||||||||||||||||||
Interest rate swap contracts | (5.7) | (5.0) | — | — | Interest expense, net | ||||||||||||||||||||||||
Total | $ | (5.9) | $ | (5.7) | $ | (0.9) | $ | 0.6 | |||||||||||||||||||||
Amount of Gain (Loss) Recognized in AOCI |
Amount of Gain (Loss) Recognized in Income on Derivative
(Amount Excluded from Effectiveness Testing) |
Location of Gain or (Loss) Recognized in Income on Derivative
(Amount Excluded from Effectiveness Testing) |
|||||||||||||||||||||||||||
Nine Months Ended September 30, | |||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||
Net investment hedging derivative | |||||||||||||||||||||||||||||
Currency exchange contracts(1)
|
$ | (3.5) | $ | 6.6 | $ | 1.5 | $ | 1.5 | Interest expense, net | ||||||||||||||||||||
Total | $ | (3.5) | $ | 6.6 | $ | 1.5 | $ | 1.5 |
In millions |
Level 1(1)
|
Level 2(2)
|
Level 3(3)
|
Total | |||||||||||||||||||
September 30, 2020 | |||||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Natural gas contracts (4)
|
— | 0.3 | — | 0.3 | |||||||||||||||||||
Net investment hedge (5)
|
— | 1.0 | — | 1.0 | |||||||||||||||||||
Total assets | $ | — | $ | 1.3 | $ | — | $ | 1.3 | |||||||||||||||
Liabilities: | |||||||||||||||||||||||
Currency exchange contracts(6)
|
— | 0.1 | — | 0.1 | |||||||||||||||||||
Net investment hedge (7)
|
— | 1.4 | — | 1.4 | |||||||||||||||||||
Interest rate swap contracts (7)
|
— | 9.6 | — | 9.6 | |||||||||||||||||||
Total liabilities | $ | — | $ | 11.1 | $ | — | $ | 11.1 |
In millions |
Level 1(1)
|
Level 2(2)
|
Level 3(3)
|
Total | |||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Net investment hedge (5)
|
$ | — | $ | 3.0 | $ | — | $ | 3.0 | |||||||||||||||
Total assets | $ | — | $ | 3.0 | $ | — | $ | 3.0 | |||||||||||||||
Liabilities: | |||||||||||||||||||||||
Natural gas contracts (6)
|
$ | — | $ | 0.5 | $ | — | $ | 0.5 | |||||||||||||||
Interest rate swap contracts (7)
|
— | 3.9 | — | 3.9 | |||||||||||||||||||
Total liabilities | $ | — | $ | 4.4 | $ | — | $ | 4.4 |
September 30, 2020 | |||||||||||||||||||||||
In millions, except percentages | Interest rate | Maturity date | September 30, 2020 | December 31, 2019 | |||||||||||||||||||
Revolving Credit Facility (1)
|
1.65% | 2023 | $ | 170.0 | $ | 131.3 | |||||||||||||||||
Term Loans | 1.44% | 2022-2023 | 726.6 | 740.6 | |||||||||||||||||||
Senior Notes | 4.50% | 2026 | 300.0 | 300.0 | |||||||||||||||||||
Finance lease obligations (2)
|
7.16% | 2027-2035 | 103.3 | 80.0 | |||||||||||||||||||
Other | 4.77% | 2020-2021 | 5.2 | 5.9 | |||||||||||||||||||
Total debt including finance lease obligations | 1,305.1 | 1,257.8 | |||||||||||||||||||||
Less: debt issuance costs | 5.7 | 6.9 | |||||||||||||||||||||
Total debt, including finance lease obligations, net of debt issuance costs | 1,299.4 | 1,250.9 | |||||||||||||||||||||
Less: debt maturing within one year (3)
|
22.4 | 22.5 | |||||||||||||||||||||
Long-term debt including finance lease obligations | $ | 1,277.0 | $ | 1,228.4 |
Common Stock | |||||||||||||||||||||||||||||||||||||||||||||||
In millions, except per share data in thousands | Shares | Amount | Additional paid in capital | Retained earnings |
Accumulated
other comprehensive income (loss) |
Treasury stock | Total Equity | ||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | 42,675 | $ | 0.4 | $ | 112.8 | $ | 497.2 | $ | (5.0) | $ | (74.6) | $ | 530.8 | ||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | 45.3 | — | — | 45.3 | ||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | (39.1) | — | (39.1) | ||||||||||||||||||||||||||||||||||||||||
Common stock issued | 161 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Tax payments related to vested restricted stock units | — | — | — | — | — | (3.1) | (3.1) | ||||||||||||||||||||||||||||||||||||||||
Share repurchase program | — | — | — | — | — | (32.4) | (32.4) | ||||||||||||||||||||||||||||||||||||||||
Share-based compensation plans | — | — | 0.8 | — | — | 0.4 | 1.2 | ||||||||||||||||||||||||||||||||||||||||
Adoption of accounting standard | — | — | — | (0.6) | — | — | (0.6) | ||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2020 | 42,836 | $ | 0.4 | $ | 113.6 | $ | 541.9 | $ | (44.1) | $ | (109.7) | $ | 502.1 | ||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | 20.2 | — | — | 20.2 | ||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | (4.1) | — | (4.1) | ||||||||||||||||||||||||||||||||||||||||
Common stock issued | 5 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Exercise of stock options, net | 50 | — | 1.4 | — | — | — | 1.4 | ||||||||||||||||||||||||||||||||||||||||
Tax payments related to vested restricted stock units | — | — | — | — | — | 0.1 | 0.1 | ||||||||||||||||||||||||||||||||||||||||
Share-based compensation plans | — | — | 1.3 | — | — | 1.9 | 3.2 | ||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2020 | 42,891 | $ | 0.4 | $ | 116.3 | $ | 562.1 | $ | (48.2) | $ | (107.7) | $ | 522.9 | ||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | 69.9 | — | — | 69.9 | ||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | 22.6 | — | 22.6 | ||||||||||||||||||||||||||||||||||||||||
Common stock issued | 3 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Exercise of stock options, net | 1 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Tax payments related to vested restricted stock units | — | — | — | — | — | (0.1) | (0.1) | ||||||||||||||||||||||||||||||||||||||||
Share-based compensation plans | — | — | 0.5 | — | — | 1.2 | 1.7 | ||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2020 | 42,895 | $ | 0.4 | $ | 116.8 | $ | 632.0 | $ | (25.6) | $ | (106.6) | $ | 617.0 |
Common Stock | |||||||||||||||||||||||||||||||||||||||||||||||
In millions, except per share data in thousands | Shares | Amount | Additional paid in capital | Retained earnings |
Accumulated
other comprehensive income (loss) |
Treasury stock | Total Equity | ||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2018 | 42,332 | $ | 0.4 | $ | 98.3 | $ | 313.5 | $ | (17.7) | $ | (55.8) | $ | 338.7 | ||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | 22.7 | — | — | 22.7 | ||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | 9.1 | — | 9.1 | ||||||||||||||||||||||||||||||||||||||||
Common stock issued | 276 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Exercise of stock options, net | 51 | — | 1.4 | — | — | — | 1.4 | ||||||||||||||||||||||||||||||||||||||||
Tax payments related to vested restricted stock units | — | — | — | — | — | (14.3) | (14.3) | ||||||||||||||||||||||||||||||||||||||||
Share repurchase program | — | — | — | — | — | (3.3) | (3.3) | ||||||||||||||||||||||||||||||||||||||||
Share-based compensation plans | — | — | 4.1 | — | — | 0.3 | 4.4 | ||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2019 | 42,659 | $ | 0.4 | $ | 103.8 | $ | 336.2 | $ | (8.6) | $ | (73.1) | $ | 358.7 | ||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | 56.8 | — | — | 56.8 | ||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | (19.4) | — | (19.4) | ||||||||||||||||||||||||||||||||||||||||
Common stock issued | 5 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Exercise of stock options, net | 6 | — | 0.2 | — | — | — | 0.2 | ||||||||||||||||||||||||||||||||||||||||
Share-based compensation plans | — | — | 3.5 | — | — | 0.9 | 4.4 | ||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2019 | 42,670 | $ | 0.4 | $ | 107.5 | $ | 393.0 | $ | (28.0) | $ | (72.2) | $ | 400.7 | ||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | 59.9 | — | — | 59.9 | ||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | (18.5) | — | (18.5) | ||||||||||||||||||||||||||||||||||||||||
Exercise of stock options, net | 2 | — | 0.1 | — | — | — | 0.1 | ||||||||||||||||||||||||||||||||||||||||
Share repurchase program | — | — | — | — | — | (3.1) | (3.1) | ||||||||||||||||||||||||||||||||||||||||
Share-based compensation plans | — | — | 3.8 | — | — | 0.4 | 4.2 | ||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2019 | 42,672 | $ | 0.4 | $ | 111.4 | $ | 452.9 | $ | (46.5) | $ | (74.9) | $ | 443.3 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
In millions | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Foreign currency translation | |||||||||||||||||||||||
Beginning balance | $ | (36.8) | $ | (22.7) | $ | 1.5 | $ | (16.4) | |||||||||||||||
Gains (losses) on foreign currency translation | 27.6 | (22.9) | (14.2) | (29.0) | |||||||||||||||||||
Less: tax provision (benefit) | — | — | — | — | |||||||||||||||||||
Net gains (losses) on foreign currency translation | 27.6 | (22.9) | (14.2) | (29.0) | |||||||||||||||||||
Gains (losses) on net investment hedges | (8.1) | 6.9 | (3.5) | 6.6 | |||||||||||||||||||
Less: tax provision (benefit) | (1.9) | 1.6 | (0.8) | 1.5 | |||||||||||||||||||
Net gains (losses) on net investment hedges | (6.2) | 5.3 | (2.7) | 5.1 | |||||||||||||||||||
Other comprehensive income (loss), net of tax | 21.4 | (17.6) | (16.9) | (23.9) | |||||||||||||||||||
Ending balance | $ | (15.4) | $ | (40.3) | $ | (15.4) | $ | (40.3) | |||||||||||||||
Derivative Instruments | |||||||||||||||||||||||
Beginning balance | $ | (8.4) | $ | (3.6) | $ | (3.5) | $ | 0.4 | |||||||||||||||
Gains (losses) on derivative instruments | 0.9 | (1.1) | (5.9) | (5.7) | |||||||||||||||||||
Less: tax provision (benefit) | 0.2 | (0.2) | (1.4) | (1.3) | |||||||||||||||||||
Net gains (losses) on derivative instruments | 0.7 | (0.9) | (4.5) | (4.4) | |||||||||||||||||||
(Gains) losses reclassified to net income | 0.5 | — | 0.9 | (0.6) | |||||||||||||||||||
Less: tax (provision) benefit | 0.1 | — | 0.2 | (0.1) | |||||||||||||||||||
Net (gains) losses reclassified to net income | 0.4 | — | 0.7 | (0.5) | |||||||||||||||||||
Other comprehensive income (loss), net of tax | 1.1 | (0.9) | (3.8) | (4.9) | |||||||||||||||||||
Ending balance | $ | (7.3) | $ | (4.5) | $ | (7.3) | $ | (4.5) | |||||||||||||||
Pension and other postretirement benefits | |||||||||||||||||||||||
Beginning balance | $ | (3.0) | $ | (1.7) | $ | (3.0) | $ | (1.7) | |||||||||||||||
Unrealized actuarial gains (losses) and prior service (costs) credits | — | — | — | — | |||||||||||||||||||
Less: tax provision (benefit) | — | — | — | — | |||||||||||||||||||
Net actuarial gains (losses) and prior service (costs) credits | — | — | — | — | |||||||||||||||||||
Actuarial and other (gains) losses, amortization of prior service cost (credits), and settlement and curtailment (income) charge reclassified to net income | 0.1 | — | 0.1 | — | |||||||||||||||||||
Less: tax (provision) benefit | — | — | — | — | |||||||||||||||||||
Net actuarial and other (gains) losses, amortization of prior service cost (credits), and settlement and curtailment (income) charge reclassified to net income | 0.1 | — | 0.1 | — | |||||||||||||||||||
Other comprehensive income (loss), net of tax | 0.1 | — | 0.1 | — | |||||||||||||||||||
Ending balance | $ | (2.9) | $ | (1.7) | $ | (2.9) | $ | (1.7) | |||||||||||||||
Total AOCI ending balance at September 30 | $ | (25.6) | $ | (46.5) | $ | (25.6) | $ | (46.5) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
In millions | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Derivative instruments | |||||||||||||||||||||||
Currency exchange contracts (1)
|
$ | (0.2) | $ | — | $ | — | $ | — | |||||||||||||||
Natural gas contracts (2)
|
(0.3) | — | (0.9) | 0.6 | |||||||||||||||||||
Total before tax | (0.5) | — | (0.9) | 0.6 | |||||||||||||||||||
(Provision) benefit for income taxes | 0.1 | — | 0.2 | (0.1) | |||||||||||||||||||
Amount included in net income (loss) | $ | (0.4) | $ | — | $ | (0.7) | $ | 0.5 | |||||||||||||||
Pension and other post retirement benefits | |||||||||||||||||||||||
Amortization of prior service costs (2)
|
$ | (0.1) | $ | — | $ | (0.1) | $ | — | |||||||||||||||
Amortization of unrecognized net actuarial and other gains (losses)(3)
|
— | — | — | — | |||||||||||||||||||
Total before tax | (0.1) | — | (0.1) | — | |||||||||||||||||||
(Provision) benefit for income taxes | — | — | — | — | |||||||||||||||||||
Amount included in net income (loss) | $ | (0.1) | $ | — | $ | (0.1) | $ | — |
Three Months Ended September 30, | |||||||||||||||||||||||
Pensions | Other Benefits | ||||||||||||||||||||||
In millions | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Components of net periodic benefit cost (income): | |||||||||||||||||||||||
Service cost (1)
|
$ | 0.4 | $ | 0.2 | $ | — | $ | — | |||||||||||||||
Interest cost (2)
|
0.3 | 0.3 | — | — | |||||||||||||||||||
Expected return on plan assets (2)
|
(0.3) | (0.2) | — | — | |||||||||||||||||||
Amortization of prior service cost (credit) (1)
|
0.1 | — | — | — | |||||||||||||||||||
Amortization of net actuarial and other (gain) loss (2)
|
— | — | — | — | |||||||||||||||||||
Net periodic benefit cost (income) | $ | 0.5 | $ | 0.3 | $ | — | $ | — | |||||||||||||||
Nine Months Ended September 30, | |||||||||||||||||||||||
Pensions | Other Benefits | ||||||||||||||||||||||
In millions | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Components of net periodic benefit cost (income): | |||||||||||||||||||||||
Service cost (1)
|
$ | 1.2 | $ | 0.9 | $ | — | $ | — | |||||||||||||||
Interest cost (2)
|
0.9 | 0.8 | — | — | |||||||||||||||||||
Expected return on plan assets (2)
|
(0.9) | (0.7) | — | — | |||||||||||||||||||
Amortization of prior service cost (credit) (1)
|
0.1 | — | — | — | |||||||||||||||||||
Amortization of net actuarial and other (gain) loss (2)
|
— | — | — | — | |||||||||||||||||||
Net periodic benefit cost (income) | $ | 1.3 | $ | 1.0 | $ | — | $ | — |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
In millions | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Gain on sale of assets and businesses | $ | — | $ | — | $ | — | $ | (0.4) | |||||||||||||||
Severance and other employee-related costs | 0.3 | 1.7 | 6.3 | 1.7 | |||||||||||||||||||
Other | 1.7 | — | 1.7 | 0.7 | |||||||||||||||||||
Restructuring charges | 2.0 | 1.7 | 8.0 | 2.0 | |||||||||||||||||||
Business transformation costs | 3.5 | — | 5.3 | — | |||||||||||||||||||
Other | — | — | — | — | |||||||||||||||||||
Other (income) charges, net | 3.5 | — | 5.3 | — | |||||||||||||||||||
Total restructuring and other (income) charges, net | $ | 5.5 | $ | 1.7 | $ | 13.3 | $ | 2.0 |
Balance at | Change in | Cash | Balance at | ||||||||||||||||||||||||||
In millions |
12/31/2019(1)
|
Reserve(2)
|
Payments | Other |
9/30/2020(1)
|
||||||||||||||||||||||||
Restructuring Reserves | $ | 0.4 | 6.3 | (6.0) | — | $ | 0.7 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Effective tax rate | 20.7 | % | 22.6 | % | 19.7 | % | 19.3 | % |
Three Months Ended September 30, | |||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||
In millions, except percentages | Before tax | Tax | Effective tax rate % impact | Before tax | Tax | Effective tax rate % impact | |||||||||||||||||
Consolidated operations | $ | 88.1 | $ | 18.2 | 20.7 | % | $ | 77.4 | $ | 17.5 | 22.6 | % | |||||||||||
Discrete items: | |||||||||||||||||||||||
Restructuring and other (income) charges, net(1)
|
2.0 | 0.3 | 1.7 | 0.4 | |||||||||||||||||||
Acquisition and other-related costs (2)
|
— | — | 1.3 | 0.4 | |||||||||||||||||||
Other tax only discrete items
|
— | (0.2) | — | (0.1) | |||||||||||||||||||
Total discrete items | 2.0 | 0.1 | 3.0 | 0.7 | |||||||||||||||||||
Consolidated operations, before discrete items | $ | 90.1 | $ | 18.3 | $ | 80.4 | $ | 18.2 | |||||||||||||||
Quarterly effect of changes in the EAETR | 20.3 | % | 22.6 | % | |||||||||||||||||||
Nine Months Ended September 30, | |||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||
In millions, except percentages | Before tax | Tax | Effective tax rate % impact | Before tax | Tax | Effective tax rate % impact | |||||||||||||||||
Consolidated operations | $ | 168.7 | $ | 33.3 | 19.7 | % | $ | 172.8 | $ | 33.4 | 19.3 | % | |||||||||||
Discrete items: | |||||||||||||||||||||||
Restructuring and other (income) charges, net(1)
|
8.0 | 1.7 | 2.0 | 0.4 | |||||||||||||||||||
Acquisition and other-related costs (2)
|
1.7 | 0.4 | 33.3 | 6.0 | |||||||||||||||||||
Other tax only discrete items | — | 1.0 | — | 6.7 | |||||||||||||||||||
Total discrete items | 9.7 | 3.1 | 35.3 | 13.1 | |||||||||||||||||||
Consolidated operations, before discrete items | $ | 178.4 | $ | 36.4 | $ | 208.1 | $ | 46.5 | |||||||||||||||
EAETR (3)
|
20.4 | % | 22.3 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
In millions | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Net sales | |||||||||||||||||||||||
Performance Materials | $ | 143.8 | $ | 130.2 | $ | 349.3 | $ | 362.4 | |||||||||||||||
Performance Chemicals | 187.9 | 229.7 | 541.2 | 627.1 | |||||||||||||||||||
Total net sales (1)
|
$ | 331.7 | $ | 359.9 | $ | 890.5 | $ | 989.5 | |||||||||||||||
Segment EBITDA (2)
|
|||||||||||||||||||||||
Performance Materials | $ | 80.4 | $ | 54.2 | $ | 164.9 | $ | 154.7 | |||||||||||||||
Performance Chemicals | 47.2 | 59.8 | 122.1 | 151.1 | |||||||||||||||||||
Total segment EBITDA (2)
|
$ | 127.6 | $ | 114.0 | $ | 287.0 | $ | 305.8 | |||||||||||||||
Interest expense, net | (8.9) | (12.1) | (29.8) | (36.3) | |||||||||||||||||||
(Provision) benefit for income taxes | (18.2) | (17.5) | (33.3) | (33.4) | |||||||||||||||||||
Depreciation and amortization - Performance Materials | (8.0) | (6.0) | (22.5) | (17.6) | |||||||||||||||||||
Depreciation and amortization - Performance Chemicals | (17.1) | (15.5) | (51.0) | (43.8) | |||||||||||||||||||
Restructuring and other income (charges), net (3)
|
(5.5) | (1.7) | (13.3) | (2.0) | |||||||||||||||||||
Acquisition and other-related costs (4)
|
— | (1.3) | (1.7) | (33.3) | |||||||||||||||||||
Net income (loss) | $ | 69.9 | $ | 59.9 | $ | 135.4 | $ | 139.4 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
In millions, except share and per share data | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Net income (loss) | $ | 69.9 | $ | 59.9 | $ | 135.4 | $ | 139.4 | |||||||||||||||
Basic and Diluted earnings (loss) per share | |||||||||||||||||||||||
Basic earnings (loss) per share | $ | 1.69 | $ | 1.42 | $ | 3.27 | $ | 3.33 | |||||||||||||||
Diluted earnings (loss) per share | 1.69 | 1.41 | 3.26 | 3.30 | |||||||||||||||||||
Shares (in thousands)
|
|||||||||||||||||||||||
Weighted average number of common shares outstanding - Basic | 41,276 | 42,299 | 41,400 | 41,793 | |||||||||||||||||||
Weighted average additional shares assuming conversion of potential common shares | 175 | 344 | 179 | 408 | |||||||||||||||||||
Shares - diluted basis | 41,451 | 42,643 | 41,579 | 42,201 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
In thousands | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Average number of potential common shares - antidilutive | 173 | 118 | 205 | 103 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
In millions | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Net sales | $ | 331.7 | $ | 359.9 | $ | 890.5 | $ | 989.5 | |||||||||||||||
Cost of sales | 192.1 | 220.4 | 552.4 | 618.5 | |||||||||||||||||||
Gross profit | 139.6 | 139.5 | 338.1 | 371.0 | |||||||||||||||||||
Selling, general and administrative expenses | 34.9 | 40.7 | 107.9 | 122.3 | |||||||||||||||||||
Research and technical expenses | 5.2 | 4.9 | 16.8 | 15.0 | |||||||||||||||||||
Restructuring and other (income) charges, net | 5.5 | 1.7 | 13.3 | 2.0 | |||||||||||||||||||
Acquisition-related costs | — | 1.3 | 1.7 | 24.9 | |||||||||||||||||||
Other (income) expense, net | (3.0) | 1.4 | (0.1) | (2.3) | |||||||||||||||||||
Interest expense, net | 8.9 | 12.1 | 29.8 | 36.3 | |||||||||||||||||||
Income (loss) before income taxes | 88.1 | 77.4 | 168.7 | 172.8 | |||||||||||||||||||
Provision (benefit) for income taxes | 18.2 | 17.5 | 33.3 | 33.4 | |||||||||||||||||||
Net income (loss) | $ | 69.9 | $ | 59.9 | $ | 135.4 | $ | 139.4 | |||||||||||||||
Percentage change vs. prior year | |||||||||||||||||||||||||||||
In millions, except percentages | Net sales | Total change |
Currency
effect |
Price/Mix | Volume | ||||||||||||||||||||||||
Three months ended September 30, 2020 | $ | 331.7 | (8)% | —% | 2% | (10)% | |||||||||||||||||||||||
Nine months ended September 30, 2020 | $ | 890.5 | (10)% | —% | 1% | (11)% |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
In millions | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Foreign currency exchange (income) loss | $ | (3.0) | $ | 1.6 | $ | (2.4) | $ | (1.0) | |||||||||||||||
Royalty and sundry (income) loss | (0.1) | (0.1) | (0.3) | (0.3) | |||||||||||||||||||
Impairment of equity investment (1)
|
— | — | 1.4 | — | |||||||||||||||||||
Other (income) expense, net | 0.1 | (0.1) | 1.2 | (1.0) | |||||||||||||||||||
Total Other (income) expense, net | $ | (3.0) | $ | 1.4 | $ | (0.1) | $ | (2.3) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
In millions | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Interest expense on finance lease obligations | $ | 1.9 | $ | 1.5 | 4.9 | 4.6 | |||||||||||||||||
Interest expense on revolving credit and term loan facilities(1)
|
4.5 | 9.5 | 18.3 | 27.0 | |||||||||||||||||||
Interest expense on senior notes(1)
|
3.5 | 3.8 | 10.7 | 10.9 | |||||||||||||||||||
Interest income associated with our Restricted investment | (0.5) | (0.5) | (1.5) | (1.5) | |||||||||||||||||||
Capitalized interest | (0.2) | (0.5) | (0.6) | (1.3) | |||||||||||||||||||
Fixed-to-fixed cross-currency interest rate swap(2)
|
(0.2) | (0.9) | (1.5) | (1.5) | |||||||||||||||||||
Other interest (income) expense, net | (0.1) | (0.8) | (0.5) | (1.9) | |||||||||||||||||||
Total Interest expense, net | $ | 8.9 | $ | 12.1 | $ | 29.8 | $ | 36.3 |
In millions | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Automotive Technologies product line | $ | 136.9 | $ | 120.5 | $ | 324.5 | $ | 334.1 | |||||||||||||||
Process Purification product line | 6.9 | 9.7 | 24.8 | 28.3 | |||||||||||||||||||
Total Performance Materials - Net sales | $ | 143.8 | $ | 130.2 | $ | 349.3 | $ | 362.4 | |||||||||||||||
Segment EBITDA | $ | 80.4 | $ | 54.2 | $ | 164.9 | $ | 154.7 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
In millions | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Oilfield Technologies product line | $ | 14.0 | $ | 27.6 | $ | 58.4 | $ | 86.5 | |||||||||||||||
Pavement Technologies product line | 72.5 | 69.8 | 157.1 | 152.9 | |||||||||||||||||||
Industrial Specialties product line | 76.1 | 99.9 | 232.5 | 296.8 | |||||||||||||||||||
Engineered Polymers product line | 25.3 | 32.4 | 93.2 | 90.9 | |||||||||||||||||||
Total Performance Chemicals - Net sales | $ | 187.9 | $ | 229.7 | $ | 541.2 | $ | 627.1 | |||||||||||||||
Segment EBITDA | $ | 47.2 | $ | 59.8 | $ | 122.1 | $ | 151.1 |
Percentage change vs. prior year | |||||||||||||||||||||||||||||||||||
Performance Chemicals (In millions, except percentages)
|
Net sales | Total change |
Currency
effect |
Price/Mix | Volume | ||||||||||||||||||||||||||||||
Three months ended September 30, 2020 | $ | 187.9 | (18) | % | — | % | 1 | % | (19) | % | |||||||||||||||||||||||||
Nine months ended September 30, 2020 | $ | 541.2 | (14) | % | (1) | % | — | % | (13) | % |
Nine Months Ended September 30, | |||||||||||||||||||||||
In millions | 2020 |
2019
Pro Forma |
|||||||||||||||||||||
Oilfield Technologies product line | $ | 58.4 | $ | 86.5 | |||||||||||||||||||
Pavement Technologies product line | 157.1 | 152.9 | |||||||||||||||||||||
Industrial Specialties product line | 232.5 | 296.8 | |||||||||||||||||||||
Engineered Polymers product line | 93.2 | 108.6 | |||||||||||||||||||||
Net Sales - Performance Chemicals | $ | 541.2 | $ | 644.8 |
Percentage change vs. prior year | |||||||||||||||||||||||||||||||||||
Performance Chemicals (In millions, except percentages)
|
Net sales | Total change |
Currency
effect |
Price/Mix | Volume | ||||||||||||||||||||||||||||||
Nine months ended September 30, 2020 | $ | 541.2 | (16) | % | — | % | — | % | (16) | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
In millions | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Legal and professional service fees | $ | — | $ | 1.3 | $ | 1.7 | $ | 12.2 | |||||||||||||||
Loss on hedging purchase price | — | — | — | 12.7 | |||||||||||||||||||
Acquisition-related costs | $ | — | $ | 1.3 | $ | 1.7 | $ | 24.9 | |||||||||||||||
Inventory fair value step-up amortization (i)
|
— | — | — | 8.4 | |||||||||||||||||||
Acquisition and other-related costs | $ | — | $ | 1.3 | $ | 1.7 | $ | 33.3 |
In millions | FY2020 Guidance | ||||
Net sales | $1,150 - $1,200 | ||||
Adjusted EBITDA | $355 - $365 | ||||
Operating Cash Flow | ~$260 | ||||
Capital Expenditures | ~$85 | ||||
Free Cash Flow* | ~$175 | ||||
*Calculated as Operating Cash Flow less Capital Expenditures |
Nine Months Ended September 30, | |||||||||||
In millions | 2020 | 2019 | |||||||||
Net cash provided by (used in) operating activities | $ | 199.1 | $ | 190.2 | |||||||
Net cash provided by (used in) investing activities | (78.4) | (622.4) | |||||||||
Net cash provided by (used in) financing activities | 14.8 | 433.6 |
In millions | September 30, 2020 | December 31, 2019 | |||||||||
Cash and cash equivalents | $ | 198.2 | $ | 56.5 | |||||||
Accounts receivable, net | 154.3 | 150.0 | |||||||||
Inventories, net | 204.0 | 212.5 | |||||||||
Prepaid and other current assets | 44.5 | 44.2 | |||||||||
Total current assets | $ | 601.0 | $ | 463.2 |
In millions | September 30, 2020 | December 31, 2019 | |||||||||
Accounts payable | $ | 84.8 | $ | 99.1 | |||||||
Accrued expenses | 36.0 | 33.3 | |||||||||
Accrued payroll and employee benefits | 16.0 | 28.2 | |||||||||
Current operating lease liabilities | 16.6 | 17.1 | |||||||||
Notes payable and current maturities of long-term debt | 22.4 | 22.5 | |||||||||
Income taxes payable | 3.1 | 15.3 | |||||||||
Total current liabilities | $ | 178.9 | $ | 215.5 |
Capital expenditure categories | Nine Months Ended September 30, | ||||||||||
In millions | 2020 | 2019 | |||||||||
Maintenance | $ | 31.8 | $ | 27.5 | |||||||
Safety, health and environment | 9.3 | 7.6 | |||||||||
Growth and cost improvement | 9.9 | 44.7 | |||||||||
Total capital expenditures | $ | 51.0 | $ | 79.8 |
Exhibit No. | Description of Exhibit | ||||
Second Amended and Restated Certificate of Incorporation of Ingevity Corporation (incorporated by reference to Exhibit 3.1 to Form 8-K (File No. 001-37586) filed April 25, 2019). | |||||
Amended and Restated Bylaws of Ingevity Corporation (incorporated by reference to Exhibit 3.2 to Form 8-K (File No. 001-37856) filed April 25, 2019). | |||||
Indenture, dated as of October 28, 2020, among Ingevity Corporation, the guarantors party thereto and U. S. Bank National Association, as trustee (incorporated by reference to Exhibit 4.1 to Form 8-K (File No. 001-37586) filed October 28, 2020).
|
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Incremental Facility Agreement and Amendment No. 5, by and among Ingevity Corporation, Ingevity Holdings SPRL, the other loan parties party thereto, the lenders party thereto and JPMorgan Chase Bank, N.A., as successor administrative agent and Wells Fargo Bank, N.A., as resigning administrative agent (incorporated by reference to Exhibit 10.1 to Form 8-K (File No. 001-37586) filed October 28, 2020). | |||||
Change in control and severance agreement between Ingevity Corporation and John C. Fortson dated August 21, 2020 (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K, as filed with the U.S. Securities and Exchange Commission on August 24,2020). | |||||
Change in control and severance agreement between Ingevity Corporation and Erik S. Ripple dated October 21, 2020. | |||||
Change in control and severance agreement between Ingevity Corporation and John Stephen Maurer dated October 20, 2020. | |||||
Rule 13a-14(a)/15d-14(a) Certification of the Company’s Principal Executive Officer and Principal Financial Officer. | |||||
Section 1350 Certification of the Company’s Principal Executive Officer and Principal Financial Officer. The information contained in this Exhibit shall not be deemed filed with the Securities and Exchange Commission nor incorporated by reference in any registration statement filed by the registrant under the Securities Act of 1933, as amended. | |||||
101 | Inline XBRL Instance Document and Related Items - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | ||||
104 | The cover page from the Company’s Quarterly Report on Form 10-Q formatted in Inline XBRL (included in Exhibit 101). |
INGEVITY CORPORATION | |||||
(Registrant) | |||||
By: | /S/ JOHN C. FORTSON | ||||
John C. Fortson | |||||
President and Chief Executive Officer | |||||
(Principal Executive Officer, Principal Financial Officer and Duly Authorized Officer) |
1 Year Ingevity Chart |
1 Month Ingevity Chart |
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