Innophos Holdings, Inc. Reports Third-Quarter 2019 Results

Published

CRANBURY, N.J.--(BUSINESS WIRE)-- Innophos Holdings, Inc. (NASDAQ: IPHS) today announced financial results for its third-quarter ended September 30, 2019.

Q3 2019 Highlights

  • Sales of $189 million up 2% sequentially but down 4% compared with prior-year quarter
  • GAAP Net Income of $6 million, or $0.32 per diluted share, down $8 million from Q3 2018
  • Adjusted diluted EPS of $0.45, down 24% year-on-year
  • EBITDA of $24 million, down $1 million, or 6% year-over-year
  • Adjusted EBITDA of $30 million, flat sequentially but down $3 million or 8% year-on-year; adjusted EBITDA margin of 16%, down 70 basis points compared with the prior year
  • Cash flows from operations of $8 million, down $18 million year-on-year
  • Free Cash outflow of $2 million, down $6 million year-on-year

Recent Developments

As announced on October 21, 2019, Innophos has entered into a definitive agreement to be acquired by an affiliate of One Rock Capital Partners, LLC, a leading middle-market private equity firm, in an all-cash transaction valued at $32.00 per share, or approximately $932 million, including the assumption of debt. Due to the pending transaction, Innophos will not host an earnings conference call, provide financial guidance or publish supplemental financial presentation slides. Innophos is also withdrawing its previously issued financial guidance for fiscal year 2019.

Q3 2019 Results

Variance $ and Variance % in the following tables and comments may not foot due to rounding

$ Millions except EPS

Quarter 3

2019

2018

Variance $

Variance %

Sales

189

197

(8)

(4)%

Net Income

6

14

(8)

(54)%

Adj. Net Income

9

12

(3)

(24)%

EBITDA

24

26

(1)

(6)%

Adj. EBITDA

30

32

(3)

(8)%

Diluted EPS

0.32

0.71

(0.38)

(54)%

Adj. Diluted EPS

0.45

0.58

(0.14)

(24)%

Cash from Ops

8

26

(18)

(69)%

Free Cash Flow

(2)

4

(6)

(141)%

  • Sales of $189 million were 4% below prior year as 1% selling price increases were offset by a 5% volume decline.
  • The Q3 2019 volume decline was affected by several factors, including discontinued low-margin nutrition trading business, a general weakening of demand and continued “indirect” tariff impacts.
  • GAAP Net Income of $6 million and diluted EPS of $0.32 were down versus the prior year primarily due to a $6 million one-off tax benefit for a partial reversal of tax reform in the prior year period and lower EBITDA.
  • During the quarter, the Geismar facility incurred operating issues related to the transition to the company’s new low-cost supply structure, which had a total impact of $6 million, $4 million of which was adjusted out of Q3 results and the remaining $2 million is expected to be adjusted out of Q4 results. The issue was rectified during the quarter and the Geismar plant has been operating at normal rates since mid-September.
  • Adjusted EBITDA margin of 16% was down 70 basis points year over year due to lower cost leverage from lower sales volumes. The Q3 Adjusted EBITDA was affected by the aforementioned operating issues, which resulted in the company not realizing any benefits from the value chain repositioning initiative in Q3 as planned.
  • Free Cash outflow of $2 million was down $6 million from the prior year period due primarily to payment of a one-off tax charge related to Dutch tax regulations enacted in Q2.

Q3 2019 Segment Financials

Q3 Sales

2019 $ Millions

2018 $ Millions

Variance $

Variance %

FHN

105

115

(10)

(9)%

IS

73

66

7

11%

Other

11

16

(5)

(32)%

Total IPHS

189

197

(8)

(4)%

Q3 Adj. EBITDA

2019 $ Millions

2018 $ Millions

2019 % Margin

2018 % Margin

FHN

18

17

17%

15%

IS

10

12

14%

18%

Other

1

3

10%

16%

Total IPHS

30

32

16%

16%

Note: See Adjusted EBITDA reconciliation to EBITDA in the financial tables that follow

  • FHN sales declined 9% year over year (price +3%, volume -11%) as price increases were offset by lower volumes due to the discontinuation of low-margin nutrition trading business and softer demand; adjusted EBITDA margins were up 201 basis points compared with Q3 2018 due to higher selling prices and improved sales mix.
  • IS sales were up 11% year over year (price +1%, volume +10%) due to higher acid sales and STPP volumes into Latin America that exceeded lower volume effects from “indirect” unfavorable tariff impacts on international sales; adjusted EBITDA margins were down 422 basis points versus a strong prior year quarter due to unfavorable sales mix.
  • Other sales were down 32% (price -8%, volume -24%) due to reduced co-product and low grade acid sales volumes; adjusted EBITDA margins were 10%.

Year-to-Date Quarter 3 Results

Variance $ and Variance % in the following tables and comments may not foot due to rounding

$ Millions except EPS

YTD Q3

2019

2018

Variance $

Variance %

Sales

566

609

(43)

(7)%

Net Income

17

31

(15)

(47)%

Adj. Net Income

29

35

(6)

(17)%

EBITDA

76

78

(2)

(2)%

Adj. EBITDA

90

95

(6)

(6)%

Diluted EPS

0.83

1.57

(0.74)

(47)%

Adj. Diluted EPS

1.45

1.74

(0.29)

(17)%

Cash from Ops

25

35

(10)

(27)%

Free Cash Flow

(1)

(12)

12

93%

Year-to-Date Quarter 3 Segment Financials

YTD Q3 Segment Sales

2019 $ Millions

2018 $ Millions

Variance $

Variance %

FHN

327

367

(40)

(11)%

IS

204

196

8

4%

Other

35

46

(11)

(24)%

Total IPHS

566

609

(43)

(7)%

YTD Q3 Segment Adj. EBITDA

2019 $ Millions

2018 $ Millions

2019 % Margin

2018 % Margin

FHN

57

56

18%

15%

IS

28

34

14%

17%

Other

4

5

11%

10%

Total IPHS

90

95

16%

16%

Note: See Adjusted EBITDA reconciliation to EBITDA in the financial tables that follow

About the Company

Innophos is a leading international producer of essential ingredients. We partner with world-leading health & nutrition, food & beverage and industrial brands to create science-based solutions that improve quality of life. Our knowledgeable teams apply science to unlock the potential that lies within the blends and formulations that we deliver. Forward thinking and people centric at heart, we execute with purpose and efficiency to create value in everything we do. Headquartered in Cranbury, New Jersey, Innophos has manufacturing operations across the United States, in Canada, Mexico and China. For more information, please visit www.innophos.com 'IPHS-G'

Financial Tables Follow

Discussion of Non-GAAP Financial Measures

The non-GAAP financial measures in this news release are utilized by management to compare Innophos’ operating performance on a consistent basis. Management believes that these financial measures enhance the overall understanding of the Company’s underlying operating performance trends compared with historical periods. Non-GAAP financial measures should not be considered as a substitute for financial information calculated in accordance with GAAP.

Net debt is a supplemental financial measure that is not required by, or presented in accordance with, US GAAP. The Company believes net debt is helpful in analyzing leverage and as a performance measure for purposes of presentation in this release. The Company defines net debt as total long-term debt (including any current portion) less cash and cash equivalents.

Free cash flow is a supplemental financial measure that is not required by, or presented in accordance with, US GAAP. The Company believes free cash flow is helpful in analyzing the cash flow generating capability of the business and as a performance measure for purposes of presentation in this release. The Company defines free cash flow as net cash provided from operating activities plus cash used for capital expenditures plus cash received from sale leaseback transactions.

EBITDA, adjusted EBITDA, adjusted net income and adjusted diluted EPS are supplemental financial measures that are not required by, or presented in accordance with, US GAAP. The Company believes EBITDA and adjusted EBITDA are helpful in analyzing the cash flow generating capability of the business and as performance measures for purposes of presentation in this release.

Net Working Capital is a supplemental financial measure that is not required by, or presented in accordance with, US GAAP. The Company believes net working capital is helpful in analyzing the effects on the cash flow generating capability of the business and as a performance measure for purposes of presentation in this release. The Company defines net working capital as total current assets less cash and cash equivalents less total current liabilities plus current portion of capital leases.

Operating Working Capital is a supplemental financial measure that is not required by, or presented in accordance with, US GAAP. The Company believes operating working capital is helpful in analyzing the effects on the cash flow generating capability of the business and as a performance measure for purposes of presentation in this release. The Company defines operating working capital as net working capital less taxes less interest.

Safe Harbor for Forward-Looking and Cautionary Statements

This press release contains or may contain forward-looking statements within the meaning of Section 27a of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends these forward-looking statements to be covered by the safe harbor provisions for such statements. Statements made in this press release that relate to our future performance or future financial results or other future events (which may be identified by such terms as “expect”, “estimate”, “anticipate”, “assume”, “believe”, “plan”, “intend’, “may”, “will”, “should”, “outlook”, “guidance”, “target”, “opportunity”, “potential” or similar terms and variations or the negative thereof) are forward-looking statements, including the Company’s expectations regarding the business environment and the Company’s overall guidance regarding future performance and growth. These statements are based on our current beliefs and expectations and are subject to significant risks and uncertainties. Actual results may materially differ from the expectations expressed in or implied by these forward-looking statements. Factors that could cause the Company’s actual results to differ materially include, but are not limited to: (1) the Company’s pending merger with an affiliate of One Rock Capital Partners (2) global macroeconomic conditions and trends; (3) the behavior of financial markets, including fluctuations in foreign currencies, interest rates and turmoil in capital markets; (4) changes in regulatory controls regarding tariffs, duties, taxes and income tax rates; (5) the Company’s ability to implement and refine its Vision 2022 strategic roadmap; (6) the Company’s ability to successfully identify and complete acquisitions in line with its Vision 2022 strategic roadmap and effectively operate and integrate acquired businesses to realize the anticipated benefits of those acquisitions; (7) the Company’s ability to realize expected cost savings and efficiencies from its performance improvement and other optimization initiatives; (8) the Company’s ability to effectively compete in its markets, and to successfully develop new and competitive products that appeal to its customers; (9) changes in consumer preferences and demand for the Company’s products or a decline in consumer confidence and spending; (10) the Company’s ability to benefit from its investments in assets and human capital and the ability to complete projects successfully and on budget; (11) economic, regulatory and political risks associated with the Company’s international operations, most notably Mexico and China; (12) volatility and increases in the price of raw materials, energy and transportation, and fluctuations in the quality and availability of raw materials and process aids; (13) the impact of a disruption in the Company’s supply chain or its relationship with its suppliers; (14) the Company’s ability to comply with, and the costs associated with compliance with, U.S. and foreign environmental protection laws and (15) the Company’s ability to meet quality and regulatory standards in the various jurisdictions in which it has operations or conducts business. We caution you to consider the important risks and other factors as set forth in the forward-looking statements section and in Item 1A Risk Factors in our most recent Annual Report on Form 10-K, as amended by subsequent reports on Forms 10-Q and 8-K. We do not undertake to update the forward-looking statements to reflect the impact of circumstances or events that may arise after the date of the forward-looking statements.

Additional Information and Where to Find It

In connection with the proposed transaction, the Company expects to file with the SEC and furnish to its stockholders a proxy statement on Schedule 14A, as well as other relevant materials concerning the proposed transaction. Promptly after filing its definitive proxy statement with the SEC, the Company will mail the definitive proxy statement and a proxy card to each stockholder of the Company entitled to vote at the special meeting relating to the proposed transaction. WE URGE INVESTORS TO READ THE PROXY STATEMENT AND THESE OTHER MATERIALS FILED WITH THE SEC CAREFULLY WHEN THEY BECOME AVAILABLE BEFORE MAKING ANY VOTING OR INVESTMENT DECISION BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. Investors will be able to obtain free copies of the proxy statement (when available) and other documents that will be filed by the Company with the SEC at http://www.sec.gov, the SEC’s website, or from the Company’s website (http://www.innophos.com) under the tab “Investor Relations,” then under the heading “Financials” and then under “SEC Filings.” In addition, investors and stockholders may obtain free copies of these documents from the Company by directing a request to Investor Relations, Phone: 1-609-366-1204. Media inquiries can be directed to Ryan Flaim at Sharon Merrill Associates, Phone: 617-542-5300. Media inquiries related to One Rock specifically can be directed to Gasthalter & Co., Phone 212-257-4170.

Participants in the Solicitation

The Company, its directors and certain of its executive officers and other persons may be deemed to be participants in the solicitation of proxies from the Company’s stockholders with respect to the proposed transaction. Information regarding the directors and executive officers of the Company is available in its definitive proxy statement for its 2019 annual meeting, filed with the SEC on April 8, 2019. More detailed information regarding the identity of potential participants, and their direct or indirect interests, by securities, holdings or otherwise, will be set forth in the proxy statement and other materials when they are filed with the SEC in connection with the proposed transaction.

Summary Profit & Loss Statement

INNOPHOS HOLDINGS, INC. AND SUBSIDIARIES

Condensed Consolidated Statement of Operations (Unaudited)

(Dollars in thousands, except per share amounts or share amounts)

 

 

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

2019

 

2018

 

2019

 

2018

Net Sales

$189,349

$196,934

$565,801

$609,099

 

Cost of goods sold

156,685

 

 

161,706

 

 

460,333

 

 

495,259

 

Gross profit

32,664

 

 

35,228

 

 

105,468

 

 

113,840

 

Operating expenses:

 

 

 

 

 

 

 

Selling, general and administrative

17,803

 

 

19,525

 

 

57,505

 

 

64,548

 

Research & development expenses

1,179

 

 

1,240

 

 

3,751

 

 

3,989

 

Total operating expenses

18,982

 

 

20,765

 

 

61,256

 

 

68,537

 

Operating income

13,682

 

 

14,463

 

 

44,212

 

 

45,303

 

Interest expense, net

3,990

 

 

3,428

 

 

11,580

 

 

9,530

 

Foreign exchange (gain) loss

373

 

 

(531

)

 

(478

)

 

409

 

Other income

(5

)

 

(14

)

 

(16

)

 

(42

)

Income before income taxes

9,324

 

 

11,580

 

 

33,126

 

 

35,406

 

Provision for income taxes

2,873

 

 

(2,510

)

 

16,580

 

 

4,155

 

Net income

$6,451

$14,090

$16,546

$31,251

 

Diluted Earnings Per Participating Share

$0.32

$0.71

$0.83

$1.57

 

Diluted weighted average participating shares outstanding

19,785,045

 

 

19,838,962

 

 

19,740,262

 

 

19,790,570

 

Dividends paid per share of common stock

$0.48

$0.48

$1.44

$1.44

 

Dividends declared per share of common stock

$0.48

$0.48

$1.44

$1.44

 

Adjusted Net Income Reconciliation to Net Income

(Dollars in thousands, except EPS)

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

2019

 

2018

 

2019

 

2018

Net Income

$6,451

 

$14,090

 

$16,546

 

$31,251

Pre-tax Adjustments

 

 

 

 

 

 

 

Foreign exchange loss (gain)

373

 

(531)

 

(478)

 

409

Severance/Restructuring expense

839

 

1,297

 

4,088

 

2,581

M&A related costs

517

 

45

 

968

 

982

Mexico natural gas supply imbalance charges

0

 

1,857

 

1,179

 

1,857

Value chain transition

3,902

 

2,385

 

6,240

 

6,878

Supplier Q418 payment amortization

(2,315)

 

0

 

(4,680)

 

0

Other

132

 

0

 

595

 

0

Total Pre-Tax Adjustments

3,448

 

5,053

 

7,912

 

12,707

Income tax effects on Adjustments

1,050

 

1,515

 

2,383

 

3,447

'18 Tax Reform Partial Reversal / '19 Dutch tax charge

0

 

(5,982)

 

6,603

 

(5,982)

Adjusted Net Income

$8,849

 

$11,646

 

$28,678

 

$34,529

Adjusted Diluted Earnings Per Participating Share

$0.45

 

$0.58

 

$1.45

 

$1.74

Adjusted EBITDA Reconciliation to Net Income

(Dollars in thousands)

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

2019

 

2018

 

2019

 

2018

Net Income

$6,451

 

$14,090

 

$16,546

 

$31,251

Interest expense, net

3,990

 

3,428

 

11,580

 

9,530

Provision for income taxes

2,873

 

(2,510)

 

16,580

 

4,155

Depreciation & amortization

11,130

 

10,864

 

31,776

 

33,317

EBITDA

24,444

 

25,872

 

76,482

 

78,253

Adjustments

 

 

 

 

 

 

 

Non-cash stock compensation

1,621

 

1,152

 

5,188

 

4,143

Foreign exchange loss (gain)

373

 

(531)

 

(478)

 

409

Severance/Restructuring expense

839

 

1,297

 

4,088

 

2,581

M&A related costs

517

 

45

 

968

 

982

Mexico natural gas supply imbalance charges

0

 

1,857

 

1,179

 

1,857

Value chain transition

3,902

 

2,385

 

6,240

 

6,878

Supplier Q418 payment amortization

(2,315)

 

0

 

(4,680)

 

0

Other

132

 

0

 

595

 

0

Adjusted EBITDA

$29,513

 

$32,077

 

$89,582

 

$95,103

Percent of Sales

15.6%

 

16.3%

 

15.8%

 

15.6%

 

Segment Adjusted EBITDA Reconciliation to EBITDA

(Dollars in thousands)

Three Months Ended

 

Three Months Ended

 

September 30, 2019

 

September 30, 2018

 

FHN

 

IS

 

Other

 

Total

 

FHN

 

IS

 

Other

 

Total

EBITDA

$14,791

$8,861

$792

$24,444

$14,563

$8,885

$2,424

$25,872

 

Non-cash stock compensation

917

 

 

642

 

 

62

 

 

1,621

 

 

652

 

 

456

 

 

44

 

 

1,152

 

Foreign exchange loss (gain)

119

 

 

 

 

254

 

 

373

 

 

67

 

 

 

 

(598

)

 

(531

)

Severance/Restructuring exp

451

 

 

346

 

 

42

 

 

839

 

 

765

 

 

440

 

 

92

 

 

1,297

 

M&A related costs

517

 

 

 

 

 

 

517

 

 

45

 

 

 

 

 

 

45

 

Mexico natural gas supply adj.

 

 

 

 

 

 

 

 

414

 

 

871

 

 

572

 

 

1,857

 

Value chain transition

2,352

 

 

1,395

 

 

155

 

 

3,902

 

 

909

 

 

1,467

 

 

9

 

 

2,385

 

Supplier payment amortization

(1,203

)

 

(880

)

 

(232

)

 

(2,315

)

 

 

 

 

 

 

 

 

Other

72

 

 

 

50

 

 

 

10

 

 

132

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

$18,016

$10,414

$1,083

$29,513

$17,415

$12,119

$2,543

$32,077

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended

 

Nine Months Ended

 

September 30, 2019

 

September 30, 2018

 

FHN

 

IS

 

Other

 

Total

 

FHN

 

IS

 

Other

 

Total

EBITDA

$48,758

$23,891

$3,833

$76,482

$48,494

$26,772

$2,987

$78,253

 

Non-cash stock compensation

2,937

 

 

2,054

 

 

197

 

 

5,188

 

 

2,345

 

 

1,641

 

 

157

 

 

4,143

 

Foreign exchange loss (gain)

59

 

 

 

 

(537

)

 

(478

)

 

76

 

 

 

 

333

 

 

409

 

Severance/Restructuring exp

2,551

 

 

1,327

 

 

210

 

 

4,088

 

 

1,527

 

 

922

 

 

132

 

 

2,581

 

Inventory fair value adjustment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

M&A related costs

968

 

 

 

 

 

 

968

 

 

968

 

 

 

 

14

 

 

982

 

Mexico natural gas supply adj.

263

 

 

553

 

 

363

 

 

1,179

 

 

414

 

 

871

 

 

572

 

 

1,857

 

Value chain transition

3,761

 

 

2,231

 

 

248

 

 

6,240

 

 

2,575

 

 

3,685

 

 

618

 

 

6,878

 

Supplier payment amortization

(2,434

)

 

(1,778

)

 

(468

)

 

(4,680

)

 

 

 

 

 

 

 

 

Other

333

 

 

219

 

 

43

 

 

595

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

$57,196

$28,497

$3,889

$89,582

$56,399

$33,891

$4,813

$95,103

 
 

Segment Reporting

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

Segment Net Sales

2019

 

2018

 

2019

 

2018

Food, Health and Nutrition

$105,174

 

$115,132

 

$326,783

 

$367,159

Industrial Specialties

73,141

 

65,667

 

204,064

 

195,767

Other

11,034

 

16,135

 

34,954

 

46,173

Total

$189,349

 

$196,934

 

$565,801

 

$609,099

Net Sales % change

 

 

 

 

 

 

 

Food, Health and Nutrition

(8.6)%

 

 

 

(11.0)%

 

 

Industrial Specialties

11.4%

 

 

 

4.2%

 

 

Other

(31.6)%

 

 

 

(24.3)%

 

 

Total

(3.9)%

 

 

 

(7.1)%

 

 

Segment EBITDA

 

 

 

 

 

 

 

Food, Health and Nutrition

$14,791

 

$14,563

 

$48,758

 

$48,494

Industrial Specialties

8,861

 

8,885

 

23,891

 

26,772

Other

792

 

2,424

 

3,833

 

2,987

Total

$24,444

 

$25,872

 

$76,482

 

$78,253

Segment EBITDA % of net sales

 

 

 

 

 

 

 

Food, Health and Nutrition

14.1%

 

12.6%

 

14.9%

 

13.2%

Industrial Specialties

12.1%

 

13.5%

 

11.7%

 

13.7%

Other

7.2%

 

15.0%

 

11.0%

 

6.5%

Total

12.9%

 

13.1%

 

13.5%

 

12.8%

Depreciation and amortization expense

 

 

 

 

 

 

 

Food, Health and Nutrition

$6,959

 

$7,142

 

$20,128

 

$21,677

Industrial Specialties

3,768

 

3,153

 

10,714

 

10,257

Other

403

 

569

 

934

 

1,383

Total

$11,130

 

$10,864

 

$31,776

 

$33,317

Price / Volume

The Company calculates pure selling price dollar variances as the selling price for the current year to date period minus the selling price for the prior year to date period, and then multiplies the resulting selling price difference by the prior year to date period volume. The current quarter selling price dollar variance is derived from the current quarter year to date selling price dollar variance less the previous quarter year to date selling price dollar variance. The selling price dollar variance is then divided by the prior period sales dollars to calculate the percentage change. Volume/mix variance is calculated as the total sales variance minus the selling price variance. The following table illustrates the percentage changes in net sales by reportable segments compared with the same period of the prior year, including the effect of selling price and volume/mix changes upon revenue:

 

Three Months Ended

 

Nine Months Ended

 

September 30, 2019

 

September 30, 2019

Reportable Segments

Price

 

Vol/Mix

 

Total

 

Price

 

Vol/Mix

 

Total

Food, Health and Nutrition

2.7

%

 

(11.3

)%

 

(8.6

)%

 

3.4

%

 

(14.4

)%

 

(11.0

)%

Industrial Specialties

1.2

%

 

10.2

%

 

11.4

%

 

2.7

%

 

1.5

%

 

4.2

%

Other

(7.6

)%

 

(24.0

)%

 

(31.6

)%

 

(3.3

)%

 

(21.0

)%

 

(24.3

)%

Total

1.3

%

 

(5.2

)%

 

(3.9

)%

 

2.7

%

 

(9.8

)%

 

(7.1

)%

Summary Cash Flow Statement

INNOPHOS HOLDINGS, INC. AND SUBSIDIARIES

Condensed Consolidated Statement of Cash Flows (Unaudited)

(Dollars in thousands)

 

Nine Months Ended September 30,

 

2019

 

2018

Cash flows provided from (used for) operating activities

 

 

 

Net income

$16,546

$31,251

 

Adjustments to reconcile net income to net cash provided from (used for) operating activities:

 

Depreciation and amortization

31,776

 

 

33,317

 

Amortization of deferred financing charges

322

 

 

322

 

Deferred income tax provision

242

 

 

7,006

 

Share-based compensation

5,188

 

 

4,143

 

Changes in assets and liabilities:

 

 

 

Accounts receivable

(3,655

)

 

(2,272

)

Inventories

9,913

 

 

(23,094

)

Other current assets

(11,042

)

 

(9,362

)

Accounts payable

(18,060

)

 

(1,167

)

Other current liabilities

5,041

 

 

10,291

 

Other long-term assets and liabilities

(11,608

)

 

(15,071

)

Net cash (used for) provided by operating activities

24,663

 

 

35,364

 

Cash flows used for investing activities:

 

 

 

Capital expenditures

(25,576

)

 

(47,800

)

Net cash used for investing activities

(25,576

)

 

(47,800

)

Cash flows provided by (used for) financing activities:

 

 

 

Long-term debt borrowings

51,000

 

 

86,000

 

Long-term debt repayments

(11,000

)

 

(51,000

)

Restricted stock forfeitures

(235

)

 

(251

)

Dividends paid

(28,318

)

 

(28,197

)

Net cash provided by (used for) financing activities

11,447

 

 

6,552

 

Effect of foreign exchange rate changes on cash and cash equivalents

 

 

181

 

Net change in cash

10,534

 

 

(5,703

)

Cash and cash equivalents at beginning of period

20,197

 

 

28,782

 

Cash and cash equivalents at end of period

$30,731

$23,079

 

Cash From Operations Reconciliation to EBITDA

(Dollars in thousands)

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

2019

 

2018

 

2019

 

2018

EBITDA

$24,444

$25,872

$76,482

$78,253

 

Operating Working Capital

679

 

 

4,061

 

 

(22,370

)

 

(19,446

)

Taxes paid

(10,653

)

 

(3,792

)

 

(19,679

)

 

(16,590

)

Interest paid

(3,928

)

 

(3,618

)

 

(11,528

)

 

(10,398

)

All other including non-cash stock compensation and changes in other long-term assets and liabilities

(2,660

)

 

3,284

 

 

1,758

 

 

3,545

 

Net cash provided from operations

$7,882

$25,807

$24,663

$35,364

 

Cash From Operations Reconciliation to Adjusted EBITDA

(Dollars in thousands)

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

2019

 

2018

 

2019

 

2018

Adjusted EBITDA

$29,513

$32,077

$89,582

$95,103

 

Operating Working Capital

(2,769

)

 

(992

)

 

(30,282

)

 

(32,154

)

Taxes paid

(10,653

)

 

(3,792

)

 

(19,679

)

 

(16,590

)

Interest paid

(3,928

)

 

(3,618

)

 

(11,528

)

 

(10,398

)

All other including non-cash stock compensation and changes in other long-term assets and liabilities

(4,281

)

 

2,132

 

 

(3,430

)

 

(597

)

Net cash provided from operation

$7,882

$25,807

$24,663

$35,364

 

Free Cash Flow Reconciliation to Cash From Operations

(Dollars in thousands)

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

2019

 

2018

 

2019

 

2018

Cash from Operations

$7,882

 

$25,807

 

$24,663

 

$35,364

Capital Expenditures

(9,739)

 

(21,325)

 

(25,576)

 

(47,800)

Free Cash Flow

$(1,857)

 

$4,482

 

$(913)

 

$(12,436)

Summary Balance Sheets

INNOPHOS HOLDINGS, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets (Unaudited)

(Dollars in thousands)

 

 

September 30, 2019

 

December 31, 2018

ASSETS

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

$30,731

$20,197

 

Accounts receivable, net

 

106,219

 

 

102,564

 

Inventories

 

170,290

 

 

180,203

 

Other current assets

 

35,136

 

 

24,094

 

Total current assets

 

342,376

 

 

327,058

 

Property, plant and equipment, net

 

237,803

 

 

240,235

 

Lease right-of-use assets

 

55,597

 

 

 

Goodwill

 

152,767

 

 

152,767

 

Intangibles and other assets, net

 

87,301

 

 

95,094

 

Total assets

$875,844

$815,154

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable, trade and other

 

57,850

 

 

80,007

 

Other current liabilities

 

58,655

 

 

49,993

 

Total current liabilities

 

116,505

 

 

130,000

 

Long-term debt

 

340,000

 

 

300,000

 

Long-term lease liabilities

 

49,077

 

 

 

Other long-term liabilities

 

32,364

 

 

49,639

 

Total stockholders' equity

 

337,898

 

 

335,515

 

Total liabilities and stockholders' equity

$875,844

$815,154

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20191106005232/en/

Investor Mark Feuerbach Innophos 609-366-1204 investor.relations@innophos.com

Media Ryan Flaim Sharon Merrill Associates 617-542-5300 iphs@investorrelations.com

Source: Innophos Holdings, Inc.

In This Story

IPHS