Business
Innospec Reports Third Quarter 2020 Financial Results
Performance Chemicals operating income up 33 percent driven by strong demandSequential improvement for Fuel Specialties and Oilfield ServicesExcellent cash
About this update from Innospec Inc.
[{"type":"text","content":"Performance Chemicals operating income up 33 percent driven by strong demandSequential improvement for Fuel Specialties and Oilfield ServicesExcellent cash generation and improvement in net cash to $66.0 millionSemi-annual dividend maintained at 52 cents; GAAP EPS of $0.51 and adjusted non-GAAP EPS of $0.71\n ENGLEWOOD, Colo., Nov. 03, 2020 (GLOBE NEWSWIRE) -- Innospec Inc. (NASDAQ: IOSP) today announced its financial results for the third quarter ended September 30, 2020. At the same time, the Company announced that it has declared a semi-annual dividend of $0.52 per common share for the second half of 2020, which will be paid on November 25, 2020 to shareholders of record as of November 17, 2020. This brings the annual dividend to $1.04 per share compared to $1.02 per share in 2019. Total net sales for the quarter were $265.1 million, down 29 percent from the $371.9 million reported in the corresponding quarter last year. Net income was $12.7 million, or $0.51 per share, and EBITDA was $31.5 million, compared to net income of $30.1 million, or $1.22 per share, and EBITDA of $51.1 million in the third quarter of 2019. Results for this quarter include special items summarized in the table below. Excluding these items, adjusted non-GAAP EPS was $0.71 compared to $1.40 a year ago. Cash generation in the quarter was excellent with net cash provided by operating activities of $55.5 million before capital expenditures of $7.1 million. Innospec closed the quarter in a net cash position of $66.0 million. EBITDA, income before income taxes and net income excluding special items, and related per-share amounts, are non-GAAP financial measures that are defined and reconciled with GAAP results herein and in the schedules below. Quarter ended September 30, 2020 Quarter ended September 30, 2019 (in millions, except share and per share data) Incomebeforeincometaxes Netincome Per diluted share Incomebeforeincome taxes Net income Per diluted share Reported GAAP amounts$20.2 $12.7 $0.51 $37.8$30.1$1.22 Amortization of acquired intangible assets 3.5 2.8 0.11 4.6 3.6 0.15Change in UK statutory tax rate - 2.6 0.11 - - -Foreign currency exchange (gains)/losses (2.4) (1.8) (0.07) 0.5 0.4 0.02Legacy costs of closed operations 1.1 0.9 0.04 - - -Adjustment of income tax provisions - 0.3 0.01 - 0.3 0.01 2.2 4.8 0.20 5.1 4.3 0.18 Adjusted non-GAAP amounts$...