Quaker Houghton · NYSE:KWR
Quaker Houghton — Quaker Chemical — Q1 2021 Earnings Presentation
21 slides from Quaker Houghton's earnings presentation, May 6, 2021
Slide 1: Quaker Houghton First Quarter 2021 Results Investor Conference Call
Quaker Houghton First Quarter 2021 Results Investor Conference Call
Slide 2: Regulation G and Forward-Looking Statements
Regulation G The attached charts include Company information that does not conform to generally accepted accounting principles (“GAAP”). Man agement believes that an analysis of this data is meaningful to investors because it provides insight with respect to ongoing operating results of the Company
Slide 3: Speakers
Michael F. Barry Chairman of the Board, Chief Executive Officer & President Shane W. Hostetter Senior Vice President, Chief Financial Officer Robert T. Traub Senior Vice President, General Counsel & Corporate Secretary David A. Will Vice President and Global Controller ©2019 Quaker Houghton. All Rig
Slide 4: First Quarter 2021 Headlines
©2019 Quaker Houghton. All Rights Reserved 4 • Strong earnings driven by continued recovery in the Company’s end - markets and customer demand and the continued execution of integration activities and synergy realization • Net sales of $429.8 million increased 14% compared to the first quarter of 20
Slide 5: Chairman Comments and 2021 Outlook
©2019 Quaker Houghton. All Rights Reserved 5 Chairman Comments First Quarter of 2021 • Strong first quarter of 2021 with sequential and prior year improvement in all segments and regions • Sales volume increases driven by strong demand in end markets as well as market share gains and some higher the
Slide 6: Financial Highlights First Quarter of 2021
©2019 Quaker Houghton. All Rights Reserved 6 Financial Highlights First quarter of 2021 • Record net sales of $429.8 million increased 14% primarily due to higher volumes, which included additional net sales from acquisitions of 3%, and the positive impact from foreign currency translation of 3% • G
Slide 7: Financial Snapshot
©2019 Quaker Houghton. All Rights Reserved 7 Financial Snapshot ( dollars in millions, unless otherwise noted) (1) Certain amounts may not calculate due to rounding Q1 2021 Q1 2020 GAAP Net Sales $ 429.8 $ 378.6 $ 51.2 14% Gross Profit 156.2 133.9 22.3 17% Gross Margin (%) 36.3% 35.4% 1.0% 3% Operat
Slide 8: Pro Forma Adjusted EBITDA
©2019 Quaker Houghton. All Rights Reserved 8 Pro Forma Adjusted EBITDA (dollars in millions) $215 $221 $236 $234 $222 $239 $200 $213 $225 $238 $250 2016 2017 2018 2019 2020 (1) TTM Q1 2021 (1) Record quarter and TTM adjusted EBITDA; Still expect FY’21 to be at least 20%+ above FY’20 (1) Results pres
Slide 9: Leverage and Liquidity Update
©2019 Quaker Houghton. All Rights Reserved 9 Leverage and Liquidity Update • Total gross outstanding borrowings of $913.1 million and cash on hand of $163.5 million result in net debt of $749.6 million compared to $717.3 million as of December 31, 2020 • Net debt to TTM adjusted EBITDA of 3.1x as of
Slide 10: Appendix Actual and Non-GAAP Results
Appendix Actual and Non - GAAP Results
Slide 11: Non-GAAP financial information notes
The information included in this presentation includes non - GAAP (unaudited) financial information that includes EBITDA, adjusted EBITDA, adjusted EBITDA margin, non - GAAP operating income, non - GAAP operating margin, non - GAAP net income, non - GAAP earnings per diluted share, and pro forma net
Slide 12: Non-GAAP Operating Income Reconciliation
©2019 Quaker Houghton. All Rights Reserved 12 Non - GAAP Operating Income Reconciliation (dollars in thousands, unless otherwise noted) Q1 2021 Q1 2020 Operating income (loss) 44,894$ (12,444)$ Houghton combination, integration and other acquisition-related expenses Restructuring and related charges
Slide 13: Adjusted EBITDA & Non-GAAP Net Income Reconciliation
©2019 Quaker Houghton. All Rights Reserved 13 Adjusted EBITDA & Non - GAAP Net Income Reconciliation (dollars in thousands, unless otherwise noted) Q1 2021 Q1 2020 Net income (loss) attributable to Quaker Chemical Corporation 38,615$ (28,381)$ Depreciation and amortization 22,448 21,584 Interest exp
Slide 14: TTM Adjusted EBITDA Reconciliation
©2019 Quaker Houghton. All Rights Reserved 14 A B C = B - A D E = C + D Q1 2020 Full Year 2020 Last Nine Months 2020 Q1 2021 TTM Q1 2021 Net (loss) income attributable to Quaker Chemical Corporation (28,381)$ 39,658$ 68,039$ 38,615$ 106,654$ Depreciation and amortization 21,584 84,494 62,910 22,448
Slide 15: Non-GAAP EPS Reconciliation
©2019 Quaker Houghton. All Rights Reserved 15 Non - GAAP EPS Reconciliation Q1 2021 Q1 2020 GAAP earnings (loss) per diluted share attributable to Quaker Chemical Corporation common shareholders Equity (income) loss in a captive insurance company per diluted share (0.17) 0.02 Houghton combination, i
Slide 16: Segment Performance
©2019 Quaker Houghton. All Rights Reserved 16 Segment Performance (dollars in thousands) Q1 2021 Q1 2020 Net sales Americas 134,871$ 129,896$ EMEA 119,814 104,839 Asia/Pacific 96,706 73,552 Global Specialty Businesses 78,392 70,274 Total net sales 429,783$ 378,561$ Segment operating earnings America
Slide 17: Appendix Pro Forma Results
Appendix Pro Forma Results
Slide 18: Full Year 2019 Pro Forma Reconciliation
©2019 Quaker Houghton. All Rights Reserved 18 Full Year 2019 Pro Forma Reconciliation (dollars in millions) Quaker Houghton Divestitures Other (a) Pro Forma* Net sales 1,134$ 475$ (34)$ (13)$ 1,562$ Net Income (Loss) Attributable to Quaker Houghton 32$ (3)$ (6)$ 10$ 33$ Depreciation and Amortization
Slide 19: Full Year 2018 Pro Forma Reconciliation
19 ©2019 Quaker Houghton. All Rights Reserved Full Year 2018 Pro Forma Reconciliation (dollars in millions) Quaker Houghton Divestitures Other (a) Pro Forma* Net sales 868$ 861$ (53)$ (22)$ 1,655$ Net Income (Loss) Attributable to Quaker Houghton 59$ (0)$ (9)$ 17$ 66$ Depreciation and Amortization 2
Slide 20: Full Year 2017 Pro Forma Reconciliation
20 ©2019 Quaker Houghton. All Rights Reserved Full Year 2017 Pro Forma Reconciliation (dollars in millions) Quaker Houghton Divestitures Other (a) Pro Forma* Net Income (Loss) Attributable to Quaker Houghton 20$ (47)$ (9)$ 9$ (26)$ Depreciation and Amortization 20 55 - 5 80 Interest Expense, Net 1 5
Slide 21: Full Year 2016 Pro Forma Reconciliation
21 ©2019 Quaker Houghton. All Rights Reserved Full Year 2016 Pro Forma Reconciliation (dollars in millions) Quaker Houghton Divestitures Other (a) Pro Forma* Net Income (Loss) Attributable to Quaker Houghton 61$ (37)$ (8)$ 7$ 23$ Depreciation and Amortization 20 55 - 5 80 Interest Expense, Net 1 51