Quaker Houghton · NYSE:KWR
Quaker Houghton — Quaker Chemical — Q4 2013 Earnings Presentation
14 slides from Quaker Houghton's earnings presentation, Feb 27, 2014
Slide 1: Investor Conference Call: Fourth Quarter and Full Year 2013 Results
1 Quaker Chemical Corporation Investor Conference Call February 28, 2014 Fourth Quarter and Full Year 2013 Results
Slide 2: Regulation G and Forward-Looking Statements
2 Regulation G The attached charts include Company information that does not conform to generally accepted accounting principles (GAAP). Management believes that an analysis of this data is meaningful to investors because it provides insight with respect to ongoing operating results of the Company a
Slide 3: Speakers
3 Speakers Michael F. Barry Chairman of the Board, Chief Executive Officer & President Margaret M. Loebl Vice President, Chief Financial Officer & Treasurer Robert T. Traub General Counsel Chart #1
Slide 4: Fourth Quarter 2013 Headlines
4 Fourth Quarter 2013 Headlines ▪ Quarterly net sales growth of 7% despite a challenging economic environment ▪ Significant earnings per share growth compared to fourth quarter 2012 ▪ Strong quarterly performance drives year - to - date operating cash flow to $73.8 million Chart #2
Slide 5: Chairman Comments
5 Chairman Comments ▪ Q4 2013/Full Year x Solid sales/volume despite quarter seasonality x Strong margin levels continue in tough economy x Gaining share & leveraging acquisitions x Liquidity remains a Company strength x Very good year -- revenue, net income, net operating cash flow and adjusted EBI
Slide 6: Product Volume by Quarter
6 Product Volume by Quarter Thousand Kilograms 25,000 30,000 35,000 40,000 45,000 50,000 55,000 4Q08 YTD Avg. 1Q092Q09 3Q094Q091Q102Q10 3Q104Q101Q11 2Q113Q114Q111Q12 2Q123Q124Q12 1Q132Q133Q134Q13 Chart #4
Slide 7: Financial Snapshot
7 Financial Snapshot Q4 2013 Q4 2012 YTD 2013 YTD 2012 Net Sales ($Mils.) 184.3 172.9 729.4 708.2 Gross Margin (%) 35.4 34.2 35.8 33.7 Operating Margin (%) 8.3 7.9 9.8 8.9 Net Income attributable to Quaker Chemical Corporation ($Mils.) 14.1 13.0 56.3 47.4 Adjusted EBITDA ($Mils.) – Trailing Twelve M
Slide 8: Gross Margin Percentage
8 Gross Margin Percentage Chart #6 28.0% 34.7% 35.4% 32.6% 33.7% 35.8% 20.0% 25.0% 30.0% 35.0% 40.0% 2008 2009 2010 2011 2012 2013 Gross Margin Percentage 34.2% 35.5% 36.4% 35.9% 35.4% 20.0% 25.0% 30.0% 35.0% 40.0% Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Gross Margin Percentage
Slide 9: Adjusted EBITDA Baseline Historical Performance
9 Adjusted EBITDA Baseline Historical Performance $40.1 $44.2 $66.8 $73.0 $80.9 $89.6 6.90% 9.80% 12.30% 10.70% 11.40% 12.30% 2008 2009 2010 2011 2012 2013 Adjusted EBITDA ($ Mils.) Adjusted EBITDA Margin (%) Chart #7 CAGR: 17.5% +540 Margin bps 2008 – 2013
Slide 10: Balance Sheet Net Cash / (Debt)
10 Balance Sheet Net Cash / (Debt) -$100 -$80 -$60 -$40 -$20 $0 $20 $40 $60 $80 2008 2009 2010 2011 2012 2013 $ Millions Cash ST/LT Debt Net Debt Chart #8
Slide 11: Net Cash Flow From Operations
11 Net Cash Flow From Operations 21.1 11.3 16.2 24.5 21.8 0 10 20 30 40 50 60 70 80 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Operating Cash Flow ($ Millions) Chart #9 13.4 41.6 37.5 19.7 62.9 73.8 0 10 20 30 40 50 60 70 80 2008 2009 2010 2011 2012 2013 Operating Cash Flow ($ Millions)
Slide 12: Appendix
12 APPENDIX
Slide 13: Non-GAAP Earnings Per Diluted Share Reconciliation
13 Chart #10 Non - GAAP Earnings Per Diluted Share Reconciliation Q4 2013 Q4 2012 YTD 2013 YTD 2012 GAAP Earnings Per Diluted Share 1.07$ 0.99$ 4.27$ 3.63$ CFO Transition costs per diluted share -$ -$ -$ 0.03$ Customer bankruptcies per diluted share -$ -$ -$ 0.06$ Mineral oil excise tax refund per d
Slide 14: Annualized Adjusted EBITDA Reconciliation
14 Annualized Adjusted EBITDA Reconciliation Chart #11 2008 2009 2010 2011 2012 2013 Net income 9,833 16,058 32,120 45,892 47,405 56,339 Depreciation 10,879 9,525 9,867 11,455 12,252 12,339 Amortization 1,177 1,078 988 2,338 3,106 3,445 Interest expense 5,509 5,533 5,225 4,666 4,283 2,922 Taxes on i