Ingevity Corporation · NYSE:NGVT
Ingevity — Q2 2017 Earnings Presentation
16 slides from Ingevity's earnings presentation, Aug 3, 2017
Slide 1: Second Quarter 2017 Earnings Presentation
Second Quarter 2017Earnings Presentation August 3, 2017
Slide 2: Disclaimer
Disclaimer: This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward looking statements generally include the words “may,” “could,” “should,” “believes,” “plans,” “intends,” “targets,” “will,” “expects,” “suggest
Slide 3: Agenda
Agenda · Second Quarter Highlights · Segment Performance · Financial Review · 2017 Guidance · Q&A 3
Slide 4: Second Quarter 2017 Results
Second Quarter 2017 Results · Strong financial results as Performance Materials realizes expected growth and Performance Chemicals benefits from strong execution and improved market fundamentals · Revenue increase of 6 percent driven by volume gains · Adjusted EBITDA increase of 15 percent benefitte
Slide 5: Performance Chemicals
Performance Chemicals · Revenues were essentially flat versus prior year; segment EBITDA up 10 percent; segment EBITDA margin of 18.4 percent · Industrial Specialties: Demand for derivatized oilfield and pavement technologies products reduced TOFA supply available to industrial specialties; rosin de
Slide 6: Performance Materials
Performance Materials · Revenues up 21 percent; segment EBITDA of $36 million up 19 percent · Excluding inter-company FX impacts(2), EBITDA margins were 42.3 percent vs. 40.7 percent in the prior year · Adoption of U. S. EPA Tier 3 / California LEV III standards drove strong increase; these solution
Slide 7: New Changshu, China, Extrusion Plant
New Changshu, China, Extrusion Plant 7 · Key component of multi-year expansion plans to support growth in Performance Materials · Capital-efficient investment to convert lower margin activated carbon powder to higher-value automotive products · Investment of $20 million, just over half of which is p
Slide 8: Second Quarter 2017 Financial Results: Key Income Statement Metrics
Second Quarter 2017 Financial Results Key Income Statement Metrics (1) Please see appendices included at the end of this presentation for Ingevity's use of non-GAAP financial measures, definitions of those financial measures as well as the reconciliation to the nearest GAAP financial measure. 8 $ in
Slide 9: Key Balance Sheet & Cash Flow Metrics
Second Quarter 2017 Financial Results Key Balance Sheet & Cash Flow Metrics (1) Capital lease related to the Industrial Development Bond that is part of the financing for our Wickliffe, Kentucky facility. (2) Excludes deferred finance fees. (3) Sum of Cash & cash equivalents, Restricted investment l
Slide 10: 2017 Revised Guidance
2017 Revised Guidance ($M) Item FY16 Actual Original FY17 Guidance Revised FY17 Guidance Revenue $908.3 $930 to $950 $940 to $955 Adjusted EBITDA (1) $202.4 $215 to $225 $220 to $230 Adjusted tax rate (1) 33.3% 33 - 35% 32 - 34% Capital expenditures $56.7 $60 to $65 $55 to $60 Free Cash Flow (2) $71
Slide 11: For More Information
For More Information Thank you for your interest in Ingevity! Investors Dan Gallagher (843) 740-2126 Media Jack Maurer (843) 746-8242 11
Slide 12: Appendix
Appendix 12
Slide 13: Non-GAAP Financial Measures
Non-GAAP Financial Measures Ingevity has presented certain financial measures, defined below, which have not been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and has provided a reconciliation to the most directly comparable financial measure calculated in accor
Slide 14: Reconciliation of Net Income (GAAP) to Adjusted Earnings (Non-GAAP)
Reconciliation of Net Income (Loss) (GAAP) to Adjusted Earnings (Loss) (Non-GAAP) 14 Three Months Ended June 30, Six Months Ended June 30, In millions, except per share amounts; unaudited 2017 2016 (1) 2017 2016 (1) Net income (loss) $ 35.8 $ 25.9 $ 58.8 $ 37.6 Less: Net income (loss) attributable t
Slide 15: Reconciliation of Net Income (GAAP) to Adjusted EBITDA (Non-GAAP)
Reconciliation of Net Income (GAAP) to Adjusted EBITDA (Non-GAAP) 15 Reconciliation of Provision for Income Taxes (GAAP) to Provision for Income Taxes on Adjusted Earnings (Non-GAAP) Three Months Ended June 30, Six Months Ended June 30, In millions, unaudited 2017 2016 (1) 2017 2016 (1) Net income (
Slide 16: Reconciliation of Segment Operating Profit to Segment EBITDA
Reconciliation of Segment Operating Profit (GAAP) to Segment EBITDA (Non-GAAP) 16 In millions, unaudited Three Months Ended June 30, Six Months Ended June 30, Performance Materials 2017 2016 (1) 2017 2016 (1) Segment operating profit (GAAP) $ 30.7 $ 26.2 $ 60.2 $ 56.9 Depreciation and amortization 5