Innospec Inc. · NASDAQ:IOSP
Innospec — Q1 2018 Earnings Presentation
17 slides from Innospec's earnings presentation, May 9, 2018
Slide 1: Q1 2018 Earnings Presentation
Q1 2018 EARNINGS PRESENTATION MAY 9, 2018 | 10 AM EST
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS 2 This presentation contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts included or incorporated herein may constitute forward-looking statements.
Slide 3: Use of Non-GAAP Financial Measures
USE OF NON-GAAP FINANCIAL MEASURES 3 The information presented in this presentation includes financial measures that are not calculated or presented in accordance with Generally Accepted Accounting Principles in the United States (GAAP). These non-GAAP financial measures comprise adjusted EBITDA, in
Slide 4: Q1 2018 Earnings Conference Call
Q1 2018 EARNINGS CONFERENCE CALL 4 David Jones Introduction VP, General Counsel and Chief Compliance Officer Patrick S. Williams Business Update President & CEO Ian Cleminson Financial Performance Executive Vice President & CFO Patrick S. Williams Closing Comments President & CEO Q&A © 2017. All Rig
Slide 5: Summary of 1st Quarter Performance
SUMMARY OF 1ST QUARTER PERFORMANCE 5 Adjusted EPS excluding Octane Additives up 13 percent Record sales and operating profit in Performance Chemicals Good sales and operating profit in Fuel Specialties Oilfield Services growth continues; profitability set to improve further Octane Additives – new or
Slide 6: Financial Presentation
FINANCIAL PRESENTATION © 2017. All Rights Reserved. Innospec, Inc.
Slide 7: Q1 2018 Consolidated Results
Q1 2018 CONSOLIDATED RESULTS 7 ($ in millions) $360.7 Revenues up 23 percent $294.3 $43.9 $1.02 Minimal sales in Octane $39.2 $1.00 Additives $28.9 $27.1 Gross margin down 1.9 percentage points but operating income up 7 percent +23% +7% +12% +2% Adjusted EPS up 2 percent Net Sales Operating Income*
Slide 8: Q1 2018 Performance Chemicals
Q1 2018 PERFORMANCE CHEMICALS 8 ($ in millions) $124.0 Revenues up 31 percent $17.1 Margins significantly $94.5 improved $12.1 20.5% $11.8 Operating income more than 17.7% doubled $6.0 Integration complete and strategy delivering ahead of +31% +2.8% pts +102% +45% plan Net Sales Gross Margin Operati
Slide 9: Q1 2018 Fuel Specialties
Q1 2018 FUEL SPECIALTIES 9 ($ in millions) Revenues up 13 percent $143.4 $126.4 Gross margin down 2.7 percentage points – raw 36.5% $29.2 33.8% $27.0 $28.2 $28.2 material costs Operating income and Adjusted EBITDA up 4 percent +13% -2.7% pts +4% +4% Net Sales Gross Margin Operating Income Adjusted E
Slide 10: Q1 2018 Oilfield Services
Q1 2018 OILFIELD SERVICES 10 ($ in millions) $92.9 Revenues up 40 percent year over year and 16 percent from last quarter $66.5 38.2% $7.6 Margins depressed by raw 33.8% $7.1 material and transportation issues $3.0 $3.0 Operating income up $2.0 +40% -4.4% pts -7% million sequentially Net Sales Gross
Slide 11: Q1 2018 Octane Additives
Q1 2018 OCTANE ADDITIVES 11 ($ in millions) $6.9 Minimal revenues Operating loss of $1.4 million $2.0 $2.2 Compared to Q1 2017, reduced EPS of 10 cents -94% $0.4 Further order received for Q2 Net Sales Operating Income Adjusted EBITDA $(1.1) $(1.4) Q1 2017 Q1 2018 © 2017. All Rights Reserved. Innosp
Slide 12: Q1 2018 Corporate Items
Q1 2018 CORPORATE ITEMS 12 ($ in millions) Corporate costs slightly higher $13.0 with increased personnel $10.9 25.9% 25.3% costs Tax rate slightly reduced, even with minimal Octane Additives sales Expected full year tax rate to be 25 percent Corporate Costs Effective tax rate Q1 2017 Q1 2018 © 2017
Slide 13: Q1 2018 Balance Sheet
Q1 2018 BALANCE SHEET 13 ($ in millions) Working capital increases to support sales growth Marginally increased net debt Leverage maintained at 0.7x Cash flow improvements expected in the near term Q4 2017 Q1 2018 © 2017. All Rights Reserved. Innospec, Inc.
Slide 14: Concluding Comments
CONCLUDING COMMENTS © 2017. All Rights Reserved. Innospec, Inc.
Slide 15: Concluding Comments
CONCLUDING COMMENTS 15 Great start to 2018, with increased EPS Core businesses all performing well Excellent Performance Chemicals contribution Margin and cash flow improvement plans in place Further 15 percent increase in dividend – continue to return shareholder value Well positioned for future gr
Slide 16: Your Opportunity to Ask Questions
16 YOUR OPPORTUNITY TO ASK QUESTIONS © 2017. All Rights Reserved. Innospec, Inc.
Slide 17: Final Comments
FINAL COMMENTS 17 Thank you for your continued support Q2 2018 Results August 2018 August 7th - Results Release After Close Sun Mon Tue Wed Thu Fri Sat August 8th - Conference Call 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 © 2017. All Rights Reserved. Innosp