Slide 1: 1Q 2017 Earnings Presentation
May 11, 2017 1Q 2017 Earnings Presentation
Slide 2: Forward Looking Statements
Forward Looking Statements 2 This presentation contains certain statements that may be deemed “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, that address activities, events o
Slide 3: Highlights
Highlights 3 • Strong 1Q17 Results: Sales $377M, Net Income $27M, Cash Flow From Operations $31M • Robust Operating Performance And Strong Production Output Across Manufacturing Sites • Tightened Supply Conditions Across Nylon And Intermediates; Nitrogen Fertilizer Fundamentals Remain Challenging •
Slide 4: 1Q 2017 Financial Summary
1Q 2017 Financial Summary 4 Improved Sales, Earnings And Cash Flow ($ Millions, Except Per Share Amounts) 1Q 2016 1Q 2017 Comments • Volume +4%, Price +22% Sales $299.8 $376.7 – Raw Material Pass Through +19%, Market Pricing +3% • Improved Production Volume and Favorable Market Pricing EBITDA $53.3
Slide 5: Nylon Market Outlook
Nylon Market Outlook 5 Market Fundamentals Have Tightened But Remain Dynamic Nylon Key Industry Spreads (1) 1Q17 YoY 1Q17 vs. 4Q16 • Pricing/Spreads more regionalized – tighter supply Asia BNZ-CPL 99% 46% What We’re conditions in U.S. and Europe, Asia CPL-Resin (3%) 3% China supply/demand volatility
Slide 6: Ammonium Sulfate (AS) Market Outlook
Ammonium Sulfate (AS) Market Outlook 6 Sequential Pricing Improvement; Remain Cautious On 2017 Spring Season Ammonium Sulfate Key Industry Prices (1) • Nitrogen demand down with 1Q17 YoY 1Q17 vs. 4Q16 increased supply YoY, Corn Belt Granular AS (-9%) 9% weakening urea prices What We’re Corn Belt Ure
Slide 7: Chemical Intermediates Market Outlook
Chemical Intermediates Market Outlook 7 Phenol / Acetone Demand Steady Chemical Intermediates Key Industry Prices (1) • Acetone demand strength; 1Q17 YoY 1Q17 vs. 4Q16 Industry turnaround activities Acetone, Large Buyer 64% 30% What We’re tighten supply Refinery Grade Propylene 77% 36% Seeing • Refi
Slide 8: Operational Excellence
Operational Excellence 8 Driving Higher Uptime, More Stable Production And Higher Returns Annualized Plant Production • Turnarounds Key To Safe, Sustainable And Improved Operations – Focused Maintenance Capex Drives More Stable Production, Higher Returns – Driving Maturity Of Our Mechanical Integrit
Slide 9: Cash Flow
Cash Flow 9 Cash Flow Trend Improving, Focus On Disciplined Reinvestment In The Business Trailing 12-Month Cash Flow • Improved Plant Production Rates In 2017, Driving Higher-Value Product Mix ($ Millions) • Target ~20x Working Capital Turns Quarterly 150 and • Spring/Fall Plant Turnarounds (2017 Sc
Slide 10: Summary
Summary 10 • Improved Sales, Earnings And Cash Flow In 1Q17 – Tightened Supply/Demand Environment And Improved Production Output • Nylon And Intermediates Price Increases, While Nitrogen Fertilizer Fundamentals Remain Challenging • 2017 Plant Turnarounds Expected To Be In-Line With Historical Levels
Slide 11: Appendix: Reconciliation of non-GAAP Measures to GAAP Measures
11 Appendix: Reconciliation of non-GAAP Measures to GAAP Measures 1Q 2017 Earnings Presentation – May 11, 2017
Slide 12: Reconciliation Of Net Cash Provided By Operating Activities To Free Cash Flow
Reconciliation Of Net Cash Provided By Operating 12 Activities To Free Cash Flow (in $ thousands) Three Months Ended March 31, 2017 2016 Net Cash Provided by Operating Activities $ 31,206 $ 4,041 Expenditures for Property, Plant and Equipment (33,214) (24,626) Free Cash Flow (1) $ (2,008) $ (20,585)
Slide 13: Reconciliation Of Net Income To EBITDA
Reconciliation Of Net Income To EBITDA 13 (in $ thousands) Three Months Ended March 31, 2017 2016 Net Income $ 27,293 $ 27,394 Interest Expense 1,539 - Income Taxes 16,948 16,157 Depreciation and Amortization 11,296 9,788 EBITDA (2) 57,076 53,339 Prior Year One-Time Benefit (3) - 15,500 EBITDA Exclu