Quaker Houghton · NYSE:KWR
Quaker Houghton — Quaker Chemical — FY2015 Earnings Presentation
14 slides from Quaker Houghton's earnings presentation, Feb 25, 2016
Slide 1: Fourth Quarter and Full Year 2015 Results Investor Conference Call
Fourth Quarter and Full Year 2015 Results Investor Conference Call February 26, 2016 Quaker Chemical Corporation
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”). 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
Speakers Michael F. Barry Chairman of the Board, Chief Executive Officer & President Mary Dean Hall Vice President, Chief Financial Officer & Treasurer Robert T. Traub Vice President, General Counsel & Corporate Secretary Chart #1
Slide 4: Fourth Quarter 2015 Headlines
Fourth Quarter 2015 Headlines Operating results drive quarterly increase of 6% in adjusted EBITDA despite negative impacts of foreign exchange and lower global steel production Fourth quarter restructuring program expected to deliver meaningful savings beginning in 2016 Strong quarterly cash flow le
Slide 5: Chairman Comments Fourth Quarter and Full Year 2015
Chairman Comments Fourth Quarter and Full Year 2015 Fourth Quarter / Full Year 2015 Strong margins and market share gains drive earnings and cash flow growth in the fourth quarter and full year 2015 Fourth quarter and full year results impacted by various market challenges, including foreign exchang
Slide 6: Fourth quarter and full year 2015 key points
1) Solid operating results, coupled with a low tax rate, drive fourth quarter and fullyear 2015 non-GAAP earnings per diluted share of $1.16 and $4.43 2) Fourth quarter 2015 includes restructuring expenses of $6.8 million, or $0.36 per diluted share, related to a global program to enhance SG&A lever
Slide 7: Financial Snapshot
Financial Snapshot ($ Millions unless otherwise noted) Q4 2015 Q4 2014 FY 2015 FY 2014 Net Sales 183.3 194.0 737.6 765.9 Gross Margin 37.5 % 35.9 % 37.6 % 35.7 % Operating Margin 7.2 % 8.5 % 9.7 % 10.1 % Net Income attributable to Quaker Chemical Corporation 11.4 12.6 51.2 56.5 Earnings Per Diluted
Slide 8: Product Volume by Quarter and Year
Product Volume by Quarter and Year Thousand Kilograms Chart #6 Six consecutive years of organic and acquisition-related volume growth 115,000 135,000 155,000 175,000 195,000 215,000 235,000 25,000 31,000 37,000 43,000 49,000 55,000 61,000 Full Year Volume Quarter Volume Quarter Volume Full Year Volu
Slide 9: Gross Margin Percentage
Gross Margin Percentage 28.0% 34.7% 35.4% 32.6% 33.7% 35.8% 35.7% 37.6% 20.0% 25.0% 30.0% 35.0% 40.0% 2008 2009 2010 2011 2012 2013 2014 2015 Gross Margin Percentage 35.9% 36.6% 38.4% 37.7% 37.5% 20.0% 25.0% 30.0% 35.0% 40.0% Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Gross Margin Percentage Chart #7 I
Slide 10: Adjusted EBITDA Baseline Historical Performance
Adjusted EBITDA Baseline Historical Performance $40.1 $66.8 $73.0 $80.9 $89.6 $99.8 $101.6 $44.2 11. 4% 13 . 0% 12 . 3% 9 . 8% 10 . 7% 12 . 3% 6 . 9% 13 . 8% 2008 2009 2010 2011 2012 2013 2014 2015 Adjusted EBITDA ($ Mi l s. ) Adjusted EBITDA Margin (%) 2008 – 2015 CAGR: 14.2% +690 Margin bps Chart
Slide 11: Balance Sheet Cash and Debt
Balance Sheet Cash and Debt -$120 -$80 -$40 $0 $40 $80 $120 2008 2009 2010 2011 2012 2013 2014 2015 $ Millions Cash ST/LT Debt Net Debt Chart #9 Strong cash flow improves Net Debt to $1 million. Balance Sheet strength supports growth.
Slide 12: Appendix
APPENDIX
Slide 13: Non-GAAP Earnings Per Diluted Share Reconciliation
Non-GAAP Earnings Per Diluted Share Reconciliation Chart #10 Q4 2015 Q4 2014 Full Year 2015 Full Year 2014 GAAP earnings per diluted share $ 0.86 $ 0.95 $ 3.84 $ 4.26 Equity income in a captive insurance company per diluted share $ (0.07) $ (0.02) $ (0.16) $ (0.18) Restructuring expenses per diluted
Slide 14: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Chart #11 2008 2009 2010 2011 2012 2013 2014 2015 Net income 9,833 16,058 32,120 45,892 47,405 56,339 56,492 51,180 Depreciation 10,879 9,525 9,867 11,455 12,252 12,339 12,306 12,395 Amortization 1,177 1,078 988 2,338 3,106 3,445 4,325 6,811 Interest expense 5,509 5,53