Innospec Inc. · NASDAQ:IOSP
Innospec — Q3 2018 Earnings Presentation
17 slides from Innospec's earnings presentation, Nov 7, 2018
Slide 1: Q3 2018 Earnings Presentation
Q3 2018 Earnings Presentation 7 NOVEMBER 2018 | 9AM EST
Slide 2: Forward Looking Statements
EARNINGS PRESENTATION | NOVEMBER 2018 Forward Looking Statements 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 co
Slide 3: Use of Non-GAAP Financial Measures
EARNINGS PRESENTATION | NOVEMBER 2018 Use of Non-GAAP Financial Measures 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 m
Slide 4: Earnings Conference Call
EARNINGS PRESENTATION | NOVEMBER 2018 Earnings Conference Call David Jones Introduction VP, General Council & Chief Compliance Officer Business Commentary Patrick S. Williams President & CEO Ian Cleminson Financial Performance Executive Vice President & CFO 4 ©2018. Innospec Inc. All Rights Reserved
Slide 5: Summary of 3rd Quarter Performance
EARNINGS PRESENTATION | NOVEMBER 2018 Summary of 3rd Quarter Performance Strategy delivering a strong financial performance Revenue and operating income up in all core businesses Revenue up 9 percent; Strong cash generation Operating income before restructuring up 32 percent; Adjusted EPS up 20 perc
Slide 6: Financial Performance
innospec’> Financial Performance
Slide 7: Q3 2018 Consolidated Results
EARNINGS PRESENTATION | NOVEMBER 2018 Q3 2018 Consolidated Results ($ in millions) $363.1 9 percent increase in sales over $332.4 a strong comparative quarter $44.5 $44.7 $1.20 Sequential gross margin $1.00 expansion in all core businesses $38.2 Adjusted EPS up 20 percent $29.0 +9% +32% - +20%
Slide 8: Q3 2018 Fuel Specialties
EARNINGS PRESENTATION | NOVEMBER 2018 Q3 2018 Fuel Specialties ($ in millions) $130.1 $134.9 Volume drives 4 percent sales increase Gross margins improve to the higher +11% 34.3% 36.2% end of the expected range -4.1% $29.8 PTS $28.8 $26.3 Excellent contribution from the $25.1 Americas region +
Slide 9: Q3 2018 Performance Chemicals
EARNINGS PRESENTATION | NOVEMBER 2018 Q3 2018 Performance Chemicals ($ in millions) $114.8 $110.3 Solid sales increase building further on strong first half year +13% +3.4% $17.3 Continued improvement of gross PTS $14.1 margins as expected 22.0% $12.4 18.8% 28 percent improvement in $9.7 opera
Slide 10: Q3 2018 Oilfield Services
EARNINGS PRESENTATION | NOVEMBER 2018 Q3 2018 Oilfield Services ($ in millions) $104.2 Customer activity drives continued strong sales growth +25% $81.9 $11.2 Gross margin up 2.0 percentage -8.0% PTS points sequentially 34.8% 32.1% Operating income almost 4 x $7.0 $6.3 comparative quarter $1.8
Slide 11: Q3 2018 Octane Additives
EARNINGS PRESENTATION | NOVEMBER 2018 Q3 2018 Octane Additives ($ in millions) $10.1 Latest order fulfilled $9.2 Gross margin impacted by lower +2.7% production volume PTS $4.4 $4.6 Potential for two further orders -58% 49.5% – one in Q4 2018 and another in H1 2019, subject to timing of 37.0%
Slide 12: Q3 2018 Corporate Items
EARNINGS PRESENTATION | NOVEMBER 2018 Q3 2018 Corporate Items ($ in millions) Corporate costs within expected range Tax rate influenced by geographical $12.7 $12.0 32.2% split of profits 22.1% Corporate Costs -59% Effective tax rate Q3 2017 Q3 2018 ©2018. Innospec Inc. All Rights Reserved. 12
Slide 13: Q3 2018 Balance Sheet
EARNINGS PRESENTATION | NOVEMBER 2018 Q3 2018 Balance Sheet ($ in millions) $307.8 Significant improvement in cash generation from the second quarter $245.4 Net debt reduced to 0.7x adjusted $134.1 $136.8 0.7 0.7 EBITDA Net Debt -59% Trading Working Capital Net Debt:Adjusted EBITDA(LTM) Q4 2017
Slide 14: Concluding Comments
innospec’> Concluding Comments
Slide 15: Concluding Comments
EARNINGS PRESENTATION | NOVEMBER 2018 Concluding Comments Strategy continues to drive profitable growth Sequential improvement of sales and margins in all strategic businesses Operating income before restructuring up 32 percent Adjusted EPS up 20 percent on prior year Return of shareholder value; 15
Slide 16: Your Opportunity to Ask Questions
YOUR OPPORTUNITY TO ASK QUESTIONS
Slide 17: Final Comments
EARNINGS PRESENTATION | NOVEMBER 2018 Final Comments Thank you for your continued support Q4 2018 Results February 2019 February 19th - Results Release After Close Sun Mon Tue Wed Thu Fri Sat February 20th - 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