Ingevity Corporation · NYSE:NGVT
Ingevity — Q1 2017 Earnings Presentation
17 slides from Ingevity's earnings presentation, May 4, 2017
Slide 1: First Quarter 2017 Earnings Presentation
First Quarter 2017 Earnings Presentation May 4, 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 •First Quarter Highlights •Segment Performance •Financial Review •2017 Guidance •Q&A 3
Slide 4: First Quarter 2017 Results
First Quarter 2017 Results • Revenue increase driven by volume growth in Performance Materials, oilfield and industrial specialties • Earnings in line with expectations • Adjusted EBITDA margins slightly higher than 22.3 percent in FY2016; down slightly compared to particularly strong 1Q16 • Strong
Slide 5: Performance Chemicals
Performance Chemicals • Solid revenue growth, driven by higher volumes in industrial specialties and oilfield · Industrial Specialties: Increased shipments of TOFA and bio-fractions ◦ Oilfield Technologies: U.S. rig count has doubled since last year ◦ Pavement Technologies: Seasonally slow quarter •
Slide 6: Bio-Refinery Competitive Conditions
Bio-Refinery Competitive Conditions
Slide 7: Performance Materials
Performance Materials • Strong volume-based revenue driven by “honeycomb” scrubber sales • Segment EBITDA consistent with prior year quarter; segment EBITDA margins slightly higher than 41.0 percent for full year 2016 • EBITDA impacted by: · Higher spending, primarily for “honeycomb” scrubber expans
Slide 8: Global Gasoline Vapor Emission Control Opportunity
Global Gasoline Vapor Emission Control Opportunity
Slide 9: First Quarter 2017 Financial Results Key Income Statement Metrics
First 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. 9 $ in
Slide 10: First Quarter 2017 Financial Results Key Balance Sheet & Cash Flow Metrics
First 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 le
Slide 11: 2017 Business Outlook and Guidance
2017 Business Outlook and Guidance Item FY16 Actual FY17 Guidance Revenue $908.3 $930M to $950M Adjusted EBITDA (1) $202.4 $215M to $225M Adjusted tax rate (1) 33.3% 33 - 35% Capital expenditures $56.7 $60M to $65M Free Cash Flow (2) $71.2 $80M to $90M Net Debt Ratio (3) 1.94x 1.5-1.75x (1) A reconc
Slide 12: 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 12
Slide 13: Appendix
Appendix 13
Slide 14: 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 15: Reconciliation of Net Income to Adjusted Earnings
Three Months Ended March 31, In millions, except per share amounts; unaudited 2017 2016 (1) Net income (loss) $ 23.0 $ 11.7 Less: Net income (loss) attributable to noncontrolling interests 4.0 2.5 Net income (loss) attributable to Ingevity stockholders (GAAP) 19.0 9.2 Restructuring and other (income
Slide 16: Reconciliation of Net Income (GAAP) to Adjusted EBITDA (Non-GAAP)
Three Months Ended March 31, In millions, unaudited 2017 2016 (1) Net income (loss) (GAAP) $ 23.0 $ 11.7 Provision for income taxes 11.0 11.2 Interest expense, net 3.3 5.4 Separation costs 0.3 6.4 Restructuring and other (income) charges 2.3 4.6 Adjusted EBIT (Non-GAAP) $ 39.9 $ 39.3 Depreciation an
Slide 17: Reconciliation of Segment Operating Profit to Segment EBITDA
In millions, unaudited Three Months Ended March 31, Performance Materials 2017 2016 (1) Segment operating profit (GAAP) $ 29.5 $ 30.7 Depreciation and amortization 5.0 3.2 Segment EBITDA (Non-GAAP) $ 34.5 $ 33.9 Net sales $ 83.4 $ 70.1 Segment operating margin 35.4 % 43.8 % Segment EBITDA margin 41.