Stepan Company · NYSE:SCL
Stepan — Q1 2024 Earnings Presentation
19 slides from Stepan's earnings presentation, Apr 30, 2024
Slide 1: First Quarter 2024 Earnings Results
First Quarter 2024 Earnings Results April 30, 2024 Providing innovative chemical solutions for a cleaner, healthier, more energy efficient world.
Slide 2: Cautionary Statement
Cautionary Statement Certain information in this presentation consists of forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.
Slide 3: Earnings Conference Call Agenda
Earnings Conference Call Agenda 2024 First Quarter Highlights Scott R. Behrens, President & Chief Executive Officer 2024 First Quarter Financial Results Luis E. Rojo, Vice President & Chief Financial Officer Strategic Outlook Scott R. Behrens, President & Chief Executive Officer Analysts Q&A Session
Slide 4: First Quarter 2024 Highlights
First Quarter 2024 Highlights NET POSITIVE EBITDA(2) VOLUME COST OUT INCOME CASH GROWTH GROWTH ON TRACK DOWN FLOW Reported Net EBITDA(2) of $50.2 Volume grew 1% Generated Cash Company is on Income was $13.9 million and year-over-year with from Operations track to deliver the million and Adjusted gro
Slide 5: Net Income Bridge – Q1 2023 to Q1 2024
Net Income Bridge – Q1 2023 to Q1 2024 $0.71 $0.64 Adj. EPS Adj. EPS Note: All amounts are in millions of U.S. dollars and are reported after-tax. (1) The adjustments to Reported Net Income in Q1 2023 consisted of environmental remediation expense and restructuring costs of $0.4 million, deferred co
Slide 6: Adjusted EBITDA Bridge – Q1 2023 to Q1 2024
Adjusted EBITDA(1) Bridge – Q1 2023 to Q1 2024 Note: All amounts are in millions of U.S. dollars. (1) Adjusted EBITDA is a Non-GAAP measure. See Appendix III for GAAP reconciliations. Surfactants Adjusted EBITDA growth was driven by margin improvement, partially offset by higher expenses associated
Slide 7: Global Surfactants
Quarter-over-Quarter Volume Change Global Surfactants Q1 2023 to Q1 2024 Net Sales Bridge Q1 2023 to Q1 2024 Adjusted EBITDA(1) Bridge (1) Adjusted EBITDA is a Non-GAAP measure. See Appendix III for GAAP reconciliations. Volume was driven by share recovery in Mexico and North America and Asia benefi
Slide 8: Global Polymers
Quarter-over-Quarter Volume Change Global Polymers Q1 2023 to Q1 2024 Net Sales Bridge Q1 2023 to Q1 2024 Adjusted EBITDA(1) Bridge (1) Adjusted EBITDA is a Non-GAAP measure. See Appendix III for GAAP reconciliations. Volume growth was driven by Rigid and Specialty North America results were driven
Slide 9: Balance Sheet & Cash Flow
Balance Sheet & Cash Flow Net Debt(1) / TTM Adjusted EBITDA(2) ($MM) Capital Expenditures ($MM) 2.9 Net Debt/TTM Adj EBITDA Ratio(3) 520 183 Net Debt(1) TTM Adjusted EBITDA(2) Cash from Operations ($MM) Free Cash Flow(4) ($MM) 175 161 42 (72) 2022 2023 Q1 2023 Q1 2024 (1) Net Debt is a Non-GAAP meas
Slide 10: Stepan Strategic Priorities & Growth Strategy
Stepan Strategic Priorities & Growth Strategy Creating and Delivering Shareholder Value Customer Intimacy & Extended Reach • Focused Growth with Strategic Tier 1 Customers • Grow Share of Wallet and expand Tier 2 & 3 Customer Base Priority Market Diversification Efficient Capital Allocation • Agricu
Slide 11: Strategic Capital Investments Update
Strategic Capital Investments Update New Alkoxylation Capacity: Pasadena, Texas $265MM Summary & Benefits Estimated CapEx Alkoxylates are a core surfactant technology consumed across Stepan’s key agricultural, oilfield, 75KTA construction and household end use markets Annual Alkoxylation Business co
Slide 12: Thank You
NYSE: SCL Thank You Luis E. Rojo VP and CFO 847-446-7500
Slide 13: Appendix: Financials and GAAP Reconciliations
APPENDIX Financials and GAAP Reconciliations 13
Slide 14: Update on Certain Expectations
Appendix I Update on Certain Expectations (millions USD) 2021 Actual 2022 Actual 2023 Actual 2024 Forecast Capital Expenditures 195 301 260 120 - 140 Debt Repayments 38 38 38 54 Interest Net 6 10 12 18-20 Depreciation & Amortization 91 95 105 123-127 Effective Tax Rate (%) 20% 22% 17% 34 - 36%(*) (*
Slide 15: Appendix II: Adjusted Net Income and EPS Reconciliation
Appendix II Reconciliation of Non-GAAP Adjusted Net Income and Earnings Per Diluted Share Reconciliation of Pre-Tax to After-Tax Adjustments 15
Slide 16: Appendix III: Adjusted EBITDA and EBITDA Reconciliations
Appendix III Adjusted EBITDA and EBITDA Reconciliations Q1 2024 and Q1 2023 16
Slide 17: Appendix IV: TTM Adjusted EBITDA Reconciliation
Appendix IV Trailing Twelve Months Adjusted EBITDA Reconciliation 3/31/2024 TTM – Adjusted EBITDA Reported Operating Income 57.7 Depreciation & Amortization 107.4 Other Net Income (Expense) 2.6 EBITDA 167.7 Deferred Compensation (1.1) Cash Settled SARS (0.0) Goodwill and Other Intangibles Impairment
Slide 18: Appendix V: Free Cash Flow Reconciliation
Appendix V Free Cash Flow (FCF) Reconciliation (million USD) Q1 2024 Q1 2023 Cash Flow from Operations 41.6 (72.1) Capital Expenditures (30.2) (92.2) Free Cash Flow 11.4 (164.2) 18
Slide 19: Appendix VI: Net Debt to Total Capitalization Ratio
Appendix VI Net Debt to Total Capitalization Ratio (millions USD) March 31, December March 31, March 31, March 31, March 31, 2024 31, 2023 2023 2022 2021 2020 Total Debt 646.0 654.1 711.0 537.1 248.4 222.1 Cash 125.8 129.8 127.0 236.0 150.7 254.3 Net Debt 520.2 524.3 584.0 301.1 97.7 (32.2) Equity 1