Innospec Inc. · NASDAQ:IOSP
Innospec — Q1 2017 Earnings Presentation
17 slides from Innospec's earnings presentation, May 10, 2017
Slide 1: Q1 2017 Earnings Presentation
Q1 2017 EARNINGS PRESENTATION MAY 10, 2017 | 8:30 AM EST
Slide 2: Q1 2017 Earnings Conference Call
Q1 2017 EARNING CONFERENCE CALL 2 David Williams Introduction VP, General Counsel and Chief Compliance Officer Patrick S. Williams Business Update President & CEO Ian Cleminson Financial Performance Executive Vice President & CFO Patrick S. Williams Closing Comments President & CEO Q&A © 2017. All R
Slide 3: Forward Looking Statements
FORWARD LOOKING STATEMENTS 3 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 constitute forward-looking statements.
Slide 4: Use of Non-GAAP Financial Measures
USE OF NON-GAAP FINANCIAL MEASURES 4 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 measures comprise adjusted EBITDA, in
Slide 5: Summary of 1st Quarter Performance
SUMMARY OF 1ST QUARTER PERFORMANCE 5 Great start to 2017 – very strong quarter Sales up 39 percent; adjusted EBITDA up 20 percent Adjusted EPS of $1.00; 8 percent increase on Q1 2016 Significant sales growth and profit improvement in Oilfield Services Return to solid volume growth in Fuel Specialtie
Slide 6: Financial Presentation
FINANCIAL PRESENTATION © 2017. All Rights Reserved. Innospec, Inc.
Slide 7: Q1 2017 Consolidated Results
7 Q1 2017 CONSOLIDATED RESULTS ($ in millions) + 39% + 11% + 20% + 8% Sales up 39 percent; Like-for-like sales up 11 percent Adjusted EPS of $1.00; up 8 percent Q1 ‘16 Q1 ‘17 *Operating income is before Fair Value adjustments, Loss on Disposal of Subsidiary and Foreign Exchange Loss on Liquidation o
Slide 8: Fuel Specialties
Q1 2017 FUEL SPECIALTIES 8 ($ in millions) + 2% + 2.5% pts + 12% + 12% Good volume growth – notably in the Americas Gross margin starting to normalize compared to a strong Q4 2016 Operating income and adjusted EBITDA up 12 percent Q1 ‘16 Q1 ‘17 © 2017. All Rights Reserved. Innospec, Inc.
Slide 9: Performance Chemicals
Q1 2017 PERFORMANCE CHEMICALS 9 ($ in millions) + 172% -13.4% pts + 36% + 100% Significant positive impact of acquisition from Huntsman Gross margins in line with expectations Adjusted EBITDA doubles year over year Q1 ‘16 Q1 ‘17 © 2017. All Rights Reserved. Innospec, Inc.
Slide 10: Oilfield Services
Q1 2017 OILFIELD SERVICES 10 ($ in millions) + 84% + 6.2% pts n/a n/a Increased customer activity driving sales growth Gross profit and margins up on Q1 2016, but broadly flat sequentially Continued its’ profitable recovery as expected Operating Adjusted Income EBITDA Q1 ‘16 Q1 ‘17 © 2017. All Right
Slide 11: Octane Additives
Q1 2017 OCTANE ADDITIVES 11 ($ in millions) - 61% - 27.2% pts - 82% - 80% New $20 million order; only partly fulfilled in Q1 2017 Operating income of $2.0 million; compared to $11.0 million in Q1 2016 Balance of order (over $13 million) will be delivered in Q2 Q1 ‘16 Q1 ‘17 © 2017. All Rights Reserv
Slide 12: Corporate Items
Q1 2017 CORPORATE ITEMS 12 Corporate costs in line with expectations Effective tax rate 25.9 percent ($ in millions) Q1 2016 Q1 2017 Corporate costs (10.2) (10.7) Pension credit 1.8 1.1 Effective tax rate 22.9% 25.9% © 2017. All Rights Reserved. Innospec, Inc.
Slide 13: Balance Sheet
Q1 2017 BALANCE SHEET 13 Injection of $28.6 million of working capital to acquired business Working capital increase drives an operating cash outflow for the quarter Leverage remains low ($ in millions) Q4 2016 Q1 2017 Net debt (171.4) (198.3) Total working capital 180.5 237.6 © 2017. All Rights Res
Slide 14: Concluding Comments
CONCLUDING COMMENTS © 2017. All Rights Reserved. Innospec, Inc.
Slide 15: Concluding Comments
CONCLUDING COMMENTS 15 Very strong start to 2017 All core businesses growing and performing well Portfolio well balanced Semi-annual dividend of 38 cents per share Leverage in good shape Still receptive to M&A or partnership opportunities © 2017. All Rights Reserved. Innospec, Inc.
Slide 16: Your Opportunity to Ask Questions
16 YOUR OPPORTUNITY TO ASK QUESTIONS © 2017. All Rights Reserved. Innospec, Inc.
Slide 17: Final Comments
FINAL COMMENTS 17 Thank you for your continued support Q2 2017 Results AUGUST 2017 August 8 - Results Release After Close Sun Mon Tue Wed Thu Fri Sat August 9 - 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 28 29 30 31 © 2017. All Rights Reserved. Innospec,