Quaker Houghton · NYSE:KWR
Quaker Houghton — Quaker Chemical — FY2014 Earnings Presentation
14 slides from Quaker Houghton's earnings presentation, Feb 26, 2015
Slide 1: Fourth Quarter and Full Year 2014 Results Investor Conference Call
1 Fourth Quarter and Full Year 2014 Results Investor Conference Call February 27, 2015 Quaker Chemical Corporation
Slide 2: Regulation G; Forward-Looking Statements
Regulation G The attached charts include C ompany 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
Slide 3: Speakers
Speakers Chart #1 Michael F. Barry Chairman of the Board, Chief Executive Officer & President Margaret M. Loebl Vice President, Chief Financial Officer & Treasurer Robert T. Traub General Counsel
Slide 4: Fourth Quarter 2014 Headlines
Fourth Quarter 2014 Headlines ▪ Strong quarterly revenue growth of 5%, despite 4% of foreign exchange headwinds ▪ Strong operating income drives 13% adjusted EBITDA increase in the quarter ▪ Purchase of Binol AB contributes to record year of acquisition activity Chart #2
Slide 5: Chairman Comments Fourth Quarter and Full Year 2014
Chairman Comments Fourth Quarter and Full Year 2014 ▪ Fourth Quarter / Full Year 2014 x Strong Volumes Drive Sales Growth in Quarter and Year x Acquisitions Offset Foreign Exchange Headwinds x Continue to Maintain Stable Quarterly and Annual Margins x Record Revenue, Operating Income and Adjusted EB
Slide 6: Chief Financial Officer Highlights
Chief Financial Officer --Highlights 1) Volume Drives 5% Increase in Net Sales for Quarter and Year 2) Stable Margins Drive Strong Operating Results in Quarter and Year 3) Adjusted EBITDA up 13% in Quarter & Approximated $100 Million in Year 4) Non-GAAP EPS up 11% for Year; While Up Only Slightly Fr
Slide 7: Product Volume by Quarter
Product Volume by Quarter Thousand Kilograms 25,000 30,000 35,000 40,000 45,000 50,000 55,000 60,000 4Q08 YTD Avg. 1Q092Q093Q094Q091Q102Q103Q104Q101Q112Q113Q114Q111Q122Q123Q124Q121Q132Q133Q134Q131Q142Q143Q144Q14 Chart #5
Slide 8: Financial Snapshot
Financial Snapshot Q4 2014 Q4 2013 YTD 2014 YTD 2013 Net Sales ($Mils.) 194.0 184.3 765.9 729.4 Gross Margin (%) 35.9 35.4 35.7 35.8 Operating Margin (%) 8.5 8.3 10.1 9.8 Net Income attributable to Quaker Chemical Corporation ($Mils.) 12.6 14.1 56.5 56.3 Adjusted EBITDA ($Mils.) –Trailing Twelve Mon
Slide 9: Gross Margin Percentage
Gross Margin Percentage 28.0% 34.7% 35.4% 32.6% 33.7% 35.8% 35.7% 20.0% 25.0% 30.0% 35.0% 40.0% 2008 2009 2010 2011 2012 2013 2014 Gross Margin Percentage 35.4% 35.8% 35.7% 35.4% 35.9% 20.0% 25.0% 30.0% 35.0% 40.0% Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Gross Margin Percentage Chart #7
Slide 10: Adjusted EBITDA Baseline Historical Performance
Adjusted EBITDA Baseline Historical Performance $40.1 $66.8 $73.0 $80.9 $89.6 $99.8 $44.2 9.8% 12.3% 10.7% 11.4% 12.3% 13.0% 6.9% 2008 2009 2010 2011 2012 2013 2014 Adjusted EBITDA ($ Mils.) Adjusted EBITDA Margin (%) 2008 –2014 CAGR: 16.4% +610 Margin bps Chart #8
Slide 11: Balance Sheet Net Cash / (Debt)
Balance Sheet Net Cash / (Debt) -$100 -$80 -$60 -$40 -$20 $0 $20 $40 $60 $80 2008 2009 2010 2011 2012 2013 2014 $ Millions Cash ST/LT Debt Net Debt Chart #9
Slide 12: Appendix
@ Quaker APPENDIX
Slide 13: Non-GAAP Earnings Per Diluted Share Reconciliation
Non-GAAP Earnings Per Diluted Share Reconciliation Chart #10 Q4 2014 Q4 2013 YTD 2014 YTD 2013 GAAP Earnings Per Diluted Share 0.95$ 1.07$ 4.26$ 4.27$ U.K. pension plan amendment per diluted share -$ -$ 0.05$ -$ Customer bankruptcy costs per diluted share 0.03$ -$ 0.05$ -$ Mineral oil excise tax ref
Slide 14: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Chart #11 2008 2009 2010 2011 2012 2013 2014 Net income 9,833 16,058 32,120 45,892 47,405 56,339 56,492 Depreciation 10,879 9,525 9,867 11,455 12,252 12,339 12,306 Amortization 1,177 1,078 988 2,338 3,106 3,445 4,325 Interest expense 5,509 5,533 5,225 4,666 4,283 2,922