Quaker Houghton · NYSE:KWR
Quaker Houghton — Quaker Chemical — Q1 2014 Earnings Presentation
14 slides from Quaker Houghton's earnings presentation, Apr 29, 2014
Slide 1: First Quarter 2014 Results Investor Conference Call
1 Quaker Chemical Corporation Investor Conference Call April 30, 2014 First Quarter 2014 Results
Slide 2: Regulation G and Forward-Looking Statements
Regulation G The attached charts include Company 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 and
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: First Quarter 2014 Headlines
First Quarter 2014 Headlines ▪ 3% revenue growth despite impacts from foreign exchange and the U.S. winter ▪ 11% growth in operating income and adjusted EBITDA ▪ Stable margin levels contribute to improved operating results Chart #2
Slide 5: Chairman Comments
Chairman Comments First Quarter 2014 ▪ First Quarter 2014 x Solid volume levels across most regions x Stable margins despite select market challenges x Strong operating results x Effective business model and competitive position x Liquidity remains a Company strength ▪ 2014 Outlook x Modest growth w
Slide 6: Product Volume by Quarter
Product Volume by Quarter Thousand Kilograms 25,000 30,000 35,000 40,000 45,000 50,000 55,000 4Q08 YTD Avg. 1Q092Q093Q094Q091Q102Q103Q104Q101Q112Q113Q114Q111Q122Q123Q124Q121Q132Q133Q134Q131Q14 Chart #4
Slide 7: Financial Snapshot
Financial Snapshot Q1 2014 Q1 2013 Net Sales ($Mils.) 181.7 176.2 Gross Margin (%) 35.8 35.5 Operating Margin (%) 10.7 9.9 Net Income attributable to Quaker Chemical Corporation ($Mils.) 12.7 13.6 Adjusted EBITDA ($Mils.) – Trailing Twelve Months 92.0 81.9 Adjusted EBITDA Margin (%) 12.5 11.6 Earnin
Slide 8: Gross Margin Percentage
Gross Margin Percentage 28.0% 34.7% 35.4% 32.6% 33.7% 35.8% 20.0% 25.0% 30.0% 35.0% 40.0% 2008 2009 2010 2011 2012 2013 Gross Margin Percentage 35.5% 36.4% 35.9% 35.4% 35.8% 20.0% 25.0% 30.0% 35.0% 40.0% Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Gross Margin Percentage Chart #6
Slide 9: Adjusted EBITDA Baseline Historical Performance
Adjusted EBITDA Baseline Historical Performance $40.1 $44.2 $66.8 $73.0 $80.9 $89.6 $95.0 6.90% 9.80% 12.30% 10.70% 11.40% 12.30% 13.10% 2008 2009 2010 2011 2012 2013 Q1 2014 Annualized Adjusted EBITDA ($ Mils.) Adjusted EBITDA Margin (%) 2008 – 2014 Annualized CAGR: 15.5% +620 Margin bps Chart #7
Slide 10: 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 Q1 2014 $ Millions Cash ST/LT Debt Net Debt Chart #8
Slide 11: Appendix
@ Quaker APPENDIX
Slide 12: Non-GAAP Earnings Per Diluted Share Reconciliation
Non - GAAP Earnings Per Diluted Share Reconciliation Q1 2014 Q1 2013 GAAP Earnings Per Diluted Share 0.96$ 1.04$ UK pension plan amendment per diluted share 0.05$ -$ Devaluation of the Venezuelan Bolivar Fuerte per diluted share -$ 0.03$ Equity income in a captive insurance company per diluted share
Slide 13: Annualized Adjusted EBITDA Reconciliation
Annualized Adjusted EBITDA Reconciliation 2008 2009 2010 2011 2012 2013 YTD Q1 2014 Net income 9,833 16,058 32,120 45,892 47,405 56,339 12,730 Depreciation 10,879 9,525 9,867 11,455 12,252 12,339 3,075 Amortization 1,177 1,078 988 2,338 3,106 3,445 813 Interest expense 5,509 5,533 5,225 4,666 4,283
Slide 14: Trailing Twelve Months Adjusted EBITDA Reconciliation
Trailing Twelve Months Adjusted EBITDA Reconciliation I = G + H H G = F - D F E = C + D D C = B - A B A Trailing Twelve Months Q1 2014 Q1 2014 Last Nine Months 2013 YTD 2013 Trailing Twelve Months Q1 2013 Q1 2013 Last Nine Months 2012 YTD 2012 Q1 2012 Net income 55,450 12,730 42,720 56,339 48,659 13