Ingevity Corporation · NYSE:NGVT
Ingevity — Q3 2017 Earnings Presentation
15 slides from Ingevity's earnings presentation, Nov 2, 2017
Slide 1: Third Quarter 2017 Earnings Presentation
Third Quarter 2017 Earnings Presentation November 2, 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 •Third Quarter Highlights •Segment Performance •Financial Review •2017 Guidance •Q&A 3
Slide 4: Third Quarter 2017 Results
Third Quarter 2017 Results • Strategic focus on high value-added product lines and disciplined execution drove increase in revenues and earnings • Sales up 5 percent as volume, price/mix and FX all contributed • Adjusted EBITDA increase of 22 percent benefitted from: • Volume gains and price improve
Slide 5: Performance Chemicals
Performance Chemicals • Oilfield Technologies: U.S. rig count remains steady; continued rig efficiency; greater customer demand for higher value-added products • Pavement Technologies: Record sales; weather patterns pushed revenue into the quarter from Q2; robust market conditions and new products c
Slide 6: Performance Materials
Performance Materials • Record revenues up about 8 percent; sales of ‘honeycomb’ scrubber products, used to comply with U. S. EPA Tier 3 / California LEV III standards, showed robust growth • Revenue increase of about 8 percent despite 11 percent decline in North American light vehicle production; y
Slide 7: Third Quarter 2017 Financial Results: Key Income Statement Metrics
Third 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. 7 $ in
Slide 8: Third Quarter 2017 Financial Results: Key Balance Sheet & Cash Flow Metrics
Third 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 9: 2017 Revised Guidance
2017 Revised Guidance ($M; excludes G-P pine chemicals acquisition) Item FY16 Actual 2Q Revised FY17 Guidance 3Q Revised FY17 Guidance Revenue $908 $940 to $955 $945 to $955 Adjusted EBITDA (1) $202 $220 to $230 $227 to $232 Adjusted tax rate (1) 33.3% 32 - 34% 31 - 32% Capital expenditures $57 $55
Slide 10: 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 10
Slide 11: Appendix
Appendix 11
Slide 12: Non-GAAP Financial Measures
Non-GAAP Financial Measures 12 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 ac
Slide 13: Reconciliation of Net Income (Loss) (GAAP) to Adjusted Earnings (Loss) (Non-GAAP)
Reconciliation of Net Income (Loss) (GAAP) to Adjusted Earnings (Loss) (Non-GAAP) 13 Three Months Ended September 30, Nine Months Ended September 30, In millions, except per share amounts; unaudited 2017 2016 (1) 2017 2016 (1) Net income (loss) $ 38.4 $ (4.9 ) $ 97.2 $ 32.7 Less: Net income (loss) a
Slide 14: Reconciliation of Net Income (GAAP) to Adjusted EBITDA (Non-GAAP)
Reconciliation of Net Income (GAAP) to Adjusted EBITDA (Non-GAAP) 14 Reconciliation of Provision for Income Taxes (GAAP) to Provision for Income Taxes on Adjusted Earnings (Non-GAAP) Three Months Ended September 30, Nine Months Ended September 30, In millions, unaudited 2017 2016 (1) 2017 2016 (1) N
Slide 15: Reconciliation of Segment Operating Profit (GAAP) to Segment EBITDA (Non-GAAP)
Reconciliation of Segment Operating Profit (GAAP) to Segment EBITDA (Non-GAAP) 15 In millions, unaudited Three Months Ended September 30, Nine Months Ended September 30, Performance Materials 2017 2016 (1) 2017 2016 (1) Segment operating profit (GAAP) $ 29.3 $ 27.8 $ 89.5 $ 84.7 Depreciation and amo