Ingevity Corporation · NYSE:NGVT
Ingevity — Q2 2017 Earnings Presentation
16 slides from Ingevity's earnings presentation, Aug 3, 2017
Slide 1: Second Quarter 2017 Earnings Presentation
Second Quarter 2017 Earnings Presentation August 3, 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 •Second Quarter Highlights •Segment Performance •Financial Review •2017 Guidance •Q&A 3
Slide 4: Second Quarter 2017 Results
Second Quarter 2017 Results $ in millions Q2 Q2 vs Prior Year 2017 2016 ∆ ∆% Net Sales 260.3 245.4 14.9 6.1% Adjusted EBITDA (1) 67.2 58.5 8.7 14.9% Adjusted EBITDA Margin (1) 25.8% 23.8% +200 bps *SG&A includes research & technical expenses. Performance Highlights • Strong financial results as Perf
Slide 5: Performance Chemicals
Performance Chemicals $ in millions Q2 Q2 vs Prior Year 2017 2016 ∆ ∆% Net Sales 170.8 171.2 (0.4) (0.2)% Industrial Specialties 95.6 100.4 (4.8) (4.8)% Oilfield Technologies 19.5 14.5 5.0 34.5% Pavement Technologies 55.7 56.3 (0.6) (1.1)% Segment EBITDA (1) 31.5 28.6 2.9 10.1% Segment EBITDA Margin
Slide 6: Performance Materials
Performance Materials $ in millions Q2 Q2 vs Prior Year 2017 2016 ∆ ∆% Net Sales 89.5 74.2 15.3 20.6% Segment EBITDA (1) 35.7 29.9 5.8 19.4% Segment EBITDA Margin (1) 39.9% 40.3% (40) bps *SG&A includes research & technical expenses. Performance Highlights • Revenues up 21 percent; segment EBITDA of
Slide 7: New Changshu, China, Extrusion Plant
New Changshu, China, Extrusion Plant • Key component of multi-year expansion plans to support growth in Performance Materials • Capital-efficient investment to convert lower margin activated carbon powder to higher-value automotive products • Investment of $20 million, just over half of which is pla
Slide 8: Second Quarter 2017 Financial Results
Second Quarter 2017 Financial Results Key Income Statement Metrics $ in millions except EPS & shares Q2 Q2 vs PY 1H 1H vs PY outstanding 2017 2016 ∆% 2017 2016 ∆% Net Sales (GAAP) 260.3 245.4 6.1% 478.8 445.0 7.6% Adjusted EBITDA (Non-GAAP) (1) 67.2 58.5 14.9% 117.4 106.8 9.9% Interest expense, net
Slide 9: Second Quarter 2017 Financial Results
Second Quarter 2017 Financial Results Key Balance Sheet & Cash Flow Metrics $ in millions 6/30/2017 12/31/2016 6/30/2016 Cash & cash equivalents 40.6 30.5 55.7 Restricted investment (related to 70.4 69.7 69.1 capital lease) (1) Total debt including capital lease 481.2 491.9 570.0 obligation (2) Net
Slide 10: 2017 Revised Guidance
2017 Revised Guidance ($M) Item FY16 Original FY17 Revised FY17 Actual Guidance Guidance Revenue $908.3 $930 to $950 $940 to $955 Adjusted EBITDA (1) $202.4 $215 to $225 $220 to $230 Adjusted tax rate (1) 33.3% 33 - 35% 32 - 34% Capital $56.7 $60 to $65 $55 to $60 expenditures Free Cash Flow (2) $71
Slide 11: 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 11
Slide 12: Appendix
Appendix 12
Slide 13: Non-GAAP Financial Measures
Non-GAAP Financial Measures 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 accor
Slide 14: Reconciliation of Net Income (Loss) (GAAP) to Adjusted Earnings (Loss) (Non-GAAP)
Reconciliation of Net Income (Loss) (GAAP) to Adjusted Earnings (Loss) (Non-GAAP) 14
Slide 15: Reconciliation of Net Income (GAAP) to Adjusted EBITDA (Non-GAAP)
Reconciliation of Net Income (GAAP) to Adjusted EBITDA (Non-GAAP) Reconciliation of Provision for Income Taxes (GAAP) to Provision for Income Taxes on Adjusted Earnings (Non-GAAP) 15
Slide 16: Reconciliation of Segment Operating Profit (GAAP) to Segment EBITDA (Non-GAAP)
Reconciliation of Segment Operating Profit (GAAP) to Segment EBITDA (Non-GAAP) 16