Quaker Houghton · NYSE:KWR
Quaker Houghton — Quaker Chemical — Q1 2022 Earnings Presentation
21 slides from Quaker Houghton's earnings presentation, May 5, 2022
Slide 1: Quaker Houghton First Quarter 2022 Results Investor Conference Call
Quaker Houghton First Quarter 2022 Results Investor Conference Call
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”). Man agement 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: Non-GAAP financial information
The information included in this presentation includes non - GAAP (unaudited) financial information that includes EBITDA, adjusted EBITDA, adjusted EBITDA margin, non - GAAP operating income, non - GAAP operating margin, non - GAAP net income, non - GAAP earnings per diluted share, and pro forma net
Slide 4: Speakers
Andy Tometich Chief Executive Officer & President Shane W. Hostetter Senior Vice President, Chief Financial Officer Robert T. Traub Senior Vice President, General Counsel & Corporate Secretary David A. Will Vice President & Chief Accounting Officer Jeffrey Schnell Senior Director, Investor Relations
Slide 5: Highlights
©2020 Quaker Houghton. All Rights Reserved 5 Highlights » Delivered Q1’22 results in - line with expectations despite significant challenges ▪ Strong sales growth across all our segments driven by double - digit price capture ▪ Stable gross margins compared to Q4’21 despite significant and persisten
Slide 6: Financial Snapshot
©2020 Quaker Houghton. All Rights Reserved 6 Financial Snapshot (dollars in millions, per share amounts) (1) Certain amounts may not calculate due to rounding Q1 2022 Q1 2021 Q4 2021 GAAP Net Sales $ 474.2 $ 429.8 $ 44.4 10% $ 447.0 $ 27.1 6% Gross Profit 146.1 156.2 (10.1) (6%) 138.9 7.2 5% Gross M
Slide 7: Total Company Volume Trend
Q1’22 sales volumes reflect the comparison to a strong Q1’21, where customers replenished their supply chains, lower volumes related to the tolling agreement on previously divested products and the current quarter impact of geopolitical events Total Company Volume Trend (k ilograms, in thousands ) 7
Slide 8: Adjusted EBITDA
©2020 Quaker Houghton. All Rights Reserved 8 Adjusted EBITDA (dollars in millions) Adjusted EBITDA trend shows strong price capture offset by significant and persistent inflationary pressures in Q1’22 (1) Results presented above for 2020, 2021 and 2022 are the actual results for Quaker Houghton, all
Slide 9: Leverage and Liquidity Update
▪ Total debt of $926.9 million and cash of $161.6 million resulted in net debt of $765.3 million ▪ Leverage 1 of 3.0x as of March 31, 2022 ▪ Increase is primarily attributable to the comparison to a strong 1Q’21 which generated a higher adjusted EBITDA ▪ Operating well within all bank covenants ▪ 2.
Slide 10: Appendix: Actual and Non-GAAP Results
Appendix Actual and Non - GAAP Results
Slide 11: Non-GAAP Operating Income Reconciliation
©2020 Quaker Houghton. All Rights Reserved 11 Non - GAAP Operating Income Reconciliation (dollars in thousands, unless otherwise noted) Q1 2022 Q1 2021 Operating income 29,403$ 44,894$ Combination, integration and other acquisition-related expenses 4,053 6,230 Strategic planning and transformation e
Slide 12: Adjusted EBITDA & Non-GAAP Net Income Reconciliation
©2020 Quaker Houghton. All Rights Reserved 12 Adjusted EBITDA & Non - GAAP Net Income Reconciliation (dollars in thousands, unless otherwise noted) Q1 2022 Q1 2021 Net income attributable to Quaker Chemical Corporation 19,816$ 38,615$ Depreciation and amortization 20,727 22,448 Interest expense, net
Slide 13: Adjusted EBITDA Reconciliation
©2020 Quaker Houghton. All Rights Reserved 13 Adjusted EBITDA Reconciliation (dollars in thousands) FY 2020 FY 2021 Net income attributable to Quaker Chemical Corporation 39,658$ 121,369$ Depreciation and amortization 84,494 87,728 Interest expense, net 26,603 22,326 Taxes on income before equity in
Slide 14: Adjusted EBITDA Reconciliation Trailing Twelve Months Q1 2022
©2020 Quaker Houghton. All Rights Reserved 14 Adjusted EBITDA Reconciliation Trailing Twelve Months Q1 2022 (dollars in thousands) A B C = B - A D E = C + D Q1 2021 Full Year 2021 Last Nine Months 2021 Q1 2022 TTM Q1 2022 Net income attributable to Quaker Chemical Corporation 38,615$ 121,369$ 82,754
Slide 15: Non-GAAP EPS Reconciliation
©2020 Quaker Houghton. All Rights Reserved 15 Non - GAAP EPS Reconciliation Q1 2022 Q1 2021 GAAP earnings per diluted share attributable to Quaker Chemical Corporation common shareholders Equity loss (income) in a captive insurance company per diluted share 0.01 (0.17) Combination, integration and o
Slide 16: Segment Performance
©2020 Quaker Houghton. All Rights Reserved 16 Segment Performance (dollars in thousands) Q1 2022 Q1 2021 Net sales Americas 154,144$ 134,871$ EMEA 125,687 119,814 Asia/Pacific 104,234 96,706 Global Specialty Businesses 90,106 78,392 Total net sales 474,171$ 429,783$ Segment operating earnings Americ
Slide 17: Forward Together
& Quaker Ve Houghton. Forward Together~
Slide 18: Full Year 2019 Pro Forma Reconciliation
©2020 Quaker Houghton. All Rights Reserved 18 Full Year 2019 Pro Forma Reconciliation (dollars in millions) Quaker Houghton Divestitures Other (a) Pro Forma* Net sales 1,134$ 475$ (34)$ (13)$ 1,562$ Net Income (Loss) Attributable to Quaker Houghton 32$ (3)$ (6)$ 10$ 33$ Depreciation and Amortization
Slide 19: Full Year 2018 Pro Forma Reconciliation
19 ©2020 Quaker Houghton. All Rights Reserved Full Year 2018 Pro Forma Reconciliation (dollars in millions) Quaker Houghton Divestitures Other (a) Pro Forma* Net sales 868$ 861$ (53)$ (22)$ 1,655$ Net Income (Loss) Attributable to Quaker Houghton 59$ (0)$ (9)$ 17$ 66$ Depreciation and Amortization 2
Slide 20: Full Year 2017 Pro Forma Reconciliation
20 ©2020 Quaker Houghton. All Rights Reserved Full Year 2017 Pro Forma Reconciliation (dollars in millions) Quaker Houghton Divestitures Other (a) Pro Forma* Net Income (Loss) Attributable to Quaker Houghton 20$ (47)$ (9)$ 9$ (26)$ Depreciation and Amortization 20 55 - 5 80 Interest Expense, Net 1 5
Slide 21: Full Year 2016 Pro Forma Reconciliation
21 ©2020 Quaker Houghton. All Rights Reserved Full Year 2016 Pro Forma Reconciliation (dollars in millions) Quaker Houghton Divestitures Other (a) Pro Forma* Net Income (Loss) Attributable to Quaker Houghton 61$ (37)$ (8)$ 7$ 23$ Depreciation and Amortization 20 55 - 5 80 Interest Expense, Net 1 51