Quaker Houghton · NYSE:KWR
Quaker Houghton — Q2 2024 Earnings Presentation
16 slides from Quaker Houghton's earnings presentation, Aug 6, 2024
Slide 1: Second Quarter 2024 Results Investor Conference Call
Quaker Houghton Second Quarter 2024 Results Investor Conference Call
Slide 2: Forward-Looking Statements
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 operati
Slide 3: Non-GAAP Measures
Non-GAAP Measures 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 and non-GAAP earnings per diluted share. The Co
Slide 4: Speakers
Speakers Andy Tometich Chief Executive Officer, President Tom Coler Executive Vice President, Chief Financial Officer Robert T. Traub Senior Vice President, General Counsel & Corporate Secretary Jeffrey Schnell Vice President, Investor Relations 4 ©2024 Quaker Houghton. All Rights Reserved
Slide 5: Q2'24 Highlights
Q2’24 Highlights Net sales of $464m despite the challenging macroeconomic environment Gross margins of 37.9%, an improvement of 200bps Y/Y Delivered $84m of adj. EBITDA1, a 5% increase Y/Y Generated operating cash flow of $74m YTD; Balance sheet strong with net leverage2 of 1.7x Quaker Houghton Boar
Slide 6: Financial Snapshot
Financial Snapshot (Unaudited; Dollars in millions, unless otherwise noted) Q2 2024 Q2 2023 Variance(1) Q1 2024 Variance(1) YTD 2024 YTD 2023 Variance(1) GAAP Net sales $ 463.6 $ 495.4 $ (31.9) (6.4%) $ 469.8 $ (6.2) (1.3%) $ 933.3 $ 995.6 $ (62.3) (6.3%) Gross profit 175.7 177.7 (2.0) (1.1%) 181.6
Slide 7: Total Company Volume Trend
1 Total Company Volume Trend (kilograms, in thousands) 150,000 125,000 100,000 75,000 50,000 25,000 — Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 2022 2022 2023 2023 2023 2023 2024 2024 Sales volumes in Q2’24 declined slightly compared to Q
Slide 8: Adjusted EBITDA
1 Adjusted EBITDA (dollars in millions) $329 $320 $84 $80 $274 $257 $222 2020 2021 2022 2023 Q2'24 LTM Q2 2023 Q2 2024 Generated $84m of adjusted EBITDA in Q2’24, a 5% increase Y/Y, primarily due to an improvement in gross margins 1 This is a non-GAAP measure, refer to the reconciliations of our non
Slide 9: Leverage and Liquidity Update
Leverage and Liquidity Update Net Debt and Leverage Ratio1 (Dollars in Millions) • Total debt of $737 million $815 $787 $774 $717 $750 $759 $759 $736 $765 $753 • Cash and cash equivalents of $189 million $696 $628 • Net debt of $549 million $574 $561 $549 • Leverage of 1.7x as of June 30, 20241 • Op
Slide 10: Appendix: Actual and Non-GAAP Results
Appendix Actual and Non-GAAP Results
Slide 11: Non-GAAP Operating Reconciliation
Non-GAAP Operating Reconciliation (Unaudited; Dollars in thousands, unless otherwise noted) Three Months Ended Six Months Ended June 30, June 30, Non-GAAP Operating Income and Margin Reconciliations: 2024 2023 2024 2023 Operating income $ 58,449 $ 56,795 $ 113,975 $ 106,724 Restructuring and related
Slide 12: Adjusted EBITDA & Non-GAAP Net Income Reconciliation
Adjusted EBITDA & Non-GAAP Net Income Reconciliation (Unaudited; Dollars in thousands, unless otherwise noted) Three Months Ended Six Months Ended June 30, June 30, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin and Non-GAAP Net Income Reconciliations: 2024 2023 2024 2023 Net income attributable to
Slide 13: Non-GAAP EPS Reconciliation
Non-GAAP EPS Reconciliation Three Months Ended Six Months Ended June 30, June 30, Non-GAAP Earnings per Diluted Share Reconciliations: 2024 2023 2024 2023 GAAP earnings per diluted share attributable to Quaker Chemical Corporation common shareholders $ 1.94 $ 1.63 $ 3.89 $ 3.27 Equity (income) loss
Slide 14: Segment Performance
Segment Performance (Unaudited; Dollars in thousands, except per share amounts) Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Net sales Americas $ 223,517 $ 253,219 $ 453,271 $ 504,632 EMEA 138,001 143,533 276,423 295,982 Asia/Pacific 102,049 98,692 203,632 194,978 Total
Slide 15: Historical Segment Net Sales
1 Historical Segment Net Sales (Unaudited; Dollars in millions) Net Sales Quarterly Segment Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 Americas $ 172.6 $ 115.2 $ 159.3 $ 159.9 $ 180.8 $ 186.6 $ 197.4 $ 197.4 $ 212.1 $ 235.8 $ 254.7 $ 2
Slide 16: Historical Segment Operating Earnings
1 Historical Segment Operating Earnings (Unaudited; Dollars in millions) Segment Operating Earnings Quarterly Segment Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 Americas $ 41.3 $ 19.7 $ 43.8 $ 37.1 $ 44.7 $ 47.7 $ 43.4 $ 40.5 $ 45.0 $