HIGHLIGHTS: (comparisons versus prior year period)
- Company delivered record sales of $419.9 million, up 17.2%
- Net income of $59.8 million and diluted earnings per share
(EPS) of $1.54; adjusted earnings of $67.0 million and diluted
adjusted EPS of $1.73
- Second highest quarterly EBITDA of $121.1 million, up 2.9% and
adjusted EBITDA margin of 28.8%
- Operating cash flow of $90.5 million and free cash flow of
$60.9 million
- The Company also announced two strategic growth investments:
- An agreement to acquire Ozark Materials, a leading producer of
pavement marking materials, for $325.0 million which strengthens
the Company’s position in this growing market and complements our
existing infrastructure portfolio of pavement and adhesives
products.
- An investment of $60.0 million in and joint development/supply
arrangement with Nexeon Limited, a developer and manufacturer of
“next-gen” silicon-based battery electric vehicle technology to
develop silicon/activated carbon technology to improve the
performance of lithium-ion batteries.
The results and guidance in this release include non-GAAP
financial measures. Refer to the section entitled “Use of non-GAAP
financial measures” within this release.
Ingevity Corporation (NYSE: NGVT) today reported its financial
results for the second quarter 2022.
Record net sales of $419.9 million in the second quarter rose
17.2% versus the prior year quarter, as the company drove price
increases across the businesses to help offset ongoing inflationary
cost pressures. Second quarter net income of $59.8 million
increased 35.0% compared to the prior year quarter.
Diluted earnings per share (EPS) in the current quarter was
$1.54 compared to diluted EPS of $1.10 in the prior year quarter.
Adjusted earnings of $67.0 million increased 7.5% versus the prior
year quarter and diluted adjusted EPS was $1.73, which excludes,
net of tax, $0.08 related to restructuring and other charges, net,
$0.01 related to certain discrete tax items and $0.10 of debt
refinancing expense recognized during the quarter. This compares to
diluted adjusted EPS of $1.55 in the prior year quarter.
Second quarter adjusted earnings before interest, taxes,
depreciation and amortization (EBITDA) of $121.1 million was up
2.9% year over year with adjusted EBITDA margin of 28.8%. Second
quarter operating cash flow was $90.5 million and free cash flow
was $60.9 million.
“Our second quarter revenue is a record, reflecting our team’s
ability to drive profitable business growth. And as we announced,
with the planned acquisition of Ozark Materials and our investment
in Nexeon Limited, we are putting capital to work and executing on
strategic growth initiatives that will create value for our
shareholders,” said John Fortson, president and CEO. Commenting on
the business segments, Fortson said “In Performance Chemicals, we
continued to see strong top line growth due primarily to price
increases across the segment supported by continued broad-based
demand. In Performance Materials, the microchip supply chain seems
to be improving, but the ripple effects stemming from the prolonged
China COVID-related shutdowns negatively impacted our activated
carbon product sales for the quarter.”
Performance Chemicals
Sales in the Performance Chemicals segment were up 28.0% from
prior year to $297.5 million.
“Sales across our Performance Chemicals segment produced another
record quarter,” said Fortson. “We saw double-digit growth thanks
to our team’s success in offsetting inflationary pressures across
all parts of the business.”
Industrial Specialties and Pavement Technologies both had record
quarters with sales up 38.1% and 14.9%, respectively, versus the
prior year quarter. Strength in the oilfield, adhesives and
lubricants markets led Industrial Specialties’ top line growth,
while Pavement Technologies growth was driven by higher volume in
North America.
Engineered Polymers sales rose 20.6% driven by price increases
to help offset inflationary cost increases in raw materials, energy
and logistics.
Second quarter segment EBITDA was $65.5 million, up 16.1% versus
the prior year quarter. Segment EBITDA margin was 22.0%, down from
24.3% the prior year, primarily due to raw material availability
and supply chain disruptions which constrained production
volume.
Performance Materials
Second quarter sales in Performance Materials were $122.4
million, down 2.9% compared to the prior year quarter.
“In the second quarter, sales of our activated carbon products
were negatively impacted primarily by lower automotive production
due to the China COVID-related shutdowns and their cascading
impacts across the rest of the Asia-Pacific region,” said Fortson.
“As China auto and auto-related production is expected to ramp back
up to normal levels in the second half of the year, we expect our
Performance Materials business to benefit.”
Segment EBITDA of $55.6 million was down 9.3% versus the prior
year period. Segment EBITDA margin was 45.4% versus 48.7% as our
production shifted from automotive carbon products to process
purification products in response to reduced China auto
production.
Liquidity and Share Repurchase Authorization
Funding for the two strategic growth investments will come from
a combination of cash and borrowings from the Company’s revolving
credit facility, which was recently amended to, among other things,
extend the maturity to 2027 and increase the borrowing limit to $1
billion. As of June 30, 2022, the undrawn capacity under the
revolving credit facility was $466.2 million.
Share repurchases were $49.5 million for the quarter, and $89.9
million for the six months ending June 30, 2022, and were completed
under the March 2020 share repurchase authorization. In July, the
Board of Directors approved a new share repurchase authorization of
up to $500 million of our common stock, replacing the March 2020
authorization.
Full-Year 2022 Guidance
Ingevity reaffirms its 2022 guidance ranges of sales between
$1.525 billion to $1.65 billion and adjusted EBITDA between $430
million to $470 million.
Ingevity: Purify, Protect and Enhance
Ingevity provides products and technologies that purify,
protect, and enhance the world around us. Through a team of
talented and experienced people, we develop, manufacture and bring
to market solutions that help customers solve complex problems and
make the world more sustainable. We operate in two reporting
segments: Performance Chemicals, which includes specialty chemicals
and engineered polymers; and Performance Materials, which includes
high-performance activated carbon. These products are used in a
variety of demanding applications, including asphalt paving, oil
exploration and production, agrochemicals, adhesives, lubricants,
publication inks, coatings, elastomers, bioplastics and automotive
components that reduce gasoline vapor emissions. Headquartered in
North Charleston, South Carolina, Ingevity operates from 25
locations around the world and employs approximately 1,850 people.
The company is traded on the New York Stock Exchange (NYSE:NGVT).
For more information visit www.ingevity.com.
Additional Information
The company will host a live webcast on Wednesday, August 3,
2022, at 10:00 a.m. (Eastern) to discuss second quarter 2022 fiscal
results. The webcast can be accessed here or on the investors
section of Ingevity’s website. You may also listen to the
conference call by dialing 844-200-6205 (inside the U.S.) or
929-526-1599 (outside the U.S.) and entering access code 080961.
Information on how to access the webcast and conference call, along
with a slide deck containing other relevant financial and
statistical information, will be posted to Ingevity’s investor site
prior to the call. A replay will be available beginning at
approximately 2:00 p.m. (Eastern) on August 3, 2022 through August
2, 2023 at this replay link.
Use of non-GAAP financial measures: This press release
includes certain non‐GAAP financial measures intended to
supplement, not substitute for, comparable GAAP measures.
Reconciliations of non‐GAAP financial measures to GAAP financial
measures are provided within the Appendix to this presentation.
Investors are urged to consider carefully the comparable GAAP
measures and the reconciliations to those measures provided. The
company does not attempt to provide reconciliations of
forward-looking non-GAAP guidance to the comparable GAAP measure
because the impact and timing of the factors underlying the
guidance assumptions are inherently uncertain and difficult to
predict and are unavailable without unreasonable efforts. In
addition, Ingevity believes such reconciliations would imply a
degree of certainty that could be confusing to investors.
Forward-looking statements:
This press release contains “forward-looking statements” within
the meaning of the Securities Exchange Act of 1934, as amended, and
the Private Securities Litigation Reform Act of 1995. Such
statements generally include the words “will,” “plans,” “intends,”
“targets,” “expects,” “outlook,” “believes,” “anticipates” or
similar expressions. Forward-looking statements may include,
without limitation, the potential benefits of any acquisition or
investment transaction, the anticipated timing of the closing of
any announced acquisition, expected financial positions, guidance,
results of operations and cash flows; financing plans; business
strategies and expectations; operating plans; impact of COVID-19;
capital and other expenditures; competitive positions; growth
opportunities for existing products; benefits from new technology
and cost-reduction initiatives, plans and objectives; litigation
related strategies and outcomes; markets for securities and
expected future repurchases of shares, including statements about
the manner, amount and timing of repurchases. Actual results could
differ materially from the views expressed. Factors that could
cause actual results to materially differ from those contained in
the forward-looking statements, or that could cause other
forward-looking statements to prove incorrect, include, without
limitation, adverse effects from the COVID-19 pandemic; adverse
effects from general global economic, geopolitical and financial
conditions beyond our control, including inflation and war in
Ukraine; risks related to our international sales and operations;
adverse conditions in the automotive market; competition from
substitute products, new technologies and new or emerging
competitors; worldwide air quality standards; a decrease in
government infrastructure spending; adverse conditions in cyclical
end markets; the limited supply of or lack of access to sufficient
crude tall oil and other raw materials; integration of future
acquisitions; the provision of services by third parties at several
facilities; supply chain disruptions; natural disasters and extreme
weather events; or other unanticipated problems such as labor
difficulties (including work stoppages), equipment failure or
unscheduled maintenance and repair; attracting and retaining key
personnel; dependence on certain large customers; legal actions
associated with our intellectual property rights; protection of our
intellectual property and other proprietary information;
information technology security breaches and other disruptions;
complications with designing or implementing our new enterprise
resource planning system; government policies and regulations,
including, but not limited to, those affecting the environment,
climate change, tax policies, tariffs and the chemicals industry;
and losses due to lawsuits arising out of environmental damage or
personal injuries associated with chemical or other manufacturing
processes, and the other factors detailed from time to time in the
reports we file with the SEC, including those described in Part I,
Item 1A. Risk Factors in our 2021 Annual Report on Form 10-K as
well as in our other filings with the SEC. These forward-looking
statements speak only to management’s beliefs as of the date of
this press release. Ingevity assumes no obligation to provide any
revisions to, or update, any projections and forward-looking
statements contained in this press release.
INGEVITY CORPORATION
Condensed Consolidated
Statements of Operations (Unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
In millions, except per share
data
2022
2021
2022
2021
Net sales
$
419.9
$
358.4
$
802.7
$
678.7
Cost of sales
269.3
218.6
514.3
412.7
Gross profit
150.6
139.8
288.4
266.0
Selling, general and administrative
expenses
48.7
47.5
88.7
87.5
Research and technical expenses
8.2
5.9
15.5
12.5
Restructuring and other (income) charges,
net
3.7
4.3
7.3
8.2
Acquisition-related costs
—
0.4
—
0.7
Other (income) expense, net
(1.6
)
(4.2
)
(3.0
)
(3.0
)
Interest expense, net
15.1
12.2
25.8
24.6
Income (loss) before income taxes
76.5
73.7
154.1
135.5
Provision (benefit) for income taxes
16.7
29.4
33.5
42.5
Net income (loss)
$
59.8
$
44.3
$
120.6
$
93.0
Per share data
Basic earnings (loss) per share
$
1.55
$
1.11
$
3.11
$
2.31
Diluted earnings (loss) per share
1.54
1.10
3.09
2.30
Weighted average shares
outstanding
Basic
38.5
40.0
38.8
40.2
Diluted
38.7
40.3
39.0
40.5
INGEVITY CORPORATION
Segment Operating Results
(Unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
In millions
2022
2021
2022
2021
Net sales
Performance Materials
$
122.4
$
126.0
$
270.8
$
266.7
Performance Chemicals
$
297.5
$
232.4
$
531.9
$
412.0
Pavement Technologies product line
77.8
67.7
105.7
89.1
Industrial Specialties product line
165.9
120.1
310.6
232.2
Engineered Polymers product line
53.8
44.6
115.6
90.7
Total net sales
$
419.9
$
358.4
$
802.7
$
678.7
Segment EBITDA (1)
Performance Materials
$
55.6
$
61.3
$
133.5
$
135.0
Performance Chemicals
65.5
56.4
106.6
88.1
Total segment EBITDA (1)
$
121.1
$
117.7
$
240.1
$
223.1
Interest expense, net
(15.1
)
(12.2
)
(25.8
)
(24.6
)
(Provision) benefit for income taxes
(16.7
)
(29.4
)
(33.5
)
(42.5
)
Depreciation and amortization -
Performance Materials
(8.8
)
(8.8
)
(17.8
)
(17.9
)
Depreciation and amortization -
Performance Chemicals
(17.0
)
(18.3
)
(35.1
)
(36.2
)
Restructuring and other income (charges),
net (2)
(3.7
)
(4.3
)
(7.3
)
(8.2
)
Acquisition and other-related costs
(3)
—
(0.4
)
—
(0.7
)
Net income (loss)
$
59.8
$
44.3
$
120.6
$
93.0
_______________
(1)
Segment EBITDA is the primary
measure used by our chief operating decision maker to evaluate the
performance of and allocate resources among our operating segments.
Segment EBITDA is defined as segment revenue less segment operating
expenses (segment operating expenses consist of costs of sales,
selling, general and administrative expenses, research and
technical expenses, other (income) expense, net, excluding
depreciation and amortization). We have excluded the following
items from segment EBITDA: interest expense, net, associated with
corporate debt facilities, income taxes, depreciation,
amortization, restructuring and other (income) charges, net,
acquisition and other related costs, litigation verdict charges,
pension and postretirement settlement and curtailment (income)
charges, net.
(2)
For the three and six months
ended June 30, 2022 charges of $1.3 million and $2.6 million relate
to the Performance Materials segment and charges of $2.4 million
and $4.7 million relate to the Performance Chemicals segment. For
the three and six months ended June 30, 2021, charges of $1.7
million and $3.4 million relate to the Performance Materials
segment and charges of $2.6 million and $4.8 million relate to the
Performance Chemicals segment.
(3)
For the three and six months
ended June 30, 2021, charges of $0.2 million and $0.2 million
relate to the acquisition of a strategic investment in the
Performance Materials segment and charges of $0.2 million and $0.5
million relate to the integration of the Perstorp Capa business
into our Performance Chemicals segment, respectively.
INGEVITY CORPORATION
Condensed Consolidated Balance
Sheets (Unaudited)
In millions
June 30, 2022
December 31, 2021
Assets
Cash and cash equivalents
$
131.3
$
275.4
Accounts receivable, net
221.4
161.7
Inventories, net
277.0
241.2
Prepaid and other current assets
48.0
46.6
Current assets
677.7
724.9
Property, plant and equipment, net
717.4
719.7
Goodwill
410.8
442.0
Other intangibles, net
297.3
337.6
Restricted investment
77.1
76.1
Other assets
185.7
168.7
Total Assets
$
2,366.0
$
2,469.0
Liabilities
Accounts payable
$
168.3
$
125.8
Accrued expenses
44.8
51.7
Other current liabilities
54.1
91.4
Current liabilities
267.2
268.9
Long-term debt including finance lease
obligations
1,176.2
1,250.0
Deferred income taxes
114.1
114.6
Other liabilities
154.2
161.7
Total Liabilities
1,711.7
1,795.2
Equity
654.3
673.8
Total Liabilities and Equity
$
2,366.0
$
2,469.0
INGEVITY CORPORATION
Condensed Consolidated
Statements of Cash Flows (Unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
In millions
2022
2021
2022
2021
Cash provided by (used in) operating
activities:
Net income (loss)
$
59.8
$
44.3
$
120.6
$
93.0
Adjustments to reconcile net income (loss)
to cash provided by (used in) operating activities:
Depreciation and amortization
25.8
27.1
52.9
54.1
Other non-cash items
14.9
24.1
36.4
35.0
Changes in operating assets and
liabilities, net of effect of acquisitions:
Changes in other operating assets and
liabilities, net
(10.0
)
(29.7
)
(95.1
)
(65.2
)
Net cash provided by (used in) operating
activities
$
90.5
$
65.8
$
114.8
$
116.9
Cash provided by (used in) investing
activities:
Capital expenditures
$
(29.6
)
$
(23.9
)
$
(57.2
)
$
(40.9
)
Purchase of strategic investments
—
(16.5
)
(2.0
)
(16.5
)
Other investing activities, net
1.2
0.5
0.6
0.2
Net cash provided by (used in) investing
activities
$
(28.4
)
$
(39.9
)
$
(58.6
)
$
(57.2
)
Cash provided by (used in) financing
activities:
Proceeds from revolving credit
facility
$
788.0
$
—
$
788.0
$
—
Payments on revolving credit facility
(256.0
)
—
(256.0
)
—
Payments on long-term borrowings
(623.4
)
(4.7
)
(628.1
)
(14.1
)
Debt issuance costs
(3.0
)
—
(3.0
)
—
Debt repayment costs
(3.8
)
—
(3.8
)
—
Financing lease obligations, net
(0.2
)
(0.3
)
(0.4
)
(0.4
)
Borrowings (repayments) of notes payable
and other short-term borrowings, net
—
—
—
(1.9
)
Tax payments related to withholdings on
vested equity awards
(0.2
)
—
(2.0
)
(2.3
)
Proceeds and withholdings from share-based
compensation plans, net
1.1
2.2
1.9
3.2
Repurchases of common stock under publicly
announced plan
(49.5
)
(28.7
)
(89.9
)
(68.1
)
Net cash provided by (used in) financing
activities
$
(147.0
)
$
(31.5
)
$
(193.3
)
$
(83.6
)
Increase (decrease) in cash, cash
equivalents, and restricted cash
(84.9
)
(5.6
)
(137.1
)
(23.9
)
Effect of exchange rate changes on
cash
(6.5
)
1.1
(7.2
)
(0.6
)
Change in cash, cash equivalents, and
restricted cash(1)
(91.4
)
(4.5
)
(144.3
)
(24.5
)
Cash, cash equivalents, and restricted
cash at beginning of period
223.2
238.4
276.1
258.4
Cash, cash equivalents, and restricted
cash at end of period (1)
$
131.8
$
233.9
$
131.8
$
233.9
(1) Includes restricted cash of $0.5
million and $0.6 million and cash and cash equivalents of $131.3
million and $233.3 million at June 30, 2022 and 2021, respectively.
Restricted cash is included within "Prepaid and other current
assets" within the condensed consolidated balance sheets.
Supplemental cash flow
information:
Cash paid for interest, net of capitalized
interest
$
17.7
$
12.6
$
28.7
$
24.1
Cash paid for income taxes, net of
refunds
23.4
24.5
26.9
27.0
Purchases of property, plant and equipment
in accounts payable
0.7
(0.4
)
6.0
3.1
Leased assets obtained in exchange for new
operating lease liabilities
4.8
5.0
7.7
7.4
Ingevity Corporation
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 accordance with GAAP on the following pages. These
financial measures are not meant to be considered in isolation or
as a substitute for the most directly comparable financial measure
calculated in accordance with GAAP. Investors should consider the
limitations associated with these non-GAAP measures, including the
potential lack of comparability of these measures from one company
to another.
We believe these non-GAAP financial measures provide management
as well as investors, potential investors, securities analysts and
others with useful information to evaluate the performance of the
business, because such measures, when viewed together with our
financial results computed in accordance with GAAP, provide a more
complete understanding of the factors and trends affecting our
historical financial performance and projected future results.
Ingevity uses the following non-GAAP measures:
Adjusted earnings (loss) is defined as
net income (loss) plus restructuring and other (income) charges,
net, acquisition and other-related costs, debt refinancing fees,
litigation verdict charges, pension and postretirement settlement
and curtailment (income) charges and the income tax expense
(benefit) on those items, less the provision (benefit) from certain
discrete tax items.
Diluted adjusted earnings (loss) per
share is defined as net income (loss) per diluted share plus
restructuring and other (income) charges, net, acquisition and
other related costs, debt refinancing fees, litigation verdict
charges, pension and postretirement settlement and curtailment
(income) charges and the income tax expense (benefit) on those
items, less the tax provision (benefit) from certain discrete tax
items, in each case on a per share basis.
Adjusted EBITDA is defined as net
income (loss) plus interest expense, net, provision (benefit) for
income taxes, depreciation, amortization, restructuring and other
(income) charges, net, acquisition and other-related costs,
litigation verdict charges, pension and postretirement settlement
and curtailment (income) charges, net.
Adjusted EBITDA Margin is defined as
Adjusted EBITDA divided by Net sales.
Free Cash Flow is defined as net cash
provided by operating activities less capital expenditures.
Net Debt is defined as the sum of
notes payable, short-term debt, current maturities of long-term
debt and long-term debt less the sum of cash and cash equivalents,
restricted cash associated with our New Market Tax Credit financing
arrangement, and restricted investment.
Net Debt Ratio is defined as Net Debt
divided by last twelve months Adjusted EBITDA, inclusive of
acquisition-related pro forma adjustments.
Ingevity also uses the above financial measures as the primary
measures of profitability used by managers of the business. In
addition, Ingevity believes Adjusted EBITDA and Adjusted EBITDA
Margin are useful measures because they exclude the effects of
financing and investment activities as well as non-operating
activities.
GAAP Reconciliation of 2022 Adjusted EBITDA
Guidance
A reconciliation of net income to adjusted EBITDA as projected
for 2022 is not provided. Ingevity does not forecast net income as
it cannot, without unreasonable effort, estimate or predict with
certainty various components of net income. These components, net
of tax, include further restructuring and other income (charges),
net; additional acquisition and other-related costs; litigation
verdict charges; debt refinancing fees; additional pension and
postretirement settlement and curtailment (income) charges; and
revisions due to legislative tax rate changes. Additionally,
discrete tax items could drive variability in our projected
effective tax rate. All of these components could significantly
impact such financial measures. Further, in the future, other items
with similar characteristics to those currently included in
adjusted EBITDA, that have a similar impact on comparability of
periods, and which are not known at this time, may exist and impact
adjusted EBITDA.
INGEVITY CORPORATION
Reconciliation of Non-GAAP Financial
Measures
Reconciliation of Net Income
(Loss) (GAAP) and Diluted Earnings (Loss) Per Share (GAAP) to
Adjusted Earnings (Loss) (Non-GAAP) and Diluted Adjusted Earnings
(Loss) Per Share (Non-GAAP)
Three Months Ended June
30,
Six Months Ended June
30,
In millions, except per share data
(unaudited)
2022
2021
2022
2021
Net income (loss) (GAAP)
$
59.8
$
44.3
$
120.6
$
93.0
Restructuring and other (income) charges,
net
3.7
4.3
7.3
8.2
Acquisition and other-related costs
—
0.4
—
0.7
Debt refinancing fees (1)
5.1
—
5.1
—
Tax effect on items above
(2.1
)
(1.1
)
(2.9
)
(2.0
)
Certain discrete tax provision (benefit)
(2)
0.5
14.4
0.4
14.3
Adjusted earnings (loss)
(Non-GAAP)
$
67.0
$
62.3
$
130.5
$
114.2
Diluted earnings (loss) per common
share (GAAP)
$
1.54
$
1.10
$
3.09
$
2.30
Restructuring and other (income) charges,
net
0.10
0.11
0.19
0.20
Acquisition and other-related costs
—
0.01
—
0.02
Debt refinancing fees
0.13
—
0.13
—
Tax effect on items above
(0.05
)
(0.03
)
(0.07
)
(0.05
)
Certain discrete tax provision
(benefit)
0.01
0.36
0.01
0.35
Diluted adjusted earnings (loss) per
share (Non-GAAP)
$
1.73
$
1.55
$
3.35
$
2.82
Weighted average common shares outstanding
- Diluted
38.7
40.3
39.0
40.5
_______________
(1)
Represents the acceleration of
deferred financing fees, debt extinguishment premium paid and other
fees incurred related to our senior note redemption, term loan
repayment, revolving credit facility amendment, and termination of
certain interest rate swaps during the period ended June 30, 2022.
Management believes excluding these items assists investors,
potential investors, securities analysts, and others in
understanding the continuing operating results thereby providing
useful supplemental information about operational performance.
(2)
Represents certain discrete tax
items such as excess tax benefits on stock compensation and impacts
of legislative tax rate changes. Management believes excluding
these discrete tax items assists investors, potential investors,
securities analysts, and others in understanding the tax provision
and the effective tax rate related to continuing operating results
thereby providing useful supplemental information about operational
performance.
Reconciliation of Net Income
(Loss) (GAAP) to Adjusted EBITDA (Non-GAAP)
Three Months Ended June
30,
Six Months Ended June
30,
In millions, except percentages
(unaudited)
2022
2021
2022
2021
Net income (loss) (GAAP)
$
59.8
$
44.3
$
120.6
$
93.0
Provision (benefit) for income taxes
16.7
29.4
33.5
42.5
Interest expense, net
15.1
12.2
25.8
24.6
Depreciation and amortization
25.8
27.1
52.9
54.1
Restructuring and other (income) charges,
net
3.7
4.3
7.3
8.2
Acquisition and other-related costs
—
0.4
—
0.7
Adjusted EBITDA (Non-GAAP)
$
121.1
$
117.7
$
240.1
$
223.1
Net sales
$
419.9
$
358.4
$
802.7
$
678.7
Net income (loss) margin
14.2
%
12.4
%
15.0
%
13.7
%
Adjusted EBITDA margin
28.8
%
32.8
%
29.9
%
32.9
%
Calculation of Free Cash Flow
(Non-GAAP)
Three Months Ended June
30,
Six Months Ended June
30,
In millions (unaudited)
2022
2021
2022
2021
Cash Flow from Operations
$
90.5
$
65.8
$
114.8
$
116.9
Less: Capital Expenditures
29.6
23.9
57.2
40.9
Free Cash Flow
$
60.9
$
41.9
$
57.6
$
76.0
Calculation of Net Debt Ratio
(Non-GAAP)
In millions, except ratios
(unaudited)
June 30, 2022
Notes payable and current maturities of
long-term debt
$
0.9
Long-term debt including finance lease
obligations
1,176.2
Debt issuance costs
7.0
Total Debt
1,184.1
Less:
Cash and cash equivalents (1)
131.6
Restricted investment
77.1
Net Debt
$
975.4
Net Debt Ratio (Non GAAP)
Adjusted EBITDA (2)
Twelve months ended December 31, 2021
$
422.2
Six months ended June 30, 2021
(223.1
)
Six months ended June 30, 2022
240.1
Adjusted EBITDA - last twelve months (LTM)
as of June 30, 2022
$
439.2
Net debt ratio (Non GAAP)
2.2x
_______________
(1) Includes $0.3 million of Restricted
Cash related to the New Market Tax Credit arrangement as described
in our 2020 Form 10-K.
(2) Refer to the Reconciliation of Net
Income (GAAP) to Adjusted EBITDA (Non-GAAP) schedule for the
reconciliation to the most comparable GAAP financial measure.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220802006013/en/
Caroline Monahan 843-740-2068 media@ingevity.com
Investors: John Nypaver 843-740-2002
investors@ingevity.com
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