Highlights
- Third quarter 2023 net income of $104.1
million, or $0.82 per diluted
share
- Quarterly adjusted EBITDA of $314.8
million
- Share repurchases of $202.1
million in third quarter 2023
- Fourth quarter 2023 focus on actions to improve 2024
CLAYTON,
Mo., Oct. 26, 2023 /PRNewswire/ -- Olin
Corporation (NYSE: OLN) announced financial results for the third
quarter ended September 30, 2023.
Third quarter 2023 reported net income was $104.1 million, or $0.82 per diluted share, which compares to third
quarter 2022 reported net income of $315.2
million, or $2.18 per diluted
share. Third quarter 2023 adjusted EBITDA of $314.8 million excludes depreciation and
amortization expense of $131.0
million and restructuring charges of $11.9 million. Third quarter 2022 adjusted EBITDA
was $547.8 million. Sales in the
third quarter 2023 were $1,671.4
million, compared to $2,321.7
million in the third quarter 2022.
Scott Sutton, Chairman,
President, and Chief Executive Officer, said, "Despite the
contracting demand environment over the last six quarters, Olin's
team continues to prove our model's resilience and the ability to
deliver higher trough level adjusted EBITDA and corresponding cash
flows than the previous cycles' peak results. We continue to
prioritize share repurchases from excess cash flow with
approximately 8% of outstanding shares repurchased so far in
2023.
"Although electrochemical unit ("ECU") values have been
declining in 2023, we believe the global conditions for our Chlor
Alkali Products and Vinyls business are approaching a favorable
inflection point. Therefore, our team has taken the dramatic step
to considerably reduce our operating rates; thereby, further
reducing our market participation and accelerating the favorable
inflection point, as we remain disciplined in our approach to ECU
values. We have idled our St. Gabriel,
Louisiana, facility and our largest chlor alkali plant at
our Freeport, Texas facility. This
'value accelerator initiative' is expected to reduce our fourth
quarter 2023 adjusted EBITDA outlook by approximately $100 million compared to our previous
expectation; however, we anticipate it should deliver an improved
2024 adjusted EBITDA compared to 2023. We expect Winchester segment
fourth quarter results to be similar to third quarter 2023 levels
even as we perform our holiday shutdowns. Overall, we expect Olin's
fourth quarter 2023 adjusted EBITDA to be in the $200 million range."
SEGMENT REPORTING
Olin defines segment earnings as income (loss) before interest
expense, interest income, other operating income (expense),
non-operating pension income, other income, and income taxes.
CHLOR ALKALI PRODUCTS AND VINYLS
In first quarter 2023, the Blue Water Alliance joint venture
began operations and is consolidated in our Chlor Alkali Products
and Vinyls segment. Chlor Alkali Products and Vinyls sales for the
third quarter 2023 were $969.6
million, compared to $1,263.5
million in the third quarter 2022. The decrease in Chlor
Alkali Products and Vinyls sales was primarily due to 6% lower
volumes, lower pricing, and a less favorable mix. Third quarter
2023 segment earnings were $172.3
million, compared to $253.9
million in the third quarter 2022. The $81.6 million decrease in segment earnings was
primarily due to lower volumes and lower pricing, primarily caustic
soda, partially offset by lower raw material and operating costs.
The Chlor Alkali Products and Vinyls third quarter 2023 segment
results were also negatively impacted by higher costs and reduced
profit from lost sales associated with operating issues, related to
the previous quarter's maintenance turnaround at our vinyl chloride
monomer plant at the Freeport,
Texas facility. The vinyl chloride monomer plant resumed
normal operations in the latter half of the third quarter. Chlor
Alkali Products and Vinyls third quarter 2023 results included
depreciation and amortization expense of $107.6 million compared to $121.1 million in the third quarter 2022.
EPOXY
Epoxy sales for the third quarter 2023 were $321.6 million, compared to $644.1 million in the third quarter 2022. The
decrease in Epoxy sales was primarily due to lower product pricing,
lower resin and systems volumes, and $163.8
million of lower cumene and bisphenol A sales. As part of
the Epoxy business restructuring actions to right-size our global
asset footprint to the most cost-effective asset base to support
our strategic operating model, the Epoxy business ceased operations
at our cumene facility in Terneuzen, Netherlands in first quarter 2023 and one of
our bisphenol A production lines at our Stade, Germany facility in fourth quarter 2022. Third
quarter 2023 segment loss was ($28.8)
million, compared to segment earnings of $80.1 million in the third quarter 2022. The
$108.9 million decrease in Epoxy
segment earnings was primarily due to lower pricing and incremental
costs associated with inventory reduction, partially offset by
lower raw material and operating costs, mainly decreased natural
gas and electrical power costs, and an improved product mix. Epoxy
third quarter 2023 results included depreciation and amortization
expense of $14.7 million compared to
$20.1 million in the third quarter
2022.
WINCHESTER
Winchester sales for the third quarter 2023 were $380.2 million, compared to $414.1 million in the third quarter 2022. The
decrease in Winchester sales was primarily due to lower commercial
ammunition shipments and pricing, partially offset by higher
domestic and international military sales. Third quarter 2023
segment earnings were $64.5 million,
compared to $89.0 million in the
third quarter 2022. The $24.5 million
decrease in segment earnings was primarily due to lower commercial
ammunition shipments and pricing, partially offset by higher
military sales and lower operating costs. Winchester third quarter
2023 results included depreciation and amortization expense of
$6.6 million compared to $6.1 million in the third quarter 2022.
CORPORATE AND OTHER COSTS
Other corporate and unallocated costs in third quarter of 2023
decreased $4.6 million compared to
third quarter 2022 primarily due to lower legal-related costs.
LIQUIDITY AND SHARE REPURCHASES
The cash balance on September 30,
2023, was $158.3 million
and Olin ended third quarter 2023 with net debt of approximately
$2.6 billion and a net debt to
adjusted EBITDA ratio of 1.7 times. On September 30, 2023, Olin had approximately
$1.2 billion of available
liquidity.
During third quarter 2023, approximately 3.7 million shares of
common stock were repurchased at a cost of $202.1 million. During the first nine months of
2023, approximately 10.8 million shares of common stock were
repurchased at a cost of $595.1
million. On September 30,
2023, Olin had approximately $1.1
billion available under its current share repurchase
authorization.
CONFERENCE CALL INFORMATION
Olin senior management will host a conference call to discuss
third quarter 2023 financial results at 9:00
a.m. Eastern time on Friday, October 27, 2023. Remarks will
be followed by a question-and-answer session. Associated slides,
which will be available the evening before the call, and the
conference call webcast will be accessible via Olin's
website, www.olin.com, under the third quarter conference call
icon. An archived replay of the webcast will also be available in
the Investor Relations section of Olin's website beginning at
12:00 p.m. Eastern time. A final
transcript of the call will be posted the next business day.
COMPANY DESCRIPTION
Olin Corporation is a leading vertically-integrated global
manufacturer and distributor of chemical products and a leading
U.S. manufacturer of ammunition. The chemical products produced
include chlorine and caustic soda, vinyls, epoxies, chlorinated
organics, bleach, hydrogen, and hydrochloric acid. Winchester's
principal manufacturing facilities produce and distribute sporting
ammunition, law enforcement ammunition, reloading components, small
caliber military ammunition and components, industrial cartridges,
and clay targets.
Visit www.olin.com for more information on Olin.
FORWARD-LOOKING STATEMENTS
This communication includes forward-looking statements. These
statements relate to analyses and other information that are based
on management's beliefs, certain assumptions made by management,
forecasts of future results, and current expectations, estimates
and projections about the markets and economy in which we and our
various segments operate. The statements contained in this
communication that are not statements of historical fact may
include forward-looking statements that involve a number of risks
and uncertainties.
We have used the words "anticipate," "intend," "may," "expect,"
"believe," "should," "plan," "outlook," "project," "estimate,"
"forecast," "optimistic," "target," and variations of such words
and similar expressions in this communication to identify such
forward-looking statements. These forward-looking statements
include, but are not limited to, statements regarding the Company's
intent to repurchase, from time to time, the Company's common
stock. These statements are not guarantees of future performance
and involve certain risks, uncertainties, and assumptions, which
are difficult to predict and many of which are beyond our control.
Therefore, actual outcomes and results may differ materially from
those matters expressed or implied in such forward-looking
statements. We undertake no obligation to update publicly any
forward-looking statements, whether as a result of future events,
new information or otherwise. The payment of cash dividends is
subject to the discretion of our board of directors and will be
determined in light of then-current conditions, including our
earnings, our operations, our financial conditions, our capital
requirements and other factors deemed relevant by our board of
directors. In the future, our board of directors may change our
dividend policy, including the frequency or amount of any dividend,
in light of then-existing conditions.
The risks, uncertainties and assumptions involved in our
forward-looking statements, many of which are discussed in more
detail in our filings with the SEC, including without limitation
the "Risk Factors" section of our Annual Report on Form 10-K for
the year ended December 31, 2022, and
our Quarterly Reports on Form 10-Q and other reports furnished or
filed with the SEC, include, but are not limited to, the
following:
Business, Industry and Operational Risks
- sensitivity to economic, business and market conditions in
the United States and overseas,
including economic instability or a downturn in the sectors served
by us;
- declines in average selling prices for our products and the
supply/demand balance for our products, including the impact of
excess industry capacity or an imbalance in demand for our chlor
alkali products;
- unsuccessful execution of our strategic operating model, which
prioritizes Electrochemical Unit (ECU) margins over sales
volumes;
- failure to control costs and inflation impacts or failure to
achieve targeted cost reductions;
- our reliance on a limited number of suppliers for specified
feedstock and services and our reliance on third-party
transportation;
- the occurrence of unexpected manufacturing interruptions and
outages, including those occurring as a result of labor
disruptions, production hazards and weather-related events;
- availability of and/or higher-than-expected costs of raw
material, energy, transportation, and/or logistics;
- the failure or an interruption of our information technology
systems;
- failure to identify, attract, develop, retain and motivate
qualified employees throughout the organization;
- our inability to complete future acquisitions or joint venture
transactions or successfully integrate them into our business;
- risks associated with our international sales and operations,
including economic, political or regulatory changes;
- the negative impact from a public health crisis, such as a
pandemic, epidemic or outbreak of infectious disease, including the
COVID-19 pandemic and the global response to the pandemic,
including without limitation adverse impacts in complying with
governmental mandates;
- our indebtedness and debt service obligations;
- weak industry conditions affecting our ability to comply with
the financial maintenance covenants in our senior credit
facility;
- adverse conditions in the credit and capital markets, limiting
or preventing our ability to borrow or raise capital;
- the effects of any declines in global equity markets on asset
values and any declines in interest rates or other significant
assumptions used to value the liabilities in, and funding of, our
pension plans;
- our long-range plan assumptions not being realized causing a
non-cash impairment charge of long-lived assets;
Legal, Environmental and Regulatory Risks
- changes in, or failure to comply with, legislation or
government regulations or policies, including changes regarding our
ability to manufacture or use certain products and changes within
the international markets in which we operate;
- new regulations or public policy changes regarding the
transportation of hazardous chemicals and the security of chemical
manufacturing facilities;
- unexpected outcomes from legal or regulatory claims and
proceedings;
- costs and other expenditures in excess of those projected for
environmental investigation and remediation or other legal
proceedings;
- various risks associated with our Lake City U.S. Army
Ammunition Plant contract and performance under other governmental
contracts; and
- failure to effectively manage environmental, social and
governance (ESG) issues and related regulations, including climate
change and sustainability.
All of our forward-looking statements should be considered in
light of these factors. In addition, other risks and uncertainties
not presently known to us or that we consider immaterial could
affect the accuracy of our forward-looking statements.
2023 - 15
Olin
Corporation
|
|
|
|
|
|
Consolidated
Statements of Operations (a)
|
|
|
|
|
|
|
|
Three
Months
|
|
Nine
Months
|
|
|
Ended September
30,
|
|
Ended September
30,
|
(In millions, except
per share amounts)
|
2023
|
2022
|
|
2023
|
2022
|
|
|
|
|
|
|
|
Sales
|
$ 1,671.4
|
$ 2,321.7
|
|
$ 5,218.4
|
$ 7,399.2
|
Operating
Expenses:
|
|
|
|
|
|
|
Cost of Goods
Sold
|
1,402.3
|
1,840.9
|
|
4,236.6
|
5,599.8
|
|
Selling and
Administration
|
90.9
|
92.7
|
|
303.9
|
296.0
|
|
Restructuring
Charges (b)
|
11.9
|
7.6
|
|
92.0
|
14.3
|
Other Operating
(Expense) Income (c)
|
(0.3)
|
13.0
|
|
27.2
|
16.3
|
|
Operating
Income
|
166.0
|
393.5
|
|
613.1
|
1,505.4
|
Interest
Expense
|
46.2
|
36.0
|
|
133.9
|
103.4
|
Interest
Income
|
1.0
|
0.5
|
|
3.2
|
1.2
|
Non-operating
Pension Income
|
5.9
|
9.9
|
|
17.0
|
29.0
|
|
Income before
Taxes
|
126.7
|
367.9
|
|
499.4
|
1,432.2
|
Income Tax Provision
(d)
|
22.2
|
52.7
|
|
96.2
|
301.9
|
Net
Income
|
104.5
|
315.2
|
|
403.2
|
1,130.3
|
|
Net Income (Loss)
Attributable to Noncontrolling Interests
|
0.4
|
-
|
|
(4.1)
|
-
|
Net Income
Attributable to Olin Corporation
|
$
104.1
|
$
315.2
|
|
$
407.3
|
$ 1,130.3
|
Net Income
Attributable to Olin Corporation Per Common Share:
|
|
|
|
|
|
|
Basic
|
$
0.84
|
$
2.23
|
|
$
3.19
|
$
7.62
|
|
Diluted
|
$
0.82
|
$
2.18
|
|
$
3.12
|
$
7.44
|
Dividends Per Common
Share
|
$
0.20
|
$
0.20
|
|
$
0.60
|
$
0.60
|
Average Common
Shares Outstanding - Basic
|
124.2
|
141.2
|
|
127.5
|
148.3
|
Average Common
Shares Outstanding - Diluted
|
127.0
|
144.3
|
|
130.6
|
151.9
|
|
|
|
|
|
|
|
(a)
|
Unaudited.
|
(b)
|
Restructuring
charges for the nine months ended September 30, 2023 were primarily
associated with our actions to configure our global Epoxy asset
footprint to optimize the most productive and cost effective assets
to support our strategic operating model of which $17.7 million
were non-cash impairment charges for equipment and
facilities.
|
|
|
(c)
|
Other operating
(expense) income for the nine months ended September 30, 2023
included a gain of $27.0 million for the sale of Olin's domestic
private trucking fleet and operations. Other operating (expense)
income for both the three and nine months ended September 30, 2022
included $13.0 million of gains for the sale of two former
manufacturing facilities.
|
|
|
(d)
|
Income tax provision
for both the three and nine months ended September 30, 2022
included a benefit of $36.6 million primarily associated with the
release of deferred tax liabilities as a result of a legal entity
liquidation.
|
|
Olin
Corporation
|
Segment Information
(a)
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months
|
|
Nine
Months
|
|
|
Ended September
30,
|
|
Ended September
30,
|
(In
millions)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Sales:
|
|
|
|
|
|
|
|
|
|
Chlor Alkali
Products and Vinyls
|
$
969.6
|
|
$ 1,263.5
|
|
$ 3,089.0
|
|
$ 3,912.2
|
|
Epoxy
|
321.6
|
|
644.1
|
|
1,016.1
|
|
2,206.3
|
|
Winchester
|
380.2
|
|
414.1
|
|
1,113.3
|
|
1,280.7
|
|
Total
Sales
|
$ 1,671.4
|
|
$ 2,321.7
|
|
$ 5,218.4
|
|
$ 7,399.2
|
Income before
Taxes:
|
|
|
|
|
|
|
|
|
Chlor Alkali
Products and Vinyls
|
$
172.3
|
|
$
253.9
|
|
$
598.3
|
|
$
929.0
|
|
Epoxy
|
(28.8)
|
|
80.1
|
|
(7.9)
|
|
358.0
|
|
Winchester
|
64.5
|
|
89.0
|
|
190.2
|
|
327.2
|
|
Corporate/Other:
|
|
|
|
|
|
|
|
|
Environmental
Expense
|
(6.9)
|
|
(7.4)
|
|
(23.1)
|
|
(18.0)
|
|
Other Corporate and
Unallocated Costs
|
(22.9)
|
|
(27.5)
|
|
(79.6)
|
|
(92.8)
|
|
Restructuring Charges
(b)
|
(11.9)
|
|
(7.6)
|
|
(92.0)
|
|
(14.3)
|
|
Other Operating
(Expense) Income (c)
|
(0.3)
|
|
13.0
|
|
27.2
|
|
16.3
|
|
Interest
Expense
|
(46.2)
|
|
(36.0)
|
|
(133.9)
|
|
(103.4)
|
|
Interest
Income
|
1.0
|
|
0.5
|
|
3.2
|
|
1.2
|
|
Non-operating
Pension Income
|
5.9
|
|
9.9
|
|
17.0
|
|
29.0
|
|
Income before
Taxes
|
$
126.7
|
|
$
367.9
|
|
$
499.4
|
|
$ 1,432.2
|
|
|
|
|
|
|
|
|
|
(a)
|
Unaudited.
|
(b)
|
Restructuring
charges for the nine months ended September 30, 2023 were primarily
associated with our actions to configure our global Epoxy asset
footprint to optimize the most productive and cost effective assets
to support our strategic operating model of which $17.7 million
were non-cash impairment charges for equipment and
facilities.
|
|
|
(c)
|
Other operating
(expense) income for the nine months ended September 30, 2023
included a gain of $27.0 million for the sale of Olin's domestic
private trucking fleet and operations. Other operating (expense)
income for both the three and nine months ended September 30, 2022
included $13.0 million of gains for the sale of two former
manufacturing facilities.
|
|
|
Olin
Corporation
|
|
|
|
|
|
|
Consolidated Balance
Sheets (a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
September
30,
|
|
(In millions, except
per share data)
|
2023
|
|
2022
|
|
2022
|
|
|
|
|
|
|
|
|
Assets:
|
|
|
|
|
|
|
Cash and Cash
Equivalents
|
$
158.3
|
|
$
194.0
|
|
$
163.6
|
|
Accounts
Receivable, Net
|
894.2
|
|
924.6
|
|
1,075.4
|
|
Income Taxes
Receivable
|
28.0
|
|
43.2
|
|
26.0
|
|
Inventories,
Net
|
977.7
|
|
941.9
|
|
945.1
|
|
Other Current
Assets
|
42.8
|
|
52.7
|
|
74.9
|
|
Total Current Assets
|
2,101.0
|
|
2,156.4
|
|
2,285.0
|
|
Property,
Plant and Equipment
|
|
|
|
|
|
|
(Less Accumulated
Depreciation of $4,724.6, $4,413.1 and $4,296.5)
|
2,490.2
|
|
2,674.1
|
|
2,690.8
|
|
Operating
Lease Assets, Net
|
331.0
|
|
356.0
|
|
371.4
|
|
Deferred
Income Taxes
|
106.1
|
|
60.5
|
|
81.9
|
|
Other
Assets
|
1,117.3
|
|
1,102.5
|
|
1,090.7
|
|
Intangibles,
Net
|
248.6
|
|
273.8
|
|
279.2
|
|
Goodwill
|
1,421.0
|
|
1,420.9
|
|
1,421.2
|
|
Total
Assets
|
$
7,815.2
|
|
$
8,044.2
|
|
$
8,220.2
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity:
|
|
|
|
|
|
|
Current
Installments of Long-term Debt
|
$
78.9
|
|
$
9.7
|
|
$
1.0
|
|
Accounts
Payable
|
717.6
|
|
837.7
|
|
892.6
|
|
Income Taxes
Payable
|
171.5
|
|
133.4
|
|
183.2
|
|
Current
Operating Lease Liabilities
|
68.3
|
|
71.8
|
|
74.3
|
|
Accrued
Liabilities
|
361.0
|
|
508.8
|
|
467.6
|
|
Total Current Liabilities
|
1,397.3
|
|
1,561.4
|
|
1,618.7
|
|
Long-term
Debt
|
2,711.2
|
|
2,571.0
|
|
2,580.4
|
|
Operating
Lease Liabilities
|
270.4
|
|
292.5
|
|
305.1
|
|
Accrued
Pension Liability
|
212.7
|
|
234.5
|
|
286.3
|
|
Deferred
Income Taxes
|
500.7
|
|
507.3
|
|
546.8
|
|
Other
Liabilities
|
355.4
|
|
333.9
|
|
333.2
|
|
Total
Liabilities
|
5,447.7
|
|
5,500.6
|
|
5,670.5
|
|
Commitments and
Contingencies
|
|
|
|
|
|
|
Shareholders'
Equity:
|
|
|
|
|
|
|
Common Stock, $1.00
Par Value Per Share; Authorized 240.0 Shares;
|
|
|
|
|
|
|
Issued and Outstanding 122.5, 132.3 and 137.0 Shares
|
122.5
|
|
132.3
|
|
137.0
|
|
Additional Paid-in
Capital
|
130.1
|
|
682.7
|
|
920.3
|
|
Accumulated Other
Comprehensive Loss
|
(480.3)
|
|
(495.9)
|
|
(562.3)
|
|
Retained
Earnings
|
2,555.2
|
|
2,224.5
|
|
2,054.7
|
|
Olin
Corporation's Shareholders' Equity
|
2,327.5
|
|
2,543.6
|
|
2,549.7
|
|
Noncontrolling
Interests
|
40.0
|
|
-
|
|
-
|
|
Total
Equity
|
2,367.5
|
|
2,543.6
|
|
2,549.7
|
|
Total Liabilities
and Equity
|
$
7,815.2
|
|
$
8,044.2
|
|
$
8,220.2
|
|
|
|
|
|
|
|
|
(a)
Unaudited.
|
|
|
|
|
|
|
Olin
Corporation
|
|
|
|
Consolidated
Statements of Cash Flows (a)
|
|
|
|
|
Nine Months
Ended
|
|
September
30,
|
(In
millions)
|
2023
|
|
2022
|
Operating
Activities:
|
|
|
|
Net
Income
|
$
403.2
|
|
$
1,130.3
|
Gains on Disposition
of Property, Plant and Equipment
|
(27.0)
|
|
(13.0)
|
Stock-based
Compensation
|
13.2
|
|
10.4
|
Depreciation and
Amortization
|
404.9
|
|
450.3
|
Deferred Income
Taxes
|
(60.6)
|
|
(3.7)
|
Write-off of
Equipment and Facility included in Restructuring
Charges
|
17.7
|
|
-
|
Qualified Pension
Plan Contributions
|
(1.6)
|
|
(0.9)
|
Qualified Pension
Plan Income
|
(15.0)
|
|
(24.7)
|
Changes
in:
|
|
|
|
Receivables
|
28.4
|
|
(25.8)
|
Income Taxes
Receivable/Payable
|
55.3
|
|
75.5
|
Inventories
|
(43.4)
|
|
(102.9)
|
Other Current
Assets
|
9.8
|
|
5.8
|
Accounts
Payable and Accrued Liabilities
|
(222.7)
|
|
31.7
|
Other
Assets
|
(27.2)
|
|
(17.5)
|
Other
Noncurrent Liabilities
|
29.5
|
|
(9.1)
|
Other Operating
Activities
|
(6.8)
|
|
3.3
|
Net Operating Activities
|
557.7
|
|
1,509.7
|
Investing
Activities:
|
|
|
|
Capital
Expenditures
|
(173.0)
|
|
(168.4)
|
Payments under Other
Long-Term Supply Contracts
|
(46.2)
|
|
-
|
Proceeds from
Disposition of Property, Plant and Equipment
|
28.8
|
|
14.9
|
Other Investing
Activities
|
(3.6)
|
|
-
|
Net Investing Activities
|
(194.0)
|
|
(153.5)
|
Financing
Activities:
|
|
|
|
Long-term Debt
Borrowings (Repayments), Net
|
206.6
|
|
(200.9)
|
Common Stock
Repurchased and Retired
|
(595.1)
|
|
(1,100.6)
|
Stock Options
Exercised
|
22.3
|
|
21.3
|
Dividends
Paid
|
(76.6)
|
|
(89.4)
|
Contributions
Received from Noncontrolling Interests
|
44.1
|
|
-
|
Net Financing Activities
|
(398.7)
|
|
(1,369.6)
|
Effect of Exchange Rate Changes on Cash and Cash
Equivalents
|
(0.7)
|
|
(3.5)
|
Net Decrease in Cash
and Cash Equivalents
|
(35.7)
|
|
(16.9)
|
Cash and Cash
Equivalents, Beginning of Year
|
194.0
|
|
180.5
|
Cash and Cash
Equivalents, End of Period
|
$
158.3
|
|
$
163.6
|
|
|
|
|
(a)
Unaudited.
|
|
|
|
Olin
Corporation
|
Non-GAAP Financial
Measures - Adjusted EBITDA (a)
|
|
Olin's definition of
Adjusted EBITDA (Earnings before interest, taxes, depreciation, and
amortization) is net income (loss) plus an add-back for
depreciation and amortization, interest expense (income), income
tax provision (benefit), other expense (income), restructuring
charges and certain other non-recurring items. Adjusted
EBITDA is a non-GAAP financial measure. Management believes
that this measure is meaningful to investors as a supplemental
financial measure to assess the financial performance without
regard to financing methods, capital structures, taxes or
historical cost basis. The use of non-GAAP financial measures
is not intended to replace any measures of performance determined
in accordance with GAAP and Adjusted EBITDA presented may not be
comparable to similarly titled measures of other companies.
Reconciliation of forward-looking non-GAAP financial measures to
the most directly comparable GAAP financial measures are omitted
from this release because Olin is unable to provide such
reconciliations without the use of unreasonable efforts. This
inability results from the inherent difficulty in forecasting
generally and quantifying certain projected amounts that are
necessary for such reconciliations. In particular, sufficient
information is not available to calculate certain adjustments
required for such reconciliations, including interest expense
(income), income tax provision (benefit), other expense (income)
and restructuring charges. Because of our inability to
calculate such adjustments, forward-looking net income guidance is
also omitted from this release. We expect these adjustments
to have a potentially significant impact on our future GAAP
financial results.
|
|
|
|
|
|
|
|
|
Three
Months
|
Nine
Months
|
|
|
Ended September
30,
|
Ended September
30,
|
(In
millions)
|
2023
|
2022
|
2023
|
2022
|
|
|
|
|
|
|
Reconciliation of
Net Income to Adjusted EBITDA:
|
|
|
|
|
Net
Income
|
$
104.5
|
$
315.2
|
$
403.2
|
$
1,130.3
|
|
Add
Back:
|
|
|
|
|
|
Interest
Expense
|
46.2
|
36.0
|
133.9
|
103.4
|
|
Interest
Income
|
(1.0)
|
(0.5)
|
(3.2)
|
(1.2)
|
|
Income Tax
Provision
|
22.2
|
52.7
|
96.2
|
301.9
|
|
Depreciation and
Amortization
|
131.0
|
149.8
|
404.9
|
450.3
|
EBITDA
|
302.9
|
553.2
|
1,035.0
|
1,984.7
|
|
Add
Back:
|
|
|
|
|
|
Restructuring
Charges
|
11.9
|
7.6
|
92.0
|
14.3
|
|
Certain
Non-recurring Items (b)
|
-
|
(13.0)
|
(27.0)
|
(13.0)
|
Adjusted
EBITDA
|
$
314.8
|
$
547.8
|
$
1,100.0
|
$
1,986.0
|
|
|
|
|
|
|
(a)
|
Unaudited.
|
(b)
|
Certain
non-recurring items for the nine months ended September 30, 2023
included a gain of $27.0 million for the sale of Olin's domestic
private trucking fleet and operations. Certain non-recurring items
for both the three and nine months ended September 30, 2022
included $13.0 million of gains for the sale of two former
manufacturing facilities.
|
|
|
Olin
Corporation
Non-GAAP Financial Measures - Net Debt to Adjusted EBITDA
(a)
|
|
|
|
|
|
|
|
Olin's definition of
Net Debt to Adjusted EBITDA is Net Debt divided by the Trailing
Twelve Months Adjusted EBITDA. Net Debt at the end of any
reporting period is defined as the sum of our current installments
of long-term debt and long-term debt less cash and cash
equivalents. Trailing Twelve Months Adjusted EBITDA (Earnings
before interest, taxes, depreciation, and amortization) is net
income (loss) plus an add-back for depreciation and amortization,
interest expense (income), income tax provision (benefit), other
expense (income), restructuring charges and certain other
non-recurring items for the previous twelve months. Net Debt
to Adjusted EBITDA is a non-GAAP financial measure.
Management believes that this measure is meaningful to
investors as a measure of our ability to manage our indebtedness.
The use of non-GAAP financial measures is not intended to
replace any measures of indebtedness or liquidity determined in
accordance with GAAP and Net Debt or Net Debt to Adjusted EBITDA
presented may not be comparable to similarly titled measures of
other companies.
|
|
|
|
September
30,
|
|
December
31,
|
|
September
30,
|
(In
millions)
|
2023
|
|
2022
|
|
2022
|
|
|
|
|
|
|
|
Current Installments
of Long-term Debt
|
$
78.9
|
|
$
9.7
|
|
$
1.0
|
Long-term
Debt
|
2,711.2
|
|
2,571.0
|
|
2,580.4
|
Total Debt
|
2,790.1
|
|
2,580.7
|
|
2,581.4
|
Less: Cash and Cash
Equivalents
|
(158.3)
|
|
(194.0)
|
|
(163.6)
|
Net Debt
|
$
2,631.8
|
|
$
2,386.7
|
|
$
2,417.8
|
|
|
|
|
|
|
|
Trailing Twelve
Months Adjusted EBITDA (b)
|
$
1,541.8
|
|
$
2,427.8
|
|
$
2,672.7
|
|
|
|
|
|
|
|
Net Debt to Adjusted
EBITDA
|
1.7
|
|
1.0
|
|
0.9
|
|
|
|
|
|
|
|
(a)
|
Unaudited.
|
(b)
|
Trailing Twelve
Months Adjusted EBITDA as of September 30, 2023 is calculated as
the nine months ended September 30, 2023 plus the year ended
December 31, 2022 less the nine months ended September 30, 2022.
Trailing Twelve Months Adjusted EBITDA as of September 30, 2022 is
calculated as the nine months ended September 30, 2022 plus the
year ended December 31, 2021 less the nine months ended September
30, 2021.
|
|
|
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SOURCE OLIN CORPORATION