THE WOODLANDS, Texas,
April 30, 2015 /PRNewswire/ --
First quarter 2015 Highlights
- Adjusted EBITDA was $285 million
compared to $329 million in the prior
year period. The decrease was primarily attributable to an
estimated adjusted EBITDA impact of approximately $60 million from a planned maintenance outage at
our Port Neches, Texas facility,
partially offset by earnings from the performance additives and
titanium dioxide businesses that we acquired from Rockwood.
- Adjusted diluted income per share was $0.40 compared to $0.43 in the prior year period.
- Net income attributable to Huntsman Corporation was
$5 million compared to net income of
$54 million in the prior year
period.
- The stronger U.S. dollar reduced adjusted EBITDA by an
estimated $17 million compared to the
prior year period.
|
|
Three months
ended
|
|
|
March
31,
|
|
December
31,
|
In millions, except
per share amounts, unaudited
|
|
2015
|
|
2014
|
|
2014
|
|
|
|
|
|
|
|
Revenues
|
|
$ 2,589
|
|
$ 2,755
|
|
$ 2,951
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Huntsman Corporation
|
$
5
|
|
$ 54
|
|
$ (38)
|
Adjusted net
income(1)
|
|
$ 98
|
|
$ 105
|
|
$ 81
|
|
|
|
|
|
|
|
Diluted income (loss)
per share
|
|
$ 0.02
|
|
$ 0.22
|
|
$ (0.16)
|
Adjusted diluted
income per share(1)
|
|
$ 0.40
|
|
$ 0.43
|
|
$ 0.33
|
|
|
|
|
|
|
|
EBITDA(1)
|
|
$ 159
|
|
$ 261
|
|
$ 141
|
Adjusted
EBITDA(1)
|
|
$ 285
|
|
$ 329
|
|
$ 292
|
|
|
|
|
|
|
|
See end of press
release for footnote explanations
|
|
|
|
|
|
|
Huntsman Corporation (NYSE: HUN) today reported first quarter
2015 results with revenues of $2,589
million and adjusted EBITDA of $285
million.
Peter R. Huntsman, our President
and CEO, commented:
"I am pleased with the strong first quarter earnings
demonstrated by our differentiated businesses which include MDI
urethanes, Performance Products, Advanced Materials and Textile
Effects. EBITDA from these businesses improved approximately
$30 million compared to the prior
year. We continue to see strength in the markets we are
serving and are encouraged by future growth prospects.
Business conditions remain challenging in the titanium
dioxide market; however I am encouraged that our earnings improved
approximately $10 million compared to
the fourth quarter. We have taken aggressive self- help
measures to deliver $175 million of
expected incremental synergies and restructuring savings by the
middle of 2016. I see a clear path forward to an improvement
in earnings within our Pigments and Additives business.
During the first quarter we completed planned maintenance at
our PO/MTBE facility in Port
Neches, Texas. We experienced some delays in the
restart of the facility during April. We are currently
operating at normal rates and estimate the EBITDA impact from the
delayed startup to be approximately $35
million in the second quarter."
Segment Analysis for 1Q15 Compared to 1Q14
Polyurethanes
The decrease in revenues in our Polyurethanes division for the
three months ended March 31, 2015
compared to the same period in 2014 was primarily due to a
scheduled maintenance outage at our PO/MTBE facility in
Port Neches, Texas in the first
quarter of 2015. MDI sales volumes increased due to improved
demand in the Americas and European regions and across most major
markets. PO/MTBE sales volumes decreased due to the scheduled
maintenance outage. PO/MTBE average selling prices decreased
following lower pricing for high octane gasoline. MDI average
selling prices decreased in response to lower raw material costs
and the foreign currency exchange impact of a stronger U.S. dollar
against major European currencies. The decrease in Adjusted
EBITDA was primarily due to lower PO/MTBE earnings, partially
offset by higher MDI contribution margins. We estimate the
reduction to Adjusted EBITDA from the planned PO/MTBE maintenance
outage to be approximately $60
million in the first quarter 2015.
Performance Products
The decrease in revenues in our Performance Products division
for the three months ended March 31,
2015 compared to the same period in 2014 was due to lower
sales volumes and lower average selling prices. Sales volumes
decreased primarily due to the sale of our European surfactants
business in the second quarter of 2014, partially offset by
increased sales volumes in amines and maleic anhydride.
Average selling prices decreased in response to lower raw material
costs and the foreign currency exchange impact of a stronger U.S.
dollar against major European currencies. The increase in
adjusted EBITDA was primarily due to higher sales volumes and
higher contribution margins in our amines and maleic anhydride
businesses.
Advanced Materials
The decrease in revenues in our Advanced Materials division for
the three months ended March 31, 2015
compared to the same period in 2014 was primarily due to lower
sales volumes. Sales volumes decreased primarily due to the
de-selection of certain business and our restructuring
efforts. Average selling prices increased in all regions on a
local currency basis and across most markets primarily due to
certain price increase initiatives and our focus on higher value
markets but was offset by the foreign currency exchange impact of a
stronger U.S. dollar against major European currencies. The
increase in adjusted EBITDA was primarily due to higher
contribution margins from our focus on higher value business and
lower fixed costs.
Textile Effects
The decrease in revenues in our Textile Effects division for the
three months ended March 31, 2015
compared to the same period in 2014 was primarily due to lower
sales volumes. Sales volumes decreased primarily due to the
de-selection of lower value business and destocking within the
fibers and dyes supply chain. Average selling prices
increased due to the implementation of price increases but was
offset by the foreign currency exchange impact of a stronger U.S.
dollar against major European currencies. The increase in
adjusted EBITDA was primarily due to higher contribution margins
from our focus on higher value business and lower fixed costs.
Pigments and Additives
Pro forma for the acquisition of Rockwood Performance Additives
and Titanium Dioxide businesses, revenues decreased in our Pigments
and Additives division for the three months ended March 31, 2015 compared to the same period in
2014 due to lower sales volumes and lower average selling
prices. Sales volumes decreased primarily as a result of
lower end use demand in Europe
which is our largest market. Average selling prices decreased
primarily as a result of high titanium dioxide industry inventory
levels and the foreign currency exchange impact of a stronger U.S.
dollar against major European currencies. The decrease in pro
forma adjusted EBITDA was primarily due to lower contribution
margins for titanium dioxide.
Corporate, LIFO and Other
Adjusted EBITDA from Corporate, LIFO and Other increased by
$7 million to a loss of $37 million for the three months ended
March 31, 2015 compared to a loss of
$44 million for the same period in
2014. The increase in adjusted EBITDA was primarily the
result of a net benefit from LIFO inventory valuation income and
loss from benzene sales of $7
million.
Liquidity, Capital Resources and Outstanding Debt
As of March 31, 2015, we had
$1,806 million of combined cash and
unused borrowing capacity compared to $1,601
million at December 31,
2014.
On March 31, 2015 we issued €300
million (approximately $326 million)
of 4.25% senior notes due 2025. We used the proceeds to
redeem $289 million of our
outstanding 8.625% senior subordinated notes due 2021 and pay
associated accrued interest in April. We expect to save
approximately $11 million in annual
interest expense as a result of this refinancing.
Total capital expenditures for the three months ended
March 31, 2015 were $149 million. We expect to spend
approximately $525 million on base
capital expenditures in 2015, net of reimbursements. In
addition, in 2015 we expect to spend approximately $100 million combined on our new Chinese MDI
facility, the completion of our Augusta,
Georgia color pigments facility and replacement of
Rockwood computer systems.
Based on the preliminary allocation of the purchase accounting
for the Rockwood Performance Additives and Titanium Dioxide
businesses; we expect our annual depreciation and amortization rate
to be approximately $400 million.
Income Taxes
During the three months ended March 31,
2015, we recorded an income tax expense of $2 million and paid $11
million in cash for income taxes. Our adjusted
effective income tax rate for the three months ended March 31, 2015 was 25%.
We expect our long term adjusted effective tax rate to be
approximately 30%.
Earnings Conference Call Information
We will hold a conference call to discuss our first quarter 2015
financial results on Thursday, April 30,
2015 at 11:00 a.m. ET.
Call-in numbers for
the conference call:
|
|
U.S.
participants
|
(888) 713 -
4213
|
International
participants
|
(617) 213 -
4865
|
Passcode
|
50577489
|
In order to facilitate the registration process, you may use the
following link to pre-register for the conference call. Callers who
pre-register will be given a unique PIN to gain immediate access to
the call and bypass the live operator. You may pre-register at any
time, including up to and after the call start time. To
pre-register, please go to:
https://www.theconferencingservice.com/prereg/key.process?key=PJ3979ADY
Webcast Information
The conference call will be available via webcast and can be
accessed from the company's website at ir.huntsman.com.
Replay Information
The conference call will be available for replay beginning
April 30, 2015 and ending
May 7, 2015.
Call-in numbers for
the replay:
|
|
U.S.
participants
|
(888) 286 -
8010
|
International
participants
|
(617) 801 -
6888
|
Replay
code
|
22645057
|
Upcoming Conferences
During the second quarter a member of management will present at
the following conferences:
- Wells Fargo Industrial and Construction Conference,
May 5, 2015
- Goldman Sachs Basic Materials Conference, May 19, 2015
- Deutsche Bank Global Industrials and Basic Materials
Conference, June 3, 2015
- Jefferies Industrials Conference, August
11, 2015
A webcast of the presentations, where applicable, along with
accompanying materials will be available at ir.huntsman.com.
Table 1 -
Results of Operations
|
|
|
|
|
|
Three months
ended
|
|
|
March
31,
|
In millions, except
per share amounts, unaudited
|
|
2015
|
|
2014
|
|
|
|
|
|
Revenues
|
|
$ 2,589
|
|
$ 2,755
|
Cost of goods
sold
|
|
2,139
|
|
2,305
|
Gross
profit
|
|
450
|
|
450
|
Operating
expenses
|
|
280
|
|
261
|
Restructuring,
impairment and plant closing costs
|
|
93
|
|
39
|
Operating
income
|
|
77
|
|
150
|
Interest
expense
|
|
(56)
|
|
(48)
|
Equity in income of
investment in unconsolidated affiliates
|
|
2
|
|
2
|
Loss on early
extinguishment of debt
|
|
(3)
|
|
-
|
Other (expense)
income
|
|
(1)
|
|
1
|
Income before
income taxes
|
|
19
|
|
105
|
Income tax
expense
|
|
(2)
|
|
(36)
|
Income from
continuing operations
|
|
17
|
|
69
|
Loss from
discontinued operations, net of tax(3)
|
|
(2)
|
|
(7)
|
Net
income
|
|
15
|
|
62
|
Net income
attributable to noncontrolling interests, net of tax
|
|
(10)
|
|
(8)
|
Net income
attributable to Huntsman Corporation
|
|
$
5
|
|
$ 54
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA(1)
|
|
$ 285
|
|
$ 329
|
|
|
|
|
|
Adjusted net
income(1)
|
|
$ 98
|
|
$ 105
|
|
|
|
|
|
|
|
|
|
|
Basic income per
share
|
|
$ 0.02
|
|
$ 0.22
|
Diluted income per
share
|
|
$ 0.02
|
|
$ 0.22
|
Adjusted diluted
income per share(1)
|
|
$ 0.40
|
|
$ 0.43
|
|
|
|
|
|
Common share
information:
|
|
|
|
|
Basic shares
outstanding
|
|
243.9
|
|
240.9
|
Diluted
shares
|
|
247.2
|
|
244.5
|
Diluted shares for
adjusted diluted income per share
|
|
247.2
|
|
244.5
|
|
|
|
|
|
See end of press
release for footnote explanations
|
|
|
|
|
Table 2 -
Results of Operations by Segment
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
March
31,
|
|
Better
/
|
In millions,
unaudited
|
|
2015
|
|
2014
|
|
(Worse)
|
|
|
|
|
|
|
|
Segment
Revenues:
|
|
|
|
|
|
|
Polyurethanes
|
|
$ 890
|
|
$ 1,200
|
|
(26)%
|
Performance
Products
|
|
656
|
|
765
|
|
(14)%
|
Advanced
Materials
|
|
290
|
|
319
|
|
(9)%
|
Textile
Effects
|
|
206
|
|
224
|
|
(8)%
|
Pigments &
Additives
|
|
572
|
|
318
|
|
80%
|
Eliminations and
other
|
|
(25)
|
|
(71)
|
|
65%
|
|
|
|
|
|
|
|
Total
|
|
$ 2,589
|
|
$ 2,755
|
|
(6)%
|
|
|
|
|
|
|
|
Segment Adjusted
EBITDA(1):
|
|
|
|
|
|
Polyurethanes
|
|
$ 105
|
|
$ 167
|
|
(37)%
|
Performance
Products
|
|
121
|
|
118
|
|
3%
|
Advanced
Materials
|
|
58
|
|
46
|
|
26%
|
Textile
Effects
|
|
17
|
|
16
|
|
6%
|
Pigments &
Additives
|
|
21
|
|
26
|
|
(19)%
|
Corporate, LIFO and
other
|
|
(37)
|
|
(44)
|
|
16%
|
|
|
|
|
|
|
|
Total
|
|
$ 285
|
|
$ 329
|
|
(13)%
|
|
|
|
|
|
|
|
See end of press
release for footnote explanations
|
|
|
|
|
Table 3 - Pro
Forma (2) Results of Operations by
Segment
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
March
31,
|
|
Better
/
|
In millions,
unaudited, pro forma
|
|
2015
|
|
2014
|
|
(Worse)
|
|
|
|
|
|
|
|
Segment
Revenues:
|
|
|
|
|
|
|
Polyurethanes
|
|
$ 890
|
|
$ 1,207
|
|
(26)%
|
Performance
Products
|
|
656
|
|
765
|
|
(14)%
|
Advanced
Materials
|
|
290
|
|
319
|
|
(9)%
|
Textile
Effects
|
|
206
|
|
224
|
|
(8)%
|
Pigments &
Additives
|
|
572
|
|
689
|
|
(17)%
|
Eliminations and
other
|
|
(25)
|
|
(71)
|
|
65%
|
|
|
|
|
|
|
|
Pro forma
total
|
|
$ 2,589
|
|
$ 3,133
|
|
(17)%
|
|
|
|
|
|
|
|
Segment Adjusted
EBITDA(2):
|
|
|
|
|
|
Polyurethanes
|
|
$ 105
|
|
$ 169
|
|
(38)%
|
Performance
Products
|
|
121
|
|
118
|
|
3%
|
Advanced
Materials
|
|
58
|
|
46
|
|
26%
|
Textile
Effects
|
|
17
|
|
16
|
|
6%
|
Pigments &
Additives
|
|
21
|
|
73
|
|
(71)%
|
Corporate, LIFO and
other
|
|
(37)
|
|
(44)
|
|
16%
|
|
|
|
|
|
|
|
Pro forma
total
|
|
$ 285
|
|
$ 378
|
|
(25)%
|
|
|
|
|
|
|
|
See end of press
release for footnote explanations
|
|
|
|
|
Table 4 -
Factors Impacting Sales Revenues
|
|
|
|
|
|
Three months
ended
|
|
|
March 31, 2015 vs.
2014
|
|
|
Average Selling
Price(a)
|
|
|
|
|
|
|
|
|
Local
|
|
Exchange
|
|
Sales
Mix
|
|
Sales
|
|
|
Unaudited
|
|
Currency
|
|
Rate
|
|
&
Other(c)
|
|
Volume(b)
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
Polyurethanes
|
|
(4)%
|
|
(6)%
|
|
6%
|
|
(22)%
|
|
(26)%
|
Performance
Products
|
|
(2)%
|
|
(5)%
|
|
2%
|
|
(9)%
|
|
(14)%
|
Advanced
Materials
|
|
5%
|
|
(7)%
|
|
(1)%
|
|
(6)%
|
|
(9)%
|
Textile
Effects
|
|
3%
|
|
(4)%
|
|
4%
|
|
(11)%
|
|
(8)%
|
Pigments &
Additives
|
|
(7)%
|
|
(8)%
|
|
104%
|
|
(9)%
|
|
80%
|
Total
Company
|
|
(2)%
|
|
(6)%
|
|
9%
|
|
(7)%
|
|
(6)%
|
|
|
|
|
|
|
|
|
|
|
|
(a) Excludes sales
from tolling arrangements, by-products and raw
materials.
|
|
|
|
|
(b) Excludes sales
from by-products and raw materials.
|
|
|
|
|
|
|
(c) Includes full
revenue impact from the October 1, 2014 acquisition of the
Performance Additives and
|
Titanium
Dioxide businesses of Rockwood Holdings, Inc.
|
|
|
|
|
|
Table 5 -
Factors Impacting Pro Forma (2) Sales
Revenues
|
|
|
|
|
|
Three months
ended
|
|
|
March 31, 2015 vs.
2014
|
|
|
Average Selling
Price(a)
|
|
|
|
|
|
|
|
|
Local
|
|
Exchange
|
|
Sales
Mix
|
|
Sales
|
|
|
Unaudited, pro
forma
|
|
Currency
|
|
Rate
|
|
&
Other
|
|
Volume(b)
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
Polyurethanes
|
|
(10)%
|
|
NA
|
|
6%
|
|
(22)%
|
|
(26)%
|
Performance
Products
|
|
(7)%
|
|
NA
|
|
2%
|
|
(9)%
|
|
(14)%
|
Advanced
Materials
|
|
(2)%
|
|
NA
|
|
(1)%
|
|
(6)%
|
|
(9)%
|
Textile
Effects
|
|
(1)%
|
|
NA
|
|
4%
|
|
(11)%
|
|
(8)%
|
Pigments &
Additives
|
|
(17)%
|
|
NA
|
|
1%
|
|
(1)%
|
|
(17)%
|
Total
Company
|
|
(10)%
|
|
NA
|
|
7%
|
|
(14)%
|
|
(17)%
|
|
|
|
|
|
|
|
|
|
|
|
NA = foreign exchange
rate data not available
|
|
|
|
|
|
|
|
(a) Excludes sales
from tolling arrangements, by-products and raw
materials.
|
|
|
|
|
(b) Excludes sales
from by-products and raw materials.
|
|
|
|
|
|
|
Table 6 -
Reconciliation of U.S. GAAP to Non-GAAP Measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
Tax
|
|
Net
Income
|
|
Diluted
Income
|
|
|
EBITDA
|
|
Expense
|
|
Attrib. to
HUN Corp.
|
|
Per
Share
|
|
|
Three months
ended
|
|
Three months
ended
|
|
Three months
ended
|
|
Three months
ended
|
|
|
March
31,
|
|
March
31,
|
|
March
31,
|
|
March
31,
|
In millions, except
per share amounts, unaudited
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP(1)
|
|
$ 159
|
|
$ 261
|
|
$ (2)
|
|
$ (36)
|
|
$ 5
|
|
$ 54
|
|
$ 0.02
|
|
$ 0.22
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition and
integration expenses, purchase accounting adjustments
|
|
9
|
|
8
|
|
(2)
|
|
(2)
|
|
7
|
|
6
|
|
0.03
|
|
0.02
|
Loss from
discontinued operations, net of tax(3)
|
|
1
|
|
7
|
|
N/A
|
|
N/A
|
|
2
|
|
7
|
|
0.01
|
|
0.03
|
Loss on early
extinguishment of debt
|
|
3
|
|
-
|
|
(1)
|
|
-
|
|
2
|
|
-
|
|
0.01
|
|
-
|
Certain legal
settlements and related expenses
|
|
1
|
|
-
|
|
-
|
|
-
|
|
1
|
|
-
|
|
-
|
|
-
|
Amortization of
pension and postretirement actuarial losses
|
|
18
|
|
13
|
|
(5)
|
|
(4)
|
|
13
|
|
9
|
|
0.05
|
|
0.04
|
Restructuring,
impairment and plant closing and transition costs
|
|
94
|
|
40
|
|
(26)
|
|
(11)
|
|
68
|
|
29
|
|
0.28
|
|
0.12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted(1)
|
|
$ 285
|
|
$ 329
|
|
$ (36)
|
|
$ (53)
|
|
$ 98
|
|
$ 105
|
|
$ 0.40
|
|
$ 0.43
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income tax
expense
|
|
|
|
|
|
|
|
|
|
36
|
|
53
|
|
|
|
|
Net income
attributable to noncontrolling interests, net of tax
|
|
|
|
|
|
|
|
|
|
10
|
|
8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted pre-tax
income(1)
|
|
|
|
|
|
|
|
|
|
$ 144
|
|
$ 166
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted effective
tax rate
|
|
|
|
|
|
|
|
|
|
25%
|
|
32%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
Tax
|
|
Net (Loss)
Income
|
|
Diluted
(Loss) Income
|
|
|
EBITDA
|
|
Expense
|
|
Attrib. to
HUN Corp.
|
|
Per
Share
|
|
|
Three months
ended
|
|
Three months
ended
|
|
Three months
ended
|
|
Three months
ended
|
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
In millions, except
per share amounts, unaudited
|
|
2014
|
|
2014
|
|
2014
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP(1)
|
|
$ 141
|
|
|
|
$ (12)
|
|
|
|
$ (38)
|
|
|
|
$ (0.16)
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition and
integration expenses, purchase accounting adjustments
|
|
40
|
|
|
|
(4)
|
|
|
|
36
|
|
|
|
0.15
|
|
|
Loss from
discontinued operations, net of tax(2)
|
|
1
|
|
|
|
N/A
|
|
|
|
1
|
|
|
|
-
|
|
|
Gain on disposition
of businesses/assets
|
|
(1)
|
|
|
|
-
|
|
|
|
(1)
|
|
|
|
-
|
|
|
Loss on early
extinguishment of debt
|
|
28
|
|
|
|
(10)
|
|
|
|
18
|
|
|
|
0.07
|
|
|
Amortization of
pension and postretirement actuarial losses
|
|
14
|
|
|
|
-
|
|
|
|
14
|
|
|
|
0.06
|
|
|
Restructuring,
impairment and plant closing and transition costs
|
|
69
|
|
|
|
(18)
|
|
|
|
51
|
|
|
|
0.21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted(1)
|
|
$ 292
|
|
|
|
$ (44)
|
|
|
|
$ 81
|
|
|
|
$ 0.33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income tax
expense
|
|
|
|
|
|
|
|
|
|
44
|
|
|
|
|
|
|
Net income
attributable to noncontrolling interests, net of tax
|
|
|
|
|
|
|
|
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted pre-tax
income(1)
|
|
|
|
|
|
|
|
|
|
$ 128
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted effective
tax rate
|
|
|
|
|
|
|
|
|
|
34%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See end of press
release for footnote explanations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 7 - Pro
Forma (2) Reconciliation of U.S. GAAP to Non-GAAP
Measures
|
|
|
|
|
|
Pro Forma
EBITDA
|
|
|
Three months
ended
|
|
|
March
31,
|
In millions, except
per share amounts, unaudited, pro forma
|
|
2015
|
|
2014
|
|
|
|
|
|
GAAP(1)
|
|
$ 159
|
|
$ 308
|
Adjustments:
|
|
|
|
|
Allocation of
Rockwood general corporate overhead
|
|
-
|
|
7
|
Acquisition and
integration expenses, purchase accounting adjustments
|
|
9
|
|
2
|
Loss from
discontinued operations, net of tax(3)
|
|
1
|
|
7
|
Loss on early
extinguishment of debt
|
|
3
|
|
-
|
Certain legal
settlements and related expenses
|
|
1
|
|
-
|
Amortization of
pension and postretirement actuarial losses
|
|
18
|
|
14
|
Restructuring,
impairment and plant closing and transition costs
|
|
94
|
|
40
|
|
|
|
|
|
Pro forma
adjusted(2)
|
|
$ 285
|
|
$ 378
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro Forma
EBITDA
|
|
|
Three months
ended
|
|
|
December
31,
|
In millions, except
per share amounts, unaudited pro forma
|
|
2014
|
|
|
|
|
|
GAAP(1)
|
|
$ 191
|
|
|
Adjustments:
|
|
|
|
|
Acquisition and
integration expenses, purchase accounting adjustments
|
|
(2)
|
|
|
Loss from
discontinued operations, net of tax(2)
|
|
1
|
|
|
Gain on disposition
of businesses/assets
|
|
(1)
|
|
|
Loss on early
extinguishment of debt
|
|
28
|
|
|
Amortization of
pension and postretirement actuarial losses
|
|
14
|
|
|
Restructuring,
impairment and plant closing and transition costs
|
|
69
|
|
|
|
|
|
|
|
Pro forma
adjusted(2)
|
|
$ 300
|
|
|
|
|
|
|
|
See end of press
release for footnote explanations
|
|
|
|
|
Table 8 -
Reconciliation of Net Income to EBITDA
|
|
|
|
|
|
Three months
ended
|
|
|
March
31,
|
|
December
31,
|
In millions,
unaudited
|
|
2015
|
|
2014
|
|
2014
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Huntsman Corporation
|
|
$
5
|
|
$ 54
|
|
$ (38)
|
Interest
expense
|
|
56
|
|
48
|
|
57
|
Income tax expense
from continuing operations
|
|
2
|
|
36
|
|
12
|
Income tax expense
from discontinued operations(3)
|
|
1
|
|
-
|
|
-
|
Depreciation and
amortization
|
|
95
|
|
123
|
|
110
|
|
|
|
|
|
|
|
EBITDA(1)
|
|
159
|
|
261
|
|
141
|
|
|
|
|
|
|
|
Pro forma
adjustments to:
|
|
|
|
|
|
|
Net income (loss)
attributable to Huntsman Corporation
|
|
-
|
|
15
|
|
26
|
Interest
expense
|
|
-
|
|
15
|
|
1
|
Income tax expense
from continuing operations
|
|
-
|
|
9
|
|
13
|
Depreciation and
amortization
|
|
-
|
|
8
|
|
10
|
|
|
|
|
|
|
|
Pro forma
EBITDA(2)
|
|
$ 159
|
|
$ 308
|
|
$ 191
|
|
|
|
|
|
|
|
See end of press
release for footnote explanations
|
|
|
|
|
|
|
Table 9 -
Selected Balance Sheet Items
|
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
In
millions
|
|
2015
|
|
2014
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
Cash
|
|
$ 1,003
|
|
$
870
|
Accounts and notes
receivable, net
|
|
1,668
|
|
1,707
|
Inventories
|
|
1,869
|
|
2,025
|
Other current
assets
|
|
347
|
|
437
|
Property, plant and
equipment, net
|
|
4,250
|
|
4,423
|
Other
assets
|
|
1,614
|
|
1,540
|
|
|
|
|
|
Total
assets
|
|
$ 10,751
|
|
$ 11,002
|
|
|
|
|
|
Accounts
payable
|
|
$ 1,191
|
|
$ 1,275
|
Other current
liabilities
|
|
754
|
|
790
|
Current portion of
debt
|
|
529
|
|
267
|
Long-term
debt
|
|
4,829
|
|
4,933
|
Other
liabilities
|
|
1,675
|
|
1,786
|
Total
equity
|
|
1,773
|
|
1,951
|
|
|
|
|
|
Total liabilities
and equity
|
|
$ 10,751
|
|
$ 11,002
|
Table 10 -
Outstanding Debt
|
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
In
millions
|
|
2015
|
|
2014
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
Debt:
|
|
|
|
|
Senior credit
facilities
|
|
$ 2,512
|
|
$ 2,528
|
Accounts receivable
programs
|
|
214
|
|
229
|
Senior
notes
|
|
1,862
|
|
1,596
|
Senior subordinated
notes
|
|
493
|
|
531
|
Variable interest
entities
|
|
198
|
|
207
|
Other debt
|
|
79
|
|
109
|
|
|
|
|
|
Total debt -
excluding affiliates
|
|
5,358
|
|
5,200
|
|
|
|
|
|
Total cash
|
|
1,003
|
|
870
|
|
|
|
|
|
Net debt-
excluding affiliates
|
|
$ 4,355
|
|
$ 4,330
|
Table 11 -
Summarized Statement of Cash Flows
|
|
|
Three months
ended
|
|
March
31,
|
In millions,
unaudited
|
2015
|
|
2014
|
|
|
|
|
Total cash at
beginning of period(a)
|
$ 870
|
|
$ 529
|
|
|
|
|
Net cash provided by
(used in) operating activities
|
34
|
|
(67)
|
Net cash used in
investing activities
|
(81)
|
|
(104)
|
Net cash provided by
(used in) financing activities
|
189
|
|
(71)
|
Effect of exchange
rate changes on cash
|
(8)
|
|
(1)
|
Change in restricted
cash
|
(1)
|
|
-
|
|
|
|
|
Total cash at end
of period(a)
|
$ 1,003
|
|
$ 286
|
|
|
|
|
Supplemental cash
flow information:
|
|
|
|
Cash paid for
interest
|
$ (48)
|
|
$ (54)
|
Cash paid for income
taxes
|
(11)
|
|
(46)
|
Cash paid for capital
expenditures
|
(149)
|
|
(107)
|
Depreciation and
amortization
|
95
|
|
123
|
|
|
|
|
Changes in primary
working capital:
|
|
|
|
Accounts and notes
receivable
|
$ (49)
|
|
$ (149)
|
Inventories
|
54
|
|
(172)
|
Accounts
payable
|
(2)
|
|
107
|
|
|
|
|
Total cash provided
by (used in) primary working capital
|
$
3
|
|
$ (214)
|
|
|
|
|
|
|
|
|
(a) Includes
restricted cash.
|
|
|
|
Footnotes
|
|
|
(1)
|
We use EBITDA and
adjusted EBITDA to measure the operating performance of our
business. We provide adjusted net income because we feel it
provides meaningful insight for the investment community into the
performance of our business. We believe that net income
(loss) attributable to Huntsman Corporation is the performance
measure calculated and presented in accordance with generally
accepted accounting principles in the U.S. ("GAAP") that is most
directly comparable to EBITDA, adjusted EBITDA and adjusted net
income. Additional information with respect to our use of
each of these financial measures follows:
|
|
|
|
EBITDA is defined as
net income (loss) attributable to Huntsman Corporation before
interest, income taxes, and depreciation and amortization. EBITDA
as used herein is not necessarily comparable to other similarly
titled measures of other companies. The reconciliation of EBITDA to
net income (loss) attributable to Huntsman Corporation is set forth
in Table 5 above.
|
|
|
|
Adjusted EBITDA is
computed by eliminating the following from EBITDA: (a)
acquisition and integration expenses, purchase accounting
adjustments; (b) loss (gain) on initial consolidation of
subsidiaries; (c) EBITDA from discontinued operations; (d) loss
(gain) on disposition of businesses/assets; (e) loss on early
extinguishment of debt; (f) extraordinary loss (gain) on the
acquisition of a business; (g) certain legal settlements and
related expenses; (h) amortization of pension and postretirement
actuarial losses (gains); and (i) restructuring, impairment, plant
closing and transition costs (credits). The reconciliation of
adjusted EBITDA to EBITDA is set forth in Table 4 above.
|
|
|
|
Adjusted net income
(loss) is computed by eliminating the after tax impact of the
following items from net income (loss) attributable to Huntsman
Corporation: (a) acquisition and integration expenses, purchase
accounting adjustments; (b) impact of certain foreign tax credit
elections; (c) loss (gain) on initial consolidation of
subsidiaries; (d) loss (income) from discontinued operations; (e)
discount amortization on settlement financing associated with the
terminated merger; (f) loss (gain) on disposition of
businesses/assets; (g) loss on early extinguishment of debt; (h)
extraordinary loss (gain) on the acquisition of a business; (i)
certain legal settlements and related expenses; (j) amortization of
pension and postretirement actuarial losses (gains); and (k)
restructuring, impairment, plant closing and transition costs
(credits). We do not adjust for changes in tax
valuation allowances because we do not believe it provides more
meaningful information than is provided under GAAP. The
reconciliation of adjusted net income (loss) to net income (loss)
attributable to Huntsman Corporation common stockholders is set
forth in Table 4 above.
|
|
|
(2)
|
Pro forma adjusted as
if it had occurred at the beginning of the relevant period to (a)
include the October 1, 2014 acquisition of the Performance
Additives and Titanium Dioxide businesses of Rockwood Holdings,
Inc.; (b) to exclude the related sale of our TR52 product line –
used in printing inks – to Henan Billions Chemicals Co., Ltd. in
December 2014; (c) to exclude the allocation of general corporate
overhead by Rockwood.
|
|
|
(3)
|
During the first
quarter 2010 we closed our Australian styrenics operations; results
from this business are treated as discontinued
operations.
|
About Huntsman:
Huntsman Corporation is a publicly
traded global manufacturer and marketer of differentiated chemicals
with 2014 revenues of approximately $13
billion including the acquisition of Rockwood's performance additives and titanium
dioxide businesses. Our chemical products number in the thousands
and are sold worldwide to manufacturers serving a broad and diverse
range of consumer and industrial end markets. We operate more than
100 manufacturing and R&D facilities in more than 30 countries
and employ approximately 16,000 associates within our 5 distinct
business divisions. For more information about Huntsman, please
visit the company's website at www.huntsman.com.
Social Media:
Twitter:
twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Statements in this
release that are not historical are forward-looking statements.
These statements are based on management's current beliefs and
expectations. The forward-looking statements in this release are
subject to uncertainty and changes in circumstances and involve
risks and uncertainties that may affect the company's operations,
markets, products, services, prices and other factors as discussed
in the Huntsman companies' filings with the U.S. Securities and
Exchange Commission. Significant risks and uncertainties may relate
to, but are not limited to, financial, economic, competitive,
environmental, political, legal, regulatory and technological
factors. The company assumes no obligation to provide
revisions to any forward-looking statements should circumstances
change, except as otherwise required by applicable laws.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/huntsman-releases-first-quarter-2015-results-reports-strong-earnings-in-differentiated-businesses-300074859.html
SOURCE Huntsman Corporation