CLAYTON, Mo., July 27, 2021 /PRNewswire/ --
Second Quarter 2021 Highlights
- Net income of $355.8 million and
record adjusted EBITDA of $559.2
million
- ECU Profit Contribution Index improved by 30% compared to first
quarter
- Epoxy and Winchester achieved record quarterly segment
earnings
Olin Corporation (NYSE: OLN) announced financial results for the
second quarter ended June 30,
2021.
Second quarter 2021 reported net income was $355.8 million, or $2.17 per diluted share, which compares to second
quarter 2020 reported net loss of $120.1
million, or $0.76 per diluted
share. Second quarter 2021 adjusted EBITDA of $559.2 million excludes depreciation and
amortization expense of $142.0
million and restructuring charges of $14.0 million. Second quarter 2020 adjusted
EBITDA was $71.5 million. Sales
in the second quarter 2021 were $2,221.3
million compared to $1,241.2
million in the second quarter 2020.
Scott Sutton, Chairman, President
and Chief Executive Officer, said, "Our performance in the second
quarter continues to demonstrate the growing success of our unique
winning model that prioritizes 'value first.' As predicted,
we increased the Electrochemical Unit Profit Contribution Index
(ECU PCI). Olin drove sequential pricing improvement in the
second quarter 2021 for chlorine, chlorine derivatives, including
epoxy resins, and caustic soda. Our Epoxy business continued
to improve margins and delivered record quarterly segment
results. Our Winchester business also delivered record
quarterly segment results. Continuing to build on these
successes in second half 2021, Olin now expects to deliver adjusted
EBITDA of at least $2.1 billion for
2021. We expect Chlor Alkali Products and Vinyls, Epoxy and
Winchester third quarter segment results to increase
sequentially. Overall, we also expect third quarter 2021
adjusted EBITDA to improve sequentially from second quarter 2021
levels."
SEGMENT REPORTING
Olin defines segment earnings as income (loss) before interest
expense, interest income, goodwill impairment charges, other
operating income (expense), non-operating pension income, other
income, and income taxes.
CHLOR ALKALI PRODUCTS AND VINYLS
Chlor Alkali Products and Vinyls sales for the second quarter
2021 were $967.3 million compared to
$651.2 million in the second quarter
2020. The increase in Chlor Alkali Products and Vinyls sales
was primarily due to higher pricing and volumes. Second
quarter 2021 segment earnings were $168.9
million compared to a segment loss of $57.0 million in the second quarter 2020.
The $225.9 million increase in
segment earnings was primarily due to higher pricing across all
products and higher volumes. The segment earnings also
reflected higher raw material and operating costs. Chlor
Alkali Products and Vinyls second quarter 2021 results included
depreciation and amortization expense of $114.5 million compared to $108.5 million in the second quarter 2020.
EPOXY
Epoxy sales for the second quarter 2021 were $850.0 million compared to $397.4 million in the second quarter 2020.
The increase in Epoxy sales was primarily due to higher pricing and
volumes. The second quarter 2021 segment earnings were
$165.3 million compared to a segment
loss of $13.0 million in the second
quarter 2020. The $178.3
million increase in Epoxy segment earnings was primarily due
to higher product margins, as higher pricing was partially offset
by higher benzene and propylene raw material costs, and higher
volumes. Segment earnings also reflected higher operating
costs and maintenance turnaround costs. Epoxy second quarter
2021 results included depreciation and amortization expense of
$20.3 million compared to
$21.6 million in the second quarter
2020.
WINCHESTER
On October 1, 2020, Winchester
began operating the Lake City U.S. Army Ammunition Plant (Lake
City). Winchester sales for the second quarter 2021 were
$404.0 million compared to
$192.6 million in the second quarter
2020. Second quarter 2021 segment earnings were $109.9 million compared to $16.0 million in the second quarter 2020.
The increase in second quarter sales and segment earnings was
primarily due to higher commercial and military sales, which
included ammunition produced at Lake City, and higher commercial
ammunition pricing. The segment earnings were also impacted
by higher commodity costs. Winchester second quarter 2021
results included depreciation and amortization expense of
$5.5 million compared to $4.7 million in the second quarter 2020.
CORPORATE AND OTHER COSTS
Other corporate and unallocated costs in the second quarter of
2021 decreased $6.5 million compared
to the second quarter 2020 primarily due to lower costs associated
with the absence of implementation of new enterprise resource
planning, manufacturing, and engineering systems, and the related
infrastructure costs. This project was completed in late
2020. This reduction was partially offset by higher incentive
costs, which includes mark-to-market adjustments on stock-based
compensation.
Second quarter 2021 restructuring charges included $10.1 million for employee severance and related
benefit costs associated with a productivity initiative to align
the organization with the new operating model and improve
efficiencies. This organizational alignment initiative is
expected to reduce annual costs by approximately $25 million.
CASH AND DEBT REDUCTION
The cash balance on June 30, 2021
was $272.8 million. During the
first half 2021, Olin reduced debt by $490.2
million, ending second quarter 2021 with net debt of
$3,110.1 million and a net debt to
adjusted EBITDA ratio of 2.0 times. Through a combination of
improved adjusted EBITDA, disciplined capital spending and debt
reduction, Olin expects its net debt to adjusted EBITDA ratio to
improve to less than 1.5 times by year end 2021. During 2021,
Olin is targeting debt reduction of approximately $1 billion using cash generated from
operations.
DIVIDEND
On July 22, 2021, Olin's Board of
Directors declared a dividend of $0.20 on each share of Olin common stock.
The dividend is payable on September 10,
2021, to shareholders of record at the close of business on
August 10, 2021. This will be
the 379th consecutive quarterly dividend to be paid by the
Company.
CONFERENCE CALL INFORMATION
Olin senior management will host a conference call to discuss
second quarter 2021 financial results at 10:00 a.m. Eastern time on Wednesday, July 28,
2021. 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 will be accessible
via webcast through Olin's website, www.olin.com, under the second
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 day following the event.
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, and hydrochloric acid.
Winchester's principal manufacturing facilities produce and
distribute sporting ammunition, law enforcement ammunition,
reloading components, small caliber military ammunition and
components, and industrial cartridges.
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," and variations of such words and similar
expressions in this communication to identify such forward-looking
statements. 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, 2020 and
our Quarterly Report on Form 10-Q for the quarter ended
March 31, 2021, 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 in the chlor alkali industry
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 implementation of our operating model, which
prioritizes Electrochemical Unit (ECU) margins over sales
volumes;
- our reliance on a limited number of suppliers for specified
feedstock and services and our reliance on third-party
transportation;
- failure to control costs or to achieve targeted cost
reductions;
- higher-than-expected raw material, energy, transportation,
and/or logistics costs;
- the occurrence of unexpected manufacturing interruptions and
outages, including those occurring as a result of labor disruptions
and production hazards;
- the failure or an interruption of our information technology
systems;
- our substantial amount of indebtedness and significant debt
service obligations;
- the negative impact from the COVID-19 pandemic and the global
response to the pandemic;
- weak industry conditions affecting our ability to comply with
the financial maintenance covenants in our senior secured credit
facility;
- the loss of a substantial customer for either chlorine or
caustic soda could cause an imbalance in customer demand for these
products;
- failure to attract, retain and motivate key employees;
- risks associated with our international sales and operations,
including economic, political or regulatory changes;
- 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 our pension plan;
- adverse conditions in the credit and capital markets, limiting
or preventing our ability to borrow or raise capital;
- our long-range plan assumptions not being realized causing a
non-cash impairment charge of long-lived assets;
Legal, Environmental and Regulatory Risks
- new regulations or public policy changes regarding the
transportation of hazardous chemicals and the security of chemical
manufacturing facilities;
- changes in, or failure to comply with, legislation or
government regulations or policies, including changes within the
international markets in which we operate;
- unexpected litigation outcomes;
- costs and other expenditures in excess of those projected for
environmental investigation and remediation or other legal
proceedings; and
- various risks associated with our Lake City U.S. Army
Ammunition Plant contract, including performance and compliance
with governmental contract provisions.
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.
2021-19
Olin
Corporation
|
|
|
|
|
|
Consolidated
Statements of Operations (a)
|
|
|
|
|
|
|
|
Three
Months
|
|
Six
Months
|
|
|
Ended June
30,
|
|
Ended June
30,
|
(In millions,
except per share amounts)
|
2021
|
2020
|
|
2021
|
2020
|
Sales
|
$
2,221.3
|
$
1,241.2
|
|
$
4,140.1
|
$
2,666.3
|
Operating
Expenses:
|
|
|
|
|
|
Cost of Goods
Sold
|
1,712.2
|
1,235.7
|
|
3,136.0
|
2,609.9
|
Selling and
Administration
|
100.6
|
99.7
|
|
207.5
|
196.4
|
Restructuring
Charges
|
14.0
|
1.7
|
|
20.9
|
3.4
|
Other Operating
Income
|
0.5
|
0.1
|
|
0.5
|
0.1
|
Operating Income
(Loss)
|
395.0
|
(95.8)
|
|
776.2
|
(143.3)
|
Interest Expense
(b)
|
65.9
|
69.4
|
|
150.4
|
132.5
|
Interest
Income
|
-
|
0.2
|
|
0.1
|
0.3
|
Non-operating
Pension Income
|
8.2
|
4.9
|
|
17.5
|
9.5
|
Income (Loss) before
Taxes
|
337.3
|
(160.1)
|
|
643.4
|
(266.0)
|
Income Tax
(Benefit) Provision (c)
|
(18.5)
|
(40.0)
|
|
44.0
|
(65.9)
|
Net Income
(Loss)
|
$
355.8
|
$
(120.1)
|
|
$
599.4
|
$
(200.1)
|
Net Income (Loss)
Per Common Share:
|
|
|
|
|
|
Basic
|
$
2.23
|
$
(0.76)
|
|
$
3.77
|
$
(1.27)
|
Diluted
|
$
2.17
|
$
(0.76)
|
|
$
3.69
|
$
(1.27)
|
Dividends Per
Common Share
|
$
0.20
|
$
0.20
|
|
$
0.40
|
$
0.40
|
Average Common
Shares Outstanding - Basic
|
|
159.9
|
157.9
|
|
159.2
|
157.8
|
Average Common
Shares Outstanding - Diluted
|
163.8
|
157.9
|
|
162.3
|
157.8
|
(a)
|
Unaudited.
|
(b)
|
Interest expense
for the three and six months ended June 30, 2021 included a loss on
extinguishment of debt of $15.4 million and $38.9 million,
respectively, which includes bond redemption premiums, write-off of
deferred debt issuance costs and recognition of deferred fair value
interest rate swap losses associated with the optional prepayment
of existing debt. Interest expense for both the three and six
months ended June 30, 2020 included $1.6 million for write-off of
deferred debt issuance costs and for the six months ended June 30,
2020 also included $4.0 million related to the 2020 ethylene
payment discount.
|
(c)
|
Income tax
(benefit) provision for both the three and six months ended June
30, 2021 included a benefit of $82.8 million primarily associated
with the release of the valuation allowance related to deferred tax
assets of our German operations. Due to the improved
operating results and business outlook for our German operations,
Olin expects that net operating loss carryforwards and other
deductible amounts in Germany will ultimately be realized against
future income.
|
Olin
Corporation
|
|
|
|
|
|
|
|
Segment
Information (a)
|
|
|
|
|
|
|
|
|
|
Three
Months
|
|
Six
Months
|
|
|
Ended June
30,
|
|
Ended June
30,
|
(In
millions)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Sales:
|
|
|
|
|
|
|
|
|
Chlor Alkali
Products and Vinyls
|
$
967.3
|
|
$
651.2
|
|
$
1,834.3
|
|
$
1,411.1
|
|
Epoxy
|
850.0
|
|
397.4
|
|
1,512.6
|
|
874.6
|
|
Winchester
|
404.0
|
|
192.6
|
|
793.2
|
|
380.6
|
|
Total
Sales
|
$
2,221.3
|
|
$
1,241.2
|
|
$
4,140.1
|
|
$
2,666.3
|
Income (Loss)
before Taxes:
|
|
|
|
|
|
|
|
|
Chlor Alkali
Products and Vinyls
|
$
168.9
|
|
$
(57.0)
|
|
$
440.0
|
|
$
(91.3)
|
|
Epoxy
|
165.3
|
|
(13.0)
|
|
230.5
|
|
(1.3)
|
|
Winchester
|
109.9
|
|
16.0
|
|
195.0
|
|
26.5
|
|
Corporate/Other:
|
|
|
|
|
|
|
|
|
Environmental Expense
(b)
|
(4.7)
|
|
(2.8)
|
|
(5.0)
|
|
(5.4)
|
|
Other Corporate and
Unallocated Costs (c)
|
(30.9)
|
|
(37.4)
|
|
(63.9)
|
|
(68.5)
|
|
Restructuring
Charges
|
(14.0)
|
|
(1.7)
|
|
(20.9)
|
|
(3.4)
|
|
Other Operating
Income
|
0.5
|
|
0.1
|
|
0.5
|
|
0.1
|
|
Interest Expense
(d)
|
(65.9)
|
|
(69.4)
|
|
(150.4)
|
|
(132.5)
|
|
Interest
Income
|
-
|
|
0.2
|
|
0.1
|
|
0.3
|
|
Non-operating
Pension Income
|
8.2
|
|
4.9
|
|
17.5
|
|
9.5
|
|
Income
(Loss) before Taxes
|
$
337.3
|
|
$
(160.1)
|
|
$
643.4
|
|
$
(266.0)
|
(a)
|
Unaudited.
|
(b)
|
Environmental
expense for the six months ended June 30, 2021 included $2.2
million of insurance recoveries for costs incurred and expensed in
prior periods.
|
(c)
|
Other corporate
and unallocated costs for the three and six months ended June 30,
2020 included information technology integration project charges of
$20.4 million and $35.1 million, respectively, associated with the
implementation of new enterprise resource planning, manufacturing,
and engineering systems, and related infrastructure costs, which
concluded in late 2020.
|
(d)
|
Interest expense
for the three and six months ended June 30, 2021 included a loss on
extinguishment of debt of $15.4 million and $38.9 million,
respectively, which includes bond redemption premiums, write-off of
deferred debt issuance costs and recognition of deferred fair value
interest rate swap losses associated with the optional prepayment
of existing debt. Interest expense for both the three and six
months ended June 30, 2020 included $1.6 million for write-off of
deferred debt issuance costs and for the six months ended June 30,
2020 also included $4.0 million related to the 2020 ethylene
payment discount.
|
Olin
Corporation
|
|
|
|
|
|
Consolidated
Balance Sheets (a)
|
|
|
|
|
|
|
June
30,
|
|
December
31,
|
June
30,
|
(In millions,
except per share data)
|
2021
|
|
2020
|
|
2020
|
Assets:
|
|
|
|
|
|
Cash and
Cash Equivalents
|
$
272.8
|
|
$
189.7
|
|
$
237.9
|
Accounts
Receivable, Net
|
1,033.7
|
|
770.9
|
|
700.2
|
Income
Taxes Receivable
|
62.4
|
|
15.1
|
|
17.6
|
Inventories, Net
|
736.5
|
|
674.7
|
|
619.1
|
Other
Current Assets
|
112.7
|
|
66.7
|
|
42.0
|
Total Current Assets
|
2,218.1
|
|
1,717.1
|
|
1,616.8
|
Property,
Plant and Equipment
|
|
|
|
|
|
(Less Accumulated
Depreciation of $3,893.8, $3,719.8 and $3,484.9)
|
3,005.6
|
|
3,171.0
|
|
3,234.9
|
Operating
Lease Assets, Net
|
370.7
|
|
360.7
|
|
371.8
|
Deferred
Income Taxes
|
111.0
|
|
11.2
|
|
38.3
|
Other
Assets
|
1,165.9
|
|
1,191.3
|
|
1,179.7
|
Intangibles, Net
|
365.7
|
|
399.4
|
|
416.9
|
Goodwill
|
1,420.2
|
|
1,420.2
|
|
2,119.7
|
Total
Assets
|
$
8,657.2
|
|
$
8,270.9
|
|
$
8,978.1
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity:
|
|
|
|
|
|
Current
Installments of Long-term Debt
|
$
1.1
|
|
$
26.3
|
|
$
1.8
|
Accounts
Payable
|
806.3
|
|
729.2
|
|
520.8
|
Income
Taxes Payable
|
35.1
|
|
10.7
|
|
7.7
|
Current
Operating Lease Liabilities
|
76.9
|
|
74.7
|
|
77.3
|
Accrued
Liabilities
|
426.3
|
|
358.0
|
|
318.7
|
Total Current Liabilities
|
1,345.7
|
|
1,198.9
|
|
926.3
|
Long-term
Debt
|
3,381.8
|
|
3,837.5
|
|
4,073.9
|
Operating
Lease Liabilities
|
299.8
|
|
291.6
|
|
299.2
|
Accrued
Pension Liability
|
683.2
|
|
733.3
|
|
768.0
|
Deferred
Income Taxes
|
521.9
|
|
443.2
|
|
414.5
|
Other
Liabilities
|
350.1
|
|
315.6
|
|
307.3
|
Total
Liabilities
|
6,582.5
|
|
6,820.1
|
|
6,789.2
|
Commitments and
Contingencies
|
|
|
|
|
|
Shareholders'
Equity:
|
|
|
|
|
|
Common Stock, $1.00
Par Value Per Share, Authorized 240.0 Shares:
|
|
|
|
|
|
Issued and Outstanding 160.5 Shares (158.0 and 157.9 in
2020)
|
160.5
|
|
158.0
|
|
157.9
|
Additional Paid-in
Capital
|
2,187.9
|
|
2,137.8
|
|
2,127.0
|
Accumulated Other
Comprehensive Loss
|
(654.3)
|
|
(689.9)
|
|
(773.9)
|
Retained Earnings
(Accumulated Deficit)
|
380.6
|
|
(155.1)
|
|
677.9
|
Total
Shareholders' Equity
|
2,074.7
|
|
1,450.8
|
|
2,188.9
|
Total Liabilities
and Shareholders' Equity
|
$
8,657.2
|
|
$
8,270.9
|
|
$
8,978.1
|
Olin
Corporation
|
|
|
|
Consolidated
Statements of Cash Flows (a)
|
|
|
|
|
Six Months
Ended
|
|
June
30,
|
(In
millions)
|
2021
|
|
2020
|
Operating
Activities:
|
|
|
|
Net Income
(Loss)
|
$
599.4
|
|
$
(200.1)
|
Stock-based
Compensation
|
1.3
|
|
4.1
|
Loss on Debt
Extinguishment
|
38.9
|
|
-
|
Depreciation and
Amortization
|
287.2
|
|
283.0
|
Deferred Income
Taxes
|
(26.8)
|
|
(52.1)
|
Qualified Pension
Plan Contributions
|
(0.6)
|
|
(1.2)
|
Qualified Pension
Plan Income
|
(13.7)
|
|
(5.9)
|
Changes
in:
|
|
|
|
Receivables
|
(274.5)
|
|
64.1
|
Income Taxes
Receivable/Payable
|
(22.6)
|
|
(15.8)
|
Inventories
|
(67.6)
|
|
75.7
|
Other Current
Assets
|
12.0
|
|
(18.3)
|
Accounts
Payable and Accrued Liabilities
|
143.6
|
|
(74.9)
|
Other
Assets
|
(2.5)
|
|
0.6
|
Other
Noncurrent Liabilities
|
32.2
|
|
(5.6)
|
Other Operating
Activities
|
1.3
|
|
1.8
|
Net Operating
Activities
|
707.6
|
|
55.4
|
Investing
Activities:
|
|
|
|
Capital
Expenditures
|
(86.4)
|
|
(166.5)
|
Payments under
Ethylene Long-Term Supply Contracts
|
-
|
|
(461.0)
|
Payments under
Other Long-Term Supply Contracts
|
-
|
|
(75.8)
|
Net Investing
Activities
|
(86.4)
|
|
(703.3)
|
Financing
Activities:
|
|
|
|
Long-term Debt
(Repayments) Borrowings, Net
|
(490.2)
|
|
737.4
|
Debt Early
Redemption Premiums
|
(31.0)
|
|
-
|
Stock Options
Exercised
|
50.2
|
|
0.5
|
Dividends
Paid
|
(63.7)
|
|
(63.1)
|
Debt Issuance
Costs
|
(3.1)
|
|
(9.6)
|
Net Financing
Activities
|
(537.8)
|
|
665.2
|
Net Increase in
Cash and Cash Equivalents
|
83.4
|
|
17.3
|
Effect of Exchange
Rate Changes on Cash and Cash Equivalents
|
(0.3)
|
|
(0.3)
|
Cash and Cash
Equivalents, Beginning of Year
|
189.7
|
|
220.9
|
Cash and Cash
Equivalents, End of Period
|
$
272.8
|
|
$
237.9
|
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 expense (benefit), other expense (income), restructuring
charges, goodwill impairment 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
expense (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
|
Six
Months
|
|
|
Ended June
30,
|
Ended June
30,
|
(In
millions)
|
2021
|
2020
|
2021
|
2020
|
Reconciliation of
Net Income (Loss) to Adjusted EBITDA:
|
|
|
|
Net Income
(Loss)
|
$
355.8
|
$
(120.1)
|
$
599.4
|
$
(200.1)
|
|
Add
Back:
|
|
|
|
|
|
Interest
Expense
|
65.9
|
69.4
|
150.4
|
132.5
|
|
Interest
Income
|
-
|
(0.2)
|
(0.1)
|
(0.3)
|
|
Income Tax
(Benefit) Provision
|
(18.5)
|
(40.0)
|
44.0
|
(65.9)
|
|
Depreciation and
Amortization
|
142.0
|
136.5
|
287.2
|
283.0
|
EBITDA
|
545.2
|
45.6
|
1,080.9
|
149.2
|
|
Add
Back:
|
|
|
|
|
|
Restructuring
Charges
|
14.0
|
1.7
|
20.9
|
3.4
|
|
Environmental
Recoveries (b)
|
-
|
-
|
(2.2)
|
-
|
|
Information
Technology Integration Project (c)
|
-
|
20.4
|
-
|
35.1
|
|
Certain
Non-recurring Items (d)
|
-
|
3.8
|
-
|
6.6
|
Adjusted
EBITDA
|
$
559.2
|
$
71.5
|
$1,099.6
|
$
194.3
|
(a)
|
Unaudited.
|
(b)
|
Environmental
recoveries for the six months ended June 30, 2021 included
insurance recoveries for costs incurred and expensed in prior
periods.
|
(c)
|
Information
technology integration project charges were associated with the
implementation of new enterprise resource planning, manufacturing,
and engineering systems, and related infrastructure costs, which
concluded in late 2020.
|
(d)
|
Certain
non-recurring items for the three and six months ended June 30,
2020 included $3.8 million and $6.6 million, respectively, of
charges related to the Lake City facility
transition.
|
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 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 expense (benefit), other expense (income),
restructuring charges, goodwill impairment 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.
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
December
31,
|
|
June
30,
|
(In
millions)
|
2021
|
|
2020
|
|
2020
|
Current
Installments of Long-term Debt
|
$
1.1
|
|
$
26.3
|
|
$
1.8
|
Long-term
Debt
|
3,381.8
|
|
3,837.5
|
|
4,073.9
|
Total Debt
|
3,382.9
|
|
3,863.8
|
|
4,075.7
|
Less: Cash and
Cash Equivalents
|
(272.8)
|
|
(189.7)
|
|
(237.9)
|
Net Debt
|
$
3,110.1
|
|
$
3,674.1
|
|
$
3,837.8
|
|
|
|
|
|
|
|
Trailing Twelve
Months Adjusted EBITDA (b)
|
$
1,541.3
|
|
$
636.0
|
|
$
660.4
|
|
|
|
|
|
|
|
Net Debt to
Adjusted EBITDA
|
2.0
|
|
5.8
|
|
5.8
|
(a)
|
Unaudited.
|
(b)
|
Trailing Twelve
Months Adjusted EBITDA as of June 30, 2021 is calculated as the six
months ended June 30, 2021 plus the year ended December 31, 2020
less the six months ended June 30, 2020. Trailing Twelve
Months Adjusted EBITDA as of June 30, 2020 is calculated as the six
months ended June 30, 2020 plus the year ended December 31, 2019
less the six months ended June 30, 2019.
|
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SOURCE Olin Corporation