Orion S.A. (NYSE: OEC), a specialty chemical company, today
announced financial results for the full year of 2023.
Full Year 2023 Financial
Highlights
- Net sales of $1,893.9 million, down $137.0 million, year
over year.
- Net income of $103.5 million, down $2.7 million, year over
year.
- Diluted EPS of $1.73 for the years ended December 31, 2023
and 2022.
- Adjusted Diluted EPS1 of $1.92, down $0.04, year over
year.
- Record Adjusted EBITDA1 of $332.3 million, up $20.0 million,
year over year.
Fourth Quarter 2023 Financial
Highlights
- Net sales of $468.2 million, up $6.1 million, year over
year
- Net income of $4.9 million, down $7.3 million, year over
year.
- Diluted EPS of $0.08 down $0.12, year over year.
- Adjusted Diluted EPS1 of $0.17, down $0.09, year over
year.
- Adjusted EBITDA1 of $66.6 million, up $1.4 million, year
over year
Other Highlights
- Completed multi-year emissions projects to upgrade plants in
the U.S.
- Repurchased nearly ~5% of outstanding stock — ~$70 million
since inception.
- Net leverage 2.35 times, down from ~3.0 times at mid-year
2022.
1
The reconciliations of Non-U.S. GAAP
(“GAAP”) measures to the respective most comparable GAAP measures
are provided in the section titled Reconciliation of Non-GAAP to
GAAP Financial Measures below.
“The Orion team achieved record fourth quarter and full year
results, in-line with our communication last month, yet we are not
satisfied. Our results could have even beaten our original guidance
if demand had not cooled over the course of 2023. Critically we
executed our pricing strategy for the 2024 pricing cycle raising
prices modestly from the new base we established last year while
gaining additional supply lanes particularly in Europe,” said
Corning Painter, Orion’s chief executive officer. “Being an
essential material, we expect a gradual recovery of specialty and
rubber carbon black demand in 2024, but for it to still lag
pre-COVID levels. Most importantly, though, we foresee another year
of growth with a clear pathway to achieve our long-term goals.”
Jeff Glajch, Orion’s chief financial officer added, “As Corning
mentioned, our results continue to improve, with record Adjusted
EBITDA in 2023, as well as increased cash flow and cash flow
conversion that has enabled further reduction of debt from 2022 to
2.35 times and continued repurchase of stock. As we have now
completed our emissions projects, we have much more flexibility to
invest in growing the business balanced with providing returns to
our shareholders.”
Full Year 2023 Overview:
Year Ended December
31,
Year-Over-Year
(In millions, except per share data or
stated otherwise)
2023
2022
Delta
Volume (kmt)
932.1
962.9
(30.8)
(3.2%)
Net sales
1,893.9
2,030.9
(137.0)
(6.7%)
Gross profit
451.0
448.8
2.2
0.5%
Gross profit per metric ton(1)
483.9
466.1
17.8
3.8%
Income from operations
205.3
197.1
8.2
4.2%
Net income
103.5
106.2
(2.7)
(2.5%)
Adjusted EBITDA (1)
332.3
312.3
20.0
6.4%
Basic EPS
1.75
1.74
0.01
0.6%
Diluted EPS
1.73
1.73
—
—%
Adjusted Diluted EPS(1)
1.92
1.96
(0.04)
(2.0%)
(1)
The reconciliations of these non-GAAP
measures to the respective most comparable GAAP measures are
provided in the section titled Reconciliation of Non-GAAP Financial
Measures.
Volume decreased by 30.8 kmt, or 3.2%, to 932.1 kmt,
year-over-year reflecting weaker demand across all regions, except
China, and in both segments.
Net sales decreased by $137.0 million, or 6.7%, to $1,893.9
million, driven primarily by the pass-through effect of declining
oil prices and lower volume in both segments. Those were partially
offset by improved contractual pricing.
Gross profit increased by $2.2 million or 0.5%, to $451.0
million, primarily driven by improved contractual pricing,
partially offset by lower volume in both segments and lower
cogeneration effects due to European electricity prices.
Income from operations increased by $8.2 million or 4.2%, to
$205.3 million.
Adjusted EBITDA increased by $20.0 million, or 6.4%, to $332.3
million. The increase was primarily due to improved contractual
pricing. Those were partially offset by lower volume and
cogeneration effects in both segments.
Full Year 2023 Segment Results
SPECIALTY CARBON BLACK
Year Ended December
31,
Year-Over-Year
(In millions, unless otherwise
indicated)
2023
2022
Delta
Volume (kmt)
221.4
224.3
(2.9)
(1.3)%
Net sales
610.6
675.4
(64.8)
(9.6)%
Cost of sales
450.3
474.7
(24.4)
(5.1)%
Gross profit
160.3
200.7
(40.4)
(20.1)%
Gross profit per metric ton(1)
724.0
894.8
(170.8)
(19.1)%
Adjusted EBITDA
110.7
143.9
(33.2)
(23.1)%
Adjusted EBITDA per metric ton(1)
500.0
641.6
(141.6)
(22.1)%
Adjusted EBITDA Margin (%)(1)
18.1%
21.3%
(320)bps
(15.0)%
(1)
The reconciliations of these non-GAAP
measures to the respective most comparable GAAP measures are
provided in the section titled Reconciliation of Non-GAAP Financial
Measures.
Volume of the Specialty Carbon Black segment decreased by 2.9
kmt, or 1.3%, to 221.4 kmt. The volume was lower primarily due to
weakness across most geographies and in particular the printing
market, offset by gains in China and the polymer market.
Net sales of the Specialty Carbon Black segment decreased by
$64.8 million, or 9.6%, to $610.6 million. The net sales decrease
in 2023 was primarily driven by the pass-through effect of
declining oil prices.
Adjusted EBITDA of the Specialty Carbon Black segment decreased
by $33.2 million, or 23.1%, to $110.7 million. The decrease was
primarily due to unfavorable geographic and product mix and lower
cogeneration effects due to lower European electricity prices.
Adjusted EBITDA per ton decreased by $141.6, or 22.1%, to
$500.0, driven due to unfavorable product mix and lower
cogeneration effects.
Adjusted EBITDA margin decreased 320 basis points to 18.1%, year
over year.
RUBBER CARBON BLACK
Year Ended December
31,
Year-Over-Year
(In millions, unless otherwise
indicated)
2023
2022
Delta
Volume (kmt)
710.7
738.6
(27.9)
(3.8)%
Net sales
1,283.3
1,355.5
(72.2)
(5.3)%
Cost of sales
992.6
1,107.4
(114.8)
(10.4)%
Gross profit
290.7
248.1
42.6
17.2%
Gross profit per metric ton(1)
409.0
335.9
73.1
21.8%
Adjusted EBITDA
221.6
168.4
53.2
31.6%
Adjusted EBITDA/metric ton(1)
311.8
228.0
83.8
36.8%
Adjusted EBITDA Margin (%)(1)
17.3%
12.4%
490bps
39.5%
(1)
The reconciliations of these non-GAAP
measures to the respective most comparable GAAP measures are
provided in the section titled Reconciliation of Non-GAAP Financial
Measures.
Volume of the Rubber Carbon Black segment decreased by 27.9 kmt,
or 3.8%, to 710.7 kmt. The decrease was primarily due to lower
demand in the Americas and EMEA region, partially offset by
China.
Net sales of the Rubber Carbon Black segment decreased by $72.2
million, or 5.3%, to $1,283.3 million. The decrease was primarily
due to the pass-through effect of declining oil prices and lower
volume, partially offset by improved contractual pricing.
Adjusted EBITDA of the Rubber Carbon Black segment increased by
$53.2 million, or 31.6%, to $221.6 million. The increase was
primarily due to improved contractual pricing, partially offset by
lower volume and cogeneration effects.
Adjusted EBITDA per ton increased by $83.8, or 36.8%, to $311.8,
primarily driven by improved contractual pricing.
Adjusted EBITDA margin rose 490 basis points to 17.3%, year over
year.
Fourth Quarter 2023 Overview:
(In millions, except per share data or
stated otherwise)
Q4 2023
Q4 2022
Y/Y Change
Y/Y Change in %
Volume (kmt)
226.2
215.1
11.1
5.2%
Net sales
468.2
462.1
6.1
1.3%
Gross profit
87.3
96.7
(9.4)
(9.7%)
Gross profit per metric ton(1)
385.9
449.6
(63.7)
(14.2%)
Income from operations
27.2
36.0
(8.8)
(24.4%)
Net income
4.9
12.2
(7.3)
(59.8%)
Adjusted EBITDA (1)
66.6
65.2
1.4
2.1%
Basic EPS
0.08
0.20
(0.12)
(60.0%)
Diluted EPS
0.08
0.20
(0.12)
(60.0%)
Adjusted Diluted EPS(1)
0.17
0.26
(0.09)
(34.6%)
(1)
The reconciliations of these non-GAAP
measures to the respective most comparable GAAP measures are
provided in the section titled Reconciliation of Non-GAAP Financial
Measures.
Volume increased by 11.1 kmt, or 5.2%, year over year, primarily
due to higher volume in the Specialty Carbon Black polymer
market.
Net sales increased by $6.1 million, or 1.3%, year over year,
primarily driven by higher volume in both segments.
Gross profit decreased by $9.4 million, or 9.7%, year over year,
primarily driven by lower cogeneration effects reflecting weaker
European electricity pricing, unfavorable product and geographic
mix in both segments and by maintenance, start-up and other timing
related costs. Those were partially offset by higher volume in both
segments.
Income from operations decreased by $8.8 million, or 24.4%, to
$27.2 million, year over year, primarily driven by lower
cogeneration effects and unfavorable product mix in both segments.
Those were partially offset by higher volume.
Adjusted EBITDA increased by $1.4 million, or 2.1%, to $66.6
million, year over year.
Quarterly Business Segment Results
SPECIALTY CARBON BLACK
(In millions, unless stated
otherwise)
Q4 2023
Q4 2022
Y/Y Change
Y/Y Change in %
Volume (kmt)
54.9
46.7
8.2
17.6%
Net sales
148.7
146.3
2.4
1.6%
Gross profit
27.0
37.7
(10.7)
(28.4)%
Gross profit per metric ton(1)
491.8
807.3
(315.5)
(39.1)%
Adjusted EBITDA
17.4
24.9
(7.5)
(30.1)%
Adjusted EBITDA/metric ton(1)
316.9
533.2
(216.3)
(40.6)%
Adjusted EBITDA margin (%)(1)
11.7%
17.0%
(530)bps
(31.2)%
(1)
The reconciliations of these non-GAAP
measures to the respective most comparable GAAP measures are
provided in the section titled Reconciliation of Non-GAAP Financial
Measures.
Volume increased by 8.2 kmt, or 17.6%, year over year,
reflecting volume growth across all regions, partially in the
polymer market.
Net sales increased by $2.4 million, or 1.6%, to $148.7 million,
year over year.
Adjusted EBITDA decreased by $7.5 million, or 30.1%, to $17.4
million, year over year, primarily due to maintenance, start-up and
other timing related costs, unfavorable product mix and lower
cogeneration effects due to European electricity prices.
Adjusted EBITDA margin decreased 530 basis points to 11.7%, year
over year.
RUBBER CARBON BLACK
(In millions, unless stated
otherwise)
Q4 2023
Q4 2022
Y/Y Change
Y/Y Change in %
Volume (kmt)
171.3
168.4
2.9
1.7%
Net sales
319.5
315.8
3.7
1.2%
Gross profit
60.3
59.0
1.3
2.2%
Gross profit per metric ton(1)
352.0
350.4
1.6
0.5%
Adjusted EBITDA
49.2
40.3
8.9
22.1%
Adjusted EBITDA/metric ton(1)
287.2
239.3
47.9
20.0%
Adjusted EBITDA margin (%)(1)
15.4%
12.8%
260bps
20.3%
(1)
The reconciliations of these non-GAAP
measures to the respective most comparable GAAP measures are
provided in the section titled Reconciliation of Non-GAAP Financial
Measures.
Volume increased by 2.9 kmt, or 1.7%, year over year.
Net sales increased by $3.7 million, or 1.2%, to $319.5 million,
year over year.
Adjusted EBITDA increased by $8.9 million, or 22.1%, to $49.2
million, year over year, driven by pricing and favorable currency
exchange impact. Those were partially offset by lower cogeneration
effects and unfavorable product mix.
Adjusted EBITDA margin rose 260 basis points to 15.4%, year over
year.
Net Debt Position
As of December 31, 2023, net debt was $780.7 million, down $78.2
million, and net leverage was 2.35x, down from 2.75x as of December
31, 2022.
Outlook
“For full year 2024, we are projecting an Adjusted EBITDA range
of $340 million to $360 million, up 5 percent at the midpoint,
compared with 2023. Additionally, we are projecting full year 2024
Adjusted Diluted EPS of $2.05 to $2.20, up 9 percent at the
midpoint. We expect discretionary cash flow of approximately $160
million to $180 million in 2024. While there are multiple positive
trends that we see could affect our results in 2024, our customers
remain cautious,” Mr. Painter added. “Despite this we are looking
forward to another year of notable growth, our fourth year in a
row. It is also tremendous to have the air emission projects behind
us.”
Conference Call
As previously announced, Orion will hold a conference call
tomorrow, Thursday, February 15, 2024, at 8:30 a.m. (EST). The
dial-in details for the live conference call are as follow:
U.S. Toll Free:
1-877-407-4018
International:
1-201-689-8471
A replay of the conference call may be accessed by phone at the
following numbers through February 29, 2024:
U.S. Toll Free:
1-844-512-2921
International:
1-412-317-6671
Conference ID:
13743654
Additionally, an archived webcast of the conference call will be
available on the Investor Relations section of the company’s
website at www.orioncarbons.com.
To learn more about Orion, visit the company’s website at
www.orioncarbons.com, where we regularly post information including
notification of events, news, financial performance, investor
presentations and webcasts, non-GAAP reconciliations, SEC filings
and other information regarding our company, its businesses and the
markets it serves.
About Orion Engineered Carbons
Orion Engineered Carbons (NYSE: OEC) is a leading global
supplier of carbon black, a solid form of carbon produced as powder
or pellets. The material is made to customers’ exacting
specifications for tires, coatings, ink, batteries, plastics and
numerous other specialty, high-performance applications. Carbon
black is used to tint, colorize, provide reinforcement, conduct
electricity, increase durability and add UV protection. Orion has
innovation centers on three continents and 14 plants worldwide,
offering the most diverse variety of production processes in the
industry. The company’s corporate lineage goes back more than 160
years to Germany, where it operates the world’s longest-running
carbon black plant. Orion is a leading innovator, applying a deep
understanding of customers’ needs to deliver sustainable solutions.
For more information, please visit orioncarbons.com.
Cautionary Statement for the Purposes of the “Safe Harbor”
Provisions of the Private Securities Litigation Reform Act of
1995
This document contains and refers to certain forward-looking
statements with respect to our financial condition, results of
operations and business, including those in the “Outlook” section
above. These statements constitute forward-looking statements
within the meaning of Section 21E of the Securities Exchange Act of
1934, as amended (the “Exchange Act”). Forward-looking statements
are statements of future expectations that are based on
management’s current expectations and assumptions and involve known
and unknown risks and uncertainties that could cause actual
results, performance or events to differ materially from those
expressed or implied in these statements. You should not place
undue reliance on forward-looking statements. Forward-looking
statements include, among others, statements concerning the
potential exposure to market risks, statements expressing
management’s expectations, beliefs, estimates, forecasts,
projections and assumptions and statements that are not limited to
statements of historical or present facts or conditions.
Forward-looking statements are typically identified by words such
as “anticipate,” "assume," “assure,” “believe,” “confident,”
“could,” “estimate,” “expect,” “intend,” “may,” “plan,”
“objectives,” “outlook,” “probably,” “project,” “will,” “seek,”
“target” “to be,” and other words of similar meaning.
These forward-looking statements include, without limitation,
statements about the following matters: • our outlook and
expectations for 2024; • growth and strategies; • supply; •
customer actions, behavior and demand for our products; •
macroeconomic conditions; and • expectations and plans with respect
to our capital, including investments and potential returns to our
shareholders.
All these forward-looking statements are based on estimates and
assumptions that, although believed to be reasonable, are
inherently uncertain. Therefore, undue reliance should not be
placed upon any forward-looking statements. There are important
factors that could cause actual results to differ materially from
those contemplated by such forward-looking statements. These
factors include, among others: • possible negative or uncertain
worldwide economic conditions and developments; • the volatility
and cyclicality of the industries in which we operate; • the
operational risks inherent in chemicals manufacturing, including
disruptions due to technical facilities, severe weather conditions
or natural disasters; • our dependence on major customers and
suppliers; • unanticipated fluctuations in demand for our products,
including due to factors beyond our control; • our ability to
compete in the industries and markets in which we operate; •
changes in the nature of transportation in the future, which may
impact our customers and our business; • our ability to
successfully develop new products and technologies; • the
availability of substitutes for our products; • our ability to
implement our business strategies; • our ability to respond to
changes in feedstock prices and quality; • our ability to realize
benefits from investments, joint ventures, acquisitions or
alliances; our ability to negotiate satisfactory terms with
counterparties, the satisfactory performance by such counterparties
of their obligations to us, as well as our ability to meet our
performance obligations towards such counterparties; • our ability
to realize benefits from planned plant capacity expansions and site
development projects and the impacts of potential delays to such
expansions and development projects; • any information technology
systems failures, network disruptions and breaches of data
security; • our relationships with our workforce, including
negotiations with labor unions, strikes and work stoppages; • our
ability to recruit or retain key management and personnel; • our
exposure to political or country risks inherent in doing business
globally; • any and all impacts from the Russia-Ukraine war and the
Hamas-Israel conflict and/or any escalation thereof related energy
costs, raw material availability or other economic disruptions; •
geopolitical events in the United States (“U.S.”), Middle-East,
European Union (“EU”) and China, relations amongst Western
countries and their neighbors as well as future relations between
the U.S., EU, China and other countries and organizations; • all
environmental, health and safety laws and regulations, including
nanomaterial and greenhouse gas emissions regulations, and the
related costs of maintaining compliance and addressing liabilities;
• any possible future investigations and enforcement actions by
governmental, supranational agencies or other organizations; • our
operations as a company in the chemical sector, including the
related risks of leaks, fires and toxic releases as well as other
accidents; • any market and regulatory changes that may affect our
ability to sell or otherwise benefit from co-generated energy; •
any litigation or legal proceedings, including product liability,
environmental or asbestos related claims; • our ability to protect
our intellectual property rights and know-how; • our ability to
generate the funds required to service our debt and finance our
operations; • any fluctuations in foreign currency exchange and
interest rates; • the availability and efficiency of hedging; • any
changes in international and local economic conditions,
dislocations in credit and capital markets and inflation or
deflation; • any potential impairments or write-offs of certain
assets; • any required increases in our pension fund or
retirement-related contributions; • the adequacy of our insurance
coverage; • any changes in our jurisdictional earnings mix or in
the tax laws or accepted interpretations of tax laws in those
jurisdictions; • any challenges to our decisions and assumptions in
assessing and complying with our tax obligations; • the potential
difficulty in obtaining or enforcing judgments or bringing legal
actions against Orion S.A. (a Luxembourg incorporated entity) in
the U.S. or elsewhere outside Luxembourg; and • any current or
future changes to disclosure requirements and obligations,
including but not limited to new ESG-related disclosures, related
audit requirements and our ability to comply with such obligations
and requirements.
Factors that could cause our actual results to differ materially
from those expressed or implied in such forward-looking statements
include those factors detailed under the captions “Cautionary
Statement for Purposes of the “Safe Harbor” Provisions of the
Private Securities Litigation Reform Act of 1995” and “Risk
Factors” in our Annual Report in Form 10-K for the year ended
December 31, 2023 and in Note Q. Commitments and Contingencies to
our audited Consolidated Financial Statements regarding contingent
liabilities, including litigation. It is not possible for our
management to predict all risk factors and uncertainties, nor can
we assess the impact of all factors on our business or the extent
to which any factor, or combination of factors, may cause actual
results to differ materially from those contained in any
forward-looking statements. We undertake no obligation to publicly
update or revise any forward-looking statement - including those in
the “Outlook” and “Quarterly Business Segment Results” sections
above - as a result of new information, future events or other
information, other than as required by applicable law.
Reconciliation of Non-GAAP Financial Measures
We present certain financial measures that are not prepared in
accordance with GAAP or the accounting standards of any other
jurisdiction and may not be comparable to other similarly titled
measures of other companies. For a reconciliation of these non-GAAP
financial measures to their nearest comparable GAAP measures, see
section Reconciliation of Non-GAAP Financial Measures below.
These non-GAAP measures include, but are not limited to, Gross
profit per metric ton, Adjusted EBITDA, Net Working Capital,
Capital Expenditures, Segment Adjusted EBITDA Margin (in
percentage), Net debt and Net leverage.
We define Gross profit per metric ton as Gross profit divided by
volume measured in metric tons. We define Adjusted EBITDA as Income
from operations before depreciation and amortization, stock-based
compensation, and non-recurring items (such as, restructuring
expenses, legal settlement gain, etc.) plus Earnings in affiliated
companies, net of tax. We definite Net Working Capital as
Inventories, net plus Accounts receivable, net minus Accounts
payable. We define Capital Expenditures as Cash paid for the
acquisition of intangible assets and property, plant and equipment.
We define Segment Adjusted EBITDA Margin (in percentage) as Segment
Adjusted EBITDA divided by segment revenue. We define Net debt as
Total debt per Consolidated Balance Sheets plus Deferred debt
issuance cost - Term loans minus Cash and cash equivalents. We
define Net leverage as Net debt divided by trailing twelve month
Adjusted EBITDA.
Adjusted EBITDA is used by our chief operating decision maker
(“CODM”) to evaluate our operating performance and to make
decisions regarding allocation of capital, because it excludes the
effects of items that have less bearing on the performance of our
underlying core business. We use this measure, together with other
measures of performance under GAAP, to compare the relative
performance of operations in planning, budgeting and reviewing our
business. By eliminating potential differences in results of
operations between periods caused by factors such as depreciation
and amortization, historic cost and age of assets, financing and
capital structures and taxation positions or regimes, we believe
that Adjusted EBITDA provides a useful additional basis for
evaluating and comparing the current performance of the underlying
operations.
We believe our non-GAAP measures are useful measures of
financial performance in addition to Net income, Income from
operations and other profitability measures under GAAP, because
they facilitate operating performance comparisons from period to
period. In addition, we believe these non-GAAP measures aid
investors by providing additional insight into our operational
performance and help clarify trends affecting our business.
Other companies and analysts may calculate non-GAAP financial
measures differently, so making comparisons among companies on this
basis should be done carefully. Non-GAAP measures are not
performance measures under GAAP and should not be considered in
isolation or construed as substitutes for Net sales, Net income,
Income from operations, Gross profit and other GAAP measures as an
indicator of our operations in accordance with GAAP.
With respect to Adjusted EBITDA and Adjusted Diluted EPS outlook
for 2024, we are not able to reconcile the forward-looking non-GAAP
financial measures to the closest corresponding GAAP measure
without unreasonable efforts because we are unable to predict the
ultimate outcome of certain significant items. These items include,
but are not limited to, significant legal settlements, tax and
regulatory reserve changes, restructuring costs and acquisition and
financing related impacts.
Reconciliation of Non-GAAP to GAAP Financial
Measures
The following tables present a reconciliation of each of
Adjusted EBITDA and Adjusted Diluted EPS to the most directly
comparable GAAP measure:
Reconciliation of Net income to Adjusted EBITDA:
Reconciliation of profit
Fourth Quarter
Year Ended December
31,
(In millions)
2023
2022
2023
2022
Net income
$
4.9
$
12.2
$
103.5
$
106.2
Add back Income tax expense
15.3
13.2
60.3
51.5
Add back Earnings in affiliated companies,
net of tax
(0.1
)
(0.2
)
(0.5
)
(0.5
)
Income before earnings in affiliated
companies and income taxes
20.1
25.2
163.3
157.2
Add back Interest and other financial
expense, net
9.3
10.8
50.9
39.9
Add back Reclassification of actuarial
gain from AOCI
(2.2
)
—
(8.9
)
—
Income from operations
27.2
36.0
205.3
197.1
Add back Depreciation of property, plant
and equipment and amortization of intangible assets and right of
use assets
32.2
25.8
113.0
105.7
EBITDA
59.4
61.8
318.3
302.8
Equity in earnings of affiliated
companies, net of tax
0.1
0.2
0.5
0.5
Long term incentive plan
7.1
2.7
15.4
7.7
Environmental reserve
—
—
(2.2
)
(0.4
)
Other adjustments
—
0.5
0.3
1.7
Adjusted EBITDA
$
66.6
$
65.2
$
332.3
$
312.3
Reconciliation of Gross profit per metric ton:
Fourth Quarter
Year Ended December
31,
(In millions, unless otherwise
indicated)
2023
2022
2023
2022
Revenue
$
468.2
$
462.1
$
1,893.9
$
2,030.9
Cost of sales
(380.9
)
(365.4
)
(1,442.9
)
(1,582.1
)
Gross profit
$
87.3
$
96.7
$
451.0
$
448.8
Volume (in kmt)
226.2
215.1
932.1
962.9
Gross profit per metric ton
$
385.9
$
449.6
$
483.9
$
466.1
Reconciliation of total debt per the Consolidated Balance Sheet
to Net debt:
(In millions)
2023
Current portion of long term debt and
other financial liabilities
$
137.0
Long-term debt, net
677.3
Total debt as per Consolidated Balance
Sheets
814.3
Add: Deferred debt issuance costs - Term
loans
3.9
Less: Cash and cash equivalents
37.5
Net debt
$
780.7
Adjusted EPS
Fourth Quarter
Year Ended December
31,
(In thousands, except per share
amounts)
2023
2022
2023
2022
Net income
$
4.9
$
12.2
$
103.5
$
106.2
add back long term incentive plan
7.1
2.6
15.4
7.7
add back environmental reserve
—
(0.4
)
(2.2
)
(0.4
)
add back other adjustment items
—
1.0
0.3
1.6
add back reclassification of actuarial
gains from AOCI
(2.2
)
—
(8.9
)
—
add back amortization
1.8
1.8
7.2
7.1
add back foreign exchange rate impacts
(0.6
)
(0.7
)
2.3
1.8
add back amortization of transaction
costs
0.7
0.5
2.7
1.9
Tax effect on add back items at estimated
tax rate
(1.9
)
(1.3
)
(5.0
)
(5.9
)
Adjusted net income
$
9.8
$
15.7
$
115.3
$
120.0
Total add back items
$
4.9
$
3.5
$
11.8
$
13.8
Impact add back items per share
$
0.09
$
0.06
$
0.19
$
0.23
Earnings per share (diluted)
$
0.08
$
0.20
$
1.73
$
1.73
Adjusted diluted EPS
$
0.17
$
0.26
$
1.92
$
1.96
Consolidated Statements of
Operations
Three Months Ended December
31,
Twelve Months Ended December
31,
(In millions, except per share
amounts)
2023
2022
2023
2022
Unaudited
Net sales
$
468.2
$
462.1
$
1,893.9
$
2,030.9
Cost of sales
380.9
365.4
1,442.9
1,582.1
Gross profit
87.3
96.7
451.0
448.8
Selling, general and administrative
expenses
53.6
53.9
221.9
227.1
Research and development costs
6.2
5.8
24.5
21.7
Other expenses/(income)
0.3
1.0
(0.7
)
2.9
Income from operations
27.2
36.0
205.3
197.1
Interest and other financial expense,
net
9.3
10.8
50.9
39.9
Reclassification of actuarial
(gains)/losses from AOCI
(2.2
)
—
(8.9
)
—
Income before earnings in affiliated
companies and income taxes
20.1
25.2
163.3
157.2
Income tax expense
15.3
13.2
60.3
51.5
Earnings in affiliated companies, net of
tax
0.1
0.2
0.5
0.5
Net income
$
4.9
$
12.2
$
103.5
$
106.2
Weighted-average shares outstanding (in
thousands):
Basic
58,140
60,913
58,995
60,902
Diluted
59,196
61,059
59,980
61,378
Earnings per share
Basic
$
0.08
$
0.20
$
1.75
$
1.74
Diluted
$
0.08
$
0.20
$
1.73
$
1.73
Consolidated Statements of Financial
Position
December 31
2023
2022
(In millions, except share
amounts)
ASSETS
Current assets
Cash and cash equivalents
$
37.5
$
60.8
Accounts receivable, net
241.0
367.8
Inventories, net
287.1
277.9
Income tax receivables
6.1
5.2
Prepaid expenses and other current
assets
74.4
66.8
Total current assets
646.1
778.5
Property, plant and equipment, net
900.1
818.5
Right-of-use assets
110.6
97.6
Goodwill
76.1
73.4
Intangible assets, net
25.5
27.8
Investment in equity method affiliates
5.1
5.0
Deferred income tax assets
30.0
29.1
Other assets
39.9
58.8
Total non-current assets
1,187.3
1,110.2
Total assets
$
1,833.4
$
1,888.7
LIABILITIES AND
STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable
$
183.7
$
184.1
Current portion of long term debt and
other financial liabilities
137.0
258.3
Accrued liabilities
41.7
44.7
Income taxes payable
34.2
31.3
Other current liabilities
43.7
34.4
Total current liabilities
440.3
552.8
Long-term debt, net
677.3
657.0
Employee benefit plan obligation
60.4
50.0
Deferred income tax liabilities
66.3
70.0
Other liabilities
110.6
99.5
Total non-current liabilities
914.6
876.5
Stockholders' equity
Common stock
Authorized: 65,035,579 and 65,035,579
shares with no par value
Issued – 60,992,259 and 60,992,259 shares
with no par value
Outstanding – 57,898,772 and 60,571,556
shares
85.3
85.3
Treasury stock, at cost, 3,093,487 and
420,703
(70.1
)
(8.8
)
Additional paid-in capital
85.6
76.4
Retained earnings
417.6
319.0
Accumulated other comprehensive loss
(39.9
)
(12.5
)
Total stockholders' equity
478.5
459.4
Total liabilities and stockholders'
equity
$
1,833.4
$
1,888.7
Consolidated Statements of Cash
Flows
Years Ended December
31,
(In millions)
2023
2022
Cash flows from operating
activities:
Net income
$
103.5
$
106.2
Adjustments to reconcile net income to net
cash provided by (used in) operating activities:
Depreciation of property, plant and
equipment and amortization of intangible assets and right of use
assets
113.0
105.7
Amortization of debt issuance costs
2.7
1.9
Stock-based incentive compensation
15.4
7.7
Deferred tax provision
6.3
7.2
Foreign currency transactions
5.0
(8.4
)
Reclassification of actuarial gains from
AOCI
(8.9
)
—
Other operating non-cash items, net
0.8
(0.3
)
Changes in operating assets and
liabilities, net:
Trade receivables
131.2
(95.6
)
Inventories
(7.7
)
(60.1
)
Trade payables
1.6
9.2
Other provisions
(4.4
)
(3.7
)
Income tax liabilities
(2.1
)
20.3
Other assets and liabilities, net
(10.5
)
(9.1
)
Net cash provided by operating
activities
345.9
81.0
Cash flows from investing
activities:
Acquisition of property, plant and
equipment
(172.8
)
(232.8
)
Net cash used in investing
activities
(172.8
)
(232.8
)
Cash flows from financing
activities:
Proceeds from long-term debt
borrowings
12.6
47.8
Repayments of long-term debt
(3.0
)
(3.0
)
Payments for debt issue costs
(2.7
)
(1.5
)
Cash inflows related to current financial
liabilities
284.4
223.2
Cash outflows related to current financial
liabilities
(417.9
)
(107.7
)
Dividends paid to stockholders
(4.9
)
(5.0
)
Repurchase of common stock under Stock
Repurchase Program
(65.6
)
(4.3
)
Other financing activities
—
(0.2
)
Net cash provided by (used in)
financing activities
(197.1
)
149.3
Increase (decrease) in cash, cash
equivalents and restricted cash
(24.0
)
(2.5
)
Cash, cash equivalents and restricted cash
at the beginning of the period
63.4
68.5
Effect of exchange rate changes on
cash
0.8
(2.6
)
Cash, cash equivalents and restricted
cash at the end of the period
40.2
63.4
Less restricted cash at the end of the
period
2.7
2.6
Cash and cash equivalents at the end of
the period
$
37.5
$
60.8
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240214496872/en/
Wendy Wilson Investor Relations +1 281-974-0155
Orion (NYSE:OEC)
Historical Stock Chart
From Jul 2024 to Aug 2024
Orion (NYSE:OEC)
Historical Stock Chart
From Aug 2023 to Aug 2024