Ingevity Corporation · NYSE:NGVT
Ingevity — Q4 2016 Earnings Presentation
21 slides from Ingevity's earnings presentation, Feb 23, 2017
Slide 1: Fourth Quarter 2016 Earnings Presentation
Fourth Quarter 2016 Earnings Presentation February 23, 2017
Slide 2: Disclaimer
Disclaimer: This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward looking statements generally include the words “may,” “could,” “should,” “believes,” “plans,” “intends,” “targets,” “will,” “expects,” “suggest
Slide 3: Agenda
Agenda 1. Quarter and Year-End Highlights 2. Segment Performance 3. Outlook 4. Financial Review 5. 2017 Guidance 6. Share Repurchase Program 7. Q&A 3
Slide 4: Fourth Quarter Highlights
M (USD) Q415 Q416 Chg % Sales 209.1 210.9 1.8 0.9% Income 9.9 11.7 1.8 18.2% Adj. EBITDA(1) 30.5(2) 36.0 5.5 18.0% Adj. EBITDA(1) Margin 14.6%(2) 17.1% +250 bps Fourth Quarter Highlights Delivered solid revenues in line with our expectations Seasonally slower quarter due to paving seasonality an
Slide 5: Full Year Highlights
M (USD) 2015 2016 Chg % Sales 958.3 908.3 (50.0) (5.2%) Income 84.3 44.4 (39.9) (47.3%) Adj. EBITDA(1) 190.3(2) 202.4 12.1 6.4% Adj. EBITDA(1) Margin 19.9%(2) 22.3% +240 bps Full Year Highlights Remarkable year… Spinoff into independent publicly traded company Strong volume growth in Performan
Slide 6: Performance Chemicals
Performance Chemicals FOURTH QUARTER Industrial specialties continued to see pricing pressure; sales down 9 percent Oilfield sales down 9 percent; revenue sequentially level Sales to pavement applications up 7 percent versus prior year period M (USD) Q415 Q416 Chg % Sales 144.0 133.6 (10.4) (7
Slide 7: Performance Materials
FOURTH QUARTER Strong volume growth as U.S. & Canada move to 40 percent compliance with Tier 3/LEV III regulations NAFTA light truck production up 3 percent; cars down 2 percent Record revenues in China as vehicle sales increase ahead of expiration of tax incentives Performance Materials M (US
Slide 8: 2017 Outlook: Performance Chemicals
2017 Outlook PERFORMANCE CHEMICALS: Expect continued price pressure in industrial specialties, partially offset by modest volume growth Potential uptick in oilfield volumes, however, pricing remains under pressure Growth in pavement sales led by continued adoption of Evotherm® warm mix asphalt
Slide 9: Performance Materials Outlook
Performance Materials Outlook Activated Carbon Canisters Honeycomb Scrubbers M a rk e t D ri ver s Short-Term Short-Term Global auto production (2–3 percent) NAFTA expected to be flat U.S. & Canada auto production U.S. & Canada Tier 3 and LEV III regulation • 40% implementation completed Lon
Slide 10: Fourth Quarter 2016 Financial Results: Key Income Statement Metrics
Fourth Quarter 2016 Financial Results Key Income Statement Metrics (1) Please see appendices included at the end of this presentation for Ingevity's use of non-GAAP financial measures, definitions of those financial measures as well as the reconciliation to the nearest GAAP financial measure. (2) In
Slide 11: Key Balance Sheet & Cash Metrics
Fourth Quarter 2016 Financial Results Key Balance Sheet & Cash Metrics in millions 12/31/2015 12/31/2016 Cash & cash equivalents 32.0 30.5 Restricted investment (related to capital lease) (1) - 69.7 Total debt including capital lease obligation (2) 80.0 491.9 Net Debt (3) 48.0 391.7 Inventories, net
Slide 12: 2017 Business Outlook and Guidance
2017 Business Outlook and Guidance Item FY16 Actual FY17 Guidance Revenue $908.3 $930M to $950M Adjusted EBITDA (1) $202.4 $215M to $225M Adjusted tax rate (1) 33.3% 33 - 35% Capital expenditures $56.7 $60M to $65M Free Cash Flow(2) $71.2 $80M to $90M Net Debt Ratio(3) 1.94x 1.5-1.75x (1) A reconcil
Slide 13: Share Repurchase Program
Share Repurchase Program • Board has authorized management to repurchase up to $100 million of Ingevity's outstanding common stock. • Repurchases are at management's discretion, either in the open market, through pre-arranged trading plans or in privately negotiated block transactions. • Initially i
Slide 14: longevity
longevity genuine Lasting customer relationships. Ahistory of suc The right people. The right attitude. xtraordinary people. Extraordinary results. Pushing the bounds of what's possible.
Slide 15: For More Information
For More Information Thank you for your interest in Ingevity! Investors Dan Gallagher (843) 740-2126 Media Jack Maurer (843) 746-8242
Slide 16: Appendix
Appendix 16
Slide 17: Non-GAAP Financial Measures
Non-GAAP Financial Measures Ingevity has presented certain financial measures, defined below, which have not been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and has provided a reconciliation to the most directly comparable financial measure calculated in accor
Slide 18: Reconciliation of Net Income (GAAP) to Adjusted Earnings (Non-GAAP)
Reconciliation of Net Income (Loss) (GAAP) to Adjusted Earnings (Loss) (Non-GAAP) 18 Reconciliation of 2015 Pro Forma - Adjusted Earnings (Loss) (Non-GAAP)
Slide 19: Reconciliation of Net Income (GAAP) to Adjusted EBITDA (Non-GAAP)
19 Reconciliation of Net Income (Loss) (GAAP) to Adjusted EBITDA (Non-GAAP) Reconciliation of 2015 Pro Forma - Adjusted EBITDA (Non-GAAP)
Slide 20: Reconciliation of Segment Operating Profit to Segment EBITDA
20 Reconciliation of Segment Operating Profit (GAAP) to Segment EBITDA (Non-GAAP) Reconciliation of 2015 Pro Forma - Segment EBITDA (Non-GAAP)
Slide 21: Notes to the Unaudited Pro Forma Adjustments
Notes to the Unaudited Pro Forma Adjustments 21