☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
DELAWARE | 98-0181725 | |
(State or other jurisdiction of | (I.R.S. Employer | |
incorporation or ) | Identification .) | |
8310 South Valley Highway | ||
Suite 350 | ||
Englewood | ||
Colorado | 80112 | |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Common stock, par value $0.01 per share | IOSP | NASDAQ |
Large accelerated filer | ☒ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||
Emerging growth company | ☐ |
Class | Outstanding as of | |
Common Stock, par value $0.01 |
PART I | ||||||
2 | ||||||
Item 1 | 2 | |||||
2 | ||||||
3 | ||||||
4 | ||||||
5 | ||||||
6 | ||||||
7 | ||||||
Item 2 | ||||||
Item 3 | ||||||
Item 4 | ||||||
29 | ||||||
PART II | 30 | |||||
Item 1 | 30 | |||||
30 | ||||||
Item 2 | ||||||
Item 3 | ||||||
Item 4 | ||||||
Item 5 | ||||||
31 | ||||||
Item 6 | 31 | |||||
Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||
(in millions, except share and per share data) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Net sales | $ | 244.9 | $ | 362.4 | $ | 617.2 | $ | 750.7 | ||||||||
Cost of goods sold | (185.8 | ) | (251.3 | ) | (444.2 | ) | (521.8 | ) | ||||||||
Gross profit | 59.1 | 111.1 | 173.0 | 228.9 | ||||||||||||
Operating expenses: | ||||||||||||||||
Selling, general and administrative | (63.5 | ) | (71.2 | ) | (127.9 | ) | (143.7 | ) | ||||||||
Research and development | (8.1 | ) | (8.2 | ) | (16.7 | ) | (17.3 | ) | ||||||||
Restructuring charge | (21.1 | ) | 0.0 | (21.1 | ) | 0.0 | ||||||||||
Impairment of intangible assets | (19.8 | ) | 0.0 | (19.8 | ) | 0.0 | ||||||||||
Total operating expenses | (112.5 | ) | (79.4 | ) | (185.5 | ) | (161.0 | ) | ||||||||
Operating (loss)/income | (53.4 | ) | 31.7 | (12.5 | ) | 67.9 | ||||||||||
Other income, net | 0.1 | 0.0 | 4.0 | 4.1 | ||||||||||||
Interest expense, net | (0.5 | ) | (1.2 | ) | (1.1 | ) | (2.7 | ) | ||||||||
(Loss)/income before income tax expense | (53.8 | ) | 30.5 | (9.6 | ) | 69.3 | ||||||||||
Income tax credit/(expense) | 14.1 | (8.2 | ) | 3.0 | (18.3 | ) | ||||||||||
Net (loss)/income | $ | (39.7 | ) | $ | 22.3 | $ | (6.6 | ) | $ | 51.0 | ||||||
Earnings per share: | ||||||||||||||||
Basic | $ | (1.62 | ) | $ | 0.91 | $ | (0.27 | ) | $ | 2.08 | ||||||
Diluted | $ | (1.62 | ) | $ | 0.90 | $ | (0.27 | ) | $ | 2.07 | ||||||
Weighted average shares outstanding (in thousands): | ||||||||||||||||
Basic | 24,564 | 24,483 | 24,547 | 24,468 | ||||||||||||
Diluted | 24,564 | 24,678 | 24,547 | 24,671 | ||||||||||||
Three Months Ended March 31 | ||||||||
(in millions, except share and per share data) | 2021 | 2020 | ||||||
Net sales | $ | 339.6 | $ | 372.3 | ||||
Cost of goods sold | (238.8 | ) | (258.4 | ) | ||||
Gross profit | 100.8 | 113.9 | ||||||
Operating expenses: | ||||||||
Selling, general and administrative | (63.6 | ) | (64.4 | ) | ||||
Research and development | (9.0 | ) | (8.6 | ) | ||||
Total operating expenses | (72.6 | ) | (73.0 | ) | ||||
Operating income | 28.2 | 40.9 | ||||||
Other income, net | 3.0 | 3.9 | ||||||
Interest expense, net | (0.4 | ) | (0.6 | ) | ||||
Income before income tax expense | 30.8 | 44.2 | ||||||
Income tax expense | (7.4 | ) | (11.1 | ) | ||||
Net income | $ | 23.4 | $ | 33.1 | ||||
Earnings per share: | ||||||||
Basic | $ | 0.95 | $ | 1.35 | ||||
Diluted | $ | 0.94 | $ | 1.34 | ||||
Weighted average shares outstanding (in thousands): | ||||||||
Basic | 24,601 | 24,529 | ||||||
Diluted | 24,840 | 24,742 | ||||||
Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||
(in millions) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Net (loss)/income | $ | (39.7 | ) | $ | 22.3 | $ | (6.6 | ) | $ | 51.0 | ||||||
Other comprehensive income/(loss): | ||||||||||||||||
Changes in cumulative translation adjustment, net of tax of $(0.1) million, $0.3 million, $1.5 million and $0.1 million respectively | 5.5 | 3.4 | (2.4 | ) | (1.6 | ) | ||||||||||
Changes in unrealized losses on derivative instruments, net of tax of $0.0 million, $0.1 million, $0.0 million and $0.2 million respectively | 0.0 | (0.7 | ) | 0.0 | (1.2 | ) | ||||||||||
Amortization of prior service credit, net of tax of $0.0 million, $0.1 million, $0.1 million and $0.1 million respectively | (0.2 | ) | (0.3 | ) | (0.4 | ) | (0.5 | ) | ||||||||
Amortization of actuarial net losses, net of tax of $0.0 million, $0.0 million, $(0.1) million and $0.0 million respectively | 0.6 | 0.0 | 0.8 | 0.0 | ||||||||||||
Total other comprehensive income/(loss) | 5.9 | 2.4 | (2.0 | ) | (3.3 | ) | ||||||||||
Total comprehensive (loss)/income | $ | (33.8 | ) | $ | 24.7 | $ | (8.6 | ) | $ | 47.7 | ||||||
Three Months Ended March 31 | ||||||||
(in millions) | 2021 | 2020 | ||||||
Net income | $ | 23.4 | $ | 33.1 | ||||
Other comprehensive income/(loss): | ||||||||
Changes in cumulative translation adjustment, net of tax of $1.0 million and $1.6 million, respectively | (11.3 | ) | (7.9 | ) | ||||
Amortization of prior service cost/(credit), net of tax of $0.0 and $0.0 million, respectively | 0.1 | (0.2 | ) | |||||
Amortization of actuarial net losses, net of tax of $(0.1) million and $0.0 million, respectively | 0.6 | 0.2 | ||||||
Total other comprehensive loss | (10.6 | ) | (7.9 | ) | ||||
Total comprehensive income | $ | 12.8 | $ | 25.2 | ||||
(in millions, except share and per share data) | June 30, 2020 | December 31, 2019 | March 31, 2021 | December 31, 2020 | ||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||
Assets | ||||||||||||||||
Current assets: | ||||||||||||||||
Cash and cash equivalents | $ | 58.2 | $ | 75.7 | $ | 117.0 | $ | 105.3 | ||||||||
Trade and other accounts receivable (less allowances of $4.3 million and $3.8 | 213.4 | 292.0 | ||||||||||||||
Inventories (less allowances of $18.0 million and $14.5 million respectively): | ||||||||||||||||
Trade and other accounts receivable (less allowances of $4.1 million and $4.5 million respectively) | 247.9 | 221.4 | ||||||||||||||
Inventories (less allowances of $19.4 million and $19.4 million respectively): | ||||||||||||||||
Finished goods | 175.4 | 173.9 | 158.5 | 156.3 | ||||||||||||
Raw materials | 68.2 | 70.7 | 64.6 | 63.7 | ||||||||||||
Total inventories | 243.6 | 244.6 | 223.1 | 220.0 | ||||||||||||
Prepaid expenses | 9.7 | 14.7 | 12.3 | 14.9 | ||||||||||||
Prepaid income taxes | 8.0 | 2.5 | 5.0 | 4.2 | ||||||||||||
Other current assets | 0.0 | 0.8 | 2.3 | 0.4 | ||||||||||||
Total current assets | 532.9 | 630.3 | 607.6 | 566.2 | ||||||||||||
Net property, plant and equipment | 198.9 | 198.7 | 209.9 | 210.8 | ||||||||||||
Operating lease right-of-use | 29.5 | 32.4 | 36.7 | 40.1 | ||||||||||||
Goodwill | 363.3 | 363.0 | 367.2 | 371.2 | ||||||||||||
Other intangible assets | 82.3 | 113.5 | 70.2 | 75.3 | ||||||||||||
Deferred tax assets | 8.9 | 9.1 | 7.4 | 7.6 | ||||||||||||
Pension asset | 118.6 | 115.9 | 119.6 | 118.0 | ||||||||||||
Other non-current assets | 4.6 | 5.9 | 7.5 | 8.2 | ||||||||||||
Total assets | $ | 1,339.0 | $ | 1,468.8 | $ | 1,426.1 | $ | 1,397.4 | ||||||||
(in millions, except share and per share data) | June 30, 2020 | December 31, 2019 | ||||||
(Unaudited) | ||||||||
Liabilities and Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 74.1 | $ | 122.0 | ||||
Accrued liabilities | 118.8 | 154.0 | ||||||
Current portion of finance leases | 0.6 | 1.0 | ||||||
Current portion of plant closure provisions | 6.3 | 5.6 | ||||||
Current portion of accrued income taxes | 8.4 | 10.3 | ||||||
Current portion of operating lease liabilities | 11.0 | 10.6 | ||||||
Total current liabilities | 219.2 | 303.5 | ||||||
Long-term debt | 38.8 | 58.6 | ||||||
Finance leases, net of current portion | 0.2 | 0.5 | ||||||
Plant closure provisions, net of current portion | 51.6 | 43.7 | ||||||
Accrued income taxes, net of current portion | 32.4 | 36.2 | ||||||
Unrecognized tax benefits | 15.2 | 16.4 | ||||||
Operating lease liabilities, net of current portion | 18.6 | 21.9 | ||||||
Deferred tax liabilities | 44.0 | 49.6 | ||||||
Pension liabilities and post-employment benefits | 17.9 | 17.8 | ||||||
Other non-current liabilities | 1.4 | 1.7 | ||||||
Equity: | ||||||||
Common stock, $0.01 par value, authorized 40,000,000 shares, issued 29,554,500 shares | 0.3 | 0.3 | ||||||
Additional paid-in capital | 333.0 | 330.4 | ||||||
Treasury stock (4,985,884 and 5,047,278 shares at cost, respectively) | (93.8 | ) | (93.3 | ) | ||||
Retained earnings | 736.1 | 755.5 | ||||||
Accumulated other comprehensive loss | (76.4 | ) | (74.4 | ) | ||||
Total Innospec stockholders’ equity | 899.2 | 918.5 | ||||||
Non-controlling interest | 0.5 | 0.4 | ||||||
Total equity | 899.7 | 918.9 | ||||||
Total liabilities and equity | $ | 1,339.0 | $ | 1,468.8 | ||||
(in millions, except share and per share data) | March 31, 2021 | December 31, 2020 | ||||||
(Unaudited) | ||||||||
Liabilities and Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 114.5 | $ | 98.7 | ||||
Accrued liabilities | 131.8 | 129.8 | ||||||
Current portion of finance leases | 0.4 | 0.5 | ||||||
Current portion of plant closure provisions | 6.6 | 6.6 | ||||||
Current portion of accrued income taxes | 8.8 | 5.5 | ||||||
Current portion of operating lease liabilities | 12.2 | 11.3 | ||||||
Total current liabilities | 274.3 | 252.4 | ||||||
Long-term debt | 0.0 | 0.0 | ||||||
Finance leases, net of current portion | 0.0 | 0.1 | ||||||
Operating lease liabilities, net of current portion | 24.6 | 28.9 | ||||||
Plant closure provisions, net of current portion | 51.3 | 51.9 | ||||||
Accrued income taxes, net of current portion | 32.4 | 32.4 | ||||||
Unrecognized tax benefits | 16.0 | 16.0 | ||||||
Deferred tax liabilities | 46.5 | 46.9 | ||||||
Pension liabilities and post-employment benefits | 19.5 | 20.5 | ||||||
Other non-current liabilities | 2.4 | 3.4 | ||||||
Equity: | ||||||||
Common stock, $0.01 par value, authorized 40,000,000 shares, issued 29,554,500 shares | 0.3 | 0.3 | ||||||
Additional paid-in capital | 337.8 | 336.1 | ||||||
Treasury stock (4,946,360 and 4,958,599 shares at cost, respectively) | (93.6 | ) | (93.3 | ) | ||||
Retained earnings | 782.0 | 758.6 | ||||||
Accumulated other comprehensive loss | (67.9 | ) | (57.3 | ) | ||||
Total Innospec stockholders’ equity | 958.6 | 944.4 | ||||||
Non-controlling interest | 0.5 | 0.5 | ||||||
Total equity | 959.1 | 944.9 | ||||||
Total liabilities and equity | $ | 1,426.1 | $ | 1,397.4 | ||||
Six Months Ended June 30 | ||||||||
(in millions) | 2020 | 2019 | ||||||
Cash Flows from Operating Activities | ||||||||
Net (loss)/income | $ | (6.6 | ) | $ | 51.0 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 24.2 | 23.8 | ||||||
Impairment of intangible assets | 19.8 | 0.0 | ||||||
Impairment of tangible assets | 2.0 | 0.0 | ||||||
Deferred tax expense | (5.6 | ) | 0.1 | |||||
Cash contributions to defined benefit pension plans | 0.0 | (0.5 | ) | |||||
Non-cash movements on defined benefit pension plans | (2.2 | ) | (3.1 | ) | ||||
Stock option compensation | 2.8 | 3.2 | ||||||
Changes in assets and liabilities, net of effects of acquired and divested companies: | ||||||||
Trade and other accounts receivable | 76.2 | (0.7 | ) | |||||
Inventories | (2.1 | ) | (0.1 | ) | ||||
Prepaid expenses | 3.9 | (0.2 | ) | |||||
Accounts payable and accrued liabilities | (79.6 | ) | (10.4 | ) | ||||
Accrued income taxes | (9.5 | ) | (0.6 | ) | ||||
Plant closure provisions | 8.5 | 0.0 | ||||||
Unrecognized tax benefits | (1.3 | ) | 0.7 | |||||
Other assets and liabilities | 1.7 | 0.0 | ||||||
Net cash provided by operating activities | 32.2 | 63.2 | ||||||
Cash Flows from Investing Activities | ||||||||
Capital expenditures | (14.6 | ) | (16.2 | ) | ||||
Internally developed software | 0.0 | (0.7 | ) | |||||
Net cash used in investing activities | (14.6 | ) | (16.9 | ) | ||||
Cash Flows from Financing Activities | ||||||||
Non-controlling interest | 0.1 | 0.0 | ||||||
Proceeds from revolving credit facility | 15.0 | 23.0 | ||||||
Repayments of revolving credit facility | (35.0 | ) | (73.0 | ) | ||||
Receipt of short-term borrowing | 0.0 | 0.7 | ||||||
Repayments of finance leases | (0.6 | ) | (0.9 | ) | ||||
Dividend paid | (12.8 | ) | (12.2 | ) | ||||
Issue of treasury stock | 0.8 | 1.3 | ||||||
Repurchase of common stock | (2.1 | ) | (2.1 | ) | ||||
Net cash used in financing activities | (34.6 | ) | (63.2 | ) | ||||
Effect of foreign currency exchange rate changes on cash | (0.5 | ) | (0.1 | ) | ||||
Net change in cash and cash equivalents | (17.5 | ) | (17.0 | ) | ||||
Cash and cash equivalents at beginning of period | 75.7 | 123.1 | ||||||
Cash and cash equivalents at end of period | $ | 58.2 | $ | 106.1 | ||||
Three Months Ended March 31 | ||||||||
(in millions) | 2021 | 2020 | ||||||
Cash Flows from Operating Activities | ||||||||
Net income | $ | 23.4 | $ | 33.1 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 10.3 | 12.0 | ||||||
Deferred tax expense | 0.1 | 0.7 | ||||||
Non-cash movements on defined benefit pension plans | (0.8 | ) | (1.2 | ) | ||||
Stock option compensation | 1.6 | 1.2 | ||||||
Changes in assets and liabilities, net of effects of acquired and divested companies: | ||||||||
Trade and other accounts receivable | (30.7 | ) | (7.9 | ) | ||||
Inventories | (5.5 | ) | (5.0 | ) | ||||
Prepaid expenses | 2.4 | 2.1 | ||||||
Accounts payable and accrued liabilities | 20.2 | (36.0 | ) | |||||
Accrued income taxes | 3.7 | 1.6 | ||||||
Plant closure provisions | (0.2 | ) | 0.1 | |||||
Other assets and liabilities | (1.8 | ) | 1.7 | |||||
Net cash provided by operating activities | 22.7 | 2.4 | ||||||
Cash Flows from Investing Activities | ||||||||
Capital expenditures | (10.3 | ) | (7.8 | ) | ||||
Net cash used in investing activities | (10.3 | ) | (7.8 | ) | ||||
Cash Flows from Financing Activities | ||||||||
Non-controlling interest | 0.0 | 0.1 | ||||||
Repayments of finance leases | (0.2 | ) | (0.3 | ) | ||||
Issue of treasury stock | 0.5 | 0.7 | ||||||
Repurchase of common stock | (0.6 | ) | (2.1 | ) | ||||
Net cash used in financing activities | (0.3 | ) | (1.6 | ) | ||||
Effect of foreign currency exchange rate changes on cash | (0.4 | ) | (0.6 | ) | ||||
Net change in cash and cash equivalents | 11.7 | (7.6 | ) | |||||
Cash and cash equivalents at beginning of period | 105.3 | 75.7 | ||||||
Cash and cash equivalents at end of period | $ | 117.0 | $ | 68.1 | ||||
(in millions) | Common Stock | Additional Paid-In Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Loss | Non- Controlling Interest | Total Equity | |||||||||||||||||||||
Balance at December 31, 2019 | $ | 0.3 | $ | 330.4 | $ | (93.3 | ) | $ | 755.5 | $ | (74.4 | ) | $ | 0.4 | $ | 918.9 | ||||||||||||
Net income | (6.6 | ) | (6.6 | ) | ||||||||||||||||||||||||
Dividend paid ($0.52 per share) | (12.8 | ) | (12.8 | ) | ||||||||||||||||||||||||
Changes in cumulative translation adjustment, net of tax | (2.4 | ) | (2.4 | ) | ||||||||||||||||||||||||
Share of net income | 0.1 | 0.1 | ||||||||||||||||||||||||||
Treasury stock reissued | (0.2 | ) | 1.6 | 1.4 | ||||||||||||||||||||||||
Treasury stock repurchased | (2.1 | ) | (2.1 | ) | ||||||||||||||||||||||||
Stock option compensation | 2.8 | 2.8 | ||||||||||||||||||||||||||
Amortization of prior service credit, net of tax | (0.4 | ) | (0.4 | ) | ||||||||||||||||||||||||
Amortization of actuarial net losses, net of tax | 0.8 | 0.8 | ||||||||||||||||||||||||||
Balance at June 30, 2020 | $ | 0.3 | $ | 333.0 | $ | (93.8 | ) | $ | 736.1 | $ | (76.4 | ) | $ | 0.5 | $ | 899.7 | ||||||||||||
(in millions) | Common Stock | Additional Paid-In Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Loss | Non- Controlling Interest | Total Equity | |||||||||||||||||||||
Balance at December 31, 2020 | $ | 0.3 | $ | 336.1 | $ | (93.3 | ) | $ | 758.6 | $ | (57.3 | ) | $ | 0.5 | $ | 944.9 | ||||||||||||
Net income | 23.4 | 23.4 | ||||||||||||||||||||||||||
Changes in cumulative translation adjustment, net of tax | (11.3 | ) | (11.3 | ) | ||||||||||||||||||||||||
Treasury stock reissued | 0.1 | 0.3 | 0.4 | |||||||||||||||||||||||||
Treasury stock repurchased | (0.6 | ) | (0.6 | ) | ||||||||||||||||||||||||
Stock option compensation | 1.6 | 1.6 | ||||||||||||||||||||||||||
Amortization of prior service cost, net of tax | 0.1 | 0.1 | ||||||||||||||||||||||||||
Amortization of actuarial net losses, net of tax | 0.6 | 0.6 | ||||||||||||||||||||||||||
Balance at March 31, 2021 | $ | 0.3 | $ | 337.8 | $ | (93.6 | ) | $ | 782.0 | $ | (67.9 | ) | $ | 0.5 | $ | 959.1 | ||||||||||||
(in millions) | Common Stock | Additional Paid-In Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Loss | Non- Controlling Interest | Total Equity | |||||||||||||||||||||
Balance at December 31, 2018 | $ | 0.3 | $ | 324.9 | $ | (92.8 | ) | $ | 668.3 | $ | (75.7 | ) | $ | 0.5 | $ | 825.5 | ||||||||||||
Net income | 51.0 | 51.0 | ||||||||||||||||||||||||||
Dividend paid ($0.52 per share) | (12.2 | ) | (12.2 | ) | ||||||||||||||||||||||||
Changes in cumulative translation adjustment, net of tax | (1.6 | ) | (1.6 | ) | ||||||||||||||||||||||||
Changes in unrealized gains on derivative instruments, net of tax | (1.2 | ) | (1.2 | ) | ||||||||||||||||||||||||
Share of net income | (0.1 | ) | (0.1 | ) | ||||||||||||||||||||||||
Treasury stock reissued | (0.4 | ) | 1.5 | 1.1 | ||||||||||||||||||||||||
Treasury stock repurchased | (2.1 | ) | (2.1 | ) | ||||||||||||||||||||||||
Stock option compensation | 3.2 | 3.2 | ||||||||||||||||||||||||||
Amortization of prior service credit, net of tax | (0.5 | ) | (0.5 | ) | ||||||||||||||||||||||||
Balance at June 30, 2019 | $ | 0.3 | $ | 327.7 | $ | (93.4 | ) | $ | 707.1 | $ | (79.0 | ) | $ | 0.4 | $ | 863.1 | ||||||||||||
(in millions) | Common Stock | Additional Paid-In Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Loss | Non- Controlling Interest | Total Equity | |||||||||||||||||||||
Balance at December 31, 2019 | $ | 0.3 | $ | 330.4 | $ | (93.3 | ) | $ | 755.5 | $ | (74.4 | ) | $ | 0.4 | $ | 918.9 | ||||||||||||
Net income | 33.1 | 33.1 | ||||||||||||||||||||||||||
Changes in cumulative translation adjustment, net of tax | (7.9 | ) | (7.9 | ) | ||||||||||||||||||||||||
Share of net income | 0.1 | 0.1 | ||||||||||||||||||||||||||
Treasury stock reissued | (0.4 | ) | 1.4 | 1.0 | ||||||||||||||||||||||||
Treasury stock repurchased | (2.1 | ) | (2.1 | ) | ||||||||||||||||||||||||
Stock option compensation | 1.2 | 1.2 | ||||||||||||||||||||||||||
Amortization of prior service credit, net of tax | (0.2 | ) | (0.2 | ) | ||||||||||||||||||||||||
Amortization of actuarial net losses, net of tax | 0.2 | 0.2 | ||||||||||||||||||||||||||
Balance at March 31, 2020 | $ | 0.3 | $ | 331.2 | $ | (94.0 | ) | $ | 788.6 | $ | (82.3 | ) | $ | 0.5 | $ | 944.3 | ||||||||||||
(in millions) | Common Stock | Additional Paid-In Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Loss | Non- Controlling Interest | Total Equity | |||||||||||||||||||||
Balance at March 31, 2020 | $ | 0.3 | $ | 331.2 | $ | (94.0 | ) | $ | 788.6 | $ | (82.3 | ) | $ | 0.5 | $ | 944.3 | ||||||||||||
Net income | (39.7 | ) | (39.7 | ) | ||||||||||||||||||||||||
Dividend paid ($0.52 per share) | (12.8 | ) | (12.8 | ) | ||||||||||||||||||||||||
Changes in cumulative translation adjustment, net of tax | 5.5 | 5.5 | ||||||||||||||||||||||||||
Treasury stock reissued | 0.2 | 0.2 | 0.4 | |||||||||||||||||||||||||
Stock option compensation | 1.6 | 1.6 | ||||||||||||||||||||||||||
Amortization of prior service credit, net of tax | (0.2 | ) | (0.2 | ) | ||||||||||||||||||||||||
Amortization of actuarial net losses, net of tax | 0.6 | 0.6 | ||||||||||||||||||||||||||
Balance at June 30, 2020 | $ | 0.3 | $ | 333.0 | $ | (93.8 | ) | $ | 736.1 | $ | (76.4 | ) | $ | 0.5 | $ | 899.7 | ||||||||||||
(in millions) | Common Stock | Additional Paid-In Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Loss | Non- Controlling Interest | Total Equity | |||||||||||||||||||||
Balance at March 31, 2019 | $ | 0.3 | $ | 326.0 | $ | (93.5 | ) | $ | 697.0 | $ | (81.4 | ) | $ | 0.5 | $ | 848.9 | ||||||||||||
Net income | 22.3 | 22.3 | ||||||||||||||||||||||||||
Dividend paid ($0.52 per share) | (12.2 | ) | (12.2 | ) | ||||||||||||||||||||||||
Changes in cumulative translation adjustment, net of tax | 3.4 | 3.4 | ||||||||||||||||||||||||||
Changes in unrealized gains on derivative instruments, net of tax | (0.7 | ) | (0.7 | ) | ||||||||||||||||||||||||
Share of net income | (0.1 | ) | (0.1 | ) | ||||||||||||||||||||||||
Treasury stock reissued | 0.1 | 0.3 | 0.4 | |||||||||||||||||||||||||
Treasury stock repurchased | (0.2 | ) | (0.2 | ) | ||||||||||||||||||||||||
Stock option compensation | 1.6 | 1.6 | ||||||||||||||||||||||||||
Amortization of prior service credit, net of tax | (0.3 | ) | (0.3 | ) | ||||||||||||||||||||||||
Balance at June 30, 2019 | $ | 0.3 | $ | 327.7 | $ | (93.4 | ) | $ | 707.1 | $ | (79.0 | ) | $ | 0.4 | $ | 863.1 | ||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | Three Months Ended March 31 | ||||||||||||||||||||||
(in millions) | 2020 | 2019 | 2020 | 2019 | 2021 | 2020 | ||||||||||||||||||
Net Sales: | ||||||||||||||||||||||||
Refinery and Performance | $ | 74.9 | $ | 95.2 | $ | 183.5 | $ | 212.5 | $ | 99.3 | $ | 108.6 | ||||||||||||
Other | 32.5 | 38.1 | 70.9 | 76.8 | 40.0 | 38.4 | ||||||||||||||||||
Fuel Specialties | 107.4 | 133.3 | 254.4 | 289.3 | 139.3 | 147.0 | ||||||||||||||||||
Personal Care | 49.8 | 54.9 | 112.8 | 115.9 | 68.2 | 63.0 | ||||||||||||||||||
Home Care | 21.3 | 23.1 | 42.9 | 50.1 | 23.0 | 21.6 | ||||||||||||||||||
Other | 24.6 | 26.7 | 53.1 | 56.8 | 34.7 | 28.5 | ||||||||||||||||||
Performance Chemicals | 95.7 | 104.7 | 208.8 | 222.8 | 125.9 | 113.1 | ||||||||||||||||||
Oilfield Services | 41.8 | 122.5 | 154.0 | 236.7 | 74.4 | 112.2 | ||||||||||||||||||
Octane Additives | 0.0 | 1.9 | 0.0 | 1.9 | ||||||||||||||||||||
$ | 244.9 | $ | 362.4 | $617.2 | $750.7 | $ | 339.6 | $ | 372.3 | |||||||||||||||
Gross profit/(loss): | ||||||||||||||||||||||||
Fuel Specialties | $ | 25.4 | $ | 44.7 | $ | 76.6 | $ | 100.4 | $ | 44.9 | $ | 51.2 | ||||||||||||
Performance Chemicals | 24.9 | 24.0 | 52.5 | 50.6 | 31.4 | 27.6 | ||||||||||||||||||
Oilfield Services | 9.9 | 41.5 | 46.1 | 79.2 | 24.5 | 36.2 | ||||||||||||||||||
Octane Additives | (1.1 | ) | 0.9 | (2.2 | ) | (1.3 | ) | 0.0 | (1.1 | ) | ||||||||||||||
$ | 59.1 | $ | 111.1 | $173.0 | $228.9 | $ | 100.8 | $ | 113.9 | |||||||||||||||
Operating income/(loss): | ||||||||||||||||||||||||
Fuel Specialties | $ | 4.7 | $ | 24.1 | $ | 36.8 | $ | 57.0 | $ | 23.8 | $ | 32.1 | ||||||||||||
Performance Chemicals | 12.2 | 11.0 | 27.8 | 24.5 | 18.3 | 15.6 | ||||||||||||||||||
Oilfield Services | (12.4 | ) | 10.1 | (5.2 | ) | 17.9 | 1.2 | 7.2 | ||||||||||||||||
Octane Additives | (1.6 | ) | 0.1 | (2.8 | ) | (2.7 | ) | 0.0 | (1.2 | ) | ||||||||||||||
Corporate costs | (15.4 | ) | (13.6 | ) | (28.2 | ) | (28.8 | ) | (15.1 | ) | (12.8 | ) | ||||||||||||
Restructuring charge | (21.1 | ) | 0.0 | (21.1 | ) | 0.0 | ||||||||||||||||||
Impairment of intangible assets | (19.8 | ) | 0.0 | (19.8 | ) | 0.0 | ||||||||||||||||||
Total operating (loss)/ income | $ | (53.4 | ) | $ | 31.7 | $ | (12.5 | ) | $ | 67.9 | ||||||||||||||
Total operating income | $ | 28.2 | $ | 40.9 | ||||||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Numerator (in millions): | ||||||||||||||||
Net (loss)/ income available to common stockholders | $ | (39.7 | ) | $ | 22.3 | $ | (6.6 | ) | $ | 51.0 | ||||||
Denominator (in thousands): | ||||||||||||||||
Weighted average common shares outstanding | 24,564 | 24,483 | 24,547 | 24,468 | ||||||||||||
Dilutive effect of stock options and awards | 0 | 195 | 0 | 203 | ||||||||||||
Denominator for diluted earnings per share | 24,564 | 24,678 | 24,547 | 24,671 | ||||||||||||
Net (loss)/ income per share, basic: | $ | (1.62 | ) | $ | 0.91 | $ | (0.27 | ) | $ | 2.08 | ||||||
Net (loss)/ income per share, diluted: | $ | (1.62 | ) | $ | 0.90 | $ | (0.27 | ) | $ | 2.07 | ||||||
Three Months Ended March 31 | ||||||||
2021 | 2020 | |||||||
Numerator (in millions): | ||||||||
Net income available to common stockholders | $ | 23.4 | $ | 33.1 | ||||
Denominator (in thousands): | ||||||||
Weighted average common shares outstanding | 24,601 | 24,529 | ||||||
Dilutive effect of stock options and awards | 239 | 213 | ||||||
Denominator for diluted earnings per share | 24,840 | 24,742 | ||||||
Net income per share, basic: | $ | 0.95 | $ | 1.35 | ||||
Net income per share, diluted: | $ | 0.94 | $ | 1.34 | ||||
(in millions) | Gross Cost | Accumulated Impairment Losses | Net Book Amount | |||||||||
Opening balance at January 1 | $ | 599.5 | $ | (236.5 | ) | $ | 363.0 | |||||
Exchange effect | 0.3 | 0.0 | 0.3 | |||||||||
Closing balance at June 30 | $ | 599.8 | $ | (236.5 | ) | $ | 363.3 | |||||
(in millions) | Gross Cost | |||
Opening balance at January 1 | $ | 371.2 | ||
Exchange effect | (4.0 | ) | ||
Closing balance at March 31 | $ | 367.2 | ||
(in millions) | 2020 | |||
Gross cost at January 1 | $ | 294.8 | ||
Exchange effect | 0.1 | |||
Gross cost at June 30 | 294.9 | |||
Accumulated amortization at January 1 | (181.3 | ) | ||
Amortization expense | (11.5 | ) | ||
Impairment | (19.8 | ) | ||
Exchange effect | 0.0 | |||
Accumulated amortization at June 30 | (212.6 | ) | ||
Net book amount at June 30 | $ | 82.3 | ||
(in millions) | 2021 | |||
Gross cost at January 1 | $ | 298.9 | ||
Exchange effec t | (2.0 | ) | ||
Gross cost at March 31 | 296.9 | |||
Accumulated amortization at January 1 | (223.6 | ) | ||
Amortization expense | (4.0 | ) | ||
Exchange effect | 0.9 | |||
Accumulated amortization at March 31 | (226.7 | ) | ||
Net book amount at March 31 | $ | 70.2 | ||
(in millions) | June 30 2020 | December 31 2019 | ||||||
Product rights | $ | 8.2 | $ | 10.1 | ||||
Brand names | 2.6 | 2.9 | ||||||
Technology | 20.9 | 32.6 | ||||||
Customer relationships | 45.8 | 60.8 | ||||||
Internally developed software | 4.8 | 7.1 | ||||||
$ | 82.3 | $ | 113.5 | |||||
(in millions) | March 31 2021 | December 31 2020 | ||||||
Product rights | $ | 5.3 | $ | 6.3 | ||||
Brand names | 2.2 | 2.3 | ||||||
Technology | 19.2 | 19.8 | ||||||
Customer relationships | 41.2 | 44.2 | ||||||
Internally developed software | 2.3 | 2.7 | ||||||
$ | 70.2 | $ | 75.3 | |||||
Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||
(in millions) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Plan net pension credit/(charge): | ||||||||||||||||
Interest cost on projected benefit obligation | $ | (2.7 | ) | $ | (3.9 | ) | $ | (5.5 | ) | $ | (7.8 | ) | ||||
Expected return on plan assets | 4.3 | 5.5 | 8.8 | 11.1 | ||||||||||||
Amortization of prior service credit | 0.2 | 0.3 | 0.4 | 0.5 | ||||||||||||
Amortization of actuarial net losses | (0.2 | ) | 0.0 | (0.4 | ) | 0.0 | ||||||||||
$ | 1.6 | $ | 1.9 | $ | 3.3 | $ | 3.8 | |||||||||
Three Months Ended March 31 | ||||||||
(in millions) | 2021 | 2020 | ||||||
Plan net pension credit/(charge): | ||||||||
Interest cost on projected benefit obligation | $ | (1.9 | ) | $ | (2.8 | ) | ||
Expected return on plan assets | 3.9 | 4.5 | ||||||
Amortization of prior service (cost)/credit | (0.1 | ) | 0.2 | |||||
Amortization of actuarial net losses | (0.4 | ) | (0.2 | ) | ||||
$ | 1.5 | $ | 1.7 | |||||
Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||
(in millions) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Plan net pension charge: | ||||||||||||||||
Interest cost on projected benefit obligation | $ | 0.0 | $ | 0.0 | $ | (0.1 | ) | $ | (0.1 | ) | ||||||
Amortization of actuarial net losses | (0.3 | ) | 0.0 | (0.4 | ) | (0.1 | ) | |||||||||
$ | (0.3 | ) | $ | 0.0 | $ | (0.5 | ) | $ | (0.2 | ) | ||||||
Three Months Ended March 31 | ||||||||
(in millions) | 2021 | 2020 | ||||||
Plan net pension charge: | ||||||||
Interest cost on projected benefit obligation | $ | 0.0 | $ | 0.0 | ||||
Amortization of actuarial net losses | (0.3 | ) | (0.2 | ) | ||||
$ | (0.3 | ) | $ | (0.2 | ) | |||
(in millions) | Unrecognized Tax Benefits | Interest and Penalties | Total | |||||||||
Opening balance at January 1 | $ | 14.4 | $ | 2.0 | $ | 16.4 | ||||||
Net change for tax positions of prior periods | (1.2 | ) | 0.0 | (1.2 | ) | |||||||
Closing balance at June 30 | 13.2 | 2.0 | 15.2 | |||||||||
Current | 0.0 | 0.0 | 0.0 | |||||||||
Non-current | $ | 13.2 | $ | 2.0 | $ | 15.2 | ||||||
(in millions) | Unrecognized Tax Benefits | Interest and Penalties | Total | |||||||||
Opening balance at January 1 | $ | 13.6 | $ | 2.4 | $ | 16.0 | ||||||
Net change for tax positions of prior periods | (0.1 | ) | 0.1 | 0.0 | ||||||||
Closing balance at March 31 | 13.5 | 2.5 | 16.0 | |||||||||
Current | 0.0 | 0.0 | 0.0 | |||||||||
Non-current | $ | 13.5 | $ | 2.5 | $ | 16.0 | ||||||
(in millions) | June 30, 2020 | December 31, 2019 | ||||||
Revolving credit facility | $ | 40.0 | $ | 60.0 | ||||
Deferred finance costs | (1.2 | ) | (1.4 | ) | ||||
38.8 | 58.6 | |||||||
Less current portion | 0.0 | 0.0 | ||||||
$ | 38.8 | $ | 58.6 | |||||
(in millions) | 2020 | |||
Total at January 1 | $ | 49.3 | ||
Charge for the period | 9.8 | |||
Utilized in the period | (1.3 | ) | ||
Exchange effect | 0.1 | |||
Total at June 30 | 57.9 | |||
Due within one year | (6.3 | ) | ||
Due after one year | $ | 51.6 | ||
(in millions) | 2021 | |||
Total at January 1 | $ | 58.5 | ||
Charge for the period | 1.0 | |||
Utilized in the period | (1.2 | ) | ||
Exchange effect | (0.4 | ) | ||
Total at March 31 | 57.9 | |||
Due within one year | (6.6 | ) | ||
Due after one year | $ | 51.3 | ||
June 30, 2020 | December 31, 2019 | March 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||
(in millions) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Non-derivatives: | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 58.2 | $ | 58.2 | $ | 75.7 | $ | 75.7 | $ | 117.0 | $ | 117.0 | $ | 105.3 | $ | 105.3 | ||||||||||||||||
Derivatives (Level 1 measurement): | ||||||||||||||||||||||||||||||||
Other current and non-current assets: | ||||||||||||||||||||||||||||||||
Foreign currency forward exchange contracts | 0.0 | 0.0 | 0.8 | 0.8 | 1.9 | 1.9 | 0.0 | 0.0 | ||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Non-derivatives: | ||||||||||||||||||||||||||||||||
Long-term debt (including current portion) | $ | 38.8 | $ | 38.8 | $ | 58.6 | $ | 58.6 | ||||||||||||||||||||||||
Finance leases (including current portion) | 0.8 | 0.8 | 1.5 | 1.5 | 0.4 | 0.4 | 0.6 | 0.6 | ||||||||||||||||||||||||
Derivatives (Level 1 measurement): | ||||||||||||||||||||||||||||||||
Other current and non-current liabilities: | ||||||||||||||||||||||||||||||||
Foreign currency forward exchange contracts | 0.6 | 0.6 | 0.0 | 0.0 | 0.0 | 0.0 | 0.5 | 0.5 | ||||||||||||||||||||||||
Non-financial liabilities (Level 3 measurement): | ||||||||||||||||||||||||||||||||
Other current and non-current liabilities: | ||||||||||||||||||||||||||||||||
Stock equivalent units | 14.5 | 14.5 | 24.6 | 24.6 | 20.8 | 20.8 | 17.2 | 17.2 |
Number of Options | Weighted Average Exercise Price | Weighted Average Grant-Date Fair Value | ||||||||||
Outstanding at December 31, 2019 | 504,459 | $ | 33.05 | $ | 41.35 | |||||||
Granted - at discount | 63,950 | $ | 1.11 | $ | 76.80 | |||||||
- at market value | 10,419 | $ | 95.70 | $ | 18.69 | |||||||
Exercised | (81,860 | ) | $ | 9.73 | $ | 52.31 | ||||||
Forfeited | (13,161 | ) | $ | 22.43 | $ | 45.20 | ||||||
Outstanding at June 30, 2020 | 483,807 | $ | 34.41 | $ | 43.59 | |||||||
Number of Options | Weighted Average Exercise Price | Weighted Average Grant-Date Fair Value | ||||||||||
Outstanding at December 31, 2020 | 442,893 | $ | 32.49 | $ | 45.31 | |||||||
Granted - at discount | 69,996 | $ | 0.00 | $ | 92.32 | |||||||
- at market value | 10,388 | $ | 99.85 | $ | 32.71 | |||||||
Exercised | (18,493 | ) | $ | 27.24 | $ | 37.03 | ||||||
Forfeited | (1,307 | ) | $ | 50.54 | $ | 32.61 | ||||||
Outstanding at March 31, 2021 | 503,477 | $ | 29.42 | $ | 51.97 | |||||||
Number of SEUs | Weighted Average Exercise Price | Weighted Average Grant-Date Fair Value | ||||||||||
Outstanding at December 31, 2019 | 390,816 | $ | 3.69 | $ | 59.91 | |||||||
Granted - at discount | 108,607 | $ | 0.00 | $ | 76.86 | |||||||
- at market value | 3,634 | $ | 95.70 | $ | 18.69 | |||||||
Exercised | (88,557 | ) | $ | 0.86 | $ | 60.55 | ||||||
Forfeited | (17,036 | ) | $ | 0.86 | $ | 65.38 | ||||||
Outstanding at June 30, 2020 | 397,464 | $ | 4.27 | $ | 63.79 | |||||||
Number of SEUs | Weighted Average Exercise Price | Weighted Average Grant-Date Fair Value | ||||||||||
Outstanding at December 31, 2020 | 390,164 | $ | 4.35 | $ | 63.96 | |||||||
Granted - at discount | 87,451 | $ | 0.00 | $ | 88.94 | |||||||
- at market value | 3,803 | $ | 99.85 | $ | 32.71 | |||||||
Exercised | (6,275 | ) | $ | 1.36 | $ | 42.82 | ||||||
Forfeited | (12,400 | ) | $ | 0.00 | $ | 67.33 | ||||||
Outstanding at March 31, 2021 | 462,743 | $ | 4.47 | $ | 68.62 | |||||||
(in millions) Details about AOCL Components | Amount Reclassified from AOCL | Affected Line Item in the Statement where Net Income is Presented | ||||
Defined benefit pension plan items: | ||||||
Amortization of prior service credit | $ | 0.1 | See (1) below | |||
Amortization of actuarial net losses | 0.7 | See (1) below | ||||
0.8 | Total before tax | |||||
(0.1 | ) | Income tax expense | ||||
Total reclassifications | $ | 0.7 | Net of tax | |||
(in millions) Details about AOCL Components | Amount Reclassified from AOCL | Affected Line Item in the Statement where Net Income is Presented | Amount Reclassified from AOCL | Affected Line Item in the Statement where Net Income is Presented | ||||||||
Defined benefit pension plan items: | ||||||||||||
Amortization of prior service credit | $ | (0.4 | ) | See (1) below | $ | (0.2 | ) | See (¹) below | ||||
Amortization of actuarial net losses | 0.8 | See (1) below | 0.2 | See (¹) below | ||||||||
0.4 | Total before tax | 0.0 | Total before tax | |||||||||
0.0 | Income tax expense | 0.0 | Income tax expense | |||||||||
Total reclassifications | $ | 0.4 | Net of tax | $ | 0.0 | Net of tax | ||||||
(1) These items are included in other income and expense. See Note |
(in millions) | Defined Benefit Pension Plan Items | Cumulative Translation Adjustments | Total | |||||||||
Balance at December 31, 202 0 | $ | (15.9 | ) | $ | (41.4 | ) | $ | (57.3 | ) | |||
Other comprehensive income before reclassifications | 0.0 | (11.3 | ) | (11.3 | ) | |||||||
Amounts reclassified from AOCL | 0.7 | 0.0 | 0.7 | |||||||||
Total other comprehensive income | 0.7 | (11.3 | ) | (10.6 | ) | |||||||
Balance at March 31, 2021 | $ | (15.2 | ) | $ | (52.7 | ) | $ | (67.9 | ) | |||
(in millions) | Defined Benefit Pension Plan Items | Cumulative Translation Adjustments | Total | |||||||||
Balance at December 31, 2019 | $ | (9.3 | ) | $ | (65.1 | ) | $ | (74.4 | ) | |||
Other comprehensive income before reclassifications | 0.0 | (2.4 | ) | (2.4 | ) | |||||||
Amounts reclassified from AOCL | 0.4 | 0.0 | 0.4 | |||||||||
Total other comprehensive income | 0.4 | (2.4 | ) | (2.0 | ) | |||||||
Balance at June 30, 2020 | $ | (8.9 | ) | $ | (67.5 | ) | $ | (76.4 | ) | |||
(in millions) | Defined Benefit Pension Plan Items | Cumulative Translation Adjustments | Total | |||||||||
Balance at December 31, 2019 | $ | (9.3 | ) | $ | (65.1 | ) | $ | (74.4 | ) | |||
Other comprehensive income before reclassification s | 0.0 | (7.9 | ) | (7.9 | ) | |||||||
Amounts reclassified from AOCL | 0.0 | 0.0 | 0.0 | |||||||||
Total other comprehensive income | 0.0 | (7.9 | ) | (7.9 | ) | |||||||
Balance at March 31, 2020 | $ | (9.3 | ) | $ | (73.0 | ) | $ | (82.3 | ) | |||
Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||
(in millions) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Net sales: | ||||||||||||||||
Fuel Specialties | $ | 107.4 | $ | 133.3 | $ | 254.4 | $ | 289.3 | ||||||||
Performance Chemicals | 95.7 | 104.7 | 208.8 | 222.8 | ||||||||||||
Oilfield Services | 41.8 | 122.5 | 154.0 | 236.7 | ||||||||||||
Octane Additives | 0.0 | 1.9 | 0.0 | 1.9 | ||||||||||||
$ | 244.9 | $ | 362.4 | $ | 617.2 | $ | 750.7 | |||||||||
Gross profit/(loss): | ||||||||||||||||
Fuel Specialties | $ | 25.4 | $ | 44.7 | $ | 76.6 | $ | 100.4 | ||||||||
Performance Chemicals | 24.9 | 24.0 | 52.5 | 50.6 | ||||||||||||
Oilfield Services | 9.9 | 41.5 | 46.1 | 79.2 | ||||||||||||
Octane Additives | (1.1 | ) | 0.9 | (2.2 | ) | (1.3 | ) | |||||||||
$ | 59.1 | $ | 111.1 | $ | 173.0 | $ | 228.9 | |||||||||
Operating income/(loss): | ||||||||||||||||
Fuel Specialties | $ | 4.7 | $ | 24.1 | 36.8 | 57.0 | ||||||||||
Performance Chemicals | 12.2 | 11.0 | 27.8 | 24.5 | ||||||||||||
Oilfield Services | (12.4 | ) | 10.1 | (5.2 | ) | 17.9 | ||||||||||
Octane Additives | (1.6 | ) | 0.1 | (2.8 | ) | (2.7 | ) | |||||||||
Corporate costs | (15.4 | ) | (13.6 | ) | (28.2 | ) | (28.8 | ) | ||||||||
Restructuring charge | (21.1 | ) | 0.0 | (21.1 | ) | 0.0 | ||||||||||
Impairment of intangible assets | (19.8 | ) | 0.0 | (19.8 | ) | 0.0 | ||||||||||
Total operating (loss)/income | $ | (53.4 | ) | $ | 31.7 | $ | (12.5 | ) | $ | 67.9 | ||||||
Three Months Ended March 31 | ||||||||
(in millions) | 2021 | 2020 | ||||||
Net sales: | ||||||||
Fuel Specialties | $ | 139.3 | $ | 147.0 | ||||
Performance Chemicals | 125.9 | 113.1 | ||||||
Oilfield Services | 74.4 | 112.2 | ||||||
$ | 339.6 | $ | 372.3 | |||||
Gross profit/(loss): | ||||||||
Fuel Specialties | $ | 44.9 | $ | 51.2 | ||||
Performance Chemicals | 31.4 | 27.6 | ||||||
Oilfield Services | 24.5 | 36.2 | ||||||
Octane Additives | 0.0 | (1.1 | ) | |||||
$ | 100.8 | $ | 113.9 | |||||
Operating income/(loss): | ||||||||
Fuel Specialties | $ | 23.8 | $ | 32.1 | ||||
Performance Chemicals | 18.3 | 15.6 | ||||||
Oilfield Services | 1.2 | 7.2 | ||||||
Octane Additives | 0.0 | (1.2 | ) | |||||
Corporate costs | (15.1 | ) | (12.8 | ) | ||||
Total operating income | $ | 28.2 | $ | 40.9 | ||||
Three Months Ended June 30 | ||||||||||||||||
(in millions, except ratios) | 2020 | 2019 | Change | |||||||||||||
Net sales: | ||||||||||||||||
Fuel Specialties | $ | 107.4 | $ | 133.3 | $ | (25.9 | ) | -19 | % | |||||||
Performance Chemicals | 95.7 | 104.7 | (9.0 | ) | -9 | % | ||||||||||
Oilfield Services | 41.8 | 122.5 | (80.7 | ) | -66 | % | ||||||||||
Octane Additives | 0.0 | 1.9 | (1.9 | ) | -100 | % | ||||||||||
$ | 244.9 | $ | 362.4 | $ | (117.5 | ) | -32 | % | ||||||||
Gross profit/(loss): | ||||||||||||||||
Fuel Specialties | $ | 25.4 | $ | 44.7 | $ | (19.3 | ) | -43 | % | |||||||
Performance Chemicals | 24.9 | 24.0 | 0.9 | +4 | % | |||||||||||
Oilfield Services | 9.9 | 41.5 | (31.6 | ) | -76 | % | ||||||||||
Octane Additives | (1.1 | ) | 0.9 | (2.0 | ) | -222 | % | |||||||||
$ | 59.1 | $ | 111.1 | $ | (52.0 | ) | -47 | % | ||||||||
Gross margin (%): | ||||||||||||||||
Fuel Specialties | 23.6 | 33.5 | -9.9 | |||||||||||||
Performance Chemicals | 26.0 | 22.9 | +3.1 | |||||||||||||
Oilfield Services | 23.7 | 33.9 | -10.2 | |||||||||||||
Octane Additives | n/a | 47.4 | n/a | |||||||||||||
Aggregate | 24.1 | 30.7 | -6.6 | |||||||||||||
Operating expenses: | ||||||||||||||||
Fuel Specialties | $ | (20.7 | ) | $ | (20.6 | ) | $ | (0.1 | ) | 0 | % | |||||
Performance Chemicals | (12.7 | ) | (13.0 | ) | 0.3 | -2 | % | |||||||||
Oilfield Services | (22.3 | ) | (31.4 | ) | 9.1 | -29 | % | |||||||||
Octane Additives | (0.5 | ) | (0.8 | ) | 0.3 | -38 | % | |||||||||
Corporate costs | (15.4 | ) | (13.6 | ) | (1.8 | ) | +13 | % | ||||||||
Restructuring charge | (21.1 | ) | 0.0 | (21.1 | ) | n/a | ||||||||||
Impairment of intangible assets | (19.8 | ) | 0.0 | (19.8 | ) | n/a | ||||||||||
$ | (112.5 | ) | $ | (79.4 | ) | $ | 33.1 | +42 | % | |||||||
Three Months Ended March 31 | ||||||||||||||||
(in millions, except ratios) | 2021 | 2020 | Change | |||||||||||||
Net sales: | ||||||||||||||||
Fuel Specialties | $ | 139.3 | $ | 147.0 | $ | (7.7 | ) | -5 | % | |||||||
Performance Chemicals | 125.9 | 113.1 | 12.8 | +11 | % | |||||||||||
Oilfield Services | 74.4 | 112.2 | (37.8 | ) | -34 | % | ||||||||||
$ | 339.6 | $ | 372.3 | $ | (32.7 | ) | -9 | % | ||||||||
Gross profit: | ||||||||||||||||
Fuel Specialties | $ | 44.9 | $ | 51.2 | $ | (6.3 | ) | -12 | % | |||||||
Performance Chemicals | 31.4 | 27.6 | 3.8 | +14 | % | |||||||||||
Oilfield Services | 24.5 | 36.2 | (11.7 | ) | -32 | % | ||||||||||
Octane Additives | 0.0 | (1.1 | ) | 1.1 | -100 | % | ||||||||||
$ | 100.8 | $ | 113.9 | $ | (13.1 | ) | -12 | % | ||||||||
Gross margin (%): | ||||||||||||||||
Fuel Specialties | 32.2 | 34.8 | -2.6 | |||||||||||||
Performance Chemicals | 24.9 | 24.4 | +0.5 | |||||||||||||
Oilfield Services | 32.9 | 32.3 | +0.6 | |||||||||||||
Aggregate | 29.7 | 30.6 | -0.9 | |||||||||||||
Operating expenses: | ||||||||||||||||
Fuel Specialties | $ | (21.1 | ) | $ | (19.1 | ) | $ | (2.0 | ) | +10 | % | |||||
Performance Chemicals | (13.1 | ) | (12.0 | ) | (1.1 | ) | +9 | % | ||||||||
Oilfield Services | (23.3 | ) | (29.0 | ) | 5.7 | -20 | % | |||||||||
Octane Additives | 0.0 | (0.1 | ) | 0.1 | -100 | % | ||||||||||
Corporate costs | (15.1 | ) | (12.8 | ) | (2.3 | ) | +18 | % | ||||||||
$ | (72.6 | ) | $ | (73.0 | ) | $ | 0.4 | -1 | % | |||||||
Three Months Ended June 30, 2020 | Three Months Ended March 31, 2021 | |||||||||||||||||||||||||||||||||||||||
Change (%) | Americas | EMEA | ASPAC | AvTel | Total | Americas | EMEA | ASPAC | AvTel | Total | ||||||||||||||||||||||||||||||
Volume | -21 | -9 | -23 | -16 | -15 | -2 | -3 | -2 | -64 | -7 | ||||||||||||||||||||||||||||||
Price and product mix | +3 | -4 | -10 | -4 | -3 | -4 | -6 | -2 | +15 | -3 | ||||||||||||||||||||||||||||||
Exchange rates | 0 | -3 | 0 | 0 | -1 | 0 | +12 | +2 | 0 | +5 | ||||||||||||||||||||||||||||||
-18 | -16 | -33 | -20 | -19 | -6 | +3 | -2 | -49 | -5 | |||||||||||||||||||||||||||||||
Three Months Ended June 30, 2020 | ||||||||||||||||
Change (%) | Americas | EMEA | ASPAC | Total | ||||||||||||
Volume | +3 | -9 | +13 | -4 | ||||||||||||
Price and product mix | -13 | 0 | +3 | -4 | ||||||||||||
Exchange rates | 0 | -1 | -1 | -1 | ||||||||||||
-10 | -10 | +15 | -9 | |||||||||||||
Three Months Ended March 31, 2021 | ||||||||||||||||
Change (%) | Americas | EMEA | ASPAC | Total | ||||||||||||
Volume | +16 | +5 | -10 | +7 | ||||||||||||
Price and product mix | +1 | -3 | -4 | -2 | ||||||||||||
Exchange rates | 0 | +9 | +4 | +6 | ||||||||||||
+17 | +11 | -10 | +11 | |||||||||||||
(in millions) | 2020 | 2019 | Change | |||||||||
. | ||||||||||||
United Kingdom pension credit | $ | 1.6 | $ | 1.9 | $ | (0.3 | ) | |||||
German pension charge | (0.3 | ) | 0.0 | (0.3 | ) | |||||||
Foreign exchange loss on translation | (1.1 | ) | (2.7 | ) | 1.6 | |||||||
Foreign currency forward contracts (loss)/gain | (0.1 | ) | 0.8 | (0.9 | ) | |||||||
$ | 0.1 | $ | 0.0 | $ | 0.1 | |||||||
(in millions) | 2021 | 2020 | Change | |||||||||
United Kingdom pension credit | $ | 1.5 | $ | 1.7 | (0.2 | ) | ||||||
German pension charge | (0.3 | ) | (0.2 | ) | (0.1 | ) | ||||||
Foreign exchange gain on translation | 0.5 | 0.5 | 0.0 | |||||||||
Foreign currency forward contracts gain | 1.3 | 1.9 | (0.6 | ) | ||||||||
$ | 3.0 | $ | 3.9 | $ | (0.9 | ) | ||||||
Three Months Ended June 30 | ||||||||
(in millions) | 2020 | 2019 | ||||||
(Loss)/income before income taxes | $ | (53.8 | ) | $ | 30.5 | |||
Indemnification asset regarding tax audit | (0.5 | ) | 0.0 | |||||
Adjustment for stock compensation | (1.4 | ) | 1.1 | |||||
Restructuring charge | 21.1 | 0.0 | ||||||
Impairment of acquired intangible assets | 19.8 | 0.0 | ||||||
$ | (14.8 | ) | $ | 31.6 | ||||
Income taxes | $ | (14.1 | ) | $ | 8.2 | |||
Tax on stock compensation | 0.1 | 0.3 | ||||||
Adjustment of income tax provision | 1.2 | (0.4 | ) | |||||
Tax on restructuring charge | 4.3 | 0.0 | ||||||
Tax on impairment of acquired intangible assets | 4.6 | 0.0 | ||||||
Tax on foreign exchange on distribution | 0.4 | 0.0 | ||||||
$ | (3.5 | ) | $ | 8.1 | ||||
GAAP effective tax rate | 26.2 | % | 26.9 | % | ||||
Adjusted effective tax rate | 23.6 | % | 25.6 | % |
Three Months Ended March 31 | ||||||||
(in millions) | 2021 | 2020 | ||||||
Income before income taxes | $ | 30.8 | $ | 44.2 | ||||
Indemnification asset regarding tax audit | 0.1 | 0.2 | ||||||
Adjustment for stock compensation | 1.4 | 1.4 | ||||||
Acquisition costs | 0.8 | 0.0 | ||||||
Legacy cost of closed operations | 0.9 | 0.0 | ||||||
Adjusted income before income taxes | $ | 34.0 | $ | 45.8 | ||||
Income taxes | $ | 7.4 | $ | 11.1 | ||||
Tax on stock compensation | 0.1 | 0.4 | ||||||
Adjustment of income tax provision | 0.0 | 0.0 | ||||||
Tax on acquisition costs | 0.2 | 0.0 | ||||||
Tax on legacy cost of closed operations | 0.2 | 0.0 | ||||||
Adjusted income taxes | $ | 7.9 | $ | 11.5 | ||||
GAAP effective tax rate | 24.0 | % | 25.1 | % | ||||
Adjusted effective tax rate | 23.2 | % | 25.1 | % |
Six Months Ended June 30 | ||||||||||||||||
(in millions, except ratios) | 2020 | 2019 | Change | |||||||||||||
Net sales: | ||||||||||||||||
Fuel Specialties | $ | 254.4 | $ | 289.3 | $ | (34.9 | ) | -12 | % | |||||||
Performance Chemicals | 208.8 | 222.8 | (14.0 | ) | -6 | % | ||||||||||
Oilfield Services | 154.0 | 236.7 | (82.7 | ) | -35 | % | ||||||||||
Octane Additives | 0.0 | 1.9 | (1.9 | ) | -100 | % | ||||||||||
$ | 617.2 | $ | 750.7 | $ | (133.5 | ) | -18 | % | ||||||||
Gross profit/(loss): | ||||||||||||||||
Fuel Specialties | $ | 76.6 | $ | 100.4 | $ | (23.8 | ) | -24 | % | |||||||
Performance Chemicals | 52.5 | 50.6 | 1.9 | +4 | % | |||||||||||
Oilfield Services | 46.1 | 79.2 | (33.1 | ) | -42 | % | ||||||||||
Octane Additives | (2.2 | ) | (1.3 | ) | (0.9 | ) | +69 | % | ||||||||
$ | 173.0 | $ | 228.9 | $ | (55.9 | ) | -24 | % | ||||||||
Gross margin (%): | ||||||||||||||||
Fuel Specialties | 30.1 | 34.7 | -4.6 | |||||||||||||
Performance Chemicals | 25.1 | 22.7 | +2.4 | |||||||||||||
Oilfield Services | 29.9 | 33.5 | -3.6 | |||||||||||||
Octane Additives | n/a | n/a | n/a | |||||||||||||
Aggregate | 28.0 | 30.5 | -2.5 | |||||||||||||
Operating expenses: | ||||||||||||||||
Fuel Specialties | $ | (39.8 | ) | $ | (43.4 | ) | $ | 3.6 | -8 | % | ||||||
Performance Chemicals | (24.7 | ) | (26.1 | ) | 1.4 | -5 | % | |||||||||
Oilfield Services | (51.3 | ) | (61.3 | ) | 10.0 | -16 | % | |||||||||
Octane Additives | (0.6 | ) | (1.4 | ) | 0.8 | -57 | % | |||||||||
Corporate costs | (28.2 | ) | (28.8 | ) | 0.6 | -2 | % | |||||||||
Restructuring charge | (21.1 | ) | 0.0 | (21.1 | ) | n/a | ||||||||||
Impairment of intangible assets | (19.8 | ) | 0.0 | (19.8 | ) | n/a | ||||||||||
$ | (185.5 | ) | $ | (161.0 | ) | $ | (24.5 | ) | -15 | % | ||||||
Six Months Ended June 30, 2020 | ||||||||||||||||||||
Change (%) | Americas | EMEA | ASPAC | AvTel | Total | |||||||||||||||
Volume | -10 | -9 | -19 | +16 | -9 | |||||||||||||||
Price and product mix | +1 | -2 | -3 | -9 | -2 | |||||||||||||||
Exchange rates | 0 | -3 | 0 | 0 | -1 | |||||||||||||||
-9 | -14 | -22 | +7 | -12 | ||||||||||||||||
Six Months Ended June 30, 2020 | ||||||||||||||||
Change (%) | Americas | EMEA | ASPAC | Total | ||||||||||||
Volume | +8 | -5 | +36 | +2 | ||||||||||||
Price and product mix | -12 | -4 | -2 | -7 | ||||||||||||
Exchange rates | 0 | -2 | -1 | -1 | ||||||||||||
-4 | -11 | +33 | -6 | |||||||||||||
(in millions) | 2020 | 2019 | Change | |||||||||
United Kingdom pension credit | $ | 3.3 | $ | 3.8 | $ | (0.5 | ) | |||||
German pension charge | (0.5 | ) | (0.2 | ) | (0.3 | ) | ||||||
Foreign exchange losses on translation | (0.6 | ) | (0.5 | ) | (0.1 | ) | ||||||
Foreign currency forward contracts gains | 1.8 | 1.0 | 0.8 | |||||||||
$ | 4.0 | $ | 4.1 | $ | (0.1 | ) | ||||||
Six Months Ended June 30 | ||||||||
(in millions) | 2020 | 2019 | ||||||
(Loss)/income before income taxes | $ | (9.6 | ) | $ | 69.3 | |||
Indemnification asset regarding tax audit | (0.3 | ) | 0.0 | |||||
Adjustment for stock compensation | 0.0 | 2.6 | ||||||
Restructuring charge | 21.1 | 0.0 | ||||||
Impairment of acquired intangible assets | 19.8 | 0.0 | ||||||
$ | 31.0 | $ | 71.9 | |||||
Income taxes | $ | (3.0 | ) | $ | 18.3 | |||
Tax on stock compensation | 0.5 | 1.3 | ||||||
Adjustment of income tax provision | 1.2 | (0.6 | ) | |||||
Tax on restructuring charge | 4.3 | 0.0 | ||||||
Tax on impairment of acquired intangible assets | 4.6 | 0.0 | ||||||
Tax on foreign exchange on distribution | 0.4 | 0.0 | ||||||
$ | 8.0 | $ | 19.0 | |||||
GAAP effective tax rate | 31.3 | % | 26.4 | % | ||||
Adjusted effective tax rate | 25.8 | % | 26.4 | % |
(in millions) | June 30, 2020 | December 31, 2019 | March 31, 2021 | December 31, 2020 | ||||||||||||
Total current assets | $ | 532.9 | $ | 630.3 | $ | 607.6 | $ | 566.2 | ||||||||
Total current liabilities | (219.2 | ) | (303.5 | ) | (274.3 | ) | (252.4 | ) | ||||||||
Working capital | 313.7 | 326.8 | 333.3 | 313.8 | ||||||||||||
Less cash and cash equivalents | (58.2 | ) | (75.7 | ) | (117.0 | ) | (105.3 | ) | ||||||||
Less prepaid income taxes | (8.0 | ) | (2.5 | ) | (5.0 | ) | (4.2 | ) | ||||||||
Less other current assets | 0.0 | (0.8 | ) | (2.3 | ) | (0.4 | ) | |||||||||
Add back current portion of accrued income taxes | 8.4 | 10.3 | 8.8 | 5.5 | ||||||||||||
Add back current portion of finance leases | 0.6 | 1.0 | 0.4 | 0.5 | ||||||||||||
Add back current portion of plant closure provisions | 6.3 | 5.6 | 6.6 | 6.6 | ||||||||||||
Add back current portion of operating lease liabilities | 11.0 | 10.6 | 12.2 | 11.3 | ||||||||||||
Adjusted working capital | $ | 273.8 | $ | 275.3 | $ | 237.0 | $ | 227.8 | ||||||||
Period | Total number of shares purchased | Average price paid per share | ||||||
February 1, 2021 through February 28, 2021 | 462 | $ | 97.37 | |||||
March 1, 2021 through March 31, 2021 | 5,601 | $ | 103.25 | |||||
Total | 6,063 | $ | 102.80 | |||||
31.1 | Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
31.2 | Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
32.1 | Certification of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
32.2 | Certification of Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
101 | XBRL Instance Document and Related Item - The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document. | |
104 | Cover Page Interactive Data File – The cover page XBRL tags are embedded within the inline XBRL document. |
INNOSPEC INC. | ||||||
Registrant | ||||||
Date: | By | /s/ PATRICK S. WILLIAMS | ||||
Patrick S. Williams | ||||||
President and Chief Executive Officer | ||||||
Date: | By | /s/ IAN P. CLEMINSON | ||||
Ian P. Cleminson | ||||||
Executive Vice President and Chief Financial Officer |