Huntsman Releases First Quarter 2013 Results; Reports Strong MDI Polyurethanes Earnings
THE WOODLANDS, Texas, April 30, 2013 /PRNewswire/ --
First Quarter 2013 Highlights
- Adjusted EBITDA was $220 million compared to $407 million in the prior year period (adjusted to exclude amortization of pension and postretirement actuarial losses of $19 million and $10 million, respectively).
- Adjusted diluted income per share was $0.19 compared to $0.77 in the prior year period (adjusted to exclude amortization of pension and postretirement actuarial losses of $0.05 and $0.04, respectively).
- Net loss attributable to Huntsman Corporation was $24 million compared to net income of $163 million in the prior year period.
- We estimate first quarter 2013 EBITDA was impacted by approximately $55 million as a result of our planned maintenance at our Port Neches, TX facility during the period.
Three months ended |
||||||
March 31, |
December 31, |
|||||
In millions, except per share amounts, unaudited |
2013 |
2012 |
2012 |
|||
Revenues |
$2,702 |
$2,913 |
$ 2,619 |
|||
Net (loss) income attributable to Huntsman Corporation |
$ (24) |
$ 163 |
$ (40) |
|||
Adjusted net income(1) |
$ 46 |
$ 186 |
$ 68 |
|||
Diluted (loss) income per share |
$ (0.10) |
$ 0.68 |
$ (0.17) |
|||
Adjusted diluted income per share(1) |
$ 0.19 |
$ 0.77 |
$ 0.28 |
|||
EBITDA(1) |
$ 112 |
$ 390 |
$ 104 |
|||
Adjusted EBITDA(1) |
$ 220 |
$ 407 |
$ 245 |
|||
See end of press release for footnote explanations |
||||||
Huntsman Corporation (NYSE: HUN) today reported first quarter 2013 results with revenues of $2,702 million and adjusted EBITDA of $220 million.
Peter R. Huntsman, our President and CEO, commented:
"During the first quarter this year we saw a meaningful improvement in our MDI polyurethane margins. We expect this trend to continue as industry fundamentals improve.
I am encouraged by general demand trends across our businesses in North America and Asia and am optimistic about future prospects of our business in the key markets we serve. With the successful restart of our Port Neches facility and in excess of $165 million of annual cash improvements in the next several quarters, we continue to forecast that our non-TiO2 divisions will collectively do better this year than last."
Segment Analysis for 1Q13 Compared to 1Q12
Polyurethanes
The decrease in revenues in our Polyurethanes division for the three months ended March 31, 2013 compared to the same period in 2012 was primarily due to lower sales volumes partially offset by higher average selling prices. MDI sales volumes decreased in the European region partially offset by increased sales volumes in the Asia Pacific and Americas regions. PO/MTBE sales volumes decreased primarily due to the timing of shipments. MDI average selling prices increased in all regions primarily in response to higher raw material costs. PO/MTBE average selling prices decreased primarily due to less favorable market conditions. The decrease in adjusted EBITDA was primarily due to lower PO/MTBE earnings (first quarter 2012 benefited from industry supply outages) partially offset by higher MDI contribution margins.
Performance Products
The decrease in revenues in our Performance Products division for the three months ended March 31, 2013 compared to the same period in 2012 was due to lower sales volumes partially offset by higher average selling prices. Sales volumes decreased by 18% as a result of scheduled maintenance on our olefins and ethylene oxide facilities in Port Neches, Texas in the first quarter of 2013. Excluding the impact of this scheduled maintenance sales volumes would have increased by approximately 2%. Average selling prices increased primarily due to sales mix effect. The decrease in adjusted EBITDA was primarily due to the impact of our scheduled maintenance. As a result of lower upstream margins and lower product sales we estimate the impact of this maintenance to be approximately $55 million on the first quarter of 2013.
Advanced Materials
The decrease in revenues in our Advanced Materials division for the three months ended March 31, 2013 compared to the same period in 2012 was primarily due to lower sales volumes. Sales volumes decreased in the European and the Americas regions, primarily in our base resins and formulations businesses due to weaker demand and increased competition while sales volumes in the Asia Pacific region increased primarily due to strong demand in the adhesives and electrical engineering markets. The decrease in adjusted EBITDA was primarily due to lower contribution margins and lower sales volumes partially offset by lower selling, general and administrative costs as a result of recent restructuring efforts.
Textile Effects
The increase in revenues in our Textile Effects division for the three months ended March 31, 2013 compared to the same period in 2012 was due to higher sales volumes, partially offset by lower average selling prices. Sales volumes increased primarily due to increased market share in key markets. Average selling prices decreased primarily due to sales mix effect and foreign currency translation. The increase in adjusted EBITDA was primarily due to higher sales volumes and lower manufacturing and selling, general and administrative costs as a result of our restructuring efforts partially offset by lower contribution margins.
Pigments
The decrease in revenues in our Pigments division for the three months ended March 31, 2013 compared to the same period in 2012 was primarily due to lower average selling prices as sales volumes were essentially unchanged. Average selling prices decreased in all regions of the world primarily in response to lower end use demand. The decrease in adjusted EBITDA was primarily due to lower contribution margins and the impact of unabsorbed fixed costs at lower production rates.
Corporate, LIFO and Other
Adjusted EBITDA from Corporate, LIFO and Other decreased by $4 million to a loss of $45 million for the three months ended March 31, 2013 compared to a loss of $41 million for the same period in 2012. The decrease in adjusted EBITDA was primarily the result of a $7 million increase in LIFO inventory valuation expense ($4 million of expense in 2013 compared to $3 million of income in 2012) partially offset by a decrease in unallocated foreign exchange losses of $5 million ($2 million gain in 2013 compared to $3 million loss in 2012).
Liquidity, Capital Resources and Outstanding Debt
As of March 31, 2013 we had $832 million of combined cash and unused borrowing capacity compared to $887 million at December 31, 2012.
On April 29, 2013, we amended our accounts receivable securitization programs to among other things extend the maturity to April 2016, reduce the borrowing rate and increase the availability under the programs.
On March 11, 2013 we entered into an amendment of our senior credit facilities that provided for an additional term loan of $225 million due April, 2017. We used the proceeds to repay in full the remaining $193 million outstanding under our term loan B due April, 2014.
On March 4, 2013 we issued $250 million of additional 4.875% senior notes due 2020 and redeemed the remaining $200 million of 5.5% senior notes due 2016. In connection with this redemption, we recognized a loss on early extinguishment of debt of approximately $34 million. The 5.5% senior notes were favorably issued to us at less than market interest rates; accounting standards required us to record the notes on our balance sheet at less than face value and amortize the difference over time up to the full face value of $200 million. As a result, when we refinanced the notes we recognized an increase of recorded debt on our balance sheet of approximately $31 million due to the difference between face value and recorded carry value.
Total capital expenditures for the quarter ended March 31, 2013 were $89 million. We expect to spend approximately $450 million on capital expenditures in 2013 which approximates our annual depreciation and amortization.
Income Taxes
During the three months ended March 31, 2013 we recorded an income tax benefit of $20 million and paid $17 million in cash for income taxes. Our adjusted effective income tax rate for the three months ended March 31, 2013 was approximately 27%. During the first quarter of 2013 we released a valuation allowance on certain net deferred tax assets and recorded a net decrease in unrecognized tax benefits resulting from the settlement of tax audits and the expiration of statutes of limitations. These items had the effect of lowering our adjusted effective tax rate in the first quarter of 2013.
We expect our full year 2013 adjusted effective tax rate to be approximately 35% primarily due to the effect of tax valuation allowances and expected regional mix of income. We expect our long term effective income tax rate to be approximately 30 - 35%.
Amortization of Pension and Postretirement Actuarial Losses (Gains) Adjustment to Earnings
Beginning in 2013, we began to exclude the amortization of actuarial gains and losses associated with pension and postretirement benefits from adjusted EBITDA, adjusted net income (loss), adjusted net income (loss) attributable to Huntsman Corporation and adjusted diluted income (loss) per share. The amortization of actuarial gains and losses associated with pension and postretirement benefits arises from changes in actuarial assumptions and the difference between actual and expected returns on plan assets, and not from our normal, or "core," operations. There is diversity in accounting for these actuarial gains and losses within our industry, and we believe that removing these gains and losses provides management and investors greater transparency into the operational results of our businesses and enhances period-over-period comparability.
The service cost, amortization of prior service cost (benefit), interest cost and expected return on plan assets components of our periodic pension and postretirement benefit costs (income) will continue to be included in adjusted EBITDA, adjusted net income (loss), adjusted net income (loss) attributable to Huntsman Corporation and adjusted diluted income (loss) per share.
The amounts for prior periods have been recast to conform to the current presentation. A schedule of historical adjusted EBITDA along with a reconciliation of adjusted EBITDA to net income (loss) attributable to Huntsman Corporation can be found in tables 9 and 10 of this press release. A reconciliation of adjusted earnings measures used in this press release can be found in table 4 of this press release.
Upcoming Conferences
A member of management will present at the following upcoming conferences:
- Barclays Chemical ROC Stars, May 7, 2013
- Wells Fargo Industrial and Construction Conference, May 8, 2013
- Goldman Sachs Basic Materials Conference, May 22, 2013
- Deutsche Bank Global Industrials and Basic Materials Conference, June 13, 2013
A webcast of the presentations, where applicable, along with accompanying materials will be available on the investor relations section of the company's website, www.huntsman.com.
Earnings Conference Call Information
We will hold a conference call to discuss our first quarter 2013 financial results on Tuesday, April 30, 2013 at 9:00 a.m. ET.
Call-in numbers for the conference call: |
|
U.S. participants |
(888) 713 - 4199 |
International participants |
(617) 213 - 4861 |
Passcode |
28343738 |
In order to facilitate the registration process, you may use the following link to pre-register for the conference call. Callers who pre-register will be given a unique PIN to gain immediate access to the call and bypass the live operator. You may pre-register at any time, including up to and after the call start time. To pre-register, please go to:
https://www.theconferencingservice.com/prereg/key.process?key=PT4XFXGYU
Webcast Information
The conference call will be available via webcast and can be accessed from the investor relations portion of the company's website at huntsman.com.
Replay Information
The conference call will be available for replay beginning April 30, 2013 and ending May 7, 2013.
Call-in numbers for the replay: |
|
U.S. participants |
(888) 286 - 8010 |
International participants |
(617) 801 - 6888 |
Replay code |
38526421 |
Table 1 – Results of Operations |
||||
Three months ended |
||||
March 31, |
||||
In millions, except per share amounts, unaudited |
2013 |
2012 |
||
Revenues |
$ 2,702 |
$ 2,913 |
||
Cost of goods sold |
2,353 |
2,363 |
||
Gross profit |
349 |
550 |
||
Operating expenses |
255 |
265 |
||
Restructuring, impairment and plant closing costs |
44 |
- |
||
Operating income |
50 |
285 |
||
Interest expense, net |
(51) |
(59) |
||
Equity in income of investment in unconsolidated affiliates |
1 |
2 |
||
Loss on early extinguishment of debt |
(35) |
(1) |
||
(Loss) income before income taxes |
(35) |
227 |
||
Income tax benefit (expense) |
20 |
(60) |
||
(Loss) income from continuing operations |
(15) |
167 |
||
Loss from discontinued operations, net of tax(2) |
(2) |
(4) |
||
Net (loss) income |
(17) |
163 |
||
Net income attributable to noncontrolling interests, net of tax |
(7) |
- |
||
Net (loss) income attributable to Huntsman Corporation |
$ (24) |
$ 163 |
||
Adjusted EBITDA(1) |
$ 220 |
$ 407 |
||
Adjusted net income(1) |
$ 46 |
$ 186 |
||
Basic (loss) income per share |
$ (0.10) |
$ 0.69 |
||
Diluted (loss) income per share |
$ (0.10) |
$ 0.68 |
||
Adjusted diluted income per share(1) |
$ 0.19 |
$ 0.77 |
||
Common share information: |
||||
Basic shares outstanding |
239.0 |
236.5 |
||
Diluted shares |
239.0 |
240.1 |
||
Diluted shares for adjusted diluted income per share |
241.8 |
240.1 |
||
See end of press release for footnote explanations |
||||
Table 2 – Results of Operations by Segment |
||||||
Three months ended |
||||||
March 31, |
Better / |
|||||
In millions, unaudited |
2013 |
2012 |
(Worse) |
|||
Segment Revenues: |
||||||
Polyurethanes |
$1,182 |
$1,213 |
(3)% |
|||
Performance Products |
722 |
814 |
(11)% |
|||
Advanced Materials |
336 |
340 |
(1)% |
|||
Textile Effects |
188 |
185 |
2% |
|||
Pigments |
330 |
424 |
(22)% |
|||
Eliminations and other |
(56) |
(63) |
11% |
|||
Total |
$2,702 |
$2,913 |
(7)% |
|||
Segment Adjusted EBITDA(1): |
||||||
Polyurethanes |
$ 178 |
$ 181 |
(2)% |
|||
Performance Products |
54 |
92 |
(41)% |
|||
Advanced Materials |
27 |
33 |
(18)% |
|||
Textile Effects |
(3) |
(8) |
63% |
|||
Pigments |
9 |
150 |
(94)% |
|||
Corporate, LIFO and other |
(45) |
(41) |
(10)% |
|||
Total |
$ 220 |
$ 407 |
(46)% |
|||
See end of press release for footnote explanations |
Table 3 – Factors Impacting Sales Revenues |
||||||||||
Three months ended |
||||||||||
March 31, 2013 vs. 2012 |
||||||||||
Average Selling Price(a) |
||||||||||
Local |
Exchange |
Sales Mix |
Sales |
|||||||
Unaudited |
Currency |
Rate |
& Other |
Volume(a) |
Total |
|||||
Polyurethanes |
3% |
--- |
2% |
(8)% |
(3)% |
|||||
Performance Products |
1% |
--- |
6% |
(18)% |
(11)% |
|||||
Advanced Materials |
--- |
(1)% |
4% |
(4)% |
(1)% |
|||||
Textile Effects |
(1)% |
(1)% |
(3)% |
7% |
2% |
|||||
Pigments |
(22)% |
--- |
--- |
--- |
(22)% |
|||||
Total Company |
--- |
--- |
2% |
(9)% |
(7)% |
|||||
(a) Excludes revenues and sales volumes from tolling arrangements, by-products and raw materials. |
||||||||||
Table 4 – Reconciliation of U.S. GAAP to Non-GAAP Measures |
||||||||||||||||
Income Tax |
Net Income (Loss) |
Diluted Income (Loss) |
||||||||||||||
EBITDA |
(Expense) Benefit |
Attrib. to HUN Corp. |
Per Share |
|||||||||||||
Three months ended |
Three months ended |
Three months ended |
Three months ended |
|||||||||||||
March 31, |
March 31, |
March 31, |
March 31, |
|||||||||||||
In millions, except per share amounts, unaudited |
2013 |
2012 |
2013 |
2012 |
2013 |
2012 |
2013 |
2012 |
||||||||
GAAP(1) |
$ 112 |
$ 390 |
$ 20 |
$ (60) |
$ (24) |
$ 163 |
$ (0.10) |
$ 0.68 |
||||||||
Adjustments: |
||||||||||||||||
Acquisition expenses |
3 |
- |
(1) |
- |
2 |
- |
0.01 |
- |
||||||||
Loss from discontinued operations, net of tax(2) |
3 |
1 |
N/A |
N/A |
2 |
4 |
0.01 |
0.02 |
||||||||
Discount amortization on settlement financing associated with the terminated merger |
N/A |
N/A |
(1) |
(2) |
2 |
5 |
0.01 |
0.02 |
||||||||
Loss on early extinguishment of debt |
35 |
1 |
(13) |
- |
22 |
1 |
0.09 |
- |
||||||||
Certain legal settlements and related expenses |
2 |
1 |
(1) |
- |
1 |
1 |
- |
- |
||||||||
Amortization of pension and postretirement actuarial losses |
19 |
10 |
(7) |
(1) |
12 |
9 |
0.05 |
0.04 |
||||||||
Restructuring, impairment and plant closing and transition costs |
46 |
4 |
(17) |
(1) |
29 |
3 |
0.12 |
0.01 |
||||||||
Adjusted(1) |
$ 220 |
$ 407 |
$ (20) |
$ (64) |
$ 46 |
$ 186 |
$ 0.19 |
$ 0.77 |
||||||||
Adjusted income tax expense |
20 |
64 |
||||||||||||||
Net income attributable to noncontrolling interests, net of tax |
7 |
- |
||||||||||||||
Adjusted pre-tax income(1) |
$ 73 |
$ 250 |
||||||||||||||
Adjusted effective tax rate |
27% |
26% |
||||||||||||||
Income Tax |
Net Income (Loss) |
Diluted Income (Loss) |
||||||||||||||
EBITDA |
(Expense) Benefit |
Attrib. to HUN Corp. |
Per Share |
|||||||||||||
Three months ended |
Three months ended |
Three months ended |
Three months ended |
|||||||||||||
December 31, |
December 31, |
December 31, |
December 31, |
|||||||||||||
In millions, except per share amounts, unaudited |
2012 |
2012 |
2012 |
2012 |
||||||||||||
GAAP(1) |
$ 104 |
$ 17 |
$ (40) |
$ (0.17) |
||||||||||||
Adjustments: |
||||||||||||||||
Acquisition expenses |
3 |
(1) |
2 |
0.01 |
||||||||||||
Loss from discontinued operations, net of tax(2) |
1 |
N/A |
- |
- |
||||||||||||
Discount amortization on settlement financing associated with the terminated merger |
N/A |
(3) |
5 |
0.02 |
||||||||||||
Gain on disposition of businesses/assets |
(3) |
- |
(3) |
(0.01) |
||||||||||||
Loss on early extinguishment of debt |
78 |
(28) |
50 |
0.21 |
||||||||||||
Extraordinary gain on the acquisition of a business, net of tax(3) |
(1) |
N/A |
(1) |
- |
||||||||||||
Certain legal settlements and related expenses |
6 |
(2) |
4 |
0.02 |
||||||||||||
Amortization of pension and postretirement actuarial losses |
12 |
(2) |
10 |
0.04 |
||||||||||||
Restructuring, impairment and plant closing and transition costs |
45 |
(4) |
41 |
0.17 |
||||||||||||
Adjusted(1) |
$ 245 |
$ (23) |
$ 68 |
$ 0.28 |
||||||||||||
Adjusted income tax expense |
23 |
|||||||||||||||
Net income attributable to noncontrolling interests, net of tax |
2 |
|||||||||||||||
Adjusted pre-tax income(1) |
$ 93 |
|||||||||||||||
Adjusted effective tax rate |
25% |
|||||||||||||||
See end of press release for footnote explanations |
||||||||||||||||
Table 5 – Reconciliation of Net Income (Loss) to EBITDA |
||||||
Three months ended |
||||||
March 31, |
December 31, |
|||||
In millions, unaudited |
2013 |
2012 |
2012 |
|||
Net (loss) income attributable to Huntsman Corporation |
$ (24) |
$163 |
$ (40) |
|||
Interest expense, net |
51 |
59 |
54 |
|||
Income tax (benefit) expense from continuing operations |
(20) |
60 |
(17) |
|||
Income tax benefit from discontinued operations(2) |
(2) |
(1) |
(1) |
|||
Depreciation and amortization of continuing operations |
106 |
105 |
108 |
|||
Depreciation and amortization of discontinued operations(2) |
1 |
4 |
- |
|||
EBITDA(1) |
$112 |
$390 |
$ 104 |
|||
See end of press release for footnote explanations |
||||||
Table 6 – Selected Balance Sheet Items |
||||
March 31, |
December 31, |
|||
In millions |
2013 |
2012 |
||
(unaudited) |
||||
Cash |
$ 256 |
$ 396 |
||
Accounts and notes receivable, net |
1,594 |
1,534 |
||
Inventories |
1,797 |
1,819 |
||
Other current assets |
356 |
370 |
||
Property, plant and equipment, net |
3,643 |
3,745 |
||
Other assets |
1,073 |
1,020 |
||
Total assets |
$ 8,719 |
$ 8,884 |
||
Accounts payable |
$ 1,101 |
$ 1,102 |
||
Other current liabilities |
724 |
791 |
||
Current portion of debt |
298 |
288 |
||
Long-term debt |
3,489 |
3,414 |
||
Other liabilities |
1,282 |
1,393 |
||
Total equity |
1,825 |
1,896 |
||
Total liabilities and equity |
$ 8,719 |
$ 8,884 |
||
Table 7 – Outstanding Debt |
||||
March 31, |
December 31, |
|||
In millions |
2013 |
2012 |
||
(unaudited) |
||||
Debt: |
||||
Senior credit facilities |
$ 1,598 |
$ 1,565 |
||
Accounts receivable programs |
236 |
241 |
||
Senior notes |
646 |
568 |
||
Senior subordinated notes |
892 |
892 |
||
Variable interest entities |
262 |
270 |
||
Other debt |
153 |
166 |
||
Total debt - excluding affiliates |
3,787 |
3,702 |
||
Total cash |
256 |
396 |
||
Net debt- excluding affiliates |
$ 3,531 |
$ 3,306 |
||
Table 8 – Summarized Statement of Cash Flows |
||||
Three months ended |
||||
March 31, |
||||
In millions, unaudited |
2013 |
2012 |
||
Total cash at beginning of period |
$396 |
$ 562 |
||
Net cash (used in) provided by operating activities |
(74) |
190 |
||
Net cash used in investing activities |
(85) |
(109) |
||
Net cash provided by (used in) financing activities |
21 |
(176) |
||
Effect of exchange rate changes on cash |
(2) |
4 |
||
Change in restricted cash |
- |
7 |
||
Total cash at end of period |
$256 |
$ 478 |
||
Supplemental cash flow information: |
||||
Cash paid for interest |
$ (59) |
$ (82) |
||
Cash paid for income taxes |
(17) |
(13) |
||
Cash paid for capital expenditures |
(89) |
(81) |
||
Depreciation & amortization |
107 |
109 |
||
Changes in primary working capital: |
||||
Accounts and notes receivable |
(85) |
(239) |
||
Inventories |
(9) |
(65) |
||
Accounts payable |
10 |
186 |
||
Total use of cash |
$ (84) |
$(118) |
||
Table 9 – Adjusted EBITDA Reconciliation |
||||||||||||||||||||||||||||||||||
$ in millions |
1Q09 |
2Q09 |
3Q09 |
4Q09 |
1Q10 |
2Q10 |
3Q10 |
4Q10 |
1Q11 |
2Q11 |
3Q11 |
4Q11 |
1Q12 |
2Q12 |
3Q12 |
4Q12 |
1Q13 |
|||||||||||||||||
Net (loss) income attributable to Huntsman Corporation |
$ (290) |
$ 406 |
$ (68) |
$ 66 |
$ (172) |
$ 114 |
$ 55 |
$ 30 |
$ 62 |
$ 114 |
$ (34) |
$ 105 |
$ 163 |
$ 124 |
$ 116 |
$ (40) |
$ (24) |
|||||||||||||||||
Interest expense, net |
55 |
58 |
65 |
60 |
61 |
43 |
64 |
61 |
59 |
65 |
63 |
62 |
59 |
57 |
56 |
54 |
51 |
|||||||||||||||||
Income tax expense (benefit) |
138 |
311 |
68 |
(73) |
(34) |
39 |
41 |
(17) |
22 |
34 |
55 |
(2) |
60 |
65 |
61 |
(17) |
(20) |
|||||||||||||||||
Depreciation and amortization |
126 |
99 |
112 |
103 |
98 |
97 |
99 |
110 |
103 |
111 |
113 |
112 |
105 |
107 |
107 |
108 |
106 |
|||||||||||||||||
Income taxes, depreciation and amortization in discontinued operations |
1 |
- |
(70) |
(9) |
(8) |
38 |
(2) |
(17) |
(7) |
(1) |
7 |
(4) |
3 |
(1) |
1 |
(1) |
(1) |
|||||||||||||||||
EBITDA |
30 |
874 |
107 |
147 |
(55) |
331 |
257 |
167 |
239 |
323 |
204 |
273 |
390 |
352 |
341 |
104 |
112 |
|||||||||||||||||
Loss on accounts receivable securitization programs |
4 |
6 |
3 |
10 |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
|||||||||||||||||
Acquisition expenses |
1 |
- |
8 |
(9) |
- |
1 |
1 |
1 |
1 |
3 |
1 |
- |
- |
1 |
1 |
3 |
3 |
|||||||||||||||||
(Gain) loss on initial consolidation of subsidiaries |
- |
- |
- |
- |
- |
- |
- |
- |
- |
(12) |
- |
- |
- |
- |
4 |
- |
- |
|||||||||||||||||
EBITDA from discontinued operations |
3 |
2 |
64 |
28 |
21 |
(100) |
3 |
23 |
21 |
2 |
(17) |
- |
1 |
3 |
- |
1 |
3 |
|||||||||||||||||
Gain on disposition of businesses/assets |
- |
- |
(1) |
- |
- |
- |
- |
- |
- |
(3) |
(3) |
(34) |
- |
- |
- |
(3) |
- |
|||||||||||||||||
Loss on early extinguishment of debt |
- |
- |
21 |
- |
155 |
7 |
7 |
14 |
3 |
- |
2 |
2 |
1 |
- |
1 |
78 |
35 |
|||||||||||||||||
Extraordinary (gain) loss on the acquisition of a business |
- |
- |
- |
(6) |
- |
- |
- |
1 |
(1) |
(1) |
- |
(2) |
- |
- |
(1) |
(1) |
- |
|||||||||||||||||
Certain legal settlements and related expense |
- |
- |
- |
- |
- |
- |
- |
8 |
34 |
- |
4 |
8 |
1 |
- |
4 |
6 |
2 |
|||||||||||||||||
Expenses (income) associated with the terminated merger and related litigation |
7 |
(844) |
2 |
- |
- |
1 |
3 |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
|||||||||||||||||
Amortization of pension and postretirement actuarial losses |
9 |
8 |
7 |
8 |
6 |
5 |
6 |
8 |
7 |
7 |
9 |
8 |
10 |
11 |
10 |
12 |
19 |
|||||||||||||||||
Restructuring, impairment and plant closing and transition costs (credits) |
14 |
62 |
7 |
5 |
3 |
17 |
4 |
5 |
7 |
9 |
155 |
(4) |
4 |
9 |
51 |
45 |
46 |
|||||||||||||||||
Adjusted EBITDA |
68 |
108 |
218 |
183 |
130 |
262 |
281 |
227 |
311 |
328 |
355 |
251 |
407 |
376 |
411 |
245 |
220 |
|||||||||||||||||
$ in millions |
2005 |
2006 |
2007 |
2008 |
2009 |
2010 |
2011 |
2012 |
1Q13 LTM |
|||||||||||||||||||||||||
Net (loss) income attributable to Huntsman Corporation |
$ (35) |
$ 230 |
$ (172) |
$ 609 |
$ 114 |
$ 27 |
$ 247 |
$ 363 |
$ 176 |
|||||||||||||||||||||||||
Interest expense, net |
425 |
349 |
285 |
262 |
238 |
229 |
249 |
226 |
218 |
|||||||||||||||||||||||||
Income tax (benefit) expense |
(70) |
(50) |
(13) |
190 |
444 |
29 |
109 |
169 |
89 |
|||||||||||||||||||||||||
Depreciation and amortization |
372 |
361 |
379 |
396 |
440 |
404 |
439 |
427 |
428 |
|||||||||||||||||||||||||
Income taxes, depreciation and amortization in discontinued operations |
221 |
141 |
(104) |
72 |
(78) |
11 |
(5) |
2 |
(2) |
|||||||||||||||||||||||||
EBITDA |
913 |
1,031 |
375 |
1,529 |
1,158 |
700 |
1,039 |
1,187 |
909 |
|||||||||||||||||||||||||
Loss on accounts receivable securitization programs |
9 |
13 |
21 |
27 |
23 |
- |
- |
- |
- |
|||||||||||||||||||||||||
Acquisition expenses |
- |
- |
- |
- |
- |
3 |
5 |
5 |
8 |
|||||||||||||||||||||||||
Cumulative effect of change in accounting principle |
31 |
- |
- |
- |
- |
- |
- |
- |
- |
|||||||||||||||||||||||||
(Gain) loss on initial consolidation of subsidiaries |
- |
- |
- |
- |
- |
- |
(12) |
4 |
4 |
|||||||||||||||||||||||||
EBITDA from discontinued operations |
(274) |
4 |
339 |
(156) |
97 |
(53) |
6 |
5 |
7 |
|||||||||||||||||||||||||
Gain on disposition of businesses/assets |
- |
(92) |
(69) |
(1) |
(1) |
- |
(40) |
(3) |
(3) |
|||||||||||||||||||||||||
Loss on early extinguishment of debt |
323 |
27 |
2 |
1 |
21 |
183 |
7 |
80 |
114 |
|||||||||||||||||||||||||
Extraordinary (gain) loss on the acquisition of a business |
- |
(56) |
7 |
(14) |
(6) |
1 |
(4) |
(2) |
(2) |
|||||||||||||||||||||||||
Certain legal settlements and related expense |
- |
(9) |
6 |
- |
- |
8 |
46 |
11 |
12 |
|||||||||||||||||||||||||
Expenses (income) associated with the terminated merger and related litigation |
- |
- |
210 |
(780) |
(835) |
4 |
- |
- |
- |
|||||||||||||||||||||||||
Amortization of pension and postretirement actuarial losses |
30 |
17 |
16 |
8 |
32 |
25 |
31 |
43 |
52 |
|||||||||||||||||||||||||
Restructuring, impairment and plant closing and transition costs |
58 |
8 |
29 |
31 |
88 |
29 |
167 |
109 |
151 |
|||||||||||||||||||||||||
Adjusted EBITDA |
1,090 |
942 |
936 |
645 |
577 |
900 |
1,245 |
1,439 |
1,252 |
|||||||||||||||||||||||||
Acquisition - Textile Effects |
88 |
45 |
- |
- |
- |
- |
- |
- |
- |
|||||||||||||||||||||||||
Sale of C4 business |
(36) |
(9) |
- |
- |
- |
- |
- |
- |
- |
|||||||||||||||||||||||||
Proforma Adjusted EBITDA |
$ 1,142 |
$ 978 |
$ 936 |
$ 645 |
$ 577 |
$ 900 |
$ 1,245 |
$ 1,439 |
$ 1,252 |
|||||||||||||||||||||||||
Table 10 – Adjusted EBITDA by Segment |
||||||||||||||||||||||||||||||||||
$ in millions |
||||||||||||||||||||||||||||||||||
Segment Adjusted EBITDA(1): |
1Q09 |
2Q09 |
3Q09 |
4Q09 |
1Q10 |
2Q10 |
3Q10 |
4Q10 |
1Q11 |
2Q11 |
3Q11 |
4Q11 |
1Q12 |
2Q12 |
3Q12 |
4Q12 |
1Q13 |
|||||||||||||||||
Polyurethanes |
$ 36 |
$ 90 |
$ 140 |
$ 137 |
$ 56 |
$ 73 |
$ 103 |
$ 101 |
$ 118 |
$ 146 |
$ 144 |
$ 82 |
$ 181 |
$ 174 |
$ 243 |
$ 190 |
$ 178 |
|||||||||||||||||
Performance Products |
64 |
33 |
85 |
68 |
61 |
116 |
103 |
91 |
117 |
103 |
98 |
63 |
92 |
87 |
109 |
81 |
54 |
|||||||||||||||||
Advanced Materials |
11 |
15 |
27 |
22 |
32 |
51 |
43 |
18 |
39 |
32 |
26 |
17 |
33 |
26 |
31 |
8 |
27 |
|||||||||||||||||
Textile Effects |
(10) |
(10) |
(20) |
(12) |
(1) |
9 |
7 |
1 |
(7) |
(7) |
(28) |
(22) |
(8) |
(4) |
(9) |
1 |
(3) |
|||||||||||||||||
Pigments |
(14) |
7 |
17 |
26 |
31 |
51 |
68 |
72 |
89 |
117 |
164 |
147 |
150 |
136 |
75 |
14 |
9 |
|||||||||||||||||
Corporate, LIFO and other |
(19) |
(27) |
(31) |
(58) |
(49) |
(38) |
(43) |
(56) |
(45) |
(63) |
(49) |
(36) |
(41) |
(43) |
(38) |
(49) |
(45) |
|||||||||||||||||
Adjusted EBITDA |
$ 68 |
$ 108 |
$ 218 |
$ 183 |
$ 130 |
$ 262 |
$ 281 |
$ 227 |
$ 311 |
$ 328 |
$ 355 |
$ 251 |
$ 407 |
$ 376 |
$ 411 |
$ 245 |
$ 220 |
|||||||||||||||||
$ in millions |
Proforma(2) |
Proforma(2) |
||||||||||||||||||||||||||||||||
Segment Adjusted EBITDA(1): |
2005 |
2006 |
2007 |
2008 |
2009 |
2010 |
2011 |
2012 |
1Q13 LTM |
|||||||||||||||||||||||||
Polyurethanes |
$ 743 |
$ 580 |
$ 609 |
$ 385 |
$ 403 |
$ 333 |
$ 490 |
$ 788 |
$ 785 |
|||||||||||||||||||||||||
Performance Products |
196 |
215 |
217 |
278 |
250 |
371 |
381 |
369 |
331 |
|||||||||||||||||||||||||
Advanced Materials |
154 |
146 |
160 |
150 |
75 |
144 |
114 |
98 |
92 |
|||||||||||||||||||||||||
Textile Effects |
88 |
56 |
65 |
(6) |
(52) |
16 |
(64) |
(20) |
(15) |
|||||||||||||||||||||||||
Pigments |
155 |
125 |
64 |
21 |
36 |
222 |
517 |
375 |
234 |
|||||||||||||||||||||||||
Corporate, LIFO and other |
(194) |
(144) |
(179) |
(183) |
(135) |
(186) |
(193) |
(171) |
(175) |
|||||||||||||||||||||||||
Adjusted EBITDA |
$ 1,142 |
$ 978 |
$ 936 |
$ 645 |
$ 577 |
$ 900 |
$ 1,245 |
$ 1,439 |
$ 1,252 |
|||||||||||||||||||||||||
(1) For a reconciliation see table 9. |
||||||||||||||||||||||||||||||||||
(2) Proforma as if Huntsman had acquired its interest in Textile Effects as of January 1, 2005; excludes C4 business sold in 2006. |
Footnotes |
|
(1) |
We use EBITDA and adjusted EBITDA to measure the operating performance of our business. We provide adjusted net income because we feel it provides meaningful insight for the investment community into the performance of our business. We believe that net income (loss) attributable to Huntsman Corporation is the performance measure calculated and presented in accordance with generally accepted accounting principles in the U.S. ("GAAP") that is most directly comparable to EBITDA, adjusted EBITDA and adjusted net income. Additional information with respect to our use of each of these financial measures follows: |
EBITDA is defined as net income (loss) attributable to Huntsman Corporation before interest, income taxes, and depreciation and amortization. EBITDA as used herein is not necessarily comparable to other similarly titled measures of other companies. The reconciliation of EBITDA to net income (loss) attributable to Huntsman Corporation is set forth in Table 5 above. |
|
Adjusted EBITDA is computed by eliminating the following from EBITDA: acquisition expenses; loss (gain) on initial consolidation of subsidiaries; EBITDA from discontinued operations; loss (gain) on disposition of businesses/assets; loss on early extinguishment of debt; extraordinary loss (gain) on the acquisition of a business; certain legal settlements and related expenses; amortization of pension and postretirement actuarial losses (gains); and restructuring, impairment, plant closing and transition costs (credits). The reconciliation of adjusted EBITDA to EBITDA is set forth in Table 4 above. |
|
Adjusted net income (loss) is computed by eliminating the after tax impact of the following items from net income (loss) attributable to Huntsman Corporation: acquisition expenses; loss (gain) on initial consolidation of subsidiaries; loss (income) from discontinued operations; discount amortization on settlement financing associated with the terminated merger; loss (gain) on disposition of businesses/assets; loss on early extinguishment of debt; extraordinary loss (gain) on the acquisition of a business; certain legal settlements and related expenses; amortization of pension and postretirement actuarial losses (gains); and restructuring, impairment, plant closing and transition costs (credits). We do not adjust for changes in tax valuation allowances because we do not believe it provides more meaningful information than is provided under GAAP. The reconciliation of adjusted net income (loss) to net income (loss) attributable to Huntsman Corporation common stockholders is set forth in Table 4 above. |
|
(2) |
During the first quarter 2010 we closed our Australian styrenics operations; results from this business are treated as discontinued operations. |
About Huntsman:
Huntsman is a global manufacturer and marketer of differentiated chemicals. Our operating companies manufacture products for a variety of global industries, including chemicals, plastics, automotive, aviation, textiles, footwear, paints and coatings, construction, technology, agriculture, health care, detergent, personal care, furniture, appliances and packaging. Originally known for pioneering innovations in packaging and, later, for rapid and integrated growth in petrochemicals, Huntsman has approximately 12,000 employees and operates from multiple locations worldwide. The Company had 2012 revenues of over $11 billion. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Forward-Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
SOURCE Huntsman Corporation
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