Huntsman Releases Fourth Quarter and Full Year 2011 Results; Reports Record Full Year Adjusted EBITDA of $1.2 Billion
THE WOODLANDS, Texas, Feb. 16, 2012 /PRNewswire/ --
Fourth Quarter 2011 Highlights
- Revenues improved 9% compared to the prior year period.
- Net income attributable to Huntsman Corporation was $105 million or $0.44 per diluted share compared to $30 million or $0.12 per diluted share in the prior year period.
- Adjusted EBITDA improved 11% to $243 million compared to the prior year period.
- Adjusted diluted income per share improved 12% to $0.28 compared to the prior year period.
Full Year 2011 Highlights
- Revenues improved 21% compared to the prior year.
- Net income attributable to Huntsman Corporation was $247 million or $1.02 per diluted share compared to $27 million or $0.11 per diluted share in the prior year period.
- Adjusted EBITDA improved 39% to $1,214 million compared to the prior year.
- Adjusted diluted income per share improved 104% to $1.69 compared to the prior year.
Three months ended |
Year ended |
||||||||||
December 31, |
September 30, |
December 31, |
|||||||||
In millions, except per share amounts, unaudited |
2011 |
2010 |
2011 |
2011 |
2010 |
||||||
Revenues |
$ 2,632 |
$ 2,412 |
$ 2,976 |
$ 11,221 |
$ 9,250 |
||||||
Net income (loss) attributable to Huntsman Corporation |
$ 105 |
$ 30 |
$ (34) |
$ 247 |
$ 27 |
||||||
Adjusted net income(1) |
$ 68 |
$ 60 |
$ 114 |
$ 408 |
$ 200 |
||||||
Diluted income (loss) per share |
$ 0.44 |
$ 0.12 |
$ (0.14) |
$ 1.02 |
$ 0.11 |
||||||
Adjusted diluted income per share(1) |
$ 0.28 |
$ 0.25 |
$ 0.47 |
$ 1.69 |
$ 0.83 |
||||||
EBITDA(1) |
$ 273 |
$ 167 |
$ 204 |
$ 1,039 |
$ 700 |
||||||
Adjusted EBITDA(1) |
$ 243 |
$ 219 |
$ 346 |
$ 1,214 |
$ 875 |
||||||
See end of press release for footnote explanations |
|||||||||||
Huntsman Corporation (NYSE: HUN) today reported fourth quarter 2011 results with revenues of $2,632 million and adjusted EBITDA of $243 million.
Peter R. Huntsman, our President and CEO, commented:
"Our adjusted EBITDA of $1.2 billion represents the best year we have accomplished with our current business portfolio. This took place despite earnings pressure from foreign currency movements within the year and lower demand trends and aggressive customer destocking within the fourth quarter.
Looking forward, we anticipate that the corporation will see an improving global economy from this point forward. Most of our businesses have strong upside potential as we see a continued recovery in the world's economy. In 2012, we expect margin pressure on our Pigments business to be offset by improved earnings in our other divisions."
Segment Analysis for 4Q11 Compared to 4Q10
Polyurethanes
The increase in revenues in our Polyurethanes division for the three months ended December 31, 2011 compared to the same period in 2010 was primarily due to higher average selling prices. Average MDI and PO/MTBE selling prices increased primarily in response to higher raw material costs. The decrease in adjusted EBITDA was due to higher manufacturing and selling, general and administrative costs and lower MDI contribution margins.
Performance Products
The increase in revenues in our Performance Products division for the three months ended December 31, 2011 compared to the same period in 2010 was primarily due to higher average selling prices partially offset by lower sales volumes. Average selling prices increased across most product groups with the exception of certain amines primarily in response to higher raw material costs. Sales volumes decreased due to lower demand and customer destocking. The decrease in adjusted EBITDA was primarily due to lower sales volumes and higher manufacturing and selling, general and administrative costs.
Advanced Materials
The decrease in revenues in our Advanced Materials division for the three months ended December 31, 2011 compared to the same period in 2010 was primarily due to lower sales volumes partially offset by higher average selling prices. Sales volumes decreased primarily due to lower demand in the wind energy market in the Asia Pacific region. Average selling prices increased primarily in response to higher raw material costs. The decrease in adjusted EBITDA was primarily due to the impact of the stronger Swiss franc, on our manufacturing and selling, general and administrative costs.
Textile Effects
The decrease in revenues in our Textile Effects division for the three months ended December 31, 2011 compared to the same period in 2010 was primarily due to lower sales volumes. Sales volumes decreased due to lower demand. The decrease in adjusted EBITDA was primarily due to lower sales volumes and the impact of the stronger Swiss franc, on our manufacturing and selling, general and administrative costs.
Pigments
The increase in revenues in our Pigments division for the three months ended December 31, 2011 compared to the same period in 2010 was due to higher average selling prices partially offset by lower sales volumes. Average selling prices increased in all regions of the world primarily as a result of higher raw material costs. Sales volumes decreased primarily due to lower global economic growth and customer destocking particularly in the Asia Pacific region. The increase in adjusted EBITDA in our Pigments division was primarily due to higher contribution margins partially offset by lower sales volumes.
Corporate, LIFO and Other
Corporate, LIFO and other includes unallocated corporate overhead, LIFO inventory valuation reserve adjustments and unallocated foreign exchange gains and losses. During the fourth quarter of 2011, we began including unallocated foreign exchange gains and losses in adjusted EBITDA and adjusted income (loss) per share. We believe this more accurately reflects the ongoing cost of operating a global business. All relevant information for prior periods has been recast to reflect these changes. Adjusted EBITDA from Corporate, LIFO and other increased by $22 million to a loss of $34 million for the three months ended December 31, 2011 compared to a loss of $56 million for the same period in 2010. The increase in adjusted EBITDA was primarily the result of a $13 million decrease in LIFO inventory valuation expense ($6 million gain in 2011 compared to $7 million loss in 2010) and an increase in unallocated foreign exchange gains of $4 million ($5 million gain in 2011 compared to $1 million gain in 2010).
Income Taxes
During the three months and full year ended December 31, 2011 we recorded income tax benefit of $2 million and income tax expense of $109 million respectively. Our adjusted effective income tax rate for the three months and full year ended December 31, 2011 was approximately 12% and 26% respectively. We have tax valuation allowances in certain countries. Improved earnings from our Pigments business generated a partial release of tax valuation allowances in the fourth quarter 2011 which had the effect of decreasing our effective income tax rate and resulted in an approximate benefit of $0.04 per diluted share. We expect our long term effective income tax rate to be approximately 30 - 35%. During the three months and full year ended December 31, 2011 we paid $35 million and $119 million in cash for income taxes respectively.
Liquidity, Capital Resources and Outstanding Debt
As of December 31, 2011, we had $1,043 million of combined cash and unused borrowing capacity compared to $1,434 million at December 31, 2010. In 2011, our primary net working capital increased by $258 million. For the year ended December 31, 2011, we redeemed approximately $305 million of senior subordinated notes, including all of our remaining 6.875% senior subordinated euro notes due 2013 worth approximately $94 million which were redeemed during the fourth quarter of 2011.
Total capital expenditures, net of reimbursements for the three months and full year ended December 31, 2011 were $113 million and $327 million respectively. We expect to spend approximately $425 million on capital expenditures, net of reimbursements, in 2012 which approximates our annual depreciation and amortization of $439 million in 2011.
Conference Call Information
We will hold a conference call to discuss our fourth quarter and full year 2011 financial results on Thursday February 16, 2012 at 10:00 a.m. ET.
Call-in numbers for the conference call: |
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U.S. participants |
(888) 713 - 4213 |
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International participants |
(617) 213 - 4865 |
|
Passcode |
46407990 |
|
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=PRVR4F6KC
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 February 16, 2012 and ending February 23, 2012.
Call-in numbers for the replay: |
||
U.S. participants |
(888) 286 - 8010 |
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International participants |
(617) 801 - 6888 |
|
Replay code |
36963242 |
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Table 1 -- Results of Operations |
|||||||||
Three months ended |
Year ended |
||||||||
December 31, |
December 31, |
||||||||
In millions, except per share amounts, unaudited |
2011 |
2010 |
2011 |
2010 |
|||||
Revenues |
$ 2,632 |
$ 2,412 |
$ 11,221 |
$ 9,250 |
|||||
Cost of goods sold |
2,243 |
2,032 |
9,381 |
7,789 |
|||||
Gross profit |
389 |
380 |
1,840 |
1,461 |
|||||
Operating expenses |
246 |
281 |
1,067 |
1,022 |
|||||
Restructuring, impairment and plant closing (credits) costs |
(4) |
5 |
167 |
29 |
|||||
Operating income |
147 |
94 |
606 |
410 |
|||||
Interest expense, net |
(62) |
(61) |
(249) |
(229) |
|||||
Equity in income of investment in unconsolidated affiliates |
2 |
4 |
8 |
24 |
|||||
Loss on early extinguishment of debt |
(2) |
(14) |
(7) |
(183) |
|||||
Expenses associated with the terminated merger and related litigation |
- |
- |
- |
(4) |
|||||
Other income (loss) |
2 |
(1) |
2 |
2 |
|||||
Income before income taxes |
87 |
22 |
360 |
20 |
|||||
Income tax benefit (expense) |
2 |
17 |
(109) |
(29) |
|||||
Income (loss) from continuing operations |
89 |
39 |
251 |
(9) |
|||||
Income (loss) from discontinued operations, net of tax(2) |
4 |
(6) |
(1) |
42 |
|||||
Extraordinary gain (loss) on the acquisition of a business, net of tax of nil |
2 |
(1) |
4 |
(1) |
|||||
Net income |
95 |
32 |
254 |
32 |
|||||
Net loss (income) attributable to noncontrolling interests, net of tax |
10 |
(2) |
(7) |
(5) |
|||||
Net income attributable to Huntsman Corporation |
$ 105 |
$ 30 |
$ 247 |
$ 27 |
|||||
Adjusted EBITDA(1) |
$ 243 |
$ 219 |
$ 1,214 |
$ 875 |
|||||
Adjusted net income(1) |
$ 68 |
$ 60 |
$ 408 |
$ 200 |
|||||
Basic income per share |
$ 0.45 |
$ 0.13 |
$ 1.04 |
$ 0.11 |
|||||
Diluted income per share |
$ 0.44 |
$ 0.12 |
$ 1.02 |
$ 0.11 |
|||||
Adjusted diluted income per share(1) |
$ 0.28 |
$ 0.25 |
$ 1.69 |
$ 0.83 |
|||||
Common share information: |
|||||||||
Basic shares outstanding |
235.7 |
236.6 |
237.6 |
236.0 |
|||||
Diluted shares |
239.5 |
242.1 |
241.7 |
236.0 |
|||||
Diluted shares for adjusted diluted income per share |
239.5 |
242.1 |
241.7 |
241.0 |
|||||
See end of press release for footnote explanations |
|||||||||
Table 2 -- Results of Operations by Segment |
|||||||||||||
Three months ended |
Year ended |
||||||||||||
December 31, |
December 31, |
||||||||||||
In millions, unaudited |
2011 |
2010 |
Change |
2011 |
2010 |
Change |
|||||||
Segment Revenues: |
|||||||||||||
Polyurethanes |
$ 1,043 |
$ 946 |
10% |
$ 4,434 |
$ 3,605 |
23% |
|||||||
Performance Products |
755 |
696 |
8% |
3,301 |
2,659 |
24% |
|||||||
Advanced Materials |
313 |
315 |
(1)% |
1,372 |
1,244 |
10% |
|||||||
Textile Effects |
174 |
189 |
(8)% |
737 |
787 |
(6)% |
|||||||
Pigments |
399 |
330 |
21% |
1,642 |
1,213 |
35% |
|||||||
Eliminations and other |
(52) |
(64) |
(19)% |
(265) |
(258) |
3% |
|||||||
Total |
$ 2,632 |
$ 2,412 |
9% |
$ 11,221 |
$ 9,250 |
21% |
|||||||
Segment Adjusted EBITDA(1): |
|||||||||||||
Polyurethanes |
$ 79 |
$ 99 |
(20)% |
$ 476 |
$ 320 |
49% |
|||||||
Performance Products |
60 |
89 |
(33)% |
374 |
367 |
2% |
|||||||
Advanced Materials |
15 |
17 |
(12)% |
111 |
141 |
(21)% |
|||||||
Textile Effects |
(22) |
(1) |
NM |
(64) |
15 |
NM |
|||||||
Pigments |
145 |
71 |
104% |
508 |
215 |
136% |
|||||||
Corporate, LIFO and other |
(34) |
(56) |
(39)% |
(191) |
(183) |
4% |
|||||||
Total |
$ 243 |
$ 219 |
11% |
$ 1,214 |
$ 875 |
39% |
|||||||
See end of press release for footnote explanations |
NM - Not meaningful |
||||||||||||
Table 3 -- Factors Impacting Sales Revenue |
|||||||||||
Three months ended |
|||||||||||
December 31, 2011 vs. 2010 |
|||||||||||
Average Selling Price(a) |
|||||||||||
Local |
Exchange |
Sales Mix |
Sales |
||||||||
Unaudited |
Currency |
Rate |
& Other |
Volume(a) |
Total |
||||||
Polyurethanes |
11% |
- |
(1)% |
- |
10% |
||||||
Performance Products |
17% |
- |
(3)% |
(6)% |
8% |
||||||
Advanced Materials |
3% |
- |
(2)% |
(2)% |
(1)% |
||||||
Textile Effects |
- |
- |
(1)% |
(7)% |
(8)% |
||||||
Pigments |
38% |
- |
1% |
(18)% |
21% |
||||||
Total Company |
12% |
- |
1% |
(4)% |
9% |
||||||
Year ended |
|||||||||||
December 31, 2011 vs. 2010 |
|||||||||||
Average Selling Price(a) |
|||||||||||
Local |
Exchange |
Sales Mix |
Sales |
||||||||
Unaudited |
Currency |
Rate |
& Other |
Volume(a) |
Total |
||||||
Polyurethanes |
16% |
2% |
(3)% |
8% |
23% |
||||||
Performance Products |
20% |
2% |
(1)% |
3% |
24% |
||||||
Advanced Materials |
7% |
3% |
- |
- |
10% |
||||||
Textile Effects |
- |
3% |
- |
(9)% |
(6)% |
||||||
Pigments |
34% |
4% |
(1)% |
(2)% |
35% |
||||||
Total Company |
16% |
3% |
(3)% |
5% |
21% |
||||||
(a) Excludes revenues and sales volumes from tolling, 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 |
||||||||||||||
December 31, |
December 31, |
December 31, |
December 31, |
||||||||||||||
In millions, except per share amounts, unaudited |
2011 |
2010 |
2011 |
2010 |
2011 |
2010 |
2011 |
2010 |
|||||||||
GAAP(1) |
$ 273 |
$ 167 |
$ 2 |
$ 17 |
$ 105 |
$ 30 |
$ 0.44 |
$ 0.12 |
|||||||||
Adjustments: |
|||||||||||||||||
Legal settlements and related expenses |
8 |
8 |
(3) |
(3) |
5 |
5 |
0.02 |
0.02 |
|||||||||
Loss on early extinguishment of debt |
2 |
14 |
(1) |
(5) |
1 |
9 |
- |
0.04 |
|||||||||
Restructuring, impairment and plant closing (credits) costs |
(4) |
5 |
(7) |
(1) |
(11) |
4 |
(0.05) |
0.02 |
|||||||||
Discount amortization on settlement financing associated with the terminated merger |
N/A |
N/A |
(2) |
(3) |
5 |
4 |
0.02 |
0.02 |
|||||||||
Acquisition expenses |
- |
1 |
- |
- |
- |
1 |
- |
- |
|||||||||
Gain on disposition of businesses/assets |
(34) |
- |
3 |
- |
(31) |
- |
(0.13) |
- |
|||||||||
Loss (income) from discontinued operations, net of tax(2) |
- |
23 |
N/A |
N/A |
(4) |
6 |
(0.02) |
0.02 |
|||||||||
Extraordinary (gain) loss on the acquisition of a business, net of tax |
(2) |
1 |
N/A |
N/A |
(2) |
1 |
(0.01) |
- |
|||||||||
Adjusted(1) |
$ 243 |
$ 219 |
$ (8) |
$ 5 |
$ 68 |
$ 60 |
$ 0.28 |
$ 0.25 |
|||||||||
Adjusted income tax expense (benefit) |
8 |
(5) |
|||||||||||||||
Net (loss) income attributable to noncontrolling interests, net of tax |
(10) |
2 |
|||||||||||||||
Adjusted pre-tax income(1) |
$ 66 |
$ 57 |
|||||||||||||||
Adjusted effective tax rate |
12% |
-9% |
|||||||||||||||
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 |
||||||||||||||
September 30, |
September 30, |
September 30, |
September 30, |
||||||||||||||
In millions, except per share amounts, unaudited |
2011 |
2011 |
2011 |
2011 |
|||||||||||||
GAAP(1) |
$ 204 |
$ (55) |
$ (34) |
$ (0.14) |
|||||||||||||
Adjustments: |
|||||||||||||||||
Legal settlements and related expenses |
4 |
(1) |
3 |
0.01 |
|||||||||||||
Loss on early extinguishment of debt |
2 |
(1) |
1 |
- |
|||||||||||||
Restructuring, impairment and plant closing costs |
155 |
(3) |
152 |
0.63 |
|||||||||||||
Discount amortization on settlement financing associated with the terminated merger |
N/A |
(3) |
4 |
0.02 |
|||||||||||||
Acquisition expenses |
1 |
- |
1 |
- |
|||||||||||||
Gain on disposition of businesses/assets |
(3) |
- |
(3) |
(0.01) |
|||||||||||||
Income from discontinued operations, net of tax(2) |
(17) |
N/A |
(10) |
(0.04) |
|||||||||||||
Adjusted(1) |
$ 346 |
$ (63) |
$ 114 |
$ 0.47 |
|||||||||||||
Adjusted income tax expense |
63 |
||||||||||||||||
Net income attributable to noncontrolling interests, net of tax |
2 |
||||||||||||||||
Adjusted pre-tax income(1) |
$ 179 |
||||||||||||||||
Adjusted effective tax rate |
35% |
||||||||||||||||
Income Tax |
Net Income (Loss) |
Diluted Income (Loss) |
|||||||||||||||
EBITDA |
(Expense) Benefit |
Attrib. to HUN Corp. |
Per Share |
||||||||||||||
Year ended |
Year ended |
Year ended |
Year ended |
||||||||||||||
December 31, |
December 31, |
December 31, |
December 31, |
||||||||||||||
In millions, except per share amounts, unaudited |
2011 |
2010 |
2011 |
2010 |
2011 |
2010 |
2011 |
2010 |
|||||||||
GAAP(1) |
$ 1,039 |
$ 700 |
$ (109) |
$ (29) |
$ 247 |
$ 27 |
$ 1.02 |
$ 0.11 |
|||||||||
Adjustments: |
|||||||||||||||||
Legal settlements and related expenses |
46 |
8 |
(17) |
(3) |
29 |
5 |
0.12 |
0.02 |
|||||||||
Loss on early extinguishment of debt |
7 |
183 |
(3) |
(22) |
4 |
161 |
0.02 |
0.67 |
|||||||||
Gain on consolidation of a variable interest entity |
(12) |
- |
2 |
- |
(10) |
- |
(0.04) |
- |
|||||||||
Restructuring, impairment and plant closing costs |
167 |
29 |
(11) |
(2) |
156 |
27 |
0.65 |
0.11 |
|||||||||
Expenses associated with the terminated merger and related litigation |
- |
4 |
- |
(1) |
- |
3 |
- |
0.01 |
|||||||||
Discount amortization on settlement financing associated with the terminated merger |
N/A |
N/A |
(10) |
(10) |
18 |
16 |
0.07 |
0.07 |
|||||||||
Acquisition expenses |
5 |
3 |
(1) |
(1) |
4 |
2 |
0.02 |
0.01 |
|||||||||
Gain on disposition of businesses/assets |
(40) |
- |
3 |
- |
(37) |
- |
(0.15) |
- |
|||||||||
Loss (income) from discontinued operations, net of tax(2) |
6 |
(53) |
N/A |
N/A |
1 |
(42) |
- |
(0.17) |
|||||||||
Extraordinary (gain) loss on the acquisition of a business, net of tax |
(4) |
1 |
N/A |
N/A |
(4) |
1 |
(0.02) |
- |
|||||||||
Adjusted(1) |
$ 1,214 |
$ 875 |
$ (146) |
$ (68) |
$ 408 |
$ 200 |
$ 1.69 |
$ 0.83 |
|||||||||
Adjusted income tax expense |
146 |
68 |
|||||||||||||||
Net income attributable to noncontrolling interests, net of tax |
7 |
5 |
|||||||||||||||
Adjusted pre-tax income(1) |
$ 561 |
$ 273 |
|||||||||||||||
Adjusted effective tax rate |
26% |
25% |
|||||||||||||||
See end of press release for footnote explanations |
|||||||||||||||||
Table 5 -- Reconciliation of Net Income (Loss) to EBITDA |
|||||||||||
Three months ended |
Year ended |
||||||||||
December 31, |
September 30, |
December 31, |
|||||||||
In millions, unaudited |
2011 |
2010 |
2011 |
2011 |
2010 |
||||||
Net income (loss) attributable to Huntsman Corporation |
$ 105 |
$ 30 |
$ (34) |
$ 247 |
$ 27 |
||||||
Interest expense, net |
62 |
61 |
63 |
249 |
229 |
||||||
Income tax (benefit) expense from continuing operations |
(2) |
(17) |
55 |
109 |
29 |
||||||
Income tax (benefit) expense from discontinued operations(2) |
(4) |
(17) |
7 |
(5) |
10 |
||||||
Depreciation and amortization of continuing operations |
112 |
110 |
113 |
439 |
404 |
||||||
Depreciation and amortization of discontinued operations(2) |
- |
- |
- |
- |
1 |
||||||
EBITDA(1) |
$ 273 |
$ 167 |
$ 204 |
$ 1,039 |
$ 700 |
||||||
See end of press release for footnote explanations |
|||||||||||
Table 6 -- Selected Balance Sheet Items |
|||||||
December 31, |
September 30, |
December 31, |
|||||
In millions |
2011 |
2011 |
2010 |
||||
(unaudited) |
|||||||
Cash |
$ 562 |
$ 459 |
$ 973 |
||||
Accounts and notes receivable, net |
1,529 |
1,762 |
1,413 |
||||
Inventories |
1,539 |
1,687 |
1,396 |
||||
Other current assets |
316 |
366 |
226 |
||||
Property, plant and equipment, net |
3,622 |
3,659 |
3,605 |
||||
Other assets |
1,089 |
1,075 |
1,101 |
||||
Total assets |
$ 8,657 |
$ 9,008 |
$ 8,714 |
||||
Accounts payable |
$ 862 |
$ 941 |
$ 842 |
||||
Other current liabilities |
752 |
787 |
692 |
||||
Current portion of debt |
212 |
230 |
519 |
||||
Long-term debt |
3,730 |
3,847 |
3,627 |
||||
Other liabilities |
1,325 |
1,269 |
1,184 |
||||
Total equity |
1,776 |
1,934 |
1,850 |
||||
Total liabilities and equity |
$ 8,657 |
$ 9,008 |
$ 8,714 |
||||
Table 7 -- Outstanding Debt |
|||||||
December 31, |
September 30, |
December 31, |
|||||
In millions |
2011 |
2011 |
2010 |
||||
(unaudited) |
|||||||
Debt: |
|||||||
Senior credit facilities |
$ 1,696 |
$ 1,694 |
$ 1,688 |
||||
Accounts receivable programs |
237 |
245 |
238 |
||||
Senior notes |
472 |
467 |
452 |
||||
Senior Subordinated notes |
976 |
1,076 |
1,279 |
||||
Variable interest entities |
281 |
306 |
200 |
||||
Other debt |
280 |
289 |
289 |
||||
Total debt - excluding affiliates |
3,942 |
4,077 |
4,146 |
||||
Total cash |
562 |
459 |
973 |
||||
Net debt- excluding affiliates |
$ 3,380 |
$ 3,618 |
$ 3,173 |
||||
Table 8 -- Summarized Statement of Cash Flows |
|||||||
Three months ended |
Year ended |
||||||
December 31, |
December 31, |
||||||
In millions, unaudited |
2011 |
2011 |
2010 |
||||
Total cash at beginning of period |
$ 459 |
$ 973 |
$ 1,750 |
||||
Net cash provided by (used in) operating activities |
340 |
365 |
(58) |
||||
Net cash used in investing activities |
(80) |
(280) |
(182) |
||||
Net cash used in financing activities |
(155) |
(490) |
(543) |
||||
Effect of exchange rate changes on cash |
(4) |
(7) |
4 |
||||
Change in restricted cash |
2 |
1 |
2 |
||||
Total cash at end of period |
$ 562 |
$ 562 |
$ 973 |
||||
Supplemental cash flow information: |
|||||||
Cash paid for interest |
$ (26) |
$ (204) |
$ (203) |
||||
Cash paid for income taxes |
$ (35) |
$ (119) |
$ (6) |
||||
Cash paid for capital expenditures |
$ (113) |
$ (330) |
$ (236) |
||||
Depreciation & amortization |
$ 112 |
$ 439 |
$ 405 |
||||
Changes in primary working capital: |
|||||||
Accounts and notes receivable |
$ 193 |
$ (121) |
$ (183) |
||||
Inventories |
112 |
(161) |
(207) |
||||
Accounts payable |
(57) |
24 |
83 |
||||
Total |
$ 248 |
$ (258) |
$ (307) |
||||
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. |
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Adjusted EBITDA is computed by eliminating the following from EBITDA: EBITDA from discontinued operations; restructuring, impairment and plant closing (credits) costs; income and expense associated with the terminated merger and related litigation; acquisition related expenses; certain legal and contract settlements; losses on the early extinguishment of debt; gain on consolidation of a variable interest entity; extraordinary (gain) loss on the acquisition of a business; and loss (gain) on disposition of business/assets. The reconciliation of adjusted EBITDA to EBITDA is set forth in Table 4 above. |
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Adjusted net income (loss) is computed by eliminating the after tax impact of the following items from net income (loss) attributable to Huntsman Corporation: loss (income) from discontinued operations; restructuring, impairment and plant closing (credits) costs; income and expense associated with the terminated merger and related litigation; discount amortization on settlement financing associated with the terminated merger; acquisition related expenses; certain legal and contract settlements; losses on the early extinguishment of debt; gain on consolidation of a variable interest entity; extraordinary (gain) loss on the acquisition of a business; and loss (gain) on disposition of business/assets. 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. |
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Starting in the fourth quarter of 2011, we no longer exclude unallocated foreign exchange gains and losses in adjusted EBITDA and adjusted income (loss) per share. We believe this more accurately reflects the ongoing cost of operating a global business. All relevant information for prior periods has been recast to reflect these changes. |
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(2) |
On November 5, 2007, we completed the sale of our U.S. base chemicals business to Flint Hills Resources. During the first quarter 2010 we closed our Australian styrenics operations. Results from these businesses 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 2011 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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