- Q1'24 net sales of $469.8
million, net income of $35.2
million and earnings per diluted share of $1.95
- Q1'24 non-GAAP net income of $37.7
million and non-GAAP earnings per diluted share of
$2.09
- Delivered adjusted EBITDA of $83.3
million in Q1'24, a 6% increase compared to $78.8 million in Q1'23
- Gross margins improved 400 basis points compared to the prior
year, the 7th consecutive quarterly year-over-year increase
- Generated $27.2 million of
operating cash flow in Q1'24
CONSHOHOCKEN, Pa., May 2, 2024 /PRNewswire/ -- Quaker Houghton ("the
Company") (NYSE: KWR), the global leader in industrial process
fluids, announced its first quarter 2024 results today.
|
Three Months
Ended
March 31,
|
($ in thousands,
except per share data)
|
2024
|
|
2023
|
Net sales
|
$
469,759
|
|
$
500,148
|
Net income attributable
to Quaker Chemical Corporation
|
35,227
|
|
29,534
|
Net income attributable
to Quaker Chemical Corporation common shareholders –
diluted
|
1.95
|
|
1.64
|
Non-GAAP net income
*
|
37,673
|
|
33,992
|
Non-GAAP Earnings per
diluted share *
|
2.09
|
|
1.89
|
Adjusted EBITDA
*
|
83,282
|
|
78,791
|
|
* Refer to the Non-GAAP Measures
and Reconciliations section below for additional
information
|
First Quarter 2024 Consolidated Results
Net sales in the first quarter of 2024 were $469.8 million, a decline of approximately 6%
compared to $500.1 million in the
first quarter of 2023. This result was primarily due to a
decrease in selling price and product mix of approximately 5%, and
a decline in sales volumes of approximately 1%. The decrease
in selling price and product mix was primarily attributable to
our index-based customer contracts. The decline in sales
volumes was primarily attributable to a continuation of softer end
market conditions that persisted throughout 2023 and have continued
into the current year and partially offset by an improvement in
volumes in the Asia/Pacific
segment and new business wins across all segments.
The Company reported net income in the first quarter of 2024 of
$35.2 million, or $1.95 per diluted share, compared to net income
of $29.5 million, or $1.64 per diluted share, in the first quarter of
2023. Excluding non-recurring and non-core items in each
period, the Company's non-GAAP net income and earnings per diluted
share were $37.7 million and
$2.09 respectively in the first
quarter of 2024 compared to $34.0
million and $1.89 respectively
in the prior year quarter. The Company generated adjusted
EBITDA of $83.3 million in the first
quarter of 2024, an increase of 6% compared to $78.8 million in the first quarter of 2023,
primarily driven by an improvement in gross margins in all segments
compared to the prior year.
Andy Tometich, Chief Executive
Officer and President, commented, "Quaker Houghton started 2024
with strong results delivering another quarter of earnings growth
and solid cash flow generation. Our results reflect our
ongoing ability to generate value for customers through our
differentiated portfolio of services and solutions as well as the
continued execution on our financial and operational
priorities."
"While the global macroeconomic environment remains dynamic, we
are well positioned and committed to delivering volume and earnings
growth in 2024. We are confident in our enterprise
strategy. The investments we are making are expected to
enhance our team's ability to outperform our end markets.
Additionally, our balance sheet and cash flow generation
capabilities remain strong and provide opportunities to accelerate
our profitable growth initiatives and create long-term shareholder
value."
First Quarter 2024 Segment Results
The Company's first quarter 2024 operating performance for each
of its three reportable segments: (i) Americas; (ii) EMEA; and
(iii) Asia/Pacific, is further
described below.
|
Three Months
Ended
March 31,
|
|
2024
|
|
2023
|
Net Sales
*
|
|
|
|
Americas
|
$
229,754
|
|
$
251,413
|
EMEA
|
138,422
|
|
152,449
|
Asia/Pacific
|
101,583
|
|
96,286
|
Total net
sales
|
$
469,759
|
|
$
500,148
|
Segment operating
earnings *
|
|
|
|
Americas
|
$
66,770
|
|
$
66,125
|
EMEA
|
29,571
|
|
27,571
|
Asia/Pacific
|
30,377
|
|
27,652
|
Total segment
operating earnings
|
$
126,718
|
|
$
121,348
|
|
* Refer to the Segment Measures
and Reconciliations section below for additional
information
|
Net sales in the Americas and EMEA segments decreased in the
first quarter of 2024 compared to the same period in 2023 primarily
due to a decrease in sales volumes and selling price and product
mix, partially offset by a favorable impact from foreign currency
translation. Net sales in the Asia/Pacific segment increased compared to the
prior year as a result of a double-digit increase in sales volumes,
partially offset by a decrease in selling price and product mix and
an unfavorable impact of foreign currency translation.
The decline in selling price and product mix in the first
quarter of 2024 compared to the prior year in all segments
primarily reflects the impact of our index-based customer
contracts. The decline in sales volumes in the Americas and
EMEA segments primarily reflects softer end market activity,
especially for metalworking applications, compared to the prior
year, partially offset by new business wins. Sales volumes
increased in the Asia/Pacific
segment compared to the prior year due to a broad improvement in
end market conditions and continued new business wins.
Compared to the fourth quarter of 2023, net sales increased 1%
due to an increase in sales volumes of approximately 2% partially
offset by a decline in selling price and product mix of
approximately 1%. Sales volumes in the Americas and EMEA
segments increased compared to the prior quarter, whereas sales
volumes declined in the Asia/Pacific segment. Selling price and
product mix was down modestly across all segments reflecting the
impact of our index-based customer contracts.
Once again, operating earnings increased in all three segments
in the first quarter of 2024 compared to the prior year driven by a
further improvement in operating margins. Operating earnings
and operating margins also increased in the Americas and EMEA
segments in the first quarter of 2024 compared to the fourth
quarter of 2023 and declined modestly in the Asia/Pacific segment reflecting the decrease
in net sales mentioned above.
Cash Flow and Liquidity Highlights
Net cash provided by operating activities was $27.2 million for the three months ended
March 31, 2024, compared to net cash provided by operating
activities of $37.8 million for the
same period in 2023. The Company's operating cash flow
primarily reflects a stronger operating performance when compared
to the prior year period, partially offset by higher working
capital requirements in the three months ended March 31,
2024.
As of March 31, 2024, the
Company's total gross debt was $769.6
million and its cash and cash equivalents was $195.8 million, which resulted in net debt of
approximately $573.8 million.
The Company's net debt divided by its trailing twelve months
adjusted EBITDA was approximately 1.8x.
Non-GAAP Measures and Reconciliations
The information included in this press release includes non-GAAP
(unaudited) financial information that includes EBITDA, adjusted
EBITDA, adjusted EBITDA margin, non-GAAP operating income, non-GAAP
operating margin, non-GAAP net income and non-GAAP earnings per
diluted share. The Company believes these non-GAAP financial
measures provide meaningful supplemental information as they
enhance a reader's understanding of the financial performance of
the Company, are indicative of future operating performance of the
Company, and facilitate a comparison among fiscal periods, as the
non-GAAP financial measures exclude items that are not considered
indicative of future operating performance or not considered core
to the Company's operations. Non-GAAP results are presented
for supplemental informational purposes only and should not be
considered a substitute for the financial information presented in
accordance with GAAP. In addition, our definitions of EBITDA,
adjusted EBITDA, adjusted EBITDA margin, non-GAAP operating income,
non-GAAP operating margin, non-GAAP net income and non-GAAP
earnings per diluted share as discussed and reconciled below to the
most comparable respective GAAP measures, may not be comparable to
similarly named measures reported by other companies.
The Company presents EBITDA which is calculated as net income
attributable to the Company before depreciation and amortization,
interest expense, net, and taxes on income before equity in net
income of associated companies. The Company also presents
adjusted EBITDA which is calculated as EBITDA plus or minus certain
items that are not considered indicative of future operating
performance or not considered core to the Company's operations. In
addition, the Company presents non-GAAP operating income which is
calculated as operating income plus or minus certain items that are
not considered indicative of future operating performance or not
considered core to the Company's operations. Adjusted EBITDA
margin and non-GAAP operating margin are calculated as the
percentage of adjusted EBITDA and non-GAAP operating income to
consolidated net sales, respectively. The Company believes
these non-GAAP measures provide transparent and useful information
and are widely used by investors, analysts, and peers in our
industry as well as by management in assessing the operating
performance of the Company on a consistent basis.
Additionally, the Company presents non-GAAP net income and
non-GAAP earnings per diluted share as additional performance
measures. Non-GAAP net income is calculated as adjusted
EBITDA, defined above, less depreciation and amortization, interest
expense, net, and taxes on income before equity in net income of
associated companies, in each case adjusted, as applicable, for any
depreciation, amortization, interest or tax impacts resulting from
the non-core items identified in the reconciliation of net income
attributable to the Company to adjusted EBITDA. Non-GAAP
earnings per diluted share is calculated as non-GAAP net income per
diluted share as accounted for under the "two-class share
method." The Company believes that non-GAAP net income and
non-GAAP earnings per diluted share provide transparent and useful
information and are widely used by investors, analysts, and peers
in our industry as well as by management in assessing the operating
performance of the Company on a consistent basis.
As it relates to future projections for the Company as well as
other forward-looking information contained in this press release,
the Company has not provided guidance for comparable GAAP measures
or a quantitative reconciliation of forward-looking non-GAAP
financial measures to the most directly comparable U.S. GAAP
measure because it is unable to determine with reasonable certainty
the ultimate outcome of certain significant items necessary to
calculate such measures without unreasonable effort. These
items include, but are not limited to, certain non-recurring or
non-core items the Company may record that could materially impact
net income. These items are uncertain, depend on various
factors, and could have a material impact on the U.S. GAAP reported
results for the guidance period.
The Company's reference to trailing twelve months adjusted
EBITDA within this press release refers to the twelve month period
ended March 31, 2024 adjusted EBITDA of $324.9 million, which includes (i) the three
months ended March 31, 2024 adjusted EBITDA of $83.3 million, as presented in the non-GAAP
reconciliations below, and (ii) the twelve months ended
December 31, 2023 adjusted EBITDA of $320.4 million, as presented in the non-GAAP
reconciliations included in the Company's fourth quarter and full
year 2023 results press release dated February 29, 2024, less (iii) the three months
ended March 31, 2023 adjusted EBITDA of $78.8 million, as presented in the non-GAAP
reconciliations below.
Certain of the prior period non-GAAP financial measures
presented in the following tables have been adjusted to conform
with current period presentation. The following tables
reconcile the Company's non-GAAP financial measures (unaudited) to
their most directly comparable GAAP (unaudited) financial measures
(dollars in thousands unless otherwise noted, except per share
amounts):
|
Three Months
Ended
March 31,
|
Non-GAAP Operating
Income and Margin Reconciliations:
|
2024
|
|
2023
|
Operating
income
|
$
55,526
|
|
$
49,929
|
Restructuring and
related charges, net
|
1,857
|
|
3,972
|
Strategic planning
(credits) expenses
|
(109)
|
|
2,087
|
Customer insolvency
costs
|
1,522
|
|
—
|
Other
charges
|
446
|
|
305
|
Non-GAAP operating
income
|
$
59,242
|
|
$
56,293
|
Non-GAAP operating
margin (%)
|
12.6 %
|
|
11.3 %
|
|
EBITDA, Adjusted
EBITDA, Adjusted EBITDA Margin and Non-GAAP Net
Income
Reconciliations:
|
Three Months
Ended
March 31,
|
2024
|
|
2023
|
Net income attributable
to Quaker Chemical Corporation
|
$
35,227
|
|
$
29,534
|
Depreciation and
amortization (a)
|
21,056
|
|
20,510
|
Interest expense,
net
|
10,824
|
|
13,242
|
Taxes on income before
equity in net income of associated companies (b)
|
12,508
|
|
9,533
|
EBITDA
|
79,615
|
|
72,819
|
Equity income in a
captive insurance company
|
(506)
|
|
(422)
|
Restructuring and
related charges, net
|
1,857
|
|
3,972
|
Strategic planning
(credits) expenses
|
(109)
|
|
2,087
|
Customer insolvency
costs
|
1,522
|
|
—
|
Facility remediation
recoveries
|
—
|
|
(827)
|
Product liability claim
costs
|
896
|
|
—
|
Currency conversion
impacts of hyper-inflationary economies
|
(904)
|
|
456
|
Other
charges
|
911
|
|
706
|
Adjusted
EBITDA
|
$
83,282
|
|
$
78,791
|
Adjusted EBITDA margin
(%)
|
17.7 %
|
|
15.8 %
|
|
|
|
|
Adjusted
EBITDA
|
$
83,282
|
|
$
78,791
|
Less: Depreciation and
amortization (a)
|
21,056
|
|
20,510
|
Less: Interest expense,
net
|
10,824
|
|
13,242
|
Less: Taxes on income
before equity in net income of associated companies - adjusted
(b)
|
13,729
|
|
11,047
|
Non-GAAP net
income
|
$
37,673
|
|
$
33,992
|
|
|
Three Months
Ended
March 31,
|
Non-GAAP Earnings
per Diluted Share Reconciliations:
|
2024
|
|
2023
|
GAAP earnings per
diluted share attributable to Quaker Chemical Corporation
common
shareholders
|
$
1.95
|
|
$
1.64
|
Equity income in a
captive insurance company per diluted share
|
(0.03)
|
|
(0.02)
|
Restructuring and
related charges, net per diluted share
|
0.08
|
|
0.17
|
Strategic planning
(credits) expenses per diluted share
|
—
|
|
0.10
|
Customer insolvency
costs per diluted share
|
0.06
|
|
—
|
Facility remediation
recoveries per diluted share
|
—
|
|
(0.04)
|
Product liability claim
costs per diluted share
|
0.04
|
|
—
|
Currency conversion
impacts of hyper-inflationary economies per diluted
share
|
(0.05)
|
|
0.03
|
Other charges per
diluted share
|
0.04
|
|
0.02
|
Impact of certain
discrete tax items per diluted share
|
—
|
|
(0.01)
|
Non-GAAP earnings per
diluted share
|
$
2.09
|
|
$
1.89
|
|
a. Depreciation
and amortization for both the three months ended March 31, 2024 and
2023 includes approximately $0.3 million of
amortization expense recorded within equity in net
income of associated companies in the Company's Condensed
Consolidated
Statements of Operations, which is attributable to
the amortization of the fair value step up for the Company's 50%
interest in a
joint venture in Korea as a result of required
purchase accounting.
|
|
b. Taxes on
income before equity in net income of associated companies –
adjusted includes the Company's tax expense adjusted for
the impact of any current and deferred income tax
expense (benefit), as applicable, of the reconciling items
presented in the
reconciliation of Net income attributable to Quaker
Chemical Corporation to adjusted EBITDA, above, determined
utilizing the
applicable rates in the taxing jurisdictions in which
these adjustments occurred, subject to deductibility. This
caption also includes
the impact of specific tax charges and benefits in
the three months ended March 31, 2024 and 2023, which the Company
does not
consider core to the Company's operations or
indicative of future performance.
|
Segment Measures and Reconciliations
Segment operating earnings for each of the Company's reportable
segments are comprised of the segment's net sales less directly
related Cost of goods sold ("COGS") and Selling, general and
administrative expenses ("SG&A"). Operating expenses not
directly attributable to the net sales of each respective segment,
such as certain corporate and administrative costs and
Restructuring and related charges, net, are not included in segment
operating earnings. Other items not specifically identified with
the Company's reportable segments include Interest expense, net and
Other income (expense), net.
The following table presents information about the performance
of the Company's reportable segments (dollars in thousands):
|
Three Months
Ended
March 31,
|
|
2024
|
|
2023
|
Net
Sales
|
|
|
|
Americas
|
$
229,754
|
|
$
251,413
|
EMEA
|
138,422
|
|
152,449
|
Asia/Pacific
|
101,583
|
|
96,286
|
Total net
sales
|
$
469,759
|
|
$
500,148
|
Segment operating
earnings
|
|
|
|
Americas
|
$
66,770
|
|
$
66,125
|
EMEA
|
29,571
|
|
27,571
|
Asia/Pacific
|
30,377
|
|
27,652
|
Total segment
operating earnings
|
126,718
|
|
121,348
|
Restructuring and
related charges, net
|
(1,857)
|
|
(3,972)
|
Non-operating and
administrative expenses
|
(54,177)
|
|
(51,771)
|
Depreciation of
corporate assets and amortization
|
(15,158)
|
|
(15,676)
|
Operating
income
|
55,526
|
|
49,929
|
Other income (expense),
net
|
1,080
|
|
(2,239)
|
Interest expense,
net
|
(10,824)
|
|
(13,242)
|
Income before taxes
and equity in net income of associated companies
|
$
45,782
|
|
$
34,448
|
Forward-Looking Statements
This press release contains "forward-looking statements" that
fall under the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995 and the Securities Act of 1933, as
amended. These statements can be identified by the fact that
they do not relate strictly to historical or current facts.
We have based these forward-looking statements on assumptions,
projections and expectations about future events that we believe
are reasonable based on currently available information, including
statements regarding the potential effects of the conflicts in
Ukraine and the Middle East; inflation and global supply chain
constraints on the Company's business, results of operations, and
financial condition; our expectation that we will maintain
sufficient liquidity and remain in compliance with the terms of the
Company's credit facility; expectations about future demand and raw
material costs; and statements regarding the impact of increased
raw material costs and pricing initiatives. These
forward-looking statements include statements with respect to our
beliefs, plans, objectives, goals, expectations, anticipations,
intentions, financial condition, results of operations, future
performance, and business, which may differ materially from our
actual results, including but not limited to the potential benefits
of acquisitions and divestitures, the impacts on our business as a
result of global supply chain constraints, and our current and
future results and plans and statements that include the words
"may," "could," "should," "would," "believe," "expect,"
"anticipate," "estimate," "intend," "outlook, "target", "possible",
"potential", "plan" or similar expressions. A major risk is
that demand for the Company's products and services is largely
derived from the demand for its customers' products, which subjects
the Company to uncertainties related to downturns in a customer's
business and unanticipated customer production slowdowns and
shutdowns. Other major risks and uncertainties include, but
are not limited to inflationary pressures, including the potential
for continued significant increases in raw material costs; supply
chain disruptions; customer financial instability; rising interest
rates and the possibility of economic recession; economic and
political disruptions, including the impacts of the military
conflicts between Russia and
Ukraine and between Israel and Hamas; tariffs, trade restrictions,
and the economic and other sanctions imposed by other nations on
Russia and/or other government
organizations; suspensions of activities in Russia by many multinational companies and the
potential expansion of military activity; foreign currency
fluctuations; significant changes in applicable tax rates and
regulations; future terrorist attacks and other acts of violence;
the impacts of consolidation in our industry, including loss or
consolidation of a major customer; and the potential occurrence of
cyber-security breaches, cyber-security attacks and other security
incidents. Furthermore, the Company is subject to the same business
cycles as those experienced by our customers in the steel,
automobile, aircraft, industrial equipment, aluminum and durable
goods industries. Our forward-looking statements are subject
to risks, uncertainties and assumptions about the Company and its
operations that are subject to change based on various important
factors, some of which are beyond our control. These risks,
uncertainties, and possible inaccurate assumptions relevant to our
business could cause our actual results to differ materially from
expected and historical results. All forward-looking
statements included in this press release, including expectations
about business conditions during 2024 and future periods, are based
upon information available to the Company as of the date of this
press release, which may change. Therefore, we caution you
not to place undue reliance on our forward-looking statements. For
more information regarding these risks and uncertainties as well as
certain additional risks that we face, refer to the Risk Factors
section, which appears in Item 1A of our Annual Report on Form 10-K
for the year ended December 31, 2023,
and in subsequent reports filed from time to time with the
Securities and Exchange Commission. We do not intend to, and
we disclaim any duty or obligation to, update or revise any
forward-looking statements to reflect new information or future
events or for any other reason. This discussion is provided as
permitted by the Private Securities Litigation Reform Act of
1995.
Conference Call
As previously announced, the Company's investor conference call
to discuss its first quarter of 2024 performance is scheduled
for Friday, May 3, 2024 at 8:30 a.m.
ET. A live webcast of the conference call, together
with supplemental information, can be accessed through the
Company's Investor Relations website at
investors.quakerhoughton.com. You can also access the
conference call by dialing 877-269-7756.
About Quaker Houghton
Quaker Houghton is the global leader in industrial process
fluids. With a presence around the world, including
operations in over 25 countries, our customers include thousands of
the world's most advanced and specialized steel, aluminum,
automotive, aerospace, offshore, container, mining, and
metalworking companies. Our high-performing, innovative and
sustainable solutions are backed by best-in-class technology, deep
process knowledge and customized services. With approximately
4,400 employees, including chemists, engineers and industry
experts, we partner with our customers to improve their operations
so they can run even more efficiently, even more effectively,
whatever comes next. Quaker Houghton is headquartered in
Conshohocken, Pennsylvania,
located near Philadelphia in the
United States. Visit quakerhoughton.com to learn
more.
Quaker Chemical
Corporation
Condensed
Consolidated Statements of Operations
(Unaudited;
Dollars in thousands, except per share data)
|
|
|
Three Months
Ended
March 31,
|
|
2024
|
|
2023
|
Net sales
|
$
469,759
|
|
$
500,148
|
Cost of goods
sold
|
288,196
|
|
326,698
|
Gross profit
|
181,563
|
|
173,450
|
Selling, general and
administrative expenses
|
124,180
|
|
119,549
|
Restructuring and
related charges, net
|
1,857
|
|
3,972
|
Operating
income
|
55,526
|
|
49,929
|
Other income (expense),
net
|
1,080
|
|
(2,239)
|
Interest expense,
net
|
(10,824)
|
|
(13,242)
|
Income before taxes and
equity in net income of associated companies
|
45,782
|
|
34,448
|
Taxes on income before
equity in net income of associated companies
|
12,508
|
|
9,533
|
Income before equity in
net income of associated companies
|
33,274
|
|
24,915
|
Equity in net income of
associated companies
|
1,984
|
|
4,626
|
Net income
|
35,258
|
|
29,541
|
Less: Net income
attributable to noncontrolling interest
|
31
|
|
7
|
Net income attributable
to Quaker Chemical Corporation
|
$
35,227
|
|
$
29,534
|
Per share
data:
|
|
|
|
Net income attributable
to Quaker Chemical Corporation common shareholders –
basic
|
$
1.96
|
|
$
1.64
|
Net income attributable
to Quaker Chemical Corporation common shareholders –
diluted
|
$
1.95
|
|
$
1.64
|
Basic weighted average
common shares outstanding
|
17,908,814
|
|
17,866,670
|
Diluted weighted
average common shares outstanding
|
17,938,862
|
|
17,898,746
|
Quaker Chemical
Corporation
Condensed
Consolidated Balance Sheets
(Unaudited;
Dollars in thousands, except par value)
|
|
|
March 31,
2024
|
|
December 31,
2023
|
ASSETS
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
195,750
|
|
$
194,527
|
Accounts receivable,
net
|
440,018
|
|
444,950
|
Inventories,
net
|
240,466
|
|
233,857
|
Prepaid expenses and
other current assets
|
56,795
|
|
54,555
|
Total current
assets
|
933,029
|
|
927,889
|
|
|
|
|
Property, plant and
equipment, net
|
202,230
|
|
207,811
|
Right of use lease
assets
|
38,195
|
|
38,614
|
Goodwill
|
522,575
|
|
512,518
|
Other intangible
assets, net
|
886,146
|
|
896,721
|
Investments in
associated companies
|
99,850
|
|
101,151
|
Deferred tax
assets
|
10,117
|
|
10,737
|
Other non-current
assets
|
22,228
|
|
18,770
|
Total
assets
|
$
2,714,370
|
|
$ 2,714,211
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Short-term borrowings
and current portion of long-term debt
|
$
27,790
|
|
$
23,444
|
Accounts
payable
|
191,161
|
|
184,813
|
Dividends
payable
|
8,185
|
|
8,186
|
Accrued
compensation
|
28,024
|
|
55,194
|
Accrued
restructuring
|
1,516
|
|
3,350
|
Accrued pension and
postretirement benefits
|
2,210
|
|
2,208
|
Other accrued
liabilities
|
91,341
|
|
90,315
|
Total current
liabilities
|
350,227
|
|
367,510
|
|
|
|
|
Long-term
debt
|
740,408
|
|
730,623
|
Long-term lease
liabilities
|
22,819
|
|
22,937
|
Deferred tax
liabilities
|
150,618
|
|
146,957
|
Non-current accrued
pension and postretirement benefits
|
28,931
|
|
29,457
|
Other non-current
liabilities
|
29,575
|
|
31,805
|
Total
liabilities
|
1,322,578
|
|
1,329,289
|
|
|
|
|
Equity
|
|
|
|
Common stock $1 par
value; authorized 30,000,000 shares; issued and
outstanding
March 31, 2024 – 17,989,801 shares; December 31, 2023 –
17,991,988 shares
|
17,990
|
|
17,992
|
Capital in excess of
par value
|
942,546
|
|
940,101
|
Retained
earnings
|
577,682
|
|
550,641
|
Accumulated other
comprehensive loss
|
(146,987)
|
|
(124,415)
|
Total Quaker
shareholders' equity
|
1,391,231
|
|
1,384,319
|
Noncontrolling
interest
|
561
|
|
603
|
Total
equity
|
1,391,792
|
|
1,384,922
|
Total liabilities and
equity
|
$
2,714,370
|
|
$ 2,714,211
|
Quaker Chemical
Corporation
Condensed
Consolidated Statements of Cash Flows
(Unaudited;
Dollars in thousands)
|
|
|
Three Months
Ended
March 31,
|
|
2024
|
|
2023
|
Cash flows from
operating activities
|
|
|
|
Net income
|
$
35,258
|
|
$
29,541
|
Adjustments to
reconcile net income to net cash used in operating
activities:
|
|
|
|
Amortization of debt
issuance costs
|
353
|
|
353
|
Depreciation and
amortization
|
20,802
|
|
20,246
|
Equity in
undistributed earnings of associated companies, net of
dividends
|
(1,675)
|
|
(4,401)
|
Deferred compensation,
deferred taxes and other, net
|
568
|
|
(2,231)
|
Share-based
compensation
|
3,884
|
|
3,527
|
Restructuring and
related charges, net
|
1,857
|
|
3,972
|
Pension and other
postretirement benefits
|
(551)
|
|
(415)
|
Decrease in cash from
changes in current assets and current liabilities, net of
acquisitions:
|
|
|
|
Accounts
receivable
|
1,431
|
|
(3,974)
|
Inventories
|
(6,576)
|
|
(5,792)
|
Prepaid expenses and
other current assets
|
(1,054)
|
|
(6,765)
|
Change in
restructuring liabilities
|
(3,666)
|
|
(2,747)
|
Accounts payable and
accrued liabilities
|
(23,400)
|
|
6,468
|
Net cash provided by
operating activities
|
27,231
|
|
37,782
|
Cash flows from
investing activities
|
|
|
|
Investments in
property, plant and equipment
|
(4,460)
|
|
(6,161)
|
Payments related to
acquisitions, net of cash acquired
|
(24,899)
|
|
—
|
Proceeds from
disposition of assets
|
58
|
|
—
|
Net cash used in
investing activities
|
(29,301)
|
|
(6,161)
|
Cash flows from
financing activities
|
|
|
|
Payments of long-term
debt
|
(4,711)
|
|
(4,703)
|
Borrowings (payments)
on revolving credit facilities, net
|
20,902
|
|
(9,776)
|
Payments on other
debt, net
|
—
|
|
(469)
|
Dividends
paid
|
(8,186)
|
|
(7,809)
|
Other stock related
activity
|
(1,442)
|
|
(2,109)
|
Net cash provided by
(used in) financing activities
|
6,563
|
|
(24,866)
|
Effect of foreign
exchange rate changes on cash
|
(3,270)
|
|
2,154
|
Net increase in cash
and cash equivalents
|
1,223
|
|
8,909
|
Cash and cash
equivalents at the beginning of the period
|
194,527
|
|
180,963
|
Cash and cash
equivalents at the end of the period
|
$
195,750
|
|
$
189,872
|
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SOURCE Quaker Chemical Corporation