Highlights
- Second quarter 2023 net income of $146.9
million, or $1.13 per diluted
share
- Quarterly adjusted EBITDA of $351.1
million
- Share repurchases of $186.9
million in second quarter 2023
- Expect 2023 adjusted EBITDA in the $1.4
billion range
CLAYTON,
Mo., July 27, 2023 /PRNewswire/ -- Olin
Corporation (NYSE: OLN) announced financial results for the second
quarter ended June 30, 2023.
Second quarter 2023 reported net income was $146.9 million, or $1.13 per diluted share, which compares to second
quarter 2022 reported net income of $422.1
million, or $2.76 per diluted
share. Second quarter 2023 adjusted EBITDA of $351.1 million excludes depreciation and
amortization expense of $136.8
million, gain on sale of our domestic private trucking fleet
and operations of $27.0 million, and
restructuring charges of $19.2
million. Second quarter 2022 adjusted EBITDA was
$727.3 million. Sales in the second
quarter 2023 were $1,702.7 million
compared to $2,616.1 million in the
second quarter 2022.
Scott Sutton, Chairman,
President, and Chief Executive Officer, said, "In this challenging
demand environment, Olin's global team continues to prove our
model's resilience and the ability to deliver significantly higher
trough level adjusted EBITDA and corresponding cash flows. Our
investment grade balance sheet and strong cash flow allow Olin to
successfully maintain our commercial discipline and "value-first"
approach, which will fuel an accelerated earnings recovery once
demand improves. We continue to prioritize share repurchases from
excess cash flow with approximately 5% of outstanding shares
repurchased so far in 2023.
"In light of the difficult global economic environment and
continued operating issues with the vinyl chloride monomer
Freeport, Texas facility, we
expect third quarter 2023 results from our Chemical businesses to
be lower than second quarter 2023 levels. We expect our Winchester
business third quarter 2023 results to increase sequentially from
second quarter 2023 as we anticipate international and domestic
military growth. Overall, we expect Olin's third quarter 2023
adjusted EBITDA to be approximately 10% lower than second quarter
2023 levels. We expect full year adjusted EBITDA to be in the range
of $1.4 billion."
SEGMENT REPORTING
Olin defines segment earnings as income (loss) before interest
expense, interest income, other operating income (expense),
non-operating pension income, other income, and income taxes.
CHLOR ALKALI PRODUCTS AND VINYLS
In first quarter 2023, the Blue Water Alliance joint venture
began operations and are consolidated in our Chlor Alkali Products
and Vinyls segment. Chlor Alkali Products and Vinyls sales for the
second quarter 2023 were $1,002.3
million compared to $1,403.5
million in the second quarter 2022. The decrease in Chlor
Alkali Products and Vinyls sales was primarily due to 24% lower
volumes partially offset by higher pricing. Second quarter 2023
segment earnings were $180.1 million
compared to $346.5 million in the
second quarter 2022. The $166.4
million decrease in segment earnings was primarily due to
lower volumes partially offset by higher pricing across all
products except vinyls intermediates, which declined. The Chlor
Alkali Products and Vinyls second quarter 2023 segment results were
also negatively impacted by $78.9
million for the maintenance turnaround and subsequent
operating issues with the vinyl chloride monomer plant at the
Freeport, Texas facility resulting
in higher costs and reduced profit from lost sales. Chlor Alkali
Products and Vinyls second quarter 2023 results included
depreciation and amortization expense of $113.3 million compared to $120.4 million in the second quarter 2022.
EPOXY
Epoxy sales for the second quarter 2023 were $333.8 million compared to $772.7 million in the second quarter 2022. The
decrease in Epoxy sales was primarily due to 24% lower resin and
systems volumes and $206.9 million of
lower cumene and bisphenol A sales. As part of the Epoxy business
restructuring actions to right-size our global asset footprint to
the most cost-effective asset base to support our strategic
operating model, the Epoxy business ceased operations at our cumene
facility in Terneuzen, Netherlands
in first quarter 2023 and one of our bisphenol A production lines
at our Stade, Germany facility in
fourth quarter 2022. Second quarter 2023 segment loss was
$0.5 million compared to segment
earnings of $139.9 million in the
second quarter 2022. The $140.4
million decrease in Epoxy segment earnings was primarily due
to lower volumes and lower pricing, partially offset by lower raw
material and operating costs, mainly decreased natural gas and
electrical power costs. Epoxy second quarter 2023 results included
depreciation and amortization expense of $15.2 million compared to $20.4 million in the second quarter 2022.
WINCHESTER
Winchester sales for the second quarter 2023 were $366.6 million compared to $439.9 million in the second quarter 2022. The
decrease in Winchester sales was primarily due to lower commercial
ammunition shipments, partially offset by higher domestic and
international military sales. Second quarter 2023 segment earnings
were $64.7 million compared to
$119.3 million in the second quarter
2022. The $54.6 million decrease in
segment earnings was primarily due to lower commercial ammunition
shipments and pricing, and higher commodity and other materials
costs, partially offset by higher military sales. Winchester second
quarter 2023 included depreciation and amortization expense of
$6.3 million compared to $5.9 million in the second quarter 2022.
CORPORATE AND OTHER COSTS
Second quarter 2023 charges to income for environmental
investigatory and remedial activities were $13.0 million compared to $5.0 million in the second quarter 2022. The
second quarter 2023 increase in charges relate primarily to future
remedial activities associated with past manufacturing
operations.
Other corporate and unallocated costs in second quarter of 2023
decreased $12.6 million compared to
second quarter 2022 primarily due to lower incentive costs and
lower legal-related costs.
LIQUIDITY AND SHARE REPURCHASES
The cash balance on June 30, 2023,
was $161.1 million and Olin ended
second quarter 2023 with net debt of approximately $2.6 billion and a net debt to adjusted EBITDA
ratio of 1.4 times. During second quarter 2023, net debt decreased
by $33.0 million. On June 30, 2023, Olin had approximately
$1.3 billion of available
liquidity.
During second quarter 2023, approximately 3.5 million shares of
common stock were repurchased at a cost of $186.9 million. During first half 2023,
approximately 7.1 million shares of common stock were repurchased
at a cost of $393.0 million. On
June 30, 2023, Olin had approximately
$1.3 billion available under its
current share repurchase authorization.
CONFERENCE CALL INFORMATION
Olin senior management will host a conference call to discuss
second quarter 2023 financial results at 9:00 a.m. Eastern time on Friday, July 28, 2023.
Remarks will be followed by a question-and-answer session.
Associated slides, which will be available the evening before the
call, and the conference call webcast will be accessible via Olin's
website, www.olin.com, under the second quarter conference call
icon. An archived replay of the webcast will also be available in
the Investor Relations section of Olin's website beginning at
12:00 p.m. Eastern time. A final
transcript of the call will be posted the next business day.
COMPANY DESCRIPTION
Olin Corporation is a leading vertically-integrated global
manufacturer and distributor of chemical products and a leading
U.S. manufacturer of ammunition. The chemical products produced
include chlorine and caustic soda, vinyls, epoxies, chlorinated
organics, bleach, hydrogen, and hydrochloric acid. Winchester's
principal manufacturing facilities produce and distribute sporting
ammunition, law enforcement ammunition, reloading components, small
caliber military ammunition and components, and industrial
cartridges.
Visit www.olin.com for more information on Olin.
FORWARD-LOOKING STATEMENTS
This communication includes forward-looking statements. These
statements relate to analyses and other information that are based
on management's beliefs, certain assumptions made by management,
forecasts of future results, and current expectations, estimates
and projections about the markets and economy in which we and our
various segments operate. The statements contained in this
communication that are not statements of historical fact may
include forward-looking statements that involve a number of risks
and uncertainties.
We have used the words "anticipate," "intend," "may," "expect,"
"believe," "should," "plan," "outlook," "project," "estimate,"
"forecast," "optimistic," "target," and variations of such words
and similar expressions in this communication to identify such
forward-looking statements. These forward-looking statements
include, but are not limited to, statements regarding the Company's
intent to repurchase, from time to time, the Company's common
stock. These statements are not guarantees of future performance
and involve certain risks, uncertainties, and assumptions, which
are difficult to predict and many of which are beyond our control.
Therefore, actual outcomes and results may differ materially from
those matters expressed or implied in such forward-looking
statements. We undertake no obligation to update publicly any
forward-looking statements, whether as a result of future events,
new information or otherwise. The payment of cash dividends is
subject to the discretion of our board of directors and will be
determined in light of then-current conditions, including our
earnings, our operations, our financial conditions, our capital
requirements and other factors deemed relevant by our board of
directors. In the future, our board of directors may change our
dividend policy, including the frequency or amount of any dividend,
in light of then-existing conditions.
The risks, uncertainties and assumptions involved in our
forward-looking statements, many of which are discussed in more
detail in our filings with the SEC, including without limitation
the "Risk Factors" section of our Annual Report on Form 10-K for
the year ended December 31, 2022, and
our Quarterly Reports on Form 10-Q and other reports furnished or
filed with the SEC, include, but are not limited to, the
following:
Business, Industry and Operational Risks
- sensitivity to economic, business and market conditions in
the United States and overseas,
including economic instability or a downturn in the sectors served
by us;
- declines in average selling prices for our products and the
supply/demand balance for our products, including the impact of
excess industry capacity or an imbalance in demand for our chlor
alkali products;
- unsuccessful execution of our strategic operating model, which
prioritizes Electrochemical Unit (ECU) margins over sales
volumes;
- failure to control costs and inflation impacts or failure to
achieve targeted cost reductions;
- our reliance on a limited number of suppliers for specified
feedstock and services and our reliance on third-party
transportation;
- the occurrence of unexpected manufacturing interruptions and
outages, including those occurring as a result of labor
disruptions, production hazards and weather-related events;
- availability of and/or higher-than-expected costs of raw
material, energy, transportation, and/or logistics;
- the failure or an interruption of our information technology
systems;
- failure to identify, attract, develop, retain and motivate
qualified employees throughout the organization;
- our inability to complete future acquisitions or joint venture
transactions or successfully integrate them into our business;
- risks associated with our international sales and operations,
including economic, political or regulatory changes;
- the negative impact from a public health crisis, such as a
pandemic, epidemic or outbreak of infectious disease, including the
COVID-19 pandemic and the global response to the pandemic,
including without limitation adverse impacts in complying with
governmental mandates;
- our indebtedness and debt service obligations;
- weak industry conditions affecting our ability to comply with
the financial maintenance covenants in our senior credit
facility;
- adverse conditions in the credit and capital markets, limiting
or preventing our ability to borrow or raise capital;
- the effects of any declines in global equity markets on asset
values and any declines in interest rates or other significant
assumptions used to value the liabilities in, and funding of, our
pension plans;
- our long-range plan assumptions not being realized causing a
non-cash impairment charge of long-lived assets;
Legal, Environmental and Regulatory Risks
- changes in, or failure to comply with, legislation or
government regulations or policies, including changes regarding our
ability to manufacture or use certain products and changes within
the international markets in which we operate;
- new regulations or public policy changes regarding the
transportation of hazardous chemicals and the security of chemical
manufacturing facilities;
- unexpected outcomes from legal or regulatory claims and
proceedings;
- costs and other expenditures in excess of those projected for
environmental investigation and remediation or other legal
proceedings;
- various risks associated with our Lake City U.S. Army
Ammunition Plant contract and performance under other governmental
contracts; and
- failure to effectively manage environmental, social and
governance (ESG) issues and related regulations, including climate
change and sustainability.
All of our forward-looking statements should be considered in
light of these factors. In addition, other risks and uncertainties
not presently known to us or that we consider immaterial could
affect the accuracy of our forward-looking statements.
2023-09
|
Olin
Corporation
|
|
|
|
|
|
|
Consolidated Statements
of Operations (a)
|
|
|
|
|
|
|
|
Three Months
|
|
Six Months
|
|
|
Ended June
30,
|
|
Ended June
30,
|
|
(In millions, except
per share amounts)
|
2023
|
2022
|
|
2023
|
2022
|
|
|
|
|
|
|
|
|
Sales
|
$ 1,702.7
|
$ 2,616.1
|
|
$ 3,547.0
|
$ 5,077.5
|
|
Operating
Expenses:
|
|
|
|
|
|
|
Cost of Goods Sold
|
1,392.6
|
1,951.4
|
|
2,834.3
|
3,758.9
|
|
Selling and Administration
|
101.2
|
99.0
|
|
213.0
|
203.3
|
|
Restructuring Charges (b)
|
19.2
|
3.6
|
|
80.1
|
6.7
|
|
Other Operating Income
(c)
|
27.0
|
3.3
|
|
27.5
|
3.3
|
|
Operating Income
|
216.7
|
565.4
|
|
447.1
|
1,111.9
|
|
Interest
Expense
|
45.3
|
34.5
|
|
87.7
|
67.4
|
|
Interest
Income
|
1.1
|
0.3
|
|
2.2
|
0.7
|
|
Non-operating Pension
Income
|
5.4
|
9.5
|
|
11.1
|
19.1
|
|
Income before Taxes
|
177.9
|
540.7
|
|
372.7
|
1,064.3
|
|
Income Tax
Provision
|
33.2
|
118.6
|
|
74.0
|
249.2
|
|
Net Income
|
144.7
|
422.1
|
|
298.7
|
815.1
|
|
Net
Loss Attributable to Noncontrolling Interests
|
(2.2)
|
-
|
|
(4.5)
|
-
|
|
Net Income Attributable
to Olin Corporation
|
$
146.9
|
$
422.1
|
|
$
303.2
|
$
815.1
|
|
Net Income Attributable
to Olin Corporation Per Common Share:
|
|
|
|
|
|
|
Basic
|
$
1.15
|
$
2.83
|
|
$
2.35
|
$
5.37
|
|
Diluted
|
$
1.13
|
$
2.76
|
|
$
2.29
|
$
5.24
|
|
Dividends Per Common
Share
|
$
0.20
|
$
0.20
|
|
$
0.40
|
$
0.40
|
|
Average Common Shares
Outstanding - Basic
|
|
127.4
|
149.2
|
|
129.2
|
151.9
|
|
Average Common Shares
Outstanding - Diluted
|
130.4
|
152.8
|
|
132.4
|
155.6
|
|
|
|
(a)
|
Unaudited.
|
|
(b)
|
Restructuring charges
for both the three and six months ended June 30, 2023 were
primarily associated with our actions
to configure our global Epoxy asset footprint to optimize the most
productive and cost effective assets to support our
strategic operating model, of which $4.9 million and $17.7 million,
respectively, were non-cash impairment charges for
equipment and facilities.
|
|
|
|
(c)
|
Other operating income
for both the three and six months ended June 30, 2023 included a
gain of $27.0 million for the
sale of Olin's domestic private trucking fleet and
operations.
|
|
|
Olin
Corporation
|
|
|
|
|
|
|
|
|
Segment Information
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
|
|
Six Months
|
|
|
Ended June
30,
|
|
Ended June
30,
|
|
(In
millions)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Sales:
|
|
|
|
|
|
|
|
|
Chlor Alkali Products
and Vinyls
|
$ 1,002.3
|
|
$ 1,403.5
|
|
$ 2,119.4
|
|
$ 2,648.7
|
|
Epoxy
|
333.8
|
|
772.7
|
|
694.5
|
|
1,562.2
|
|
Winchester
|
366.6
|
|
439.9
|
|
733.1
|
|
866.6
|
|
Total Sales
|
$ 1,702.7
|
|
$ 2,616.1
|
|
$ 3,547.0
|
|
$ 5,077.5
|
|
Income before
Taxes:
|
|
|
|
|
|
|
|
|
Chlor Alkali Products
and Vinyls
|
$
180.1
|
|
$
346.5
|
|
$
426.0
|
|
$
675.1
|
|
Epoxy
|
(0.5)
|
|
139.9
|
|
20.9
|
|
277.9
|
|
Winchester
|
64.7
|
|
119.3
|
|
125.7
|
|
238.2
|
|
Corporate/Other:
|
|
|
|
|
|
|
|
|
Environmental
Expense
|
(13.0)
|
|
(5.0)
|
|
(16.2)
|
|
(10.6)
|
|
Other Corporate and
Unallocated Costs
|
(22.4)
|
|
(35.0)
|
|
(56.7)
|
|
(65.3)
|
|
Restructuring Charges
(b)
|
(19.2)
|
|
(3.6)
|
|
(80.1)
|
|
(6.7)
|
|
Other Operating Income
(c)
|
27.0
|
|
3.3
|
|
27.5
|
|
3.3
|
|
Interest
Expense
|
(45.3)
|
|
(34.5)
|
|
(87.7)
|
|
(67.4)
|
|
Interest
Income
|
1.1
|
|
0.3
|
|
2.2
|
|
0.7
|
|
Non-operating Pension
Income
|
5.4
|
|
9.5
|
|
11.1
|
|
19.1
|
|
Income before
Taxes
|
$
177.9
|
|
$
540.7
|
|
$
372.7
|
|
$ 1,064.3
|
|
|
|
(a)
|
Unaudited.
|
|
(b)
|
Restructuring charges
for both the three and six months ended June 30, 2023 were
primarily associated with our actions
to configure our global Epoxy asset footprint to optimize the most
productive and cost effective assets to support our
strategic operating model, of which $4.9 million and $17.7 million,
respectively, were non-cash impairment charges for
equipment and facilities.
|
|
|
|
(c)
|
Other operating income
for both the three and six months ended June 30, 2023 included a
gain of $27.0 million for the
sale of Olin's domestic private trucking fleet and
operations.
|
|
|
|
|
|
|
Olin
Corporation
|
|
|
|
|
|
|
Consolidated Balance
Sheets (a)
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
December 31,
|
|
June 30,
|
|
(In millions, except
per share data)
|
2023
|
|
2022
|
|
2022
|
|
|
|
|
|
|
|
Assets:
|
|
|
|
|
|
|
Cash & Cash
Equivalents
|
$
161.1
|
|
$
194.0
|
|
$
304.6
|
|
Accounts
Receivable, Net
|
869.8
|
|
924.6
|
|
1,299.2
|
|
Income Taxes
Receivable
|
32.8
|
|
43.2
|
|
8.0
|
|
Inventories,
Net
|
1,081.2
|
|
941.9
|
|
945.7
|
|
Other Current
Assets
|
53.3
|
|
52.7
|
|
109.0
|
|
Total Current Assets
|
2,198.2
|
|
2,156.4
|
|
2,666.5
|
|
Property, Plant
and Equipment
|
|
|
|
|
|
|
(Less Accumulated
Depreciation of $4,636.9, $4,413.1 and $4,217.9)
|
2,550.6
|
|
2,674.1
|
|
2,755.0
|
|
Operating Lease
Assets, Net
|
335.7
|
|
356.0
|
|
360.1
|
|
Deferred Income
Taxes
|
82.6
|
|
60.5
|
|
86.5
|
|
Other
Assets
|
1,108.6
|
|
1,102.5
|
|
1,090.0
|
|
Intangibles,
Net
|
255.9
|
|
273.8
|
|
296.2
|
|
Goodwill
|
1,420.9
|
|
1,420.9
|
|
1,420.9
|
|
Total Assets
|
$
7,952.5
|
|
$
8,044.2
|
|
$
8,675.2
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity:
|
|
|
|
|
|
|
Current
Installments of Long-term Debt
|
$
9.0
|
|
$
9.7
|
|
$
201.1
|
|
Accounts
Payable
|
750.0
|
|
837.7
|
|
983.7
|
|
Income Taxes
Payable
|
139.6
|
|
133.4
|
|
112.9
|
|
Current
Operating Lease Liabilities
|
70.2
|
|
71.8
|
|
75.1
|
|
Accrued
Liabilities
|
426.9
|
|
508.8
|
|
483.8
|
|
Total Current Liabilities
|
1,395.7
|
|
1,561.4
|
|
1,856.6
|
|
Long-term
Debt
|
2,717.3
|
|
2,571.0
|
|
2,579.6
|
|
Operating Lease
Liabilities
|
273.6
|
|
292.5
|
|
292.1
|
|
Accrued Pension
Liability
|
225.4
|
|
234.5
|
|
322.6
|
|
Deferred Income
Taxes
|
505.9
|
|
507.3
|
|
582.1
|
|
Other
Liabilities
|
363.0
|
|
333.9
|
|
346.1
|
|
Total
Liabilities
|
5,480.9
|
|
5,500.6
|
|
5,979.1
|
|
Commitments and
Contingencies
|
|
|
|
|
|
|
Shareholders'
Equity:
|
|
|
|
|
|
|
Common Stock, $1.00
Par Value Per Share; Authorized 240.0 Shares;
|
|
|
|
|
|
|
Issued and Outstanding 125.8, 132.3 and 145.1 Shares
|
125.8
|
|
132.3
|
|
145.1
|
|
Additional Paid-in
Capital
|
313.7
|
|
682.7
|
|
1,318.5
|
|
Accumulated Other
Comprehensive Loss
|
(483.4)
|
|
(495.9)
|
|
(535.5)
|
|
Retained
Earnings
|
2,475.9
|
|
2,224.5
|
|
1,768.0
|
|
Olin
Corporation's Shareholders' Equity
|
2,432.0
|
|
2,543.6
|
|
2,696.1
|
|
Noncontrolling
Interests
|
39.6
|
|
-
|
|
-
|
|
Total
Equity
|
2,471.6
|
|
2,543.6
|
|
2,696.1
|
|
Total Liabilities and
Equity
|
$
7,952.5
|
|
$
8,044.2
|
|
$
8,675.2
|
|
|
|
|
|
|
|
(a)
Unaudited.
|
|
|
|
|
|
|
Olin
Corporation
|
|
|
|
|
Consolidated Statements
of Cash Flows (a)
|
|
|
|
|
Six Months
Ended
|
|
June 30,
|
|
(In
millions)
|
2023
|
|
2022
|
|
Operating
Activities:
|
|
|
|
|
Net Income
|
$
298.7
|
|
$
815.1
|
|
Gains on Disposition of
Property, Plant and Equipment
|
(27.0)
|
|
-
|
|
Stock-based
Compensation
|
8.4
|
|
6.3
|
|
Depreciation and
Amortization
|
273.9
|
|
300.5
|
|
Deferred Income
Taxes
|
(27.7)
|
|
31.9
|
|
Write-off of Equipment
and Facility included in Restructuring Charges
|
17.7
|
|
-
|
|
Qualified Pension Plan
Contributions
|
(1.5)
|
|
(0.8)
|
|
Qualified Pension Plan
Income
|
(9.9)
|
|
(16.3)
|
|
Changes in:
|
|
|
|
|
Receivables
|
52.8
|
|
(228.5)
|
|
Income Taxes
Receivable/Payable
|
14.3
|
|
12.8
|
|
Inventories
|
(137.9)
|
|
(90.4)
|
|
Other Current
Assets
|
(1.8)
|
|
(16.1)
|
|
Accounts Payable
and Accrued Liabilities
|
(141.1)
|
|
138.6
|
|
Other
Assets
|
(13.4)
|
|
2.5
|
|
Other Noncurrent
Liabilities
|
43.1
|
|
0.7
|
|
Other Operating
Activities
|
(5.6)
|
|
2.9
|
|
Net
Operating Activities
|
343.0
|
|
959.2
|
|
Investing
Activities:
|
|
|
|
|
Capital
Expenditures
|
(128.8)
|
|
(103.9)
|
|
Payments under Other
Long-Term Supply Contracts
|
(29.6)
|
|
-
|
|
Proceeds from
Disposition of Property, Plant and Equipment
|
28.8
|
|
-
|
|
Other Investing
Activities
|
(1.0)
|
|
-
|
|
Net
Investing Activities
|
(130.6)
|
|
(103.9)
|
|
Financing
Activities:
|
|
|
|
|
Long-term Debt
Borrowings (Repayments), Net
|
143.7
|
|
(0.5)
|
|
Common Stock
Repurchased and Retired
|
(393.0)
|
|
(689.7)
|
|
Stock Options
Exercised
|
11.9
|
|
20.9
|
|
Dividends
Paid
|
(51.8)
|
|
(60.9)
|
|
Contributions Received
from Noncontrolling Interests
|
44.1
|
|
-
|
|
Net
Financing Activities
|
(245.1)
|
|
(730.2)
|
|
Effect of Exchange Rate Changes on Cash and Cash
Equivalents
|
(0.2)
|
|
(1.0)
|
|
Net (Decrease) Increase
in Cash and Cash Equivalents
|
(32.9)
|
|
124.1
|
|
Cash and Cash
Equivalents, Beginning of Year
|
194.0
|
|
180.5
|
|
Cash and Cash
Equivalents, End of Period
|
$
161.1
|
|
$
304.6
|
|
|
|
|
|
(a)
Unaudited.
|
|
|
|
|
Olin
Corporation
|
|
|
|
|
|
Non-GAAP Financial
Measures - Adjusted EBITDA (a)
|
|
|
|
|
|
Olin's definition of
Adjusted EBITDA (Earnings before interest, taxes, depreciation, and
amortization) is net income (loss) plus an add-back for
depreciation and amortization, interest expense (income), income
tax provision (benefit), other expense (income), restructuring
charges and certain other non-recurring items. Adjusted
EBITDA is a non-GAAP financial measure. Management believes
that this measure is meaningful to investors as a supplemental
financial measure to assess the financial performance without
regard to financing methods, capital structures, taxes or
historical cost basis. The use of non-GAAP financial measures
is not intended to replace any measures of performance determined
in accordance with GAAP and Adjusted EBITDA presented may not be
comparable to similarly titled measures of other companies.
Reconciliation of forward-looking non-GAAP financial measures to
the most directly comparable GAAP financial measures are omitted
from this release because Olin is unable to provide such
reconciliations without the use of unreasonable efforts. This
inability results from the inherent difficulty in forecasting
generally and quantifying certain projected amounts that are
necessary for such reconciliations. In particular, sufficient
information is not available to calculate certain adjustments
required for such reconciliations, including interest expense
(income), income tax provision (benefit), other expense (income)
and restructuring charges. Because of our inability to
calculate such adjustments, forward-looking net income guidance is
also omitted from this release. We expect these adjustments
to have a potentially significant impact on our future GAAP
financial results.
|
|
|
Three Months
|
Six Months
|
|
|
Ended June
30,
|
Ended June
30,
|
|
(In
millions)
|
2023
|
2022
|
2023
|
2022
|
|
|
|
|
|
|
|
Reconciliation of Net
Income to Adjusted EBITDA:
|
|
|
|
|
|
Net Income
|
$
144.7
|
$
422.1
|
$
298.7
|
$
815.1
|
|
Add Back:
|
|
|
|
|
|
Interest
Expense
|
45.3
|
34.5
|
87.7
|
67.4
|
|
Interest
Income
|
(1.1)
|
(0.3)
|
(2.2)
|
(0.7)
|
|
Income Tax
Provision
|
33.2
|
118.6
|
74.0
|
249.2
|
|
Depreciation and
Amortization
|
136.8
|
148.8
|
273.9
|
300.5
|
|
EBITDA
|
358.9
|
723.7
|
732.1
|
1,431.5
|
|
Add Back:
|
|
|
|
|
|
Restructuring
Charges
|
19.2
|
3.6
|
80.1
|
6.7
|
|
Certain Non-recurring
Items (b)
|
(27.0)
|
-
|
(27.0)
|
-
|
|
Adjusted
EBITDA
|
$
351.1
|
$
727.3
|
$
785.2
|
$ 1,438.2
|
|
|
|
|
|
|
|
(a)
|
Unaudited.
|
|
(b)
|
Certain non-recurring
items for both the three and six months ended June 30, 2023
included a gain of $27.0 million for the sale of
Olin's domestic private trucking fleet and
operations.
|
|
|
Olin
Corporation
|
|
|
|
|
|
|
Non-GAAP Financial
Measures - Net Debt to Adjusted EBITDA (a)
|
|
|
|
|
|
|
Olin's definition of
Net Debt to Adjusted EBITDA is Net Debt divided by the Trailing
Twelve Months Adjusted EBITDA. Net Debt at the end of any
reporting period is defined as the sum of our current installments
of long-term debt and long-term debt less cash and cash
equivalents. Trailing Twelve Months Adjusted EBITDA (Earnings
before interest, taxes, depreciation, and amortization) is net
income (loss) plus an add-back for depreciation and amortization,
interest expense (income), income tax provision (benefit), other
expense (income), restructuring charges and certain other
non-recurring items for the previous twelve months. Net Debt
to Adjusted EBITDA is a non-GAAP financial measure.
Management believes that this measure is meaningful to investors as
a measure of our ability to manage our indebtedness. The use
of non-GAAP financial measures is not intended to replace any
measures of indebtedness or liquidity determined in accordance with
GAAP and Net Debt or Net Debt to Adjusted EBITDA presented may not
be comparable to similarly titled measures of other
companies.
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
December 31,
|
|
June 30,
|
|
(In
millions)
|
2023
|
|
2022
|
|
2022
|
|
|
|
|
|
|
|
|
Current Installments of
Long-term Debt
|
$
9.0
|
|
$
9.7
|
|
$
201.1
|
|
Long-term
Debt
|
2,717.3
|
|
2,571.0
|
|
2,579.6
|
|
Total Debt
|
2,726.3
|
|
2,580.7
|
|
2,780.7
|
|
Less: Cash and Cash
Equivalents
|
(161.1)
|
|
(194.0)
|
|
(304.6)
|
|
Net Debt
|
$
2,565.2
|
|
$
2,386.7
|
|
$
2,476.1
|
|
|
|
|
|
|
|
|
Trailing Twelve Months
Adjusted EBITDA (b)
|
$
1,774.8
|
|
$
2,427.8
|
|
$
2,831.9
|
|
|
|
|
|
|
|
|
Net Debt to Adjusted
EBITDA
|
1.4
|
|
1.0
|
|
0.9
|
|
|
|
|
|
|
|
|
(a)
|
Unaudited.
|
|
(b)
|
Trailing Twelve Months
Adjusted EBITDA as of June 30, 2023 is calculated as the six months
ended June 30, 2023 plus the year ended December 31, 2022
less the six months ended June 30, 2022. Trailing Twelve
Months Adjusted EBITDA as of June 30, 2022 is calculated as the six
months ended June 30, 2022
plus the year ended December 31, 2021 less the six months
ended June 30, 2021.
|
|
|
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SOURCE Olin Corporation
