Highlights
- Fourth quarter 2023 net income of $52.9
million, or $0.43 per diluted
share
- Quarterly adjusted EBITDA of $210.1
million
- Share repurchases of $711.3
million in 2023
- Expect 2024 adjusted EBITDA to improve from 2023
CLAYTON,
Mo., Jan. 25, 2024 /PRNewswire/ -- Olin
Corporation (NYSE: OLN) announced financial results for the
fourth quarter ended December 31,
2023. Fourth quarter 2023 reported net income was
$52.9 million, or $0.43 per diluted share, which compares to fourth
quarter 2022 reported net income of $196.6
million, or $1.43 per diluted
share. Fourth quarter 2023 adjusted EBITDA of $210.1 million excludes depreciation and
amortization expense of $128.5
million, insurance recoveries of $22.0 million, and restructuring income of
$2.4 million. Fourth quarter 2022
adjusted EBITDA was $441.8 million.
Sales in the fourth quarter 2023 were $1,614.6 million, compared to $1,977.0 million in the fourth quarter 2022. Full
year 2023 reported net income was $460.2
million, or $3.57 per diluted
share, which compares to full year 2022 reported net income of
$1,326.9 million, or $8.94 per diluted share.
Scott Sutton, Chairman,
President, and Chief Executive Officer, said, "Through the
challenging economic environment of 2023, Olin successfully
demonstrated our unique winning model by delivering $1.3 billion of adjusted EBITDA and corresponding
cash flows enabling the 2023 repurchase of approximately 10% of our
outstanding shares. As we are confident in our Company's future and
the strength of our earnings and cash flow, we plan to continue our
capital allocation strategy, while committing to maintain an
investment-grade balance sheet and achieving additional
investment-grade credit ratings.
"In fourth quarter 2023, we executed a 'value accelerator
initiative' designed to halt the decline in our electrochemical
unit ("ECU") values and accelerate a favorable inflection point for
our Chlor Alkali Products and Vinyls business. We are seeing
success with our 'value accelerator initiative' but expect to
continue to limit our market participation through February 2024, as we remain disciplined in our
approach to ECU values. We anticipate our initiative supports an
improved 2024 adjusted EBITDA as compared to 2023. Considering the
ongoing difficult global economic environment and our 'value
accelerator initiative,' we expect first quarter 2024 results from
our Chemical businesses to be slightly higher than fourth quarter
2023 levels. We also expect our Winchester business first quarter
2024 results to increase sequentially from fourth quarter 2023.
Overall, we expect Olin's first quarter 2024 adjusted EBITDA to
improve by approximately 10% from fourth quarter 2023 levels."
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 is consolidated in our Chlor Alkali Products
and Vinyls segment. Chlor Alkali Products and Vinyls sales for the
fourth quarter 2023 were $906.1
million, compared to $1,172.8
million in the fourth quarter 2022. The decrease in Chlor
Alkali Products and Vinyls sales was primarily due to lower pricing
and a less favorable product mix. Fourth quarter 2023 segment
earnings were $65.9 million, compared
to $252.3 million in the fourth
quarter 2022. The $186.4 million
decrease in segment earnings was primarily due to lower volumes and
lower pricing, primarily caustic soda, partially offset by lower
raw material and operating costs. The Chlor Alkali Products and
Vinyls fourth quarter 2023 segment results were negatively impacted
by approximately $100 million from
the 'value accelerator initiative.' Chlor Alkali Products and
Vinyls fourth quarter 2023 results included depreciation and
amortization expense of $105.4
million compared to $117.6
million in the fourth quarter 2022.
EPOXY
Epoxy sales for the fourth quarter 2023 were $313.1 million, compared to $484.2 million in the fourth quarter 2022. The
decrease in Epoxy sales was primarily due to lower product pricing
and $94.0 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. Fourth quarter 2023 segment loss was ($23.1) million, compared to segment earnings of
$30.5 million in the fourth quarter
2022. The $53.6 million decrease in
Epoxy segment earnings was primarily due to lower pricing and
incremental costs associated with inventory reduction, partially
offset by lower raw material and operating costs, mainly decreased
natural gas and electrical power costs, and an improved product
mix. Epoxy fourth quarter 2023 results included depreciation and
amortization expense of $13.0 million
compared to $22.4 million in the
fourth quarter 2022.
WINCHESTER
In fourth quarter 2023, we completed the acquisition of the
White Flyer business, which was included in our Winchester segment.
White Flyer designs, manufactures and sells recreational trap,
skeet, international and sporting clay targets. Winchester sales
for the fourth quarter 2023 were $395.4
million, compared to $320.0
million in the fourth quarter 2022. The increase in
Winchester sales was primarily due to higher commercial ammunition
shipments, higher domestic and international military sales, and
White Flyer sales. Fourth quarter 2023 segment earnings were
$65.4 million, compared to
$45.7 million in the fourth quarter
2022. The $19.7 million increase in
segment earnings was primarily due to higher commercial ammunition
shipments, higher military sales, and lower operating costs,
partially offset by lower commercial ammunition pricing. Winchester
fourth quarter 2023 results included depreciation and amortization
expense of $8.1 million compared to
$6.4 million in the fourth quarter
2022.
CORPORATE AND OTHER COSTS
Other corporate and unallocated costs in fourth quarter of 2023
decreased $12.0 million compared to
fourth quarter 2022 primarily due to lower stock-based
compensation, including mark-to-market adjustments, a favorable
foreign currency impact, and lower legal-related costs.
LIQUIDITY AND SHARE REPURCHASES
The cash balance on December 31,
2023, was $170.3 million
and Olin ended the year with net debt of approximately $2.5 billion and a net debt to adjusted EBITDA
ratio of 1.9 times. On December 31,
2023, Olin had approximately $1.3
billion of available liquidity.
During fourth quarter 2023, approximately 2.5 million shares of
common stock were repurchased at a cost of $116.2 million. During 2023, approximately 13.3
million shares of common stock were repurchased at a cost of
$711.3 million. On December 31, 2023, Olin had approximately
$1.0 billion available under its
current share repurchase authorization.
CONFERENCE CALL INFORMATION
Olin senior management will host a conference call to discuss
fourth quarter 2023 financial results at 9:00 a.m. Eastern time on Friday, January 26,
2024. 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 fourth 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, industrial cartridges,
and clay targets.
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 and ability to
manage executive officer and other key senior management
transitions;
- 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.
2024 - 01
|
Olin
Corporation
|
|
Consolidated
Statements of Operations (a)
|
|
Three
Months
|
|
Years
Ended
|
|
Ended December
31,
|
|
December
31,
|
|
(In millions,
except per share amounts)
|
2023
|
2022
|
|
2023
|
2022
|
|
|
|
|
|
|
|
Sales
|
$
1,614.6
|
$
1,977.0
|
|
$
6,833.0
|
$
9,376.2
|
|
Operating
Expenses:
|
|
|
|
|
|
|
Cost of Goods
Sold
|
1,430.9
|
1,594.5
|
|
5,667.5
|
7,194.3
|
|
Selling and
Administrative
|
102.8
|
97.9
|
|
406.7
|
393.9
|
|
Restructuring
(Income) Charges (b)
|
(2.4)
|
11.0
|
|
89.6
|
25.3
|
|
Other Operating
Income (c)
|
15.7
|
-
|
|
42.9
|
16.3
|
|
Operating
Income
|
99.0
|
273.6
|
|
712.1
|
1,779.0
|
|
Interest
Expense
|
47.2
|
40.5
|
|
181.1
|
143.9
|
|
Interest
Income
|
1.1
|
1.0
|
|
4.3
|
2.2
|
|
Non-operating
Pension Income
|
7.0
|
9.7
|
|
24.0
|
38.7
|
|
Income before
Taxes
|
59.9
|
243.8
|
|
559.3
|
1,676.0
|
|
Income Tax Provision
(d)
|
11.1
|
47.2
|
|
107.3
|
349.1
|
|
Net
Income
|
48.8
|
196.6
|
|
452.0
|
1,326.9
|
|
Net Loss
Attributable to Noncontrolling Interests
|
(4.1)
|
-
|
|
(8.2)
|
-
|
|
Net Income
Attributable to Olin Corporation
|
$
52.9
|
$ 196.6
|
|
$ 460.2
|
$
1,326.9
|
|
Net Income
Attributable to Olin Corporation Per Common Share:
|
|
|
|
|
|
|
Basic
|
$
0.44
|
$
1.46
|
|
$
3.66
|
$
9.16
|
|
Diluted
|
$
0.43
|
$
1.43
|
|
$
3.57
|
$
8.94
|
|
Dividends Per Common
Share
|
$
0.20
|
$
0.20
|
|
$
0.80
|
$
0.80
|
|
Average Common
Shares Outstanding - Basic
|
121.0
|
134.5
|
|
125.9
|
144.9
|
|
Average Common
Shares Outstanding - Diluted
|
123.5
|
137.7
|
|
128.8
|
148.5
|
|
|
(a)
|
Unaudited.
|
|
(b)
|
Restructuring income
for the three months ended December 31, 2023 was primarily
attributed to revised contract termination costs associated with
our operational cessation at our Terneuzen, Netherlands, cumene
facility. Restructuring charges for the year ended December 31,
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 $17.7 million were non-cash impairment charges for equipment
and facilities.
|
|
|
|
(c)
|
Other operating
income for both the three months and year ended December 31, 2023
included an insurance recovery of $15.6 million associated with a
second quarter 2022 business interruption at our Plaquemine,
Louisiana, Chlor Alkali Products and Vinyls facility. Other
operating income for the year ended December 31, 2023 also included
a gain of $27.0 million for the sale of Olin's domestic private
trucking fleet and operations. Other operating income for the year
ended December 31, 2022 included $13.0 million of gains for the
sale of two former manufacturing facilities.
|
|
|
|
(d)
|
Income tax provision
for the year ended December 31, 2022 included a benefit of $36.6
million primarily associated with the release of deferred tax
liabilities as a result of a legal entity
liquidation.
|
|
|
Olin
Corporation
|
|
Segment
Information (a)
|
|
|
|
Three
Months
|
|
Years
Ended
|
|
Ended December
31,
|
|
December
31,
|
|
(In
millions)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Sales:
|
|
|
|
|
|
|
|
|
Chlor Alkali
Products and Vinyls
|
$ 906.1
|
|
$
1,172.8
|
|
$
3,995.1
|
|
$
5,085.0
|
|
Epoxy
|
313.1
|
|
484.2
|
|
1,329.2
|
|
2,690.5
|
|
Winchester
|
395.4
|
|
320.0
|
|
1,508.7
|
|
1,600.7
|
|
Total
Sales
|
$
1,614.6
|
|
$
1,977.0
|
|
$
6,833.0
|
|
$
9,376.2
|
|
Income before
Taxes:
|
|
|
|
|
|
|
|
|
Chlor Alkali
Products and Vinyls
|
$
65.9
|
|
$ 252.3
|
|
$ 664.2
|
|
$
1,181.3
|
|
Epoxy
|
(23.1)
|
|
30.5
|
|
(31.0)
|
|
388.5
|
|
Winchester
|
65.4
|
|
45.7
|
|
255.6
|
|
372.9
|
|
Corporate/Other:
|
|
|
|
|
|
|
|
|
Environmental Expense
(b)
|
(0.6)
|
|
(5.2)
|
|
(23.7)
|
|
(23.2)
|
|
Other Corporate and
Unallocated Costs
|
(26.7)
|
|
(38.7)
|
|
(106.3)
|
|
(131.5)
|
|
Restructuring Income
(Charges) (c)
|
2.4
|
|
(11.0)
|
|
(89.6)
|
|
(25.3)
|
|
Other Operating
Income (d)
|
15.7
|
|
-
|
|
42.9
|
|
16.3
|
|
Interest
Expense
|
(47.2)
|
|
(40.5)
|
|
(181.1)
|
|
(143.9)
|
|
Interest
Income
|
1.1
|
|
1.0
|
|
4.3
|
|
2.2
|
|
Non-operating
Pension Income
|
7.0
|
|
9.7
|
|
24.0
|
|
38.7
|
|
Income before
Taxes
|
$
59.9
|
|
$ 243.8
|
|
$ 559.3
|
|
$
1,676.0
|
|
|
(a)
|
Unaudited.
|
|
(b)
|
Environmental
expense for both the three months and years ended December 31, 2023
and 2022, included $6.4 million and $1.0 million, respectively, of
insurance recoveries for costs incurred and expensed in prior
periods.
|
|
|
(c)
|
Restructuring income
for the three months ended December 31, 2023 was primarily
attributed to revised contract termination costs associated with
our operational cessation at our Terneuzen, Netherlands, cumene
facility. Restructuring charges for the year ended December 31,
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 $17.7 million were non-cash impairment charges for equipment
and facilities.
|
|
|
(d)
|
Other operating
income for both the three months and year ended December 31, 2023
included an insurance recovery of $15.6 million associated with a
second quarter 2022 business interruption at our Plaquemine,
Louisiana, Chlor Alkali Products and Vinyls facility. Other
operating income for the year ended December 31, 2023 also included
a gain of $27.0 million for the sale of Olin's domestic private
trucking fleet and operations. Other operating income for the year
ended December 31, 2022 included $13.0 million of gains for the
sale of two former manufacturing facilities.
|
|
Olin
Corporation
|
|
Consolidated Balance
Sheets (a)
|
|
|
December
31,
|
|
|
(In millions,
except per share data)
|
2023
|
|
2022
|
|
|
|
|
|
|
|
Assets:
|
|
|
|
|
|
Cash and Cash
Equivalents
|
$
170.3
|
|
$
194.0
|
|
|
Accounts
Receivable, Net
|
874.7
|
|
924.6
|
|
|
Income Taxes
Receivable
|
15.3
|
|
43.2
|
|
|
Inventories,
Net
|
858.8
|
|
941.9
|
|
|
Other Current
Assets
|
54.1
|
|
52.7
|
|
|
Total Current Assets
|
1,973.2
|
|
2,156.4
|
|
|
Property,
Plant and Equipment
|
|
|
|
|
|
(Less Accumulated
Depreciation of $4,826.3 and $4,413.1)
|
2,519.6
|
|
2,674.1
|
|
|
Operating
Lease Assets, Net
|
344.7
|
|
356.0
|
|
|
Deferred
Income Taxes
|
87.4
|
|
60.5
|
|
|
Other
Assets
|
1,118.5
|
|
1,102.5
|
|
|
Intangibles,
Net
|
245.8
|
|
273.8
|
|
|
Goodwill
|
1,424.0
|
|
1,420.9
|
|
|
Total
Assets
|
$
7,713.2
|
|
$
8,044.2
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity:
|
|
|
|
|
|
Current
Installments of Long-term Debt
|
$
78.8
|
|
$
9.7
|
|
|
Accounts
Payable
|
775.4
|
|
837.7
|
|
|
Income Taxes
Payable
|
154.7
|
|
133.4
|
|
|
Current
Operating Lease Liabilities
|
69.3
|
|
71.8
|
|
|
Accrued
Liabilities
|
450.0
|
|
508.8
|
|
|
Total Current Liabilities
|
1,528.2
|
|
1,561.4
|
|
|
Long-term
Debt
|
2,591.3
|
|
2,571.0
|
|
|
Operating
Lease Liabilities
|
283.1
|
|
292.5
|
|
|
Accrued
Pension Liability
|
225.8
|
|
234.5
|
|
|
Deferred
Income Taxes
|
476.2
|
|
507.3
|
|
|
Other
Liabilities
|
340.3
|
|
333.9
|
|
|
Total
Liabilities
|
5,444.9
|
|
5,500.6
|
|
|
Commitments and
Contingencies
|
|
|
|
|
|
Shareholders'
Equity:
|
|
|
|
|
|
Common Stock, $1.00
Par Value Per Share; Authorized 240.0 Shares;
|
|
|
|
|
|
Issued and Outstanding 120.2 Shares (132.3 in 2022)
|
120.2
|
|
132.3
|
|
|
Additional Paid-in
Capital
|
24.8
|
|
682.7
|
|
|
Accumulated Other
Comprehensive Loss
|
(496.3)
|
|
(495.9)
|
|
|
Retained
Earnings
|
2,583.7
|
|
2,224.5
|
|
|
Olin
Corporation's Shareholders' Equity
|
2,232.4
|
|
2,543.6
|
|
|
Noncontrolling
Interests
|
35.9
|
|
-
|
|
|
Total
Equity
|
2,268.3
|
|
2,543.6
|
|
|
Total Liabilities
and Equity
|
$
7,713.2
|
|
$
8,044.2
|
|
|
Olin
Corporation
|
|
Consolidated
Statements of Cash Flows (a)
|
|
Years
Ended
|
|
December
31,
|
|
(In
millions)
|
2023
|
|
2022
|
|
Operating
Activities:
|
|
|
|
|
Net
Income
|
$
452.0
|
|
$
1,326.9
|
|
Gains on Disposition
of Property, Plant and Equipment
|
(27.0)
|
|
(13.0)
|
|
Stock-based
Compensation
|
18.6
|
|
14.1
|
|
Depreciation and
Amortization
|
533.4
|
|
598.8
|
|
Deferred Income
Taxes
|
(55.6)
|
|
(32.4)
|
|
Write-off of
Equipment and Facility included in Restructuring
Charges
|
17.7
|
|
-
|
|
Qualified Pension
Plan Contributions
|
(1.1)
|
|
(1.3)
|
|
Qualified Pension
Plan Income
|
(21.0)
|
|
(33.1)
|
|
Changes
in:
|
|
|
|
|
Receivables
|
65.4
|
|
160.8
|
|
Income Taxes
Receivable/Payable
|
45.8
|
|
(2.9)
|
|
Inventories
|
94.4
|
|
(86.3)
|
|
Other Current
Assets
|
(3.1)
|
|
15.9
|
|
Accounts
Payable and Accrued Liabilities
|
(133.9)
|
|
(22.3)
|
|
Other
Assets
|
(23.4)
|
|
(2.6)
|
|
Other
Noncurrent Liabilities
|
15.8
|
|
(0.7)
|
|
Other Operating
Activities
|
(3.7)
|
|
-
|
|
Net Operating Activities
|
974.3
|
|
1,921.9
|
|
Investing
Activities:
|
|
|
|
|
Capital
Expenditures
|
(236.0)
|
|
(236.9)
|
|
Business Acquired in
Purchase Transaction, Net of Cash Acquired
|
(63.9)
|
|
-
|
|
Payments under Other
Long-term Supply Contracts
|
(64.5)
|
|
(37.7)
|
|
Proceeds from
Disposition of Property, Plant and Equipment
|
28.8
|
|
14.9
|
|
Other Investing
Activities
|
(5.2)
|
|
-
|
|
Net Investing Activities
|
(340.8)
|
|
(259.7)
|
|
Financing
Activities:
|
|
|
|
|
Long-term Debt
Borrowings (Repayments), Net
|
85.9
|
|
(201.1)
|
|
Common Stock
Repurchased and Retired
|
(711.3)
|
|
(1,350.7)
|
|
Stock Options
Exercised
|
25.4
|
|
25.7
|
|
Dividends
Paid
|
(101.0)
|
|
(116.2)
|
|
Debt Issuance
Costs
|
-
|
|
(4.4)
|
|
Contributions
Received from Noncontrolling Interests
|
44.1
|
|
-
|
|
Net Financing Activities
|
(656.9)
|
|
(1,646.7)
|
|
Effect of Exchange Rate Changes on Cash and Cash
Equivalents
|
(0.3)
|
|
(2.0)
|
|
Net (Decrease)
Increase in Cash and Cash Equivalents
|
(23.7)
|
|
13.5
|
|
Cash and Cash
Equivalents, Beginning of Year
|
194.0
|
|
180.5
|
|
Cash and Cash
Equivalents, End of Year
|
$
170.3
|
|
$
194.0
|
|
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
(income) 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 (income) 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
|
Years
Ended
|
|
Ended December
31,
|
December
31,
|
|
(In
millions)
|
2023
|
2022
|
2023
|
2022
|
|
|
|
|
|
|
Reconciliation of
Net Income to Adjusted EBITDA:
|
|
|
|
|
|
Net
Income
|
$
48.8
|
$
196.6
|
$
452.0
|
$
1,326.9
|
|
Add
Back:
|
|
|
|
|
|
Interest
Expense
|
47.2
|
40.5
|
181.1
|
143.9
|
|
Interest
Income
|
(1.1)
|
(1.0)
|
(4.3)
|
(2.2)
|
|
Income Tax
Provision
|
11.1
|
47.2
|
107.3
|
349.1
|
|
Depreciation and
Amortization
|
128.5
|
148.5
|
533.4
|
598.8
|
|
EBITDA
|
234.5
|
431.8
|
1,269.5
|
2,416.5
|
|
Add
Back:
|
|
|
|
|
|
Restructuring
(Income) Charges
|
(2.4)
|
11.0
|
89.6
|
25.3
|
|
Environmental
Recoveries (b)
|
(6.4)
|
(1.0)
|
(6.4)
|
(1.0)
|
|
Certain
Non-recurring Items (c)
|
(15.6)
|
-
|
(42.6)
|
(13.0)
|
|
Adjusted
EBITDA
|
$
210.1
|
$
441.8
|
$
1,310.1
|
$
2,427.8
|
|
|
(a)
|
Unaudited.
|
|
(b)
|
Environmental
recoveries included insurance recoveries for costs incurred and
expensed in prior periods.
|
|
(c)
|
Certain
non-recurring items for both the three months and year ended
December 31, 2023 included an insurance recovery of $15.6 million
associated with a second quarter 2022 business interruption at our
Plaquemine, Louisiana, Chlor Alkali Products and Vinyls facility.
Certain non-recurring items for the year ended December 31, 2023
also included a gain of $27.0 million for the sale of Olin's
domestic private trucking fleet and operations. Certain
non-recurring items for the year ended December 31, 2022 included
$13.0 million of gains for the sale of two former manufacturing
facilities.
|
|
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 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. 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
(income) charges and certain other non-recurring items. 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.
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
(In
millions)
|
2023
|
|
2022
|
|
|
|
|
|
Current Installments
of Long-term Debt
|
$
78.8
|
|
$
9.7
|
|
Long-term
Debt
|
2,591.3
|
|
2,571.0
|
|
Total Debt
|
2,670.1
|
|
2,580.7
|
|
Less: Cash and Cash
Equivalents
|
(170.3)
|
|
(194.0)
|
|
Net Debt
|
$
2,499.8
|
|
$
2,386.7
|
|
|
|
|
|
Adjusted
EBITDA
|
$
1,310.1
|
|
$
2,427.8
|
|
|
|
|
|
Net Debt to Adjusted
EBITDA
|
1.9
|
|
1.0
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/olin-announces-fourth-quarter-2023-results-302045048.html
SOURCE Olin Corporation
