Highlights
- Second quarter 2024 net income of $74.2
million, or $0.62 per diluted
share
- Quarterly adjusted EBITDA of $278.1
million
- Share repurchases of $106.0
million in second quarter 2024
CLAYTON, Mo.,
July 25,
2024 /PRNewswire/ -- Olin Corporation
(NYSE: OLN) announced financial results for the second quarter
ended June 30, 2024. Second quarter
2024 reported net income was $74.2
million, or $0.62 per diluted
share, which compares to second quarter 2023 reported net income of
$146.9 million, or $1.13 per diluted share. Second quarter 2024
adjusted EBITDA of $278.1 million
excludes depreciation and amortization expense of $129.0 million and restructuring charges of
$6.8 million. Second quarter 2023
adjusted EBITDA was $351.1 million.
Sales in the second quarter 2024 were $1,644.0 million, compared to $1,702.7 million in the second quarter 2023.
Ken Lane, President and Chief
Executive Officer, said, "During the second quarter, the Olin team
delivered a 15% sequential improvement in adjusted EBITDA. Our
Chlor Alkali Products and Vinyls business benefited from seasonal
demand improvement in the second quarter. The Epoxy business
continued to improve sequentially as well, delivering higher
margins and lower costs from our ongoing delivery of previously
announced restructuring plans. At the same time, our Winchester
business achieved higher military ammunition shipments and military
project revenue, while commercial ammunition shipments were
sequentially lower with higher propellant costs, resulting in a
relatively flat performance versus the first quarter, as
expected."
Lane continued, "As a result of Hurricane Beryl, Olin's
operations at its Freeport, Texas
facility were disrupted in early July. Olin has safely returned
many Freeport plants to operation.
Wind damage to ancillary equipment has prevented the remainder from
resuming production. Once this critical equipment is restored,
those remaining assets, including our vinyl chloride monomer and
phenol/acetone plants, will be restarted. We currently estimate
that Olin's third quarter 2024 adjusted EBITDA will be reduced by
approximately $100 million due to
incremental costs to restore operations, unabsorbed fixed
manufacturing costs, and reduced profit from lost sales associated
with the storm. Before considering the effects of Hurricane Beryl,
we had anticipated our Chemical businesses' third quarter 2024
adjusted EBITDA would have been comparable to second quarter 2024.
We expect our Winchester business third quarter results to improve
from second quarter levels with seasonally stronger commercial
ammunition demand and higher military shipments and project
revenue."
Commenting on the full year outlook Lane continued, "The
anticipated improvement in demand for our Chlor Alkali Products and
Vinyls business has been slower to develop than expected earlier
this year. Based on our current outlook and before considering the
effect of Hurricane Beryl, we believe Olin's second half 2024
adjusted EBITDA would have been comparable to first half 2024. We
will continue to return value to our shareholders, as we maintain
our disciplined capital allocation strategy, supported by our
strong financial foundation and sustainable cash flow."
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
Chlor Alkali Products and Vinyls sales for the second quarter
2024 were $920.3 million, compared to
$1,002.3 million in the second
quarter 2023. Second quarter 2024 segment earnings were
$99.3 million, compared to
$180.1 million in the second quarter
2023. The $80.8 million decrease in
segment earnings was primarily due to lower caustic soda pricing
partially offset by decreased costs associated with products
purchased from other parties, higher volumes, and lower raw
material and operating costs. The Chlor Alkali Products and Vinyls
second quarter 2023 segment sales and results were negatively
impacted by 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 2024 results included
depreciation and amortization expense of $105.8 million compared to $113.3 million in the second quarter 2023.
EPOXY
Epoxy sales for the second quarter 2024 were $317.7 million, compared to $333.8 million in the second quarter 2023. The
decrease in sales was primarily due to lower product pricing,
partially offset by improved volumes. Second quarter 2024 segment
loss was ($3.0) million, compared to
segment loss of ($0.5) million in the
second quarter 2023. The $2.5 million
decrease in segment results was primarily due to lower pricing,
partially offset by increased volumes and lower raw material and
operating costs. Epoxy second quarter 2024 results included
depreciation and amortization expense of $13.4 million compared to $15.2 million in the second quarter 2023.
WINCHESTER
In fourth quarter 2023, Olin completed the acquisition of the
White Flyer business, which was included in the Winchester segment.
White Flyer designs, manufactures and sells recreational trap,
skeet, international and sporting clay targets. Winchester sales
for the second quarter 2024 were $406.0
million, compared to $366.6
million in the second quarter 2023. The increase in sales
was primarily due to higher international military sales, military
project revenue, and White Flyer sales, partially offset by lower
commercial ammunition sales. Second quarter 2024 segment earnings
were $70.3 million, compared to
$64.7 million in the second quarter
2023. The $5.6 million increase in
segment earnings was primarily due to White Flyer earnings and
higher military shipments and military project revenue, partially
offset by lower commercial ammunition shipments and pricing and
higher propellant costs. Winchester second quarter 2024 results
included depreciation and amortization expense of $8.3 million compared to $6.3 million in the second quarter 2023.
CORPORATE AND OTHER COSTS
Second quarter 2024 charges to income for environmental
investigatory and remedial activities were $6.4 million compared to $13.0 million in the second quarter 2023. The
charges relate primarily to future remedial activities associated
with past manufacturing operations.
Other corporate and unallocated costs in the second quarter of
2024 decreased $5.4 million compared
to second quarter 2023 primarily due to lower incentive costs,
including mark-to-market on stock-based compensation, lower
legal-related costs, and a favorable foreign currency impact.
LIQUIDITY AND SHARE REPURCHASES
The cash balance on June 30, 2024,
was $182.1 million. Olin ended the
second quarter 2024 with net debt of approximately $2.7 billion and a net debt to adjusted EBITDA
ratio of 2.6 times. During the first half 2024, net debt increased
by $229.0 million, primarily driven
by typical seasonal working capital. The increase in working
capital was $166.3 million in first
half 2024. On June 30, 2024, Olin had
approximately $1.0 billion of
available liquidity.
During second quarter 2024, approximately 1.9 million shares of
common stock were repurchased at a cost of $106.0 million. On June
30, 2024, Olin had approximately $0.8
billion available under its share repurchase
authorization.
CONFERENCE CALL INFORMATION
Olin senior management will host a conference call to discuss
second quarter 2024 financial results at 9:00 a.m. Eastern time on Friday, July 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 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, 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, 2023, 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 identify, attract, develop, retain and motivate
qualified employees throughout the organization and ability to
manage executive officer and other key senior management
transitions;
- 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
and production hazards;
- exposure to physical risks associated with climate-related
events or increased severity and frequency of severe weather
events;
- availability of and/or higher-than-expected costs of raw
material, energy, transportation, and/or logistics;
- the failure or an interruption, including cyber-attacks, of our
information technology systems;
- 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;
- 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.
2024-11
|
Olin
Corporation
|
|
|
|
|
|
|
Consolidated
Statements of Operations (a)
|
|
|
|
|
|
|
Three
Months
|
|
Six
Months
|
|
Ended June
30,
|
|
Ended June
30,
|
|
(In millions,
except per share amounts)
|
2024
|
2023
|
|
2024
|
2023
|
|
|
|
|
|
|
|
Sales
|
$
1,644.0
|
$
1,702.7
|
|
$
3,279.3
|
$
3,547.0
|
|
Operating
Expenses:
|
|
|
|
|
|
|
Cost of Goods Sold
|
1,406.2
|
1,392.6
|
|
2,834.2
|
2,834.3
|
|
Selling and Administrative
|
94.6
|
101.2
|
|
196.5
|
213.0
|
|
Restructuring Charges (b)
|
6.8
|
19.2
|
|
15.1
|
80.1
|
|
Other Operating
Income (c)
|
-
|
27.0
|
|
0.2
|
27.5
|
|
Operating Income
|
136.4
|
216.7
|
|
233.7
|
447.1
|
|
Interest
Expense
|
46.6
|
45.3
|
|
91.2
|
87.7
|
|
Interest
Income
|
0.9
|
1.1
|
|
1.7
|
2.2
|
|
Non-operating
Pension Income
|
5.9
|
5.4
|
|
12.7
|
11.1
|
|
Income
before Taxes
|
96.6
|
177.9
|
|
156.9
|
372.7
|
|
Income Tax
Provision
|
24.3
|
33.2
|
|
36.8
|
74.0
|
|
Net
Income
|
72.3
|
144.7
|
|
120.1
|
298.7
|
|
Net Loss
Attributable to Noncontrolling Interests
|
(1.9)
|
(2.2)
|
|
(2.7)
|
(4.5)
|
|
Net Income
Attributable to Olin Corporation
|
$
74.2
|
$ 146.9
|
|
$ 122.8
|
$ 303.2
|
|
Net Income
Attributable to Olin Corporation per Common Share:
|
|
|
|
|
|
|
Basic
|
$
0.63
|
$
1.15
|
|
$
1.03
|
$
2.35
|
|
Diluted
|
$
0.62
|
$
1.13
|
|
$
1.01
|
$
2.29
|
|
Dividends per Common
Share
|
$
0.20
|
$
0.20
|
|
$
0.40
|
$
0.40
|
|
Average Common
Shares Outstanding - Basic
|
118.5
|
127.4
|
|
119.1
|
129.2
|
|
Average Common
Shares Outstanding - Diluted
|
120.2
|
130.4
|
|
121.0
|
132.4
|
|
|
|
|
|
|
|
(a)
|
Unaudited.
|
|
(b)
|
Restructuring
charges for 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)
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Sales:
|
|
|
|
|
|
|
|
|
Chlor Alkali
Products and Vinyls
|
$ 920.3
|
|
$
1,002.3
|
|
$
1,804.9
|
|
$
2,119.4
|
|
Epoxy
|
317.7
|
|
333.8
|
|
659.0
|
|
694.5
|
|
Winchester
|
406.0
|
|
366.6
|
|
815.4
|
|
733.1
|
|
Total
Sales
|
$
1,644.0
|
|
$
1,702.7
|
|
$
3,279.3
|
|
$
3,547.0
|
|
Income before
Taxes:
|
|
|
|
|
|
|
|
|
Chlor Alkali
Products and Vinyls
|
$
99.3
|
|
$ 180.1
|
|
$
175.9
|
|
$
426.0
|
|
Epoxy
|
(3.0)
|
|
(0.5)
|
|
(14.8)
|
|
20.9
|
|
Winchester
|
70.3
|
|
64.7
|
|
142.5
|
|
125.7
|
|
Corporate/Other:
|
|
|
|
|
|
|
|
|
Environmental
Expense
|
(6.4)
|
|
(13.0)
|
|
(12.2)
|
|
(16.2)
|
|
Other Corporate and
Unallocated Costs
|
(17.0)
|
|
(22.4)
|
|
(42.8)
|
|
(56.7)
|
|
Restructuring Charges
(b)
|
(6.8)
|
|
(19.2)
|
|
(15.1)
|
|
(80.1)
|
|
Other Operating
Income (c)
|
-
|
|
27.0
|
|
0.2
|
|
27.5
|
|
Interest
Expense
|
(46.6)
|
|
(45.3)
|
|
(91.2)
|
|
(87.7)
|
|
Interest
Income
|
0.9
|
|
1.1
|
|
1.7
|
|
2.2
|
|
Non-operating
Pension Income
|
5.9
|
|
5.4
|
|
12.7
|
|
11.1
|
|
Income before
Taxes
|
$
96.6
|
|
$ 177.9
|
|
$
156.9
|
|
$
372.7
|
|
|
(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)
|
2024
|
|
2023
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
Assets:
|
|
|
|
|
|
|
|
Cash and Cash
Equivalents
|
$
182.1
|
|
$
170.3
|
|
$
161.1
|
|
|
Accounts
Receivable, Net
|
903.6
|
|
874.7
|
|
869.8
|
|
|
Income Taxes
Receivable
|
17.7
|
|
15.3
|
|
32.8
|
|
|
Inventories,
Net
|
872.9
|
|
858.8
|
|
1,081.2
|
|
|
Other Current
Assets
|
82.0
|
|
54.1
|
|
53.3
|
|
|
Total Current Assets
|
2,058.3
|
|
1,973.2
|
|
2,198.2
|
|
|
Property,
Plant and Equipment
|
|
|
|
|
|
|
|
(Less Accumulated
Depreciation of $5,009.8, $4,826.3 and $4,636.9)
|
2,395.1
|
|
2,519.6
|
|
2,550.6
|
|
|
Operating
Lease Assets, Net
|
321.2
|
|
344.7
|
|
335.7
|
|
|
Deferred
Income Taxes
|
91.5
|
|
87.4
|
|
82.6
|
|
|
Other
Assets
|
1,144.8
|
|
1,118.5
|
|
1,108.6
|
|
|
Intangibles,
Net
|
226.3
|
|
245.8
|
|
255.9
|
|
|
Goodwill
|
1,423.4
|
|
1,424.0
|
|
1,420.9
|
|
|
Total
Assets
|
$
7,660.6
|
|
$
7,713.2
|
|
$
7,952.5
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity:
|
|
|
|
|
|
|
|
Current
Installments of Long-term Debt
|
$
121.8
|
|
$
78.8
|
|
$
9.0
|
|
|
Accounts
Payable
|
779.1
|
|
775.4
|
|
750.0
|
|
|
Income Taxes
Payable
|
122.5
|
|
154.7
|
|
139.6
|
|
|
Current
Operating Lease Liabilities
|
67.1
|
|
69.3
|
|
70.2
|
|
|
Accrued
Liabilities
|
348.8
|
|
450.0
|
|
426.9
|
|
|
Total Current Liabilities
|
1,439.3
|
|
1,528.2
|
|
1,395.7
|
|
|
Long-term
Debt
|
2,789.1
|
|
2,591.3
|
|
2,717.3
|
|
|
Operating
Lease Liabilities
|
261.0
|
|
283.1
|
|
273.6
|
|
|
Accrued
Pension Liability
|
201.8
|
|
225.8
|
|
225.4
|
|
|
Deferred
Income Taxes
|
467.9
|
|
476.2
|
|
505.9
|
|
|
Other
Liabilities
|
332.2
|
|
340.3
|
|
363.0
|
|
|
Total
Liabilities
|
5,491.3
|
|
5,444.9
|
|
5,480.9
|
|
|
Commitments and
Contingencies
|
|
|
|
|
|
|
|
Shareholders'
Equity:
|
|
|
|
|
|
|
|
Common Stock, $1.00
Par Value Per Share; Authorized 240.0 Shares;
|
|
|
|
|
|
|
|
Issued and Outstanding 117.5, 120.2 and 125.8 Shares
|
117.5
|
|
120.2
|
|
125.8
|
|
|
Additional Paid-in
Capital
|
-
|
|
24.8
|
|
313.7
|
|
|
Accumulated Other
Comprehensive Loss
|
(474.0)
|
|
(496.3)
|
|
(483.4)
|
|
|
Retained
Earnings
|
2,492.6
|
|
2,583.7
|
|
2,475.9
|
|
|
Olin Corporation's
Shareholders' Equity
|
2,136.1
|
|
2,232.4
|
|
2,432.0
|
|
|
Noncontrolling
Interests
|
33.2
|
|
35.9
|
|
39.6
|
|
|
Total
Equity
|
2,169.3
|
|
2,268.3
|
|
2,471.6
|
|
|
Total Liabilities
and Equity
|
$
7,660.6
|
|
$
7,713.2
|
|
$
7,952.5
|
|
|
Olin
Corporation
|
|
|
|
|
Consolidated
Statements of Cash Flows (a)
|
|
|
|
|
|
Six Months
Ended
|
|
|
June
30,
|
|
(In
millions)
|
2024
|
|
2023
|
|
Operating
Activities:
|
|
|
|
|
Net
Income
|
$
120.1
|
|
$
298.7
|
|
Depreciation and
Amortization
|
258.7
|
|
273.9
|
|
Gains on Disposition
of Property, Plant and Equipment
|
-
|
|
(27.0)
|
|
Stock-based
Compensation
|
6.4
|
|
8.4
|
|
Write-off of
Equipment and Facility included in Restructuring
Charges
|
-
|
|
17.7
|
|
Deferred Income
Taxes
|
(23.3)
|
|
(27.7)
|
|
Qualified Pension
Plan Contributions
|
(0.8)
|
|
(1.5)
|
|
Qualified Pension
Plan Income
|
(11.7)
|
|
(9.9)
|
|
Changes in Assets
and Liabilities:
|
|
|
|
|
Receivables
|
(37.4)
|
|
52.8
|
|
Income Taxes
Receivable/Payable
|
(30.9)
|
|
14.3
|
|
Inventories
|
(19.3)
|
|
(137.9)
|
|
Other Current
Assets
|
(14.9)
|
|
(1.8)
|
|
Accounts
Payable and Accrued Liabilities
|
(63.8)
|
|
(141.1)
|
|
Other
Assets
|
(18.2)
|
|
(13.4)
|
|
Other
Noncurrent Liabilities
|
2.7
|
|
43.1
|
|
Other Operating
Activities
|
4.0
|
|
(5.6)
|
|
Net Operating
Activities
|
171.6
|
|
343.0
|
|
Investing
Activities:
|
|
|
|
|
Capital
Expenditures
|
(100.8)
|
|
(128.8)
|
|
Payments under Other
Long-term Supply Contracts
|
(46.7)
|
|
(29.6)
|
|
Proceeds from
Disposition of Property, Plant and Equipment
|
-
|
|
28.8
|
|
Other Investing
Activities
|
(2.9)
|
|
(1.0)
|
|
Net Investing
Activities
|
(150.4)
|
|
(130.6)
|
|
Financing
Activities:
|
|
|
|
|
Long-term Debt
Borrowings, Net
|
238.9
|
|
143.7
|
|
Common Stock
Repurchased and Retired
|
(211.4)
|
|
(393.0)
|
|
Stock Options
Exercised
|
21.7
|
|
11.9
|
|
Employee Taxes Paid
for Share-based Payment Arrangements
|
(10.5)
|
|
-
|
|
Dividends
Paid
|
(47.6)
|
|
(51.8)
|
|
Contributions
Received from Noncontrolling Interests
|
-
|
|
44.1
|
|
Net Financing
Activities
|
(8.9)
|
|
(245.1)
|
|
Effect of Exchange
Rate Changes on Cash and Cash Equivalents
|
(0.5)
|
|
(0.2)
|
|
Net Increase
(Decrease) in Cash and Cash Equivalents
|
11.8
|
|
(32.9)
|
|
Cash and Cash
Equivalents, Beginning of Year
|
170.3
|
|
194.0
|
|
Cash and Cash
Equivalents, End of Period
|
$
182.1
|
|
$
161.1
|
|
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 (income) 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 (income). 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)
|
2024
|
2023
|
2024
|
2023
|
|
|
|
|
|
|
Reconciliation of
Net Income to Adjusted EBITDA:
|
|
|
|
|
|
Net
Income
|
$
72.3
|
$
144.7
|
$
120.1
|
$
298.7
|
|
Add
Back:
|
|
|
|
|
|
Interest
Expense
|
46.6
|
45.3
|
91.2
|
87.7
|
|
Interest
Income
|
(0.9)
|
(1.1)
|
(1.7)
|
(2.2)
|
|
Income Tax
Provision
|
24.3
|
33.2
|
36.8
|
74.0
|
|
Depreciation and
Amortization
|
129.0
|
136.8
|
258.7
|
273.9
|
|
EBITDA
|
271.3
|
358.9
|
505.1
|
732.1
|
|
Add
Back:
|
|
|
|
|
|
Restructuring
Charges
|
6.8
|
19.2
|
15.1
|
80.1
|
|
Certain
Non-recurring Items (b)
|
-
|
(27.0)
|
-
|
(27.0)
|
|
Adjusted
EBITDA
|
$
278.1
|
$
351.1
|
$
520.2
|
$
785.2
|
|
|
|
|
|
|
|
(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 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 charges (income) 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.
|
|
|
June
30,
|
|
December
31,
|
|
June
30,
|
|
(In
millions)
|
2024
|
|
2023
|
|
2023
|
|
|
|
|
|
|
|
|
Current Installments
of Long-term Debt
|
$
121.8
|
|
$
78.8
|
|
$
9.0
|
|
Long-term
Debt
|
2,789.1
|
|
2,591.3
|
|
2,717.3
|
|
Total
Debt
|
2,910.9
|
|
2,670.1
|
|
2,726.3
|
|
Less: Cash and Cash
Equivalents
|
(182.1)
|
|
(170.3)
|
|
(161.1)
|
|
Net
Debt
|
$
2,728.8
|
|
$
2,499.8
|
|
$
2,565.2
|
|
|
|
|
|
|
|
|
Trailing Twelve
Months Adjusted EBITDA (b)
|
$
1,045.1
|
|
$
1,310.1
|
|
$
1,774.8
|
|
|
|
|
|
|
|
|
Net Debt to Adjusted
EBITDA
|
2.6
|
|
1.9
|
|
1.4
|
|
|
(a)
|
Unaudited.
|
|
(b)
|
Trailing Twelve
Months Adjusted EBITDA as of June 30, 2024 is calculated as the six
months ended June 30, 2024 plus the year ended December 31, 2023
less the six months ended June 30, 2023. 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.
|
|
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SOURCE Olin Corporation
