Highlights
- Fourth quarter 2024 net income of $10.7
million, or $0.09 per diluted
share
- Quarterly adjusted EBITDA of $193.4
million
CLAYTON,
Mo., Jan. 30, 2025 /PRNewswire/ -- Olin
Corporation (NYSE: OLN) announced financial results for the fourth
quarter ended December 31, 2024.
Fourth quarter 2024 reported net income was $10.7 million, or $0.09 per diluted share, which compares to fourth
quarter 2023 reported net income of $52.9
million, or $0.43 per diluted
share. Fourth quarter 2024 adjusted EBITDA of $193.4 million excludes depreciation and
amortization expense of $129.2
million and restructuring charges of $10.3 million. Fourth quarter 2023 adjusted
EBITDA was $210.1 million. Sales in
the fourth quarter 2024 were $1,671.3
million, compared to $1,614.6
million in the fourth quarter 2023. Full year 2024 reported
net income was $108.6 million, or
$0.91 per diluted share, which
compares to full year 2023 reported net income of $460.2 million, or $3.57 per diluted share.
Ken Lane, President, and Chief
Executive Officer, said, "While we expect challenging industry
conditions to continue into 2025, we will stay focused on
optimizing our core businesses through our value-first commercial
approach as well as controlling our costs as we described during
our Investor Day in December. We remain confident in our ability to
generate higher trough-level earnings and cash flow despite the
difficult environment."
Lane continued, "We expect first quarter 2025 results from our
Chemicals businesses to be lower than fourth quarter 2024 as our
disciplined market participation continues. Our Chlor Alkali
business expects sequentially lower chlorine and caustic soda
volumes and continued pricing pressure on ethylene dichloride
(EDC). As we announced at our Investor Day in December, Olin will
enter the domestic polyvinyl chloride (PVC) resin market in the
first quarter 2025 through our EDC tolling agreement. This
pilot initiative expands our chlorine optionality, upgrades the
value of Olin EDC and will guide our PVC resin go-to-market
strategy in the coming years.
"Global epoxy demand remains weak, and our U.S. and European
Epoxy business remains significantly challenged by subsidized Asian
competition. Our Epoxy business focus remains on maximizing the
chlor alkali integration value, continuing to reduce our costs and
growing our formulated solutions business.
"We expect our Winchester first quarter 2025 results to be
slightly lower than fourth quarter 2024, as commercial customers
continue to work down elevated inventories along with softer
consumer demand. As we announced on January
21, 2025, Winchester entered into a definitive agreement to
acquire the ammunition manufacturing assets of AMMO, Inc. We expect
this acquisition to be immediately accretive and to enable our
broader participation in high-margin specialty calibers. The
transaction is expected to close in second quarter 2025."
Commenting on the overall first quarter outlook, Lane continued,
"We expect Olin's first quarter 2025 adjusted EBITDA to be in the
range of $150 million to $170 million, and we will continue Olin's
disciplined capital allocation strategy to prioritize share
repurchases from available cash flow. During 2024, we repurchased
approximately 5% of outstanding Olin shares."
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 fourth quarter
2024 were $953.7 million, compared to
$906.1 million in the fourth quarter
2023. The increase in sales was primarily due to higher volumes and
pricing. Fourth quarter 2024 segment earnings were $75.2 million, compared to $65.9 million in the fourth quarter 2023. The
fourth quarter included $16.9 million
of costs associated with Hurricane Beryl. The remaining
$26.2 million increase in segment
earnings was primarily due to higher pricing and lower raw
materials and operating costs, partially offset by a less favorable
product mix. Chlor Alkali Products and Vinyls fourth quarter 2024
results included depreciation and amortization expense of
$105.5 million compared to
$105.4 million in the fourth quarter
2023.
EPOXY
Epoxy sales for the fourth quarter 2024 were $282.2 million, compared to $313.1 million in the fourth quarter 2023. The
decrease in sales was primarily due to lower volumes and pricing.
Fourth quarter 2024 segment loss was ($27.4)
million, compared to segment loss of ($23.1) million in the fourth quarter 2023. The
$4.3 million decrease in segment
results was primarily due to lower volumes and pricing, partially
offset by lower raw material and operating costs. Epoxy fourth
quarter 2024 results included depreciation and amortization expense
of $13.1 million compared to
$13.0 million in the fourth quarter
2023.
WINCHESTER
Winchester sales for the fourth quarter 2024 were $435.4 million, compared to $395.4 million in the fourth quarter 2023. The
increase in sales was primarily due to higher military sales and
military project revenue, partially offset by lower commercial
ammunition sales. Fourth quarter 2024 segment earnings were
$42.0 million, compared to
$65.4 million in the fourth quarter
2023. The $23.4 million decrease in
segment earnings was primarily due to lower commercial ammunition
shipments and pricing and higher propellant costs, partially offset
by higher military shipments and military project revenue.
Winchester fourth quarter 2024 results included depreciation and
amortization expense of $9.1 million
compared to $8.1 million in the
fourth quarter 2023.
CORPORATE AND OTHER COSTS
Other corporate and unallocated costs in the fourth quarter of
2024 decreased $5.3 million compared
to fourth quarter 2023 primarily due to lower stock-based
compensation, including mark-to-market adjustments, partially
offset by higher consulting costs and legal and legal-related
settlement costs.
LIQUIDITY AND SHARE REPURCHASES
The cash balance on December 31,
2024, was $175.6 million.
Olin ended the fourth quarter 2024 with net debt of approximately
$2.7 billion and a net debt to
adjusted EBITDA ratio of 3.1 times. On December 31, 2024, Olin had approximately
$1.2 billion of available
liquidity.
During fourth quarter 2024, approximately 1.0 million shares of
common stock were repurchased at a cost of $43.5 million. During 2024, approximately 5.9
million shares of common stock were repurchased at a cost of
$300.3 million. On December 31, 2024, Olin had approximately
$2.0 billion available under its
share repurchase authorizations.
CONFERENCE CALL INFORMATION
Olin senior management will host a conference call to discuss
fourth quarter 2024 financial results at 9:00 a.m. Eastern Time on Friday, January 31,
2025. 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 Corporation.
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, the Company's anticipated timing and financial and other
benefits of entering the domestic PVC resin market and the
Company's anticipated financial and other benefits of our proposed
acquisition of the ammunition assets of Ammo, Inc. 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 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.
2025-03
|
Olin
Corporation
|
|
Consolidated
Statements of Operations (a)
|
|
Three
Months
|
|
Years
Ended
|
|
Ended December
31,
|
|
December
31,
|
|
(In millions,
except per share amounts)
|
2024
|
2023
|
|
2024
|
2023
|
|
|
|
|
|
|
|
Sales
|
$
1,671.3
|
$
1,614.6
|
|
$
6,540.1
|
$
6,833.0
|
|
Operating
Expenses:
|
|
|
|
|
|
|
Cost of Goods
Sold
|
1,513.4
|
1,430.9
|
|
5,802.6
|
5,667.5
|
|
Selling and
Administrative
|
100.3
|
102.8
|
|
408.5
|
406.7
|
|
Restructuring
Charges (Income) (b)
|
10.3
|
(2.4)
|
|
33.3
|
89.6
|
|
Other Operating
Income (c)
|
-
|
15.7
|
|
0.8
|
42.9
|
|
Operating
Income
|
47.3
|
99.0
|
|
296.5
|
712.1
|
|
Interest
Expense
|
44.9
|
47.2
|
|
184.5
|
181.1
|
|
Interest
Income
|
1.0
|
1.1
|
|
3.7
|
4.3
|
|
Non-operating
Pension Income
|
6.6
|
7.0
|
|
26.0
|
24.0
|
|
Income before
Taxes
|
10.0
|
59.9
|
|
141.7
|
559.3
|
|
Income Tax (Benefit)
Provision
|
(0.1)
|
11.1
|
|
36.7
|
107.3
|
|
Net
Income
|
10.1
|
48.8
|
|
105.0
|
452.0
|
|
Net Loss
Attributable to Noncontrolling Interests
|
(0.6)
|
(4.1)
|
|
(3.6)
|
(8.2)
|
|
Net Income
Attributable to Olin Corporation
|
$
10.7
|
$
52.9
|
|
$
108.6
|
$
460.2
|
|
Net Income
Attributable to Olin Corporation per Common Share:
|
|
|
|
|
|
|
Basic
|
$
0.09
|
$
0.44
|
|
$
0.92
|
$
3.66
|
|
Diluted
|
$
0.09
|
$
0.43
|
|
$
0.91
|
$
3.57
|
|
Dividends per Common
Share
|
$
0.20
|
$
0.20
|
|
$
0.80
|
$
0.80
|
|
Average Common
Shares Outstanding - Basic
|
116.1
|
121.0
|
|
117.8
|
125.9
|
|
Average Common
Shares Outstanding - Diluted
|
117.3
|
123.5
|
|
119.5
|
128.8
|
|
|
|
|
|
|
|
|
(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
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.
|
|
Olin
Corporation
|
|
Segment
Information (a)
|
|
|
|
|
Three
Months
|
|
Years
Ended
|
|
|
Ended December
31,
|
|
December
31,
|
|
(In
millions)
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Sales:
|
|
|
|
|
|
|
|
|
Chlor Alkali
Products and Vinyls
|
$ 953.7
|
|
$ 906.1
|
|
$
3,630.2
|
|
$
3,995.1
|
|
Epoxy
|
282.2
|
|
313.1
|
|
1,226.3
|
|
1,329.2
|
|
Winchester
|
435.4
|
|
395.4
|
|
1,683.6
|
|
1,508.7
|
|
Total
Sales
|
$
1,671.3
|
|
$
1,614.6
|
|
$
6,540.1
|
|
$
6,833.0
|
|
Income before
Taxes:
|
|
|
|
|
|
|
|
|
Chlor Alkali
Products and Vinyls
|
$
75.2
|
|
$
65.9
|
|
$
296.4
|
|
$
664.2
|
|
Epoxy
|
(27.4)
|
|
(23.1)
|
|
(85.0)
|
|
(31.0)
|
|
Winchester
|
42.0
|
|
65.4
|
|
237.9
|
|
255.6
|
|
Corporate/Other:
|
|
|
|
|
|
|
|
|
Environmental Expense
(b)
|
(10.8)
|
|
(0.6)
|
|
(30.2)
|
|
(23.7)
|
|
Other Corporate and
Unallocated Costs
|
(21.4)
|
|
(26.7)
|
|
(90.1)
|
|
(106.3)
|
|
Restructuring (Charges)
Income (c)
|
(10.3)
|
|
2.4
|
|
(33.3)
|
|
(89.6)
|
|
Other Operating
Income (d)
|
-
|
|
15.7
|
|
0.8
|
|
42.9
|
|
Interest
Expense
|
(44.9)
|
|
(47.2)
|
|
(184.5)
|
|
(181.1)
|
|
Interest
Income
|
1.0
|
|
1.1
|
|
3.7
|
|
4.3
|
|
Non-operating
Pension Income
|
6.6
|
|
7.0
|
|
26.0
|
|
24.0
|
|
Income before
Taxes
|
$
10.0
|
|
$
59.9
|
|
$
141.7
|
|
$
559.3
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Unaudited.
|
|
|
|
|
|
(b)
|
Environmental
expense for both the three months and year ended December 31, 2023
included $6.4 million 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
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.
|
|
Olin
Corporation
|
|
Consolidated Balance
Sheets (a)
|
|
|
|
December
31,
|
|
|
(In millions,
except per share data)
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
Assets:
|
|
|
|
|
|
Cash and Cash
Equivalents
|
$
175.6
|
|
$
170.3
|
|
|
Accounts
Receivable, Net
|
1,007.8
|
|
874.7
|
|
|
Income Taxes
Receivable
|
11.5
|
|
15.3
|
|
|
Inventories,
Net
|
823.5
|
|
858.8
|
|
|
Other Current
Assets
|
61.4
|
|
54.1
|
|
|
Total Current Assets
|
2,079.8
|
|
1,973.2
|
|
|
Property,
Plant and Equipment
|
|
|
|
|
|
(Less Accumulated
Depreciation of $5,189.2 and $4,826.4)
|
2,328.4
|
|
2,519.6
|
|
|
Operating
Lease Assets, Net
|
302.2
|
|
344.7
|
|
|
Deferred
Income Taxes
|
53.4
|
|
87.4
|
|
|
Other
Assets
|
1,185.1
|
|
1,118.5
|
|
|
Intangibles,
Net
|
206.6
|
|
245.8
|
|
|
Goodwill
|
1,423.6
|
|
1,424.0
|
|
|
Total
Assets
|
$
7,579.1
|
|
$
7,713.2
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity:
|
|
|
|
|
|
Current
Installments of Long-term Debt
|
$
129.0
|
|
$
78.8
|
|
|
Accounts
Payable
|
861.6
|
|
775.4
|
|
|
Income Taxes
Payable
|
141.3
|
|
154.7
|
|
|
Current
Operating Lease Liabilities
|
64.8
|
|
69.3
|
|
|
Accrued
Liabilities
|
435.5
|
|
450.0
|
|
|
Total Current Liabilities
|
1,632.2
|
|
1,528.2
|
|
|
Long-term
Debt
|
2,713.2
|
|
2,591.3
|
|
|
Operating
Lease Liabilities
|
243.2
|
|
283.1
|
|
|
Accrued
Pension Liability
|
197.7
|
|
225.8
|
|
|
Deferred
Income Taxes
|
430.5
|
|
476.2
|
|
|
Other
Liabilities
|
306.9
|
|
340.3
|
|
|
Total
Liabilities
|
5,523.7
|
|
5,444.9
|
|
|
Commitments and
Contingencies
|
|
|
|
|
|
Shareholders'
Equity:
|
|
|
|
|
|
Common Stock, $1.00
Par Value Per Share; Authorized 240.0 Shares;
|
|
|
|
|
|
Issued and Outstanding 115.7 Shares (120.2 in 2023)
|
115.7
|
|
120.2
|
|
|
Additional Paid-in
Capital
|
-
|
|
24.8
|
|
|
Accumulated Other
Comprehensive Loss
|
(450.1)
|
|
(496.3)
|
|
|
Retained
Earnings
|
2,357.5
|
|
2,583.7
|
|
|
Olin Corporation's
Shareholders' Equity
|
2,023.1
|
|
2,232.4
|
|
|
Noncontrolling
Interests
|
32.3
|
|
35.9
|
|
|
Total
Equity
|
2,055.4
|
|
2,268.3
|
|
|
Total Liabilities
and Equity
|
$
7,579.1
|
|
$
7,713.2
|
|
|
Olin
Corporation
|
|
Consolidated
Statements of Cash Flows (a)
|
|
|
Years
Ended
|
|
|
December
31,
|
|
(In
millions)
|
2024
|
|
2023
|
|
Operating
Activities:
|
|
|
|
|
Net
Income
|
$
105.0
|
|
$
452.0
|
|
Depreciation and
Amortization
|
518.1
|
|
533.4
|
|
Gains on Disposition
of Property, Plant and Equipment
|
-
|
|
(27.0)
|
|
Stock-based
Compensation
|
17.1
|
|
18.6
|
|
Write-off of
Equipment and Facility included in Restructuring
Charges
|
-
|
|
17.7
|
|
Deferred Income
Taxes
|
(33.7)
|
|
(55.6)
|
|
Qualified Pension
Plan Contributions
|
(1.3)
|
|
(1.1)
|
|
Qualified Pension
Plan Income
|
(23.3)
|
|
(21.0)
|
|
Changes in Assets
and Liabilities:
|
|
|
|
|
Receivables
|
(119.4)
|
|
65.4
|
|
Income Taxes
Receivable/Payable
|
(1.6)
|
|
45.8
|
|
Inventories
|
25.9
|
|
94.4
|
|
Other Current
Assets
|
2.4
|
|
(3.1)
|
|
Accounts
Payable and Accrued Liabilities
|
72.8
|
|
(133.9)
|
|
Other
Assets
|
(28.4)
|
|
(23.4)
|
|
Other
Noncurrent Liabilities
|
(35.1)
|
|
15.8
|
|
Other Operating
Activities
|
4.7
|
|
(3.7)
|
|
Net Operating
Activities
|
503.2
|
|
974.3
|
|
Investing
Activities:
|
|
|
|
|
Capital
Expenditures
|
(195.1)
|
|
(236.0)
|
|
Business Acquired in
Purchase Transaction, Net of Cash Acquired
|
-
|
|
(63.9)
|
|
Payments under Other
Long-term Supply Contracts
|
(58.6)
|
|
(64.5)
|
|
Proceeds from
Disposition of Property, Plant and Equipment
|
-
|
|
28.8
|
|
Investments in
Unconsolidated Affiliates
|
(23.0)
|
|
-
|
|
Other Investing
Activities
|
(7.0)
|
|
(5.2)
|
|
Net Investing
Activities
|
(283.7)
|
|
(340.8)
|
|
Financing
Activities:
|
|
|
|
|
Long-term Debt
Borrowings, Net
|
169.7
|
|
85.9
|
|
Common Stock
Repurchased and Retired
|
(300.3)
|
|
(711.3)
|
|
Stock Options
Exercised
|
23.9
|
|
25.4
|
|
Employee Taxes Paid
for Share-based Payment Arrangements
|
(10.5)
|
|
-
|
|
Dividends
Paid
|
(94.2)
|
|
(101.0)
|
|
Debt and Equity
Issuance Costs
|
(1.2)
|
|
-
|
|
Contributions
Received from Noncontrolling Interests
|
-
|
|
44.1
|
|
Net Financing
Activities
|
(212.6)
|
|
(656.9)
|
|
Effect of Exchange
Rate Changes on Cash and Cash Equivalents
|
(1.6)
|
|
(0.3)
|
|
Net Increase
(Decrease) in Cash and Cash Equivalents
|
5.3
|
|
(23.7)
|
|
Cash and Cash
Equivalents, Beginning of Year
|
170.3
|
|
194.0
|
|
Cash and Cash
Equivalents, End of Year
|
$
175.6
|
|
$
170.3
|
|
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
|
Years
Ended
|
|
|
Ended December
31,
|
December
31,
|
|
(In
millions)
|
2024
|
2023
|
2024
|
2023
|
|
|
|
|
|
|
|
Reconciliation of
Net Income to Adjusted EBITDA:
|
|
|
|
|
|
Net
Income
|
$
10.1
|
$
48.8
|
$
105.0
|
$
452.0
|
|
Add
Back:
|
|
|
|
|
|
Interest
Expense
|
44.9
|
47.2
|
184.5
|
181.1
|
|
Interest
Income
|
(1.0)
|
(1.1)
|
(3.7)
|
(4.3)
|
|
Income Tax (Benefit)
Provision
|
(0.1)
|
11.1
|
36.7
|
107.3
|
|
Depreciation and
Amortization
|
129.2
|
128.5
|
518.1
|
533.4
|
|
EBITDA
|
183.1
|
234.5
|
840.6
|
1,269.5
|
|
Add
Back:
|
|
|
|
|
|
Restructuring
Charges (Income)
|
10.3
|
(2.4)
|
33.3
|
89.6
|
|
Environmental
Recoveries (b)
|
-
|
(6.4)
|
-
|
(6.4)
|
|
Certain
Non-recurring Items (c)
|
-
|
(15.6)
|
-
|
(42.6)
|
|
Adjusted
EBITDA
|
$
193.4
|
$
210.1
|
$
873.9
|
$
1,310.1
|
|
|
|
|
|
(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.
|
|
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.
|
|
|
|
December
31,
|
|
(In
millions)
|
2024
|
|
2023
|
|
|
|
|
|
|
Current Installments
of Long-term Debt
|
$
129.0
|
|
$
78.8
|
|
Long-term
Debt
|
2,713.2
|
|
2,591.3
|
|
Total
Debt
|
2,842.2
|
|
2,670.1
|
|
Less: Cash and Cash
Equivalents
|
(175.6)
|
|
(170.3)
|
|
Net
Debt
|
$
2,666.6
|
|
$
2,499.8
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
873.9
|
|
$
1,310.1
|
|
|
|
|
|
|
Net Debt to Adjusted
EBITDA
|
3.1
|
|
1.9
|
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SOURCE Olin Corporation
