LUXEMBOURG--(BUSINESS WIRE)--Senningerberg (Municipality of Niederanven), Grand Duchy of Luxembourg
– May 17, 2018 - Orion Engineered Carbons S.A. (“Orion” or the
“Company”) (NYSE: OEC), a worldwide supplier of specialty and
high-performance carbon black, today announced results for its first
quarter of 2018.
“We are very pleased with our strong start to the year. Our markets have
strengthened worldwide and helped drive revenue up by 25.5% with gains
in both Specialty and Rubber volumes. The stronger markets also
supported price increases in both segments. While foreign exchange rates
also favored revenue, the fundamentals of volume growth with stronger
pricing were apparent in this good start to the year. As a result, our
Adjusted EBITDA reached a quarterly record of $76 million,” said Jack
Clem, Orion’s Chief Executive Officer.
“In Specialties, we were successful in our efforts to recapture margin
pressured last year by a sharp rise in feedstock costs. Base prices were
raised across all segments and regions and certain markets with lower
margins were scaled back to support a shift to higher margin production.
The result was a strong recovery in gross profit per ton which grew
sequentially from $661 to $781 and on a year over year basis was up by
$91 per ton aided also by a favorable foreign exchange. In Rubber we
entered the year optimistic about demand and better pricing resulting
from customer agreements concluded in the fourth quarter of last year.
This proved to be justified as our production network was pushed to near
capacity and better pricing was indeed achieved, helped in part by a
continued strong performance by our facility in China which managed to
have a record quarter in spite of the challenges of a quite volatile
feedstock market,” added Mr. Clem.
“During the quarter we continued shifting our portfolio to higher value
products by realigning capacity in our global production network,
rationalizing some grades to devote our capacity to stronger margin
products. We remain on track to complete the full realignment of the
South Korean production footprint in the second quarter of this year.
Capital expenditures are coming in on budget, the closure of the smaller
plant is on schedule and the sale of the real estate in the suburb of
Seoul is ahead of schedule with a price that is in line with
expectations. We have begun work on the new Specialty line at our
facility in Italy and it is on schedule to begin production in the
fourth quarter of 2019. These capacity and mix realignment initiatives,
carefully calibrated pricing and improving demand/supply dynamics
position us to take full advantage of improving global economic
conditions. We took advantage of a favorable interest rate environment
to again successfully reprice our long term debt package and to convert
our U.S. dollar debt to euros to better match our cash flows as a U.S.
dollar reporting entity. The result was a saving of a very meaningful 8
cents per share. This has been a very successful start to 2018,”
concluded Mr. Clem.
First Quarter 2018 Overview
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ORION ENGINEERED CARBONS
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Q1 2018
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Q1 2017
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Y-o-Y Comparison
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Volume (kmt)
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286.1
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275.1
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4.0%
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Revenue ($/Millions)
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406.7
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324.1
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25.5%
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Contribution Margin ($/Millions)
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150.2
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129.9
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15.6%
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Contribution Margin per Metric Ton ($)
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524.8
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472.2
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11.1%
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Operating Result/EBIT ($/Millions)
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45.3
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37.0
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22.5%
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Adjusted EBITDA ($/Millions)
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76.0
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62.6
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21.4%
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Profit or Loss for the Period/Net Income ($/Millions)
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24.2
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16.8
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44.1%
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Basic EPS ($) (1)
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0.41
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0.28
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0.13
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Adjusted EPS ($) (2)
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0.52
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0.38
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0.14
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Notes:
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(1)
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Basic EPS calculated using profit for the period (Net Income) and
weighted number of shares outstanding.
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(2)
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Adjusted EPS is defined as profit or loss for the period adjusted
for acquisition related expenses, restructuring expenses, consulting
fees related to group strategy, certain other items (such as
amortization expenses related to intangible assets acquired from our
predecessor and foreign currency revaluation impacts) and assumed
taxes, divided by the weighted number of shares outstanding during
the periods. Change in Adjusted EPS are primarily associated with
increased Basic EPS.
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Total volumes increased by 4.0% or 11.0 kmt to 286.1 kmt in the first
quarter of 2018 compared to 275.1 kmt in the first quarter of 2017. This
4.0% increase reflected stronger volumes in both segments particularly
within the Europe, South Korea and China regions.
Revenues increased by $82.6 million, or 25.5%, to $406.7 million in the
first quarter of 2018 from $324.1 million in the first quarter of 2017,
primarily due to positive foreign exchange rate translation impacts, the
pass through of higher feedstock costs, increased volumes and increases
in the base selling prices.
Contribution Margin increased strongly by $20.3 million, or 15.6%, to
$150.2 million in the first quarter of 2018 from $129.9 million in the
first quarter of 2017, primarily driven by positive foreign exchange
rate translation impacts, strong volume growth, as well as price and
product mix.
The operating result also increased strongly by $8.3 million, or 22.5%
to $45.3 million in the first quarter of 2018 from $37.0 million in the
first quarter of 2017, reflecting the increase in contribution margin.
The strong increase in Adjusted EBITDA of $13.4 million, or 21.4%, to
$76.0 million in first quarter of 2018 compared to $62.6 million in the
first quarter of 2017 reflected the increases in Contribution Margin,
partially offset by negative foreign exchange rate translation impacts
associated with our fixed cost base.
As a result, net income for the first quarter of 2018 increased by $7.4
million, or 44.1%, to $24.2 million as compared to $16.8 million in the
first quarter of 2017.
Quarterly Business Results
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SPECIALTY CARBON BLACK
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Q1 2018
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Q1 2017
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Y-o-Y Comparison
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Volume (kmt)
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69.1
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67.0
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3.1%
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Revenue ($/Millions)
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141.7
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116.1
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22.0%
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Gross Profit ($/Millions)
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54.0
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46.2
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16.8%
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Gross Profit/metric ton ($)
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781.2
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689.8
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13.3%
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Adjusted EBITDA ($/Millions)
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40.3
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34.2
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17.8%
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Adjusted EBITDA/metric ton ($)
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583.8
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510.7
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14.3%
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Adjusted EBITDA Margin
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28.5%
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29.5%
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(100)bps
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Volume for the Specialty Carbon Black business increased by 3.1% to 69.1
kmt in the first quarter of 2018 from 67.0 kmt in the first quarter of
2017, reflecting general market growth and some rationalization of
capacity to higher margin grades.
Revenue of the Specialty business increased by $25.6 million, or 22.0%,
to $141.7 million in the first quarter of 2018 from $116.1 million in
the first quarter of 2017, primarily associated with positive foreign
exchange rate translation impacts, increased product base prices and
product mix, as well as increased volumes.
Gross Profit increased by $7.8 million, or 16.8%, to $54.0 million in
the first quarter of 2018 from $46.2 million in the first quarter of
2017, primarily reflecting positive foreign exchange rate translation
impacts, the increase in sales volumes and improved mix. As a result
Gross Profit per metric ton increased significantly by 13.2% to $781 in
the first quarter of 2018 from $690 in the first quarter of 2017.
Sequentially, Gross Profit per ton was up 18% from the fourth quarter of
2017 which had felt the full impact of rising feedstock costs.
Consistent with Gross Profit development, Adjusted EBITDA increased by
$6.1 million, or 17.8%, to $40.3 million in the first quarter of 2018
from $34.2 million in the first quarter of 2017. Adjusted EBITDA margin
was 28.5% in the first quarter of 2018 compared to 29.5% in the first
quarter of 2017, which reflects the pass through of higher feedstock
prices impacting reported revenues, as well as some continuing delay in
recovering feedstock costs.
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RUBBER CARBON BLACK
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Q1 2018
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Q1 2017
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Y-o-Y Comparison
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Volume (kmt)
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217.0
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208.1
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4.3%
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Revenue ($/Millions)
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265.0
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208.0
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27.4%
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Gross Profit ($/Millions)
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58.4
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49.3
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18.5%
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Gross Profit/metric ton ($)
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269.2
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236.9
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13.6%
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Adjusted EBITDA ($/Millions)
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35.7
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28.4
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25.6%
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Adjusted EBITDA/metric ton ($)
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164.3
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136.4
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20.4%
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Adjusted EBITDA Margin
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13.5%
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13.7%
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(20)bps
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Industry demand for Rubber Carbon Black remained strong in the first
quarter of 2018 contributing to an increase in sales volume of 4.3% to
217.0 kmt in the first quarter of 2018 compared to 208.1 kmt in the
first quarter of 2017. This increase in volume was associated with
increased volumes in Europe, South Korea and China, while the
restriction of capacity of standard Rubber grade products impacted
volume development in the U.S.
Revenue increased by $57.0 million, or 27.4%, to $265.0 million in the
first quarter of 2018 from $208.0 million in the first quarter of 2017,
primarily due to the pass through of higher cost of feedstock to
customers with index-pricing agreements, positive foreign exchange rate
translation effects, increased sales volumes and base price improvements.
Gross Profit increased by $9.1 million, or 18.5%, to $58.4 million in
the first quarter of 2018 from $49.3 million in the first quarter of
2017. This Gross Profit increase was primarily due to positive foreign
exchange rate translation effects, increased contract base prices,
higher sales volume, improved mix and the impact of improved
cogeneration income resulting from a higher energy pricing environment.
Accordingly, Gross Profit per metric ton increased by 13.6% to $269.20
in the first quarter of 2018 from $236.90 in the first quarter of 2017.
Adjusted EBITDA increased by $7.3 million, or 25.6% to $35.7 million in
the first quarter of 2018 from $28.4 million in the first quarter of
2017, primarily reflecting the development of Gross Profit.
Adjusted EBITDA margin was 13.5% in the first quarter of 2018 as
compared to 13.7% in the first quarter of 2017 as the pass through of
higher feedstock prices impacted reported revenues.
Balance Sheet and Cash Flow
As of March 31, 2018, the Company had cash and cash equivalents of $59.7
million a decrease of $12.6 million from December 31, 2017 driven by
increases in working capital associated with recent increases in
feedstock prices.
The Company’s reported non-current indebtedness as of March 31, 2018 was
$699.9 million, composed of the non-current portion of term loan
liabilities of $682.8 million ($684.6 million gross term loan
liabilities reduced by capitalized transaction costs of $1.8 million),
plus local non-current bank loans of $12.6 million and non-current debt
from financial derivatives of $4.5 million.
Our net cash at March 31, 2018 totaled $45.3 million, composed of cash
and cash equivalents of $59.7 million, less short term bank liabilities
of $5.9 million and less the current portion of term loan liabilities of
$8.5 million. Accordingly, net indebtedness was $651.8 million, composed
of gross term loan liabilities of $684.6 million, plus local bank loans
of $12.6 million and less net cash of $45.3 million. This represents a
LTM Adjusted EBITDA multiple of 2.41 times, compared to a U.S. dollar
like-to-like multiple of 2.43 times at the end of last quarter (on a US
Dollar basis). Capitalized transaction costs as well as non-current debt
from financial derivatives are disregarded in computing net indebtedness
under our lending agreements.
Cash inflows from operating activities in the first quarter of 2018
amounted to $27.2 million and include cash uses of net working capital
of $36.2 million compared to a net working capital use of $24.6 million
in first quarter of 2017 and consist of a consolidated profit for the
period of $24.2 million, adjusted for depreciation and amortization of
$24.8 million and the exclusion of finance costs, net of $8.1 million
affecting net income. Net working capital totaled $274.2 million as of
March 31, 2018, compared to $224.0 million as of December 31, 2017,
reflecting the impact of higher feedstock prices as well as foreign
exchange rate translation effects.
Cash outflows from investing activities in the first quarter of 2018
amounted to $25.9 million, and comprised expenditures for improvements
primarily in the manufacturing network throughout the production system
including further investments to conclude the consolidation of our South
Korean plant network, which continues to be on track and is expected to
be largely completed by the end of the second quarter of this year.
Cash outflows for financing activities in the first quarter of 2018
consisted primarily of a dividend payment totaling $11.9 million, which
increased by $1.1 million, or 10.0%, $0.02 per share increase over the
dividend paid in the first quarter of 2017.
2018 Full Year Outlook
“After this strong start we see little reason we cannot continue our
first quarter’s operational momentum. Based on the strengthened markets
and the success of our initiatives, along with the positive impact of
foreign exchange on our financial results in the quarter, we are
increasing our outlook for full year Adjusted EBITDA to between $280
million and $300 million, based on the assumptions that volume growth
will be in line with current GDP expectations and that oil prices,
feedstock and importantly exchange rate impacts will stay at levels seen
during the first quarter of 2018," stated Mr. Clem.
Other guidance metrics for 2018 include shares outstanding of 59.7
million reflecting the vesting of part of the long term incentive
program for senior management, an underlying tax rate of 32%-33% on
pre-tax income, and capital expenditures reflecting an operating run
rate consistent with the past of approximately $100 million before
expenditures associated with the consolidation of the Company’s plants
in South Korea and EPA related capex. Depreciation is estimated to be
approximately $75 million, and amortization is estimated to be
approximately $25 million (including amortization of acquired
intangibles of about $16 million) in 2018.
Recent Developments
In April 2018, our lenders agreed to reprice Orion's euro- and U.S.
dollar-denominated Term Loan B debt which totaled $693.1 million as of
March 31, 2018. The repricing on the U.S. dollar tranche reflects a 50
basis point reduction on margin from 2.50% to 2.00%, whereas on the euro
tranche there is a 25 basis point reduction on margin from 2.50% to
2.25%. This repricing, which became effective on May 8, 2018 will reduce
Orion’s current yearly costs of debt service by approximately $2.4
million or $0.03 per share.
Additionally, the Company swapped the U.S. dollar-denominated portion of
its Term Loan B debt into euros. This swap transaction impacts both
principal and interest payments associated with debt service and will
result in a further annual interest cost savings of $4.7 million or
$0.05 per share over and above the interest savings achieved by the
recent repricing. An important driver of this transaction is the better
alignment of group cash flows with the new U.S. dollar group reporting
currency.
Consistent with the progress made on our Korean production network
consolidation, on May 11, 2018 our Korean subsidiary entered in to a
transaction to transfer the ownership of our plant site in Seoul, South
Korea in exchange for net cash proceeds totaling approximately $50
million (before considering an associated capital gains tax payment of
some $10 million) after taking into account certain remediation costs
for which the Company will continue to be responsible.
Conference Call
As previously announced, Orion will hold a conference call tomorrow,
Friday, May 18th, 2018, at 8:30 a.m. (EST). The dial-in
details for the live conference call are as follow:
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U.S. Toll Free:
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1-877-407-4018
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International:
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1-201-689-8471
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U.K. Toll Free:
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0 800 756 3429
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Germany Toll Free:
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0 800 182 0040
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Luxembourg Toll Free:
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800 28 522
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Luxembourg Local:
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352 2786 0689
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A replay of the conference call may be accessed by phone at the
following numbers through June 1st, 2018:
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U.S. Toll Free:
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1-844-512-2921
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International:
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1-412-317-6671
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Conference ID:
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13678535
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Additionally, an archived webcast of the conference call will be
available on the Investor Relations section of the Company’s website at: www.orioncarbons.com.
To learn more about Orion, visit the Company’s website at www.orioncarbons.com.
Orion uses its website as a channel of distribution for material Company
information. Financial and other material information regarding Orion is
routinely posted on the Company’s website and is readily accessible.
About Orion Engineered Carbons
Orion is a worldwide supplier of Carbon Black. We produce
high-performance as well as standard Gas Blacks, Furnace Blacks, Lamp
Blacks, Thermal Blacks and other Specialty Carbon Blacks that tint,
colorize and enhance the performance of polymers, plastics, paints and
coatings, inks and toners, textile fibers, adhesives and sealants,
tires, and mechanical rubber goods such as automotive belts and hoses.
Orion has 14 global production sites and four Technology Centers with
1,430 employees. For more information visit our website www.orioncarbons.com.
Forward Looking Statements
This document contains certain forward-looking statements with respect
to our financial condition, results of operations and business,
including those in the “2018 Full Year Outlook” and “Quarterly Business
Results” sections above. These statements constitute forward-looking
statements within the meaning of Section 21E of the Securities Exchange
Act of 1934, as amended. Forward-looking statements are statements of
future expectations that are based on management’s current expectations
and assumptions and involve known and unknown risks and uncertainties
that could cause actual results, performance or events to differ
materially from those expressed or implied in these statements.
Forward-looking statements include, among others, statements concerning
the potential exposure to market risks, statements expressing
management’s expectations, beliefs, estimates, forecasts, projections
and assumptions and statements that are not limited to statements of
historical or present facts or conditions. Some of these statements can
be identified by terms and phrases such as “anticipate,” “believe,”
“intend,” “estimate,” “expect,” “continue,” “could,” “should,” “may,”
“plan,” “project,” “predict” and similar expressions. Factors that could
cause our actual results to differ materially from those expressed or
implied in such forward-looking statements include those factors
detailed under the captions “Note Regarding Forward-Looking Statements”
and “Risk Factors” in our Annual Report on Form 20-F for the year ended
December 31, 2017 and in Note 10 to our audited consolidated financial
statements regarding contingent liabilities, including litigation. You
should not place undue reliance on forward-looking statements. Each
forward-looking statement speaks only as of the date of the particular
statement. New risk factors and uncertainties emerge from time to time
and it is not possible for our management to predict all risk factors
and uncertainties, nor can we assess the impact of all factors on our
business or the extent to which any factor, or combination of factors,
may cause actual results to differ materially from those contained in
any forward-looking statements. We undertake no obligation to publicly
update or revise any forward-looking statement - including those in the
“2018 Full Year Outlook” and “Quarterly Business Results” sections above
- as a result of new information, future events or other information,
other than as required by applicable law.
U.S. Dollar Reporting
This quarter marks the first time we are reporting our results in U.S.
dollars rather than Euro. As noted previously, we also plan to convert
our financial statements from IFRS to U.S. GAAP, effective by the end of
2018. We believe both the switch to U.S. dollar reporting and the
anticipated adoption of U.S. GAAP will benefit investors by allowing
more direct comparisons between our results and those of some of our
peers. These measures are also among the conditions for inclusion of our
stock in certain U.S. equity indices, which may lead to additional
demand for Orion's stock from index funds and index-driven investors.
Some indices have additional requirements for inclusion. We are
analyzing the feasibility of meeting such requirements and the
associated costs and issues raised thereby, including those relating to
the tax position of Orion and other members of the group. This analysis
is ongoing and we can give no assurances regarding the outcome.
Reconciliation of Non-IFRS Financial Measures
In this release we refer to Adjusted EBITDA, Contribution Margin and
Adjusted EPS, which are financial measures that have not been prepared
in accordance with International Financial Reporting Standards as issued
by the International Accounting Standards Board (“IFRS”) or the
accounting standards of any other jurisdiction and may not be comparable
to other similarly titled measures of other companies. Adjusted EBITDA
is defined as operating result (EBIT) before depreciation and
amortization, adjusted for acquisition related expenses, restructuring
expenses, consulting fees related to group strategy, share of profit or
loss of joint venture and certain other items. Adjusted EBITDA is used
by our management to evaluate our operating performance and make
decisions regarding allocation of capital because it excludes the
effects of certain items that have less bearing on the performance of
our underlying core business. Our use of Adjusted EBITDA has limitations
as an analytical tool, and you should not consider it in isolation or as
a substitute for analysis of our financial results as reported under
IFRS. Some of these limitations are: (a) although Adjusted EBITDA
excludes the impact of depreciation and amortization, the assets being
depreciated and amortized may have to be replaced in the future and thus
the cost of replacing assets or acquiring new assets, which will affect
our operating results over time, is not reflected; (b) Adjusted EBITDA
does not reflect interest or certain other costs that we will continue
to incur over time and will adversely affect our profit or loss, which
is the ultimate measure of our financial performance and (c) other
companies, including companies in our industry, may calculate Adjusted
EBITDA or similarly titled measures differently. Because of these and
other limitations, you should consider Adjusted EBITDA alongside our
other IFRS-based financial performance measures, such as consolidated
profit or loss for the period.
Contribution Margin is calculated by subtracting variable costs (such as
raw materials, packaging, utilities and distribution costs) from our
revenue. We believe that Contribution Margin and Contribution Margin per
Metric Ton are useful because we see these measures as indicating the
portion of revenue that is not consumed by such variable costs and
therefore contributes to the coverage of all other costs and profits.
Adjusted EPS is defined as profit or loss for the period adjusted for
acquisition related expenses, restructuring expenses, consulting fees
related to group strategy, certain other items (such as amortization
expenses related to intangible assets acquired from our predecessor and
foreign currency revaluation impacts) and assumed taxes, divided by the
weighted number of shares outstanding during the periods. Adjusted EPS
provides guidance with respect to our underlying business performance
without regard to the effects of (a) foreign currency fluctuations, (b)
the amortization of intangible assets which other companies may record
as goodwill having an indefinite lifetime and thus no amortization and
(c) our start-up and initial public offering costs. Other companies may
use a similarly titled financial measure that is calculated differently
from the way we calculate Adjusted EPS.
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Interim condensed consolidated income statements
of
Orion Engineered Carbons S.A. for the three months ended March 31,
2018 and 2017 - unaudited
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Three Months Ended
Mar 31, 2018
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Three Months Ended
Mar 31, 2017
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In $ k
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In $ k
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Revenue
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406,699
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324,065
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Cost of sales
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(294,296
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)
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(228,527
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)
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Gross profit
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112,403
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95,538
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Selling expenses
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(37,868
|
)
|
|
|
(30,745
|
)
|
|
Research and development costs
|
|
|
|
(5,061
|
)
|
|
|
(4,188
|
)
|
|
General and administrative expenses
|
|
|
|
(21,043
|
)
|
|
|
(20,137
|
)
|
|
Other operating income
|
|
|
|
163
|
|
|
|
147
|
|
|
Other operating expenses
|
|
|
|
(1,995
|
)
|
|
|
(3,193
|
)
|
|
Restructuring expenses
|
|
|
|
(1,266
|
)
|
|
|
(403
|
)
|
|
|
|
|
|
|
|
|
|
|
Operating result (EBIT)
|
|
|
|
45,333
|
|
|
|
37,019
|
|
|
|
|
|
|
|
|
|
|
|
Finance income
|
|
|
|
12,569
|
|
|
|
8,340
|
|
|
Finance costs
|
|
|
|
(20,659
|
)
|
|
|
(18,710
|
)
|
|
Share of profit or loss of joint ventures
|
|
|
|
149
|
|
|
|
129
|
|
|
|
|
|
|
|
|
|
|
|
Financial result
|
|
|
|
(7,941
|
)
|
|
|
(10,241
|
)
|
|
|
|
|
|
|
|
|
|
|
Profit before income taxes
|
|
|
|
37,392
|
|
|
|
26,778
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
|
|
|
(13,164
|
)
|
|
|
(9,963
|
)
|
|
|
|
|
|
|
|
|
|
|
Profit for the period
|
|
|
|
24,228
|
|
|
|
16,815
|
|
|
Earnings per Share ($ per share), basic
|
|
|
|
0.41
|
|
|
|
0.28
|
|
|
Weighted average number of ordinary shares (in thousands)
|
|
|
|
59,320
|
|
|
|
59,320
|
|
|
Earnings per Share ($ per share), diluted
|
|
|
|
0.40
|
|
|
|
0.28
|
|
|
Weighted average number of diluted ordinary shares (in thousands)
|
|
|
|
60,926
|
|
|
|
60,465
|
|
|
|
|
|
|
|
|
Interim condensed consolidated statement of financial position
of
Orion Engineered Carbons S.A. as at March 31, 2018 and
December 31, 2017 – unaudited
|
|
|
|
|
|
|
|
|
Mar 31, 2018
|
|
|
Dec 31, 2017
|
|
ASSETS
|
In $ k
|
|
|
In $ k
|
|
Non-current assets
|
|
|
|
|
|
Goodwill
|
59,772
|
|
|
|
58,180
|
|
|
Other intangible assets
|
68,465
|
|
|
|
70,722
|
|
|
Property, plant and equipment
|
460,497
|
|
|
|
462,129
|
|
|
Investment in joint ventures
|
5,887
|
|
|
|
5,585
|
|
|
Other financial assets
|
3,807
|
|
|
|
3,564
|
|
|
Other assets
|
3,617
|
|
|
|
3,883
|
|
|
Deferred tax assets
|
46,330
|
|
|
|
43,546
|
|
|
|
648,375
|
|
|
|
647,609
|
|
|
Current assets
|
|
|
|
|
|
Inventories
|
161,466
|
|
|
|
159,334
|
|
|
Trade receivables
|
285,824
|
|
|
|
234,273
|
|
|
Other financial assets
|
3,636
|
|
|
|
3,890
|
|
|
Other assets
|
28,882
|
|
|
|
35,038
|
|
|
Income tax receivables
|
15,217
|
|
|
|
16,377
|
|
|
Cash and cash equivalents
|
59,714
|
|
|
|
72,284
|
|
|
|
554,739
|
|
|
|
521,196
|
|
|
|
1,203,114
|
|
|
|
1,168,805
|
|
|
|
|
|
|
|
|
|
Mar 31, 2018
|
|
|
Dec 31, 2017
|
|
EQUITY AND LIABILITIES
|
In $ k
|
|
|
In $ k
|
|
Equity
|
|
|
|
|
|
Subscribed capital
|
83,770
|
|
|
|
83,770
|
|
|
Treasury shares
|
(3,773
|
)
|
|
|
(3,773
|
)
|
|
Reserves
|
(566
|
)
|
|
|
(55,403
|
)
|
|
Profit or loss for the period
|
24,228
|
|
|
|
75,262
|
|
|
|
103,659
|
|
|
|
99,856
|
|
|
Non-current liabilities
|
|
|
|
|
|
Pension provisions
|
68,499
|
|
|
|
65,390
|
|
|
Other provisions
|
12,943
|
|
|
|
13,344
|
|
|
Financial liabilities
|
699,897
|
|
|
|
680,699
|
|
|
Other liabilities
|
40
|
|
|
|
6
|
|
|
Deferred tax liabilities
|
24,103
|
|
|
|
25,121
|
|
|
|
805,482
|
|
|
|
784,560
|
|
|
Current liabilities
|
|
|
|
|
|
Other provisions
|
47,398
|
|
|
|
59,471
|
|
|
Liabilities to banks
|
5,921
|
|
|
|
—
|
|
|
Trade payables
|
173,125
|
|
|
|
169,624
|
|
|
Other financial liabilities
|
8,758
|
|
|
|
7,013
|
|
|
Income tax liabilities
|
23,856
|
|
|
|
15,539
|
|
|
Other liabilities
|
34,915
|
|
|
|
32,742
|
|
|
|
293,973
|
|
|
|
284,389
|
|
|
|
1,203,114
|
|
|
|
1,168,805
|
|
|
|
|
|
|
|
|
|
Interim condensed consolidated statements of cash flows of
Orion
Engineered Carbons S.A. for the three months ended March 31, 2018
and 2017 – unaudited
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
Mar 31, 2018
|
|
|
Three Months Ended
Mar 31, 2017
|
|
|
|
In $ k
|
|
|
In $ k
|
|
Profit for the period
|
|
24,228
|
|
|
|
16,815
|
|
|
|
|
|
|
|
|
|
Income taxes
|
|
13,164
|
|
|
|
9,963
|
|
|
|
|
|
|
|
|
|
Profit before income taxes
|
|
37,392
|
|
|
|
26,778
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization of intangible assets and property,
plant and equipment
|
|
24,790
|
|
|
|
22,242
|
|
|
Other non-cash expenses
|
|
3,532
|
|
|
|
2,019
|
|
|
(Increase) in trade receivables
|
|
(48,104
|
)
|
|
|
(16,472
|
)
|
|
(Increase) in inventories
|
|
(11
|
)
|
|
|
(12,659
|
)
|
|
Increase in trade payables
|
|
11,958
|
|
|
|
4,510
|
|
|
Decrease in provisions
|
|
(13,872
|
)
|
|
|
(19,897
|
)
|
|
Increase in other assets and liabilities that cannot be allocated to
investing or financing activities
|
|
7,023
|
|
|
|
5,164
|
|
|
Finance income
|
|
(12,569
|
)
|
|
|
(8,340
|
)
|
|
Finance costs
|
|
20,659
|
|
|
|
18,710
|
|
|
Cash paid for income taxes
|
|
(3,581
|
)
|
|
|
(3,483
|
)
|
|
|
|
|
|
|
|
|
Cash flows from operating activities
|
|
27,217
|
|
|
|
18,572
|
|
|
|
|
|
|
|
|
|
Cash paid for the acquisition of intangible assets and property,
plant and equipment
|
|
(25,930
|
)
|
|
|
(18,298
|
)
|
|
|
|
|
|
|
|
|
Cash flows from investing activities
|
|
(25,930
|
)
|
|
|
(18,298
|
)
|
|
|
|
|
|
|
|
|
Repayments of borrowings
|
|
(2,134
|
)
|
|
|
(22,674
|
)
|
|
Cash inflows related to current financial liabilities
|
|
5,073
|
|
|
|
6,135
|
|
|
Cash outflows related to current financial liabilities
|
|
—
|
|
|
|
—
|
|
|
Interest and similar expenses paid
|
|
(10,028
|
)
|
|
|
(6,515
|
)
|
|
Interest and similar income received
|
|
4,120
|
|
|
|
1,750
|
|
|
Dividends paid to shareholders
|
|
(11,864
|
)
|
|
|
(10,786
|
)
|
|
|
|
|
|
|
|
|
Cash flows from financing activities
|
|
(14,833
|
)
|
|
|
(32,090
|
)
|
|
|
|
|
|
|
|
|
Change in cash
|
|
(13,546
|
)
|
|
|
(31,816
|
)
|
|
|
|
|
|
|
|
|
Change in cash resulting from exchange rate differences
|
|
976
|
|
|
|
2,416
|
|
|
Cash and cash equivalents at the beginning of the period
|
|
72,284
|
|
|
|
77,906
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at the end of the period
|
|
59,714
|
|
|
|
48,506
|
|
|
|
|
|
|
Reconciliation of profit or loss
|
|
Three Months Ended
Mar 31,
|
|
in $ k
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
Profit for the period
|
|
24,228
|
|
|
16,815
|
|
|
Income taxes
|
|
13,164
|
|
|
9,963
|
|
|
Finance costs
|
|
20,659
|
|
|
18,710
|
|
|
Share of profit of joint ventures
|
|
(149
|
)
|
|
(129
|
)
|
|
Other finance income
|
|
(12,569
|
)
|
|
(8,340
|
)
|
|
Earnings before taxes and finance income/costs (operating result
(EBIT))
|
|
45,333
|
|
|
37,019
|
|
|
Depreciation, amortization and impairment of intangible assets and
property, plant and equipment
|
|
24,790
|
|
|
22,242
|
|
|
EBITDA
|
|
70,123
|
|
|
59,261
|
|
|
|
|
|
|
|
|
|
|
Share of profit of joint venture
|
|
149
|
|
|
129
|
|
|
Restructuring expenses
|
|
1,266
|
|
|
403
|
|
|
Consulting fees related to Group strategy (1)
|
|
884
|
|
|
239
|
|
|
Long Term Incentive Plan
|
|
3,100
|
|
|
1,600
|
|
|
Other adjustments (2)
|
|
470
|
|
|
987
|
|
|
Adjusted EBITDA
|
|
75,992
|
|
|
62,619
|
|
|
|
|
(1) Consulting fees related to the Group strategy include external
consulting fees from establishing and implementing our operating,
tax and organizational strategies.
|
|
(2) Other adjustments in the three months ended March 31, 2017
primarily relate to costs in association with our EPA enforcement
action of USD 1.0 million.
|
|
|
|
|
|
Adjusted EPS Reconciliation
|
|
|
|
Adjusted EPS
|
|
Three Months Ended
Mar 31,
|
|
in $ k
|
|
2018
|
|
2017
|
|
Profit for the period
|
|
24,228
|
|
|
16,815
|
|
|
Add back long term incentive plan (LTIP)
|
|
3,100
|
|
|
1,600
|
|
|
Add back consulting fees, restructuring expenses and other
adjustments
|
|
2,620
|
|
|
1,629
|
|
|
Add back segment impairment
|
|
—
|
|
|
—
|
|
|
Add back amortization of acquired intangible assets
|
|
4,002
|
|
|
3,480
|
|
|
Add back foreign exchange rate impacts to financial result
|
|
399
|
|
|
863
|
|
|
Amortization of transaction costs
|
|
203
|
|
|
786
|
|
|
Release of transaction costs due to repayment
|
|
—
|
|
|
414
|
|
|
Tax effect on add back items at 35% estimated tax rate
|
|
(3,613
|
)
|
|
(3,070
|
)
|
|
Adjusted profit or loss for the period
|
|
30,938
|
|
|
22,517
|
|
|
Adjusted EPS
(1)
|
|
0.52
|
|
|
0.38
|
|
|
|
|
|
|
|
|
Total add back items
|
|
6,710
|
|
|
5,702
|
|
|
|
|
|
|
|
|
Impact add back items per share
|
|
0.11
|
|
|
0.10
|
|
|
+ Earnings per Share ($ per share), basic
|
|
0.41
|
|
|
0.28
|
|
|
= Adjusted EPS
(1)
|
|
0.52
|
|
|
0.38
|
|
|
|
|
(1) Based upon weighted number of shares outstanding, which was
59,320k for the three months ended March 31, 2018 and for the three
months ended March 31, 2017, respectively.
|
