Innophos Holdings, Inc. Reports Second Quarter 2016 Results

Net sales for the second quarter 2016 of $182 million were down 16% compared to the second quarter 2015.

• Specialty Phosphates sales of $171 million were down 11% versus the prior year quarter, on 3% lower selling prices and 8% lower volumes due to pruning of lower margin, less differentiated applications, and reduced demand across product lines in core markets served.

• GTSP & Other sales of $11 million were down 57% versus the prior year quarter on 39% lower volumes and 18% lower prices as weak demand resulted in the lowest market price levels seen in six years.

Adjusted EBITDA of $30 million for the second quarter 2016 yielded a margin of 17%, up 110 basis points compared to the prior year quarter despite the effects of $2.4 million, or 132 basis points, planned maintenance stoppage costs in the current quarter. Adjusted EBITDA was $3 million below the prior year, and in line with first quarter 2016. Specialty Phosphates adjusted EBITDA margins improved 210 basis points versus the same quarter last year, partially offset by lower results recorded in GTSP & Other.

Adjusted diluted EPS for the second quarter 2016 was $0.63, which includes $0.08 of planned maintenance stoppage costs, compared to an adjusted diluted EPS of $0.66 for the second quarter 2015.

Free cash flow of $35 million in the second quarter 2016 was driven primarily by working capital reductions which enabled net debt to decrease $25 million sequentially to $190 million.

Year-to-date Results

Net sales for H1 2016 of $372 million were down 11% compared to H1 2015.

• Specialty Phosphates sales of $348 million were down 9% versus H1 last year, on 1% lower selling prices and 8% lower volumes.

• GTSP & Other sales of $23 million were down 37% versus the same period last year on 20% lower volumes and 17% lower prices.

Adjusted EBITDA of $61 million for H1 2016 yielded a margin of 17%, up 100 basis points compared to H1 2015. Specialty Phosphates adjusted EBITDA margins for H1 2016 improved 140 basis points versus the same period last year.

Adjusted diluted EPS for H1 2016 was $1.28 compared to an adjusted EPS of $1.29 for the first half of 2015.

Free cash flow for H1 2016 was $24 million, down $17 million from the same period last year primarily due to $23 million higher tax payments, of which $19 million related to the cash repatriation program.

Recent Trends and Outlook

Specialty Phosphates volumes are expected to decline by 6-8% for full year 2016 compared to 2015, primarily due to reduced sales in lower margin, less differentiated applications and weak end market demand due to continued pressures on packaged foods.

Market phosphate rock prices were flat sequentially for the second quarter 2016, while sulfur market prices decreased during the same period. Both are expected to ease further in the third quarter given current weak fertilizer market conditions.

Cost improvements from the restructuring program implemented in the third quarter 2015 were in line with expectations, with $2.9 million lower costs realized in the current quarter against the third quarter 2015 baseline. Additional year-on-year cost savings were delivered due to detailed cost management. Management continues to review cost actions and productivity initiatives given the challenging market conditions.  

Adjusted EBITDA results for the third quarter are expected to be broadly in line with first and second quarter 2016 when considering the following effects:

• Continued headwinds in sales.

• Strength of US Dollar will continue to attract competition from overseas and pressure exports from the US.

• Some softening of raw material costs and operational excellence cost savings.

• Planned maintenance stoppage costs forecast to decline sequentially by $1 million.

2016 capital expenditures are expected to approximate $40 million due to requirements to support strategic manufacturing initiatives, along with continuous improvement in our plants.

Conference Call

Innophos will host its second quarter 2016 conference call on Tuesday, August 2, 2016 at 9:00 am ET. The call can be accessed by dialing 1-888-771-4371 (U.S.) or 1-847-585-4405 (international) and entering passcode 43038685. Please dial in approximately 15 minutes ahead of the start time to ensure timely entry to the call. A replay will be available between 1:00 pm ET on August 2 and 11:00 pm ET on August 16, 2016. The replay is accessible by dialing 1-888-843-7419 (U.S.) or 1-630-652-3042 (international) and entering passcode 4303 8685#. Additional information on Innophos' second quarter results can also be found on the Company's website. 

About the Company

Innophos is a leading international producer of performance-critical and nutritional specialty ingredients, with applications in food, beverage, dietary supplements, pharmaceutical, oral care and industrial end markets. Headquartered in Cranbury, New Jersey, Innophos has manufacturing operations across the United States, in Canada, Mexico and China. For more information please visit www.innophos.com. 'IPHS-G'

Contact

Investors: Mark Feuerbach, 609-366-1204 or investor.relations@innophos.com

Media: Bryan Armstrong, FTI Consulting, Inc., 312-553-6707

Financial Tables Follow

Safe Harbor for Forward-Looking and Cautionary Statements

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. As such, final results could differ from estimates or expectations due to risks and uncertainties, including but not limited to: incomplete or preliminary information; changes in government regulations and policies; continued acceptance of Innophos' products and services in the marketplace; competitive factors; technological changes; Innophos' dependence upon suppliers; and other risks. For any of these factors, Innophos claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, as amended.

Summary Profit & Loss Statement

INNOPHOS HOLDINGS, INC. AND SUBSIDIARIES
Condensed Consolidated Statement of Operations (Unaudited)
(Dollars In thousands, except per share amounts or share amounts)
	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Net sales	$181,888		$217,294		$371,518		$418,903
Cost of goods sold	145,738		176,299		294,652		337,382
Gross profit	36,150		40,995		76,866		81,521
Operating expenses:
Selling, general and administrative	15,732		18,667		33,967		36,658
Research & development expenses	1,021		1,063		2,017		2,237
Total operating expenses	16,753		19,730		35,984		38,895
Operating income	19,397		21,265		40,882		42,626
Interest expense, net	1,913		1,403		3,712		2,554
Foreign exchange loss	355		117		316		2,432
Income before income taxes	17,129		19,745		36,854		37,640
Provision for income taxes	5,025 Werbung Mehr Nachrichten zur Innophos Holdings Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 24.04.24 - PR Newswire Fidelity China Special Situations Plc - Transaction in Own Shares 24.04.24 - PR Newswire Oxford Instruments Plc - Holding(s) in Company 24.04.24 - PR Newswire Fidelity European Trust Plc - Monthly Factsheet Solarboom 2024:    5 Gründe die für diese Aktie sprechen… weiterlesen» Anzeige wo-site-teaser-box-16746_site-teaser-box_2024-04-24_08%253A00%253A00_2024-04-25_09%253A00%253A59