THE WOODLANDS, Texas, Feb. 18, 2015 /PRNewswire/ --
Fourth Quarter 2014 Highlights
-- Adjusted EBITDA was $292 million compared to $313 million in the prior year period. Pro forma for the Rockwood acquisition our adjusted EBITDA was $300 million compared to $341 in the prior year period. The decrease was primarily attributable to lower earnings in our Pigments and Additives division. -- Adjusted diluted income per share was $0.33 compared to $0.48 in the prior year period. -- Net loss attributable to Huntsman Corporation was $38 million compared to net income of $41 million in the prior year period. -- Approximate negative foreign currency adjusted EBITDA impact of $11 million compared to the prior year period, primarily from a stronger U.S. dollar against major European currencies.
Full Year 2014 Highlights
-- Adjusted EBITDA was $1,340 million compared to $1,213 million in the prior year. Pro forma for the Rockwood acquisition our adjusted EBITDA was $1,495 million compared to $1,323 in the prior year period. -- Adjusted diluted income per share was $1.94 compared to $1.61 in the prior year, an increase of 20%. -- Net income attributable to Huntsman Corporation was $323 million compared to $128 million in the prior year.
Three months ended Twelve months ended ------------------ December 31, September 30, December 31, ------------ ------------ In millions, except per share amounts, unaudited 2014 2013 2014 2014 2013 ------------------- ---- ---- ---- ---- ---- Revenues $2,951 $2,705 $2,884 $11,578 $11,079 Pro forma revenues(2) $2,937 $3,052 $3,258 $12,723 $12,598 Net (loss) income attributable to Huntsman Corporation $(38) $41 $188 $323 $128 Adjusted net income(1) $81 $118 $147 $478 $390 Diluted (loss) income per share $(0.16) $0.17 $0.76 $1.31 $0.53 Adjusted diluted income per share(1) $0.33 $0.48 $0.60 $1.94 $1.61 EBITDA(1) $141 $225 $293 $1,022 $889 Adjusted EBITDA(1) $292 $313 $356 $1,340 $1,213 Pro forma adjusted EBITDA(2) $300 $341 $396 $1,495 $1,323 See end of press release for footnote explanations
Huntsman Corporation (NYSE: HUN) today reported fourth quarter 2014 results with revenues of $2,951 million and adjusted EBITDA of $292 million.
Peter R. Huntsman, our President and CEO, commented:
"2014 was a remarkable year for us; our differentiated businesses that include our MDI urethanes, Performance Products, Advanced Materials and Textile Effects collectively increased their adjusted EBITDA by more than $200 million. I am encouraged by the attractive growth profile of these businesses and expect them to perform even better in 2015.
We have a number of initiatives underway that will improve the competitiveness and strength of our entire company. We are investing in growth projects that we expect will add more than $200 million of annual EBITDA over the next few years. We are aggressively taking action to deliver $130 million of synergies as we integrate the businesses we purchased from Rockwood this past October. In addition, we recently took action to rationalize our European titanium dioxide capacity with expected EBITDA benefits of approximately $35 million.
Notwithstanding near term headwinds and shocks to the business landscape such as meaningful movements in foreign currency rates and lower priced oil, I believe we are well positioned to deliver increased earnings, an improvement in free cash flow and increased shareholder value over the next several years."
Segment Analysis for 4Q14 Compared to 4Q13
Polyurethanes
The decrease in revenues in our Polyurethanes division for the three months ended December 31, 2014 compared to the same period in 2013 was primarily due to lower PO/MTBE average selling prices and the impact of a stronger U.S. dollar against major European currencies, partially offset by higher MDI local currency average selling prices and increased MDI sales volumes. PO/MTBE average selling prices decreased following lower pricing for high octane gasoline. MDI average selling prices increased in the Americas and Europe, partially offset by lower component pricing in China. MDI sales volumes grew in the Americas and Asia and were essentially flat in Europe. Adjusted EBITDA was essentially flat as higher MDI margins offset most of the $7 million negative impact from the stronger U.S. dollar against major European currencies.
Performance Products
The decrease in revenues in our Performance Products division for the three months ended December 31, 2014 compared to the same period in 2013 was due to lower sales volumes, partially offset by higher average selling prices. Sales volumes decreased primarily due to the sale of our European surfactants business in the second quarter of 2014, partially offset by increased sales volumes in amines and maleic anhydride. Average selling prices increased in response to higher raw materials costs and continued strong market conditions for amines, maleic anhydride and specialty surfactants, partially offset by the impact of a stronger U.S. dollar against major European currencies. The decrease in adjusted EBITDA was primarily due to lower sales volumes and $5 million of inventory revaluation costs as a result of our successful efforts to reduce our investment in inventory.
Advanced Materials
The decrease in revenues in our Advanced Materials division for the three months ended December 31, 2014 compared to the same period in 2013 was due to lower sales volumes, partially offset by higher average selling prices and improved sales mix. Sales volumes decreased primarily due to the de-selection of certain business and our restructuring efforts. Average selling prices increased in all regions on a local currency basis and across most markets primarily due to certain price increase initiatives and our focus on higher value markets, partially offset by the impact of a stronger U.S. dollar against major European currencies. The increase in adjusted EBITDA was primarily due to higher contribution margins from our focus on higher value business and lower fixed costs.
Textile Effects
The decrease in revenues in our Textile Effects division for the three months ended December 31, 2014 compared to the same period in 2013 was primarily due to lower sales volumes, partially offset by higher average selling prices. Sales volumes decreased primarily due to the de-selection of lower value business and destocking within the fibers and dyes supply chain. Average selling prices increased primarily in response to higher raw material costs. The decrease in adjusted EBITDA was primarily due to $12 million of inventory revaluation costs as a result of our successful efforts to reduce our investment in inventory and higher raw material costs.
Pigments and Additives
Pro forma for the acquisition of Rockwood Performance Additives and Titanium Dioxide businesses, revenues decreased in our Pigments and Additives division for the three months ended December 31, 2014 compared to the same period in 2013 due to lower sales volumes and lower average selling prices. Sales volumes decreased primarily as a result of lower end use demand in Europe which is our largest market. Average selling prices decreased primarily as a result of high titanium dioxide industry inventory levels and the impact of a stronger U.S. dollar against major European currencies. The decrease in pro forma adjusted EBITDA was primarily due to lower contribution margins for titanium dioxide, whereas the combined adjusted EBITDA for additives was essentially flat.
Corporate, LIFO and Other
Adjusted EBITDA from Corporate, LIFO and Other increased by $2 million to a loss of $48 million for the three months ended December 31, 2014 compared to a loss of $50 million for the same period in 2013.
Liquidity, Capital Resources and Outstanding Debt
As of December 31, 2014, we had $1,601 million of combined cash and unused borrowing capacity compared to $1,048 million at December 31, 2013.
In November 2014, we issued $400 million of 5.125% senior notes due 2022. We used the proceeds to redeem all of our outstanding 8.625% senior subordinated notes due 2020, pay associated accrued interest and for general corporate purposes. We expect to save approximately $12 million in annual interest expense as a result of this refinancing.
On October 1, 2014, we successfully completed the acquisition of the Performance Additives and Titanium Dioxide businesses of Rockwood for $1.04 billion in cash and subject to certain purchase price adjustments. The acquisition was funded by a new $1.2 billion term loan due 2021.
Total capital expenditures for the three months ended December 31, 2014 were $250 million and for the year ended December 31, 2014 were $601 million. We expect to spend approximately $525 million on base capital expenditures in 2015, net of reimbursements. In addition, in 2015 we expect to spend approximately $100 million combined on our new Chinese MDI facility, the completion of the Augusta, Georgia color pigments facility and replacement of Rockwood computer systems.
Now that we have completed the preliminary allocation of the purchase accounting for the Rockwood Performance Additives and Titanium Dioxide businesses, we expect our annual depreciation and amortization rate to be approximately $450 million.
Income Taxes
During the three months ended December 31, 2014 we recorded an income tax expense of $12 million and paid $9 million in cash for income taxes. Our adjusted effective income tax rate for the three months and year ended December 31, 2014 were 34% and 30% respectively.
We expect our long term adjusted effective tax rate to be approximately 30%. We expect our 2015 adjusted effective tax rate to be slightly higher as a result of reduced earnings from our Pigments and Additives division which has a meaningful concentration of business in countries (primarily in Europe) where we have tax valuation allowances which prevent us from recording a tax benefit on pre-tax losses.
Earnings Conference Call Information
We will hold a conference call to discuss our fourth quarter and full year 2014 financial results on Wednesday, February 18, 2015 at 10:00 a.m. ET.
Call-in numbers for the conference call: U.S. participants (888) 680 - 0865 International participants (617) 213 - 4853 Passcode 13264497
In order to facilitate the registration process, you may use the following link to pre-register for the conference call. Callers who pre-register will be given a unique PIN to gain immediate access to the call and bypass the live operator. You may pre-register at any time, including up to and after the call start time. To pre-register, please go to:
https://www.theconferencingservice.com/prereg/key.process?key=PCWMPQHEM
Webcast Information
The conference call will be available via webcast and can be accessed from the company's website at ir.huntsman.com.
Replay Information
The conference call will be available for replay beginning February 18, 2015 and ending February 25, 2015.
Call-in numbers for the replay: U.S. participants (888) 286 - 8010 International participants (617) 801 - 6888 Replay code 99851834
Table 1 -- Results of Operations -------------------------------- Three months ended Twelve months ended December 31, December 31, ------------ ------------ In millions, except per share amounts, unaudited 2014 2013 2014 2013 ---------- ---- ---- ---- ---- Revenues $2,951 $2,705 $11,578 $11,079 Cost of goods sold 2,502 2,259 9,659 9,326 ----- ----- ----- ----- Gross profit 449 446 1,919 1,753 Operating expenses 317 284 1,128 1,092 Restructuring, impairment and plant closing costs 67 41 158 151 --- --- --- --- Operating income 65 121 633 510 Interest expense (57) (44) (205) (190) Equity in income of investment in unconsolidated affiliates - 2 6 8 Loss on early extinguishment of debt (28) (16) (28) (51) Other (expense) income (2) - (2) 2 --- --- (Loss) income before income taxes (22) 63 404 279 Income tax expense (12) (20) (51) (125) --- ---- (Loss) income from continuing operations (34) 43 353 154 Loss from discontinued operations, net of tax(3) (1) (1) (8) (5) Net (loss) income (35) 42 345 149 Net income attributable to noncontrolling interests, net of tax (3) (1) (22) (21) Net (loss) income attributable to Huntsman Corporation $(38) $41 $323 $128 ==== === ==== ==== Adjusted EBITDA(1) $292 $313 $1,340 $1,213 Adjusted net income(1) $81 $118 $478 $390 Basic (loss) income per share $(0.16) $0.17 $1.33 $0.53 Diluted (loss) income per share $(0.16) $0.17 $1.31 $0.53 Adjusted diluted income per share(1) $0.33 $0.48 $1.94 $1.61 Common share information: Basic shares outstanding 243.0 240.2 242.1 239.7 Diluted shares 243.0 243.9 246.0 242.4 Diluted shares for adjusted diluted income per share 246.9 243.9 246.0 242.4 See end of press release for footnote explanations
Table 2 -- Results of Operations by Segment ------------------------------------------- Three months ended Twelve months ended December 31, Better / December 31, Better / ------------ ------------ In millions, unaudited 2014 2013 (Worse) 2014 2013 (Worse) ---------------------- ---- ---- ------ ---- ---- ------ Segment Revenues: Polyurethanes $1,201 $1,230 (2)% $5,032 $4,964 1% Performance Products 712 741 (4)% 3,072 3,019 2% Advanced Materials 295 301 (2)% 1,248 1,267 (1)% Textile Effects 203 209 (3)% 896 811 10% Pigments & Additives 573 295 94% 1,549 1,269 22% Eliminations and other (33) (71) 54% (219) (251) 13% --- --- ---- ---- Total $2,951 $2,705 9% $11,578 $11,079 5% ====== ====== ======= ======= Segment Adjusted EBITDA(1): Polyurethanes $171 $173 (1)% $722 $740 (2)% Performance Products 111 116 (4)% 473 403 17% Advanced Materials 43 33 30% 199 131 52% Textile Effects 6 8 (25)% 58 16 263% Pigments & Additives 9 33 (73)% 76 111 (32)% Corporate, LIFO and other (48) (50) 4% (188) (188) --- Total $292 $313 (7)% $1,340 $1,213 10% ==== ==== ====== ====== See end of press release for footnote explanations
Table 3 -- Pro Forma(2) Results of Operations by Segment -------------------------------------------------------- Three months ended Twelve months ended December 31, Better / December 31, Better / ------------ ------------ In millions, unaudited, pro forma 2014 2013 (Worse) 2014 2013 (Worse) --------------------------- ---- ---- ------ ---- ---- ------ Segment Revenues: Polyurethanes $1,201 $1,237 (3)% $5,053 $4,991 1% Performance Products 712 741 (4)% 3,072 3,019 2% Advanced Materials 295 301 (2)% 1,248 1,267 (1)% Textile Effects 203 209 (3)% 896 811 10% Pigments & Additives 559 635 (12)% 2,673 2,761 (3)% Eliminations and other (33) (71) 54% (219) (251) 13% --- --- ---- ---- Pro forma total $2,937 $3,052 (4)% $12,723 $12,598 1% ====== ====== ======= ======= Segment Adjusted EBITDA(2): Polyurethanes $171 $174 (2)% $728 $746 (2)% Performance Products 111 116 (4)% 473 403 17% Advanced Materials 43 33 30% 199 131 52% Textile Effects 6 8 (25)% 58 16 263% Pigments & Additives 17 60 (72)% 225 215 5% Corporate, LIFO and other (48) (50) 4% (188) (188) --- Pro forma total $300 $341 (12)% $1,495 $1,323 13% ==== ==== ====== ====== See end of press release for footnote explanations
Table 4 -- Factors Impacting Sales Revenue ------------------------------------------ Three months ended December 31, 2014 vs. 2013 -------------------------- Average Selling Price(a) ----------------------- Local Exchange Sales Mix Sales Unaudited Currency Rate & Other(c) Volume(b) Total --------- -------- ---- --------- -------- ----- Polyurethanes (2)% (2)% (3)% 5% (2)% Performance Products 4% (2)% 2% (8)% (4)% Advanced Materials 3% (4)% 4% (5)% (2)% Textile Effects 9% (3)% --- (9)% (3)% Pigments & Additives 1% (9)% 110% (8)% 94% Total Company 2% (3)% 12% (2)% 9% Twelve months ended December 31, 2014 vs. 2013 -------------------------- Average Selling Price(a) ----------------------- Local Exchange Sales Mix Sales Unaudited Currency Rate & Other(c) Volume(b) Total --------- -------- ---- --------- -------- ----- Polyurethanes (2)% --- 1% 2% 1% Performance Products 4% --- (1)% (1)% 2% Advanced Materials 5% --- 4% (10)% (1)% Textile Effects 15% (1)% --- (4)% 10% Pigments & Additives (6)% 2% 26% --- 22% Total Company 2% --- 3% --- 5% (a) Excludes sales from tolling arrangements, by-products and raw materials. (b) Excludes sales from by-products and raw materials. (c) Includes full revenue impact from the October 1, 2014 acquisition of the Performance Additives and Titanium Dioxide businesses of Rockwood Holdings, Inc.
Table 5 -- Factors Impacting Pro Forma(2) Sales Revenue ------------------------------------------------------- Three months ended December 31, 2014 vs. 2013 -------------------------- Average Selling Price(a) ----------------------- Local Exchange Sales Mix Sales Unaudited, pro forma Currency Rate & Other Volume(b) Total -------------------- -------- ---- ------- -------- ----- Polyurethanes (2)% (2)% (4)% 5% (3)% Performance Products 4% (2)% 2% (8)% (4)% Advanced Materials 3% (4)% 4% (5)% (2)% Textile Effects 9% (3)% --- (9)% (3)% Pigments & Additives (8)% NA 2% (6)% (12)% Total Company (2)% NA 1% (3)% (4)% Twelve months ended December 31, 2014 vs. 2013 -------------------------- Average Selling Price(a) ----------------------- Local Exchange Sales Mix Sales Unaudited, pro forma Currency Rate & Other Volume(b) Total -------------------- -------- ---- ------- -------- ----- Polyurethanes (2)% --- 1% 2% 1% Performance Products 4% --- (1)% (1)% 2% Advanced Materials 5% --- 4% (10)% (1)% Textile Effects 15% (1)% --- (4)% 10% Pigments & Additives (2)% NA --- (1)% (3)% Total Company 2% NA (1)% --- 1% NA = foreign exchange rate data not available (a) Excludes sales from tolling arrangements, by-products and raw materials. (b) Excludes sales from by-products and raw materials.
Table 6 -- Reconciliation of U.S. GAAP to Non-GAAP Measures ----------------------------------------------------------- Income Tax Net (Loss) Income Diluted (Loss) Income EBITDA (Expense) Benefit Attrib. to HUN Corp. Per Share ------ ----------------- -------------------- --------- Three months ended Three months ended Three months ended Three months ended December 31, December 31, December 31, December 31, ------------ ------------ ------------ ------------ In millions, except per share amounts, unaudited 2014 2013 2014 2013 2014 2013 2014 2013 -------------------------------------- ---- ---- ---- ---- ---- ---- ---- ---- GAAP(1) $141 $225 $(12) $(20) $(38) $41 $(0.16) $0.17 Adjustments: Acquisition and integration expenses, purchase accounting adjustments 40 7 (4) (3) 36 4 0.15 0.02 Loss from discontinued operations, net of tax(3) 1 2 N/A N/A 1 1 - - Discount amortization on settlement financing associated with the terminated merger N/A N/A - (1) - 1 - - Gain on disposition of businesses/assets (1) - - - (1) - - - Loss on early extinguishment of debt 28 16 (10) (6) 18 10 0.07 0.04 Certain legal settlements and related expenses - 1 - - - 1 - - Amortization of pension and postretirement actuarial losses 14 18 - (7) 14 11 0.06 0.05 Restructuring, impairment and plant closing and transition costs 69 44 (18) 5 51 49 0.21 0.20 Adjusted(1) $292 $313 $(44) $(32) $81 $118 $0.33 $0.48 ==== ==== ==== ==== === ==== ----- ----- Adjusted income tax expense 44 32 Net income attributable to noncontrolling interests, net of tax 3 1 Adjusted pre-tax income(1) $128 $151 ==== ==== Adjusted effective tax rate 34% 21% Income Tax Net Income Diluted Income EBITDA Benefit (Expense) Attrib. to HUN Corp. Per Share ------ ---------------- -------------------- --------- Three months ended Three months ended Three months ended Three months ended September 30, September 30, September 30, September 30, In millions, except per share amounts, unaudited 2014 2014 2014 2014 -------------------------------------- ---- ---- ---- ---- GAAP(1) $293 $40 $188 $0.76 Adjustments: Acquisition and integration expenses, purchase accounting adjustments 10 (2) 8 0.03 Impact of certain foreign tax credit elections N/A (94) (94) (0.38) Certain legal settlements and related expenses 1 - 1 - Amortization of pension and postretirement actuarial losses 12 (2) 10 0.04 Restructuring, impairment and plant closing and transition costs 40 (6) 34 0.14 Adjusted(1) $356 $(64) $147 $0.60 ==== ==== ==== ----- Adjusted income tax expense 64 Net income attributable to noncontrolling interests, net of tax 6 Adjusted pre-tax income(1) $217 ==== Adjusted effective tax rate 29% Income Tax Net Income Diluted Income EBITDA (Expense) Benefit Attrib. to HUN Corp. Per Share ------ ----------------- -------------------- --------- Twelve months ended Twelve months ended Twelve months ended Twelve months ended December 31, December 31, December 31, December 31, ------------ ------------ ------------ ------------ In millions, except per share amounts, unaudited 2014 2013 2014 2013 2014 2013 2014 2013 -------------------------------------- ---- ---- ---- ---- ---- ---- ---- ---- GAAP(1) $1,022 $889 $(51) $(125) $323 $128 $1.31 $0.53 Adjustments: Acquisition and integration expenses, purchase accounting adjustments 67 21 (10) (5) 57 16 0.23 0.07 Impact of certain foreign tax credit elections N/A N/A (94) - (94) - (0.38) - Loss from discontinued operations, net of tax(3) 10 5 N/A N/A 8 5 0.03 0.02 Discount amortization on settlement financing associated with the terminated merger N/A N/A - (3) - 6 - 0.02 Gain on disposition of businesses/assets (3) - 1 - (2) - (0.01) - Loss on early extinguishment of debt 28 51 (10) (19) 18 32 0.07 0.13 Certain legal settlements and related expenses 3 9 - (2) 3 7 0.01 0.03 Amortization of pension and postretirement actuarial losses 51 74 (10) (20) 41 54 0.17 0.22 Restructuring, impairment and plant closing and transition costs 162 164 (38) (22) 124 142 0.50 0.59 Adjusted(1) $1,340 $1,213 $(212) $(196) $478 $390 $1.94 $1.61 ====== ====== ===== ===== ==== ==== ----- ----- Adjusted income tax expense 212 196 Net income attributable to noncontrolling interests, net of tax 22 21 Adjusted pre-tax income(1) $712 $607 ==== ==== Adjusted effective tax rate 30% 32% See end of press release for footnote explanations
Table 7 -- Pro Forma(2) Reconciliation of U.S. GAAP to Non-GAAP Measures ------------------------------------------------------------------------ Pro Forma EBITDA ---------------- Three months ended December 31, ------------ In millions, except per share amounts, unaudited, pro forma 2014 2013 ------------------------------ ---- ---- GAAP(1) $191 $247 Adjustments: Allocation of general corporate overhead - 7 Acquisition and integration expenses, purchase accounting adjustments (2) 3 Loss from discontinued operations, net of tax(3) 1 2 Gain on disposition of businesses/ assets (1) - Loss on early extinguishment of debt 28 16 Certain legal settlements and related expenses - 1 Amortization of pension and postretirement actuarial losses 14 21 Restructuring, impairment and plant closing and transition costs 69 44 Pro forma adjusted(2) $300 $341 ==== ==== Pro Forma EBITDA ---------------- Three months ended September 30, In millions, except per share amounts, unaudited pro forma 2014 ----------------------------- ---- GAAP(1) $333 Adjustments: Allocation of general corporate overhead 5 Acquisition and integration expenses, purchase accounting adjustments 4 Certain legal settlements and related expenses 1 Amortization of pension and postretirement actuarial losses 13 Restructuring, impairment and plant closing and transition costs 40 Pro forma adjusted(2) $396 ==== Pro Forma EBITDA ---------------- Twelve months ended December 31, ------------ In millions, except per share amounts, unaudited pro forma 2014 2013 ----------------------------- ---- ---- GAAP(1) $1,214 $956 Adjustments: Allocation of general corporate overhead 20 24 Acquisition and integration expenses, purchase accounting adjustments 7 11 Loss from discontinued operations, net of tax(3) 10 5 Gain on disposition of businesses/ assets (3) - Loss on early extinguishment of debt 28 68 Certain legal settlements and related expenses 3 9 Amortization of pension and postretirement actuarial losses 54 84 Restructuring, impairment and plant closing and transition costs 162 166 Pro forma adjusted(2) $1,495 $1,323 ====== ====== See end of press release for footnote explanations
Table 8 -- Reconciliation of Net Income to EBITDA ------------------------------------------------- Three months ended Twelve months ended ------------------ December 31, September 30, December 31, ------------ ------------ In millions, unaudited 2014 2013 2014 2014 2013 ---------------------- ---- ---- ---- ---- ---- Net (loss) income attributable to Huntsman Corporation $(38) $41 $188 $323 $128 Interest expense 57 44 49 205 190 Income tax expense (benefit) from continuing operations 12 20 (40) 51 125 Income tax benefit from discontinued operations(3) - (2) - (2) (2) Depreciation and amortization 110 122 96 445 448 EBITDA(1) 141 225 293 1,022 889 --- --- --- ----- --- Pro forma adjustments to: Net income (loss) attributable to Huntsman Corporation 26 (1) 15 75 (28) Interest expense 1 11 11 34 53 Income tax expense from continuing operations(3) 13 2 4 43 2 Depreciation and amortization 10 10 10 40 40 Pro forma EBITDA(2) $191 $247 $333 $1,214 $956 ==== ==== ==== ====== ==== See end of press release for footnote explanations
Table 9 -- Selected Balance Sheet Items --------------------------------------- December 31, September 30, December 31, In millions 2014 2014 2013 -------- ---- ---- ---- (unaudited) Cash $870 $592 $529 Accounts and notes receivable, net 1,707 1,676 1,575 Inventories 2,025 1,788 1,741 Other current assets 437 438 314 Property, plant and equipment, net 4,423 3,703 3,824 Other assets 1,540 1,212 1,205 Total assets $11,002 $9,409 $9,188 ======= ====== ====== Accounts payable $1,275 $1,176 $1,113 Other current liabilities 790 672 769 Current portion of debt 267 274 277 Long- term debt 4,933 3,752 3,633 Other liabilities 1,786 1,139 1,267 Total equity 1,951 2,396 2,129 Total liabilities and equity $11,002 $9,409 $9,188 ======= ====== ======
Table 10 -- Outstanding Debt ---------------------------- December 31, September 30, December 31, In millions 2014 2014 2013 --------- ---- ---- ---- (unaudited) Debt: Senior credit facilities $2,528 $1,339 $1,351 Accounts receivable programs 229 235 248 Senior notes 1,596 1,219 1,061 Senior subordinated notes 531 890 891 Variable interest entities 207 220 247 Other debt 109 123 112 Total debt - excluding affiliates 5,200 4,026 3,910 ----- ----- ----- Total cash 870 592 529 --- --- --- Net debt- excluding affiliates $4,330 $3,434 $3,381 ====== ====== ======
Table 11 -- Summarized Statement of Cash Flows ---------------------------------------------- Three months ended Year ended December 31, December 31, ------------ In millions, unaudited 2014 2014 2013 ------------ ---- ---- ---- Total cash at beginning of period(a) $592 $529 $396 Net cash provided by operating activities 417 760 708 Net cash used in investing activities (1,269) (1,606) (566) Net cash provided by (used in) financing activities 1,135 1,197 (6) Effect of exchange rate changes on cash (5) (11) (3) Change in restricted cash - 1 - Total cash at end of period(a) $870 $870 $529 ==== ==== ==== Supplemental cash flow information: Cash paid for interest $(63) $(208) $(187) Cash paid for income taxes $(9) $(165) $(78) Cash paid for capital expenditures $(250) $(601) $(471) Depreciation and amortization $110 $445 $448 Changes in primary working capital: Accounts and notes receivable $163 $2 $(11) Inventories 92 (20) 77 Accounts payable (45) 86 (12) Total cash provided by primary working capital $210 $68 $54 ==== === === (a) Includes restricted cash.
Footnotes --------- (1) We use EBITDA and adjusted EBITDA to measure the operating performance of our business. We provide adjusted net income because we feel it provides meaningful insight for the investment community into the performance of our business. We believe that net income (loss) attributable to Huntsman Corporation is the performance measure calculated and presented in accordance with generally accepted accounting principles in the U.S. ("GAAP") that is most directly comparable to EBITDA, adjusted EBITDA and adjusted net income. Additional information with respect to our use of each of these financial measures follows: EBITDA is defined as net income (loss) attributable to Huntsman Corporation before interest, income taxes, and depreciation and amortization. EBITDA as used herein is not necessarily comparable to other similarly titled measures of other companies. The reconciliation of EBITDA to net income (loss) attributable to Huntsman Corporation is set forth in Table 5 above. Adjusted EBITDA is computed by eliminating the following from EBITDA: (a) acquisition and integration expenses, purchase accounting adjustments; (b) loss (gain) on initial consolidation of subsidiaries; (c) EBITDA from discontinued operations; (d) loss (gain) on disposition of businesses/assets; (e) loss on early extinguishment of debt; (f) extraordinary loss (gain) on the acquisition of a business; (g) certain legal settlements and related expenses; (h) amortization of pension and postretirement actuarial losses (gains); and (i) restructuring, impairment, plant closing and transition costs (credits). The reconciliation of adjusted EBITDA to EBITDA is set forth in Table 4 above. Adjusted net income (loss) is computed by eliminating the after tax impact of the following items from net income (loss) attributable to Huntsman Corporation: (a) acquisition and integration expenses, purchase accounting adjustments; (b) impact of certain foreign tax credit elections; (c) loss (gain) on initial consolidation of subsidiaries; (d) loss (income) from discontinued operations; (e) discount amortization on settlement financing associated with the terminated merger; (f) loss (gain) on disposition of businesses/ assets; (g) loss on early extinguishment of debt; (h) extraordinary loss (gain) on the acquisition of a business; (i) certain legal settlements and related expenses; (j) amortization of pension and postretirement actuarial losses (gains); and (k) restructuring, impairment, plant closing and transition costs (credits). We do not adjust for changes in tax valuation allowances because we do not believe it provides more meaningful information than is provided under GAAP. The reconciliation of adjusted net income (loss) to net income (loss) attributable to Huntsman Corporation common stockholders is set forth in Table 4 above. (2) Pro forma adjusted as if it had occurred at the beginning of the relevant period to include the October 1, 2014 acquisition of the Performance Additives and Titanium Dioxide businesses of Rockwood Holdings, Inc.; exclude the related sale of our TR52 product line - used in printing inks - to Henan Billions Chemicals Co., Ltd. in December 2014; and exclude the allocation of general corporate overhead by Rockwood. (3) During the first quarter 2010 we closed our Australian styrenics operations; results from this business are treated as discontinued operations.
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2014 revenues of approximately $13 billion including the acquisition of Rockwood's performance additives and titanium dioxide businesses. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 100 manufacturing and R&D facilities in more than 30 countries and employ approximately 16,000 associates within our 5 distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Forward-Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
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SOURCE Huntsman Corporation