HUNTSMAN CORPORATION 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.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/huntsman-releases-fourth-quarter-and-full-year-2014-results-full-year-adjusted-earnings-per-share-grows-20-300037560.html
SOURCE Huntsman Corporation
