HUNTSMAN CORPORATION THE WOODLANDS, Texas, Oct. 27, 2015 /PRNewswire/ --
Third Quarter 2015 Highlights
-- Announces $150 million reduction in planned capital expenditures for
2016 and 2017 combined.
-- Announces intention to enter into a $100 million accelerated share
repurchase transaction as part of the board authorized $150 million
share repurchase program.
-- Pigments and Additives synergy and restructuring savings remain on
track, planned separation well advanced.
-- Adjusted EBITDA was $311 million compared to $356 million in the prior
year period and $385 million in the prior quarter.
-- Adjusted diluted income per share was $0.47 compared to $0.60 in the
prior year period and $0.63 in the prior quarter.
-- Net income attributable to Huntsman Corporation was $55 million compared
to net income of $188 million in the prior year period and $29 million
in the prior quarter.
-- The stronger U.S. dollar reduced adjusted EBITDA by an estimated $43
million compared to the prior year period.
Three months ended Nine months ended
------------------
September 30, June 30, September 30,
------------- -------------
In millions,
except per
share amounts,
unaudited 2015 2014 2015 2015 2014
--------------- ---- ---- ---- ---- ----
Revenues $2,638 $2,884 $2,740 $7,967 $8,627
Net income
attributable
to Huntsman
Corporation $55 $188 $29 $89 $361
Adjusted net
income(1) $115 $147 $155 $368 $397
Diluted income
per share $0.22 $0.76 $0.12 $0.36 $1.47
Adjusted
diluted income
per share(1) $0.47 $0.60 $0.63 $1.49 $1.62
EBITDA(1) $255 $293 $216 $630 $881
Adjusted
EBITDA(1) $311 $356 $385 $981 $1,048
See end of press release for
footnote explanations
Huntsman Corporation (NYSE: HUN) today reported third quarter 2015 results with revenues of $2,638 million and adjusted EBITDA of $311 million.
Peter R. Huntsman, our President and CEO, commented:
"We are aggressively focused on those elements within our business that we can control and are fully committed to an improvement in our free cash flow generation. We reduced our planned capital expenditures by a combined total of $150 million over the next two years and are determined to deliver more than $100 million of future synergy and restructuring savings. We expect our 2016 free cash flow to improve by at least $350 million.
"As an expression of confidence in the company's future and our ability to deliver further shareholder value the board authorized $150 million of share repurchases. We intend to enter into a $100 million accelerated share repurchase transaction which will be completed within the next several months.
"Our board of directors has made it clear that we intend to exit the TiO(2 )business. We have narrowed our options to just two - one comprises a TiO(2) spin to our shareholders and the other option constitutes a more strategic move. More information will be forthcoming in the near future."
Segment Analysis for 3Q15 Compared to 3Q14
Polyurethanes
The decrease in revenues in our Polyurethanes division for the three months ended September 30, 2015 compared to the same period in 2014 was primarily due to lower average selling prices partially offset by higher sales volumes. MDI average selling prices decreased in response to lower raw material costs and the currency exchange impact of a stronger U.S. dollar against major European currencies. PO/MTBE average selling prices decreased in-line with lower pricing for high octane gasoline. PO/MTBE sales volumes increased primarily as a result of not experiencing an unplanned manufacturing disruption at our Port Neches, Texas facility as we did in the third quarter 2014. MDI sales volumes decreased due to lower demand in the Asian and Americas regions partially offset by growth in the European region. The decrease in adjusted EBITDA was primarily due to the foreign currency exchange impact of a stronger U.S. dollar against major European currencies and lower MDI sales volumes partially offset by higher MDI contribution margins.
Performance Products
The decrease in revenues in our Performance Products division for the three months ended September 30, 2015 compared to the same period in 2014 was primarily due to lower average selling prices, partially offset by higher sales volumes. Average selling prices decreased primarily in response to lower raw material costs and the foreign currency exchange impact of a stronger U.S. dollar against major European currencies. Sales volumes increased primarily due to higher sales volumes of ethylene oxide intermediates. The decrease in adjusted EBITDA was primarily due to lower contribution margins in our upstream intermediates business, partially offset by higher contribution margins in our amines and maleic anhydride businesses.
Advanced Materials
The decrease in revenues in our Advanced Materials division for the three months ended September 30, 2015 compared to the same period in 2014 was due to lower sales volumes and lower average selling prices. Sales volumes decreased primarily due to the de-selection of certain business, customer destocking and competitive pressure. Average selling prices increased on a local currency basis in the Americas due to certain price increase initiatives and our focus on higher value markets; overall this was more than offset by the foreign currency exchange impact of a stronger U.S. dollar against major international currencies. The decrease in adjusted EBITDA was primarily due to the foreign currency exchange impact of a stronger U.S. dollar against major international currencies.
Textile Effects
The decrease in revenues in our Textile Effects division for the three months ended September 30, 2015 compared to the same period in 2014 was due to lower average selling prices and lower sales volumes. Average selling prices decreased in response to lower raw material costs and the foreign currency exchange impact of a stronger U.S. dollar against major international currencies. Sales volumes decreased primarily due to the de-selection of lower value business and challenging market conditions. The decrease in adjusted EBITDA was primarily due to the foreign currency exchange impact of a stronger U.S. dollar against major international currencies.
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 September 30, 2015 compared to the same period in 2014 due to lower average selling prices and lower sales volumes. Average selling prices decreased primarily as a result of high titanium dioxide industry inventory levels and the foreign currency exchange impact of a stronger U.S. dollar against major European currencies. Sales volumes decreased primarily as a result of lower end use demand and the impact of a nitrogen tank explosion owned and operated by a third party at our Uerdingen, Germany facility which disrupted our manufacturing. The decrease in pro forma adjusted EBITDA was primarily due to lower contribution margins for titanium dioxide and the negative impact from the manufacturing disruption at our Uerdingen, Germany facility. The total impact from the manufacturing disruption was approximately $8 million approximately $5 million related to lost sales volumes and unabsorbed fixed costs and approximately $3 million related to clean up costs that have been excluded from adjusted EBITDA.
Corporate, LIFO and Other
Adjusted EBITDA from Corporate, LIFO and Other decreased by $1 million to a loss of $50 million for the three months ended September 30, 2015 compared to a loss of $49 million for the same period in 2014.
Liquidity, Capital Resources and Outstanding Debt
As of September 30, 2015, we had $1,215 million of combined cash and unused borrowing capacity compared to $1,601 million at December 31, 2014.
In August 2015, we entered into an amendment of our credit agreement. The amendment extends $773 million of our term loan B from 2017 to 2019.
In September 2015, we redeemed $198 million of 8 5/8% senior subordinated notes due 2021 with cash on hand.
We expect to spend approximately $450 million annually on capital expenditures in 2016 and 2017. This represents a combined reduction of $150 million compared to prior guidance.
Income Taxes
During the three months ended September 30, 2015, we recorded an income tax expense of $49 million and paid $51 million in cash for income taxes. Our adjusted effective income tax rate for the three months ended September 30, 2015 was 26%.
We expect our 2015 and long term adjusted effective tax rate to be approximately 30%.
Earnings Conference Call Information
We will hold a conference call to discuss our third quarter 2015 financial results on Tuesday, October 27, 2015 at 10:00 a.m. ET.
Call-in numbers for the conference call:
U.S. participants (888) 679 - 8034
International participants (617) 213 - 4847
Passcode 36096009
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=PN7J4EM4U
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 October 27, 2015 and ending November 4, 2015.
Call-in numbers for the replay:
U.S. participants (888) 286 - 8010
International participants (617) 801 - 6888
Replay code 29385180
Upcoming Conferences
During the fourth quarter a member of management will present at the Citi Basic Materials Conference, December 1, 2015. A webcast of the presentation, if applicable, along with accompanying materials will be available at ir.huntsman.com.
Table 1 - Results of Operations
-------------------------------
Three months ended Nine months ended
September 30, September 30,
------------- -------------
In millions, except per share
amounts, unaudited 2015 2014 2015 2014
----------------------------- ---- ---- ---- ----
Revenues $2,638 $2,884 $7,967 $8,627
Cost of goods sold 2,165 2,369 6,495 7,157
----- ----- ----- -----
Gross profit 473 515 1,472 1,470
Operating expenses 290 274 859 811
Restructuring, impairment and
plant closing costs 14 39 221 91
--- --- --- ---
Operating income 169 202 392 568
Interest expense (49) (49) (158) (148)
Equity in income of investment
in unconsolidated affiliates - 2 5 6
Loss on early extinguishment of
debt (8) - (31) -
Other expense - (1) (2) -
--- ---
Income before income taxes 112 154 206 426
Income tax (expense) benefit (49) 40 (85) (39)
--- ---
Income from continuing
operations 63 194 121 387
Loss from discontinued
operations, net of tax(3) - - (4) (7)
--- ---
Net income 63 194 117 380
Net income attributable to
noncontrolling interests, net
of tax (8) (6) (28) (19)
Net income attributable to
Huntsman Corporation $55 $188 $89 $361
=== ==== === ====
Adjusted EBITDA(1) $311 $356 $981 $1,048
Adjusted net income(1) $115 $147 $368 $397
Basic income per share $0.23 $0.77 $0.36 $1.49
Diluted income per share $0.22 $0.76 $0.36 $1.47
Adjusted diluted income per
share(1) $0.47 $0.60 $1.49 $1.62
Common share information:
Basic shares outstanding 244 243 244 242
Diluted shares 247 247 247 246
Diluted shares for adjusted
diluted income per share 247 247 247 246
See end of press release for footnote explanations
Table 2 - Results of Operations by Segment
------------------------------------------
Three months ended Nine months ended
September 30, Better / September 30, Better /
------------- -------------
In millions, unaudited 2015 2014 (Worse) 2015 2014 (Worse)
---------------------- ---- ---- ------ ---- ---- ------
Segment Revenues:
Polyurethanes $1,017 $1,321 (23)% $2,902 $3,831 (24)%
Performance Products 618 762 (19)% 1,949 2,360 (17)%
Advanced Materials 275 310 (11)% 847 953 (11)%
Textile Effects 196 221 (11)% 618 693 (11)%
Pigments & Additives 543 318 71% 1,707 976 75%
Eliminations and other (11) (48) 77% (56) (186) 70%
--- --- --- ----
Total $2,638 $2,884 (9)% $7,967 $8,627 (8)%
====== ====== ====== ======
Segment Adjusted EBITDA(1):
Polyurethanes $168 $187 (10)% $432 $551 (22)%
Performance Products 122 129 (5)% 384 362 6%
Advanced Materials 56 57 (2)% 172 156 10%
Textile Effects 10 14 (29)% 50 52 (4)%
Pigments & Additives 5 18 (72)% 61 67 (9)%
Corporate, LIFO and other (50) (49) (2)% (118) (140) 16%
Total $311 $356 (13)% $981 $1,048 (6)%
==== ==== ==== ======
See end of press release for footnote explanations
Table 3 - Pro Forma (2) Results of Operations by Segment
--------------------------------------------------------
Three months ended Nine months ended
September 30, Better / September 30, Better /
------------- -------------
In millions, unaudited, pro forma 2015 2014 (Worse) 2015 2014 (Worse)
--------------------------------- ---- ---- ------ ---- ---- ------
Segment Revenues:
Polyurethanes $1,017 $1,327 (23)% $2,902 $3,852 (25)%
Performance Products 618 762 (19)% 1,949 2,360 (17)%
Advanced Materials 275 310 (11)% 847 953 (11)%
Textile Effects 196 221 (11)% 618 693 (11)%
Pigments & Additives 543 685 (21)% 1,707 2,114 (19)%
Eliminations and other (11) (48) 77% (56) (186) 70%
--- --- --- ----
Pro forma total $2,638 $3,257 (19)% $7,967 $9,786 (19)%
====== ====== ====== ======
Segment Adjusted EBITDA(1):
Polyurethanes $168 $188 (11)% $432 $557 (22)%
Performance Products 122 129 (5)% 384 362 6%
Advanced Materials 56 57 (2)% 172 156 10%
Textile Effects 10 14 (29)% 50 52 (4)%
Pigments & Additives 5 57 (91)% 61 208 (71)%
Corporate, LIFO and other (50) (49) (2)% (118) (140) 16%
Pro forma total $311 $396 (21)% $981 $1,195 (18)%
==== ==== ==== ======
See end of press release for footnote explanations
Table 4 - Factors Impacting Sales Revenues
------------------------------------------
Three months ended
September 30, 2015 vs. 2014
---------------------------
Average Selling Price(a)
-----------------------
Local Exchange Sales Mix Sales
Unaudited Currency Rate & Other(c) Volume(b) Total
--------- -------- ---- --------- -------- -----
Polyurethanes (13)% (5)% (7)% 2% (23)%
Performance Products (10)% (5)% (5)% 1% (19)%
Advanced Materials 2% (9)% (2)% (2)% (11)%
Textile Effects (1)% (7)% 1% (4)% (11)%
Pigments & Additives (12)% (8)% 98% (7)% 71%
Total Company (9)% (6)% 5% 1% (9)%
Nine months ended
September 30, 2015 vs. 2014
---------------------------
Average Selling Price(a)
-----------------------
Local Exchange Sales Mix Sales
Unaudited Currency Rate & Other(c) Volume(b) Total
--------- -------- ---- --------- -------- -----
Polyurethanes (9)% (6)% 3% (12)% (24)%
Performance Products (6)% (5)% (2)% (4)% (17)%
Advanced Materials 3% (9)% (1)% (4)% (11)%
Textile Effects (1)% (6)% 4% (8)% (11)%
Pigments & Additives (9)% (9)% 100% (7)% 75%
Total Company (6)% (7)% 13% (8)% (8)%
(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 Revenues
--------------------------------------------------------
Three months ended
September 30, 2015 vs. 2014
---------------------------
Average
Selling Sales Mix Sales
Unaudited, pro forma Price(a) & Other Volume(b) Total
-------------------- ------- ------- -------- -----
Polyurethanes (18)% (7)% 2% (23)%
Performance Products (15)% (5)% 1% (19)%
Advanced Materials (7)% (2)% 1% (e) (8)%
Textile Effects (8)% 1% (4)% (11)%
Pigments & Additives (18)% 1% (3)% (f) (20)%
Total Company (16)% (4)% 1% (e)(f) (19)%
Nine months ended
September 30, 2015 vs. 2014
---------------------------
Average
Selling Sales Mix Sales
Unaudited, pro forma Price(a) & Other Volume(b) Total
-------------------- ------- ------- -------- -----
Polyurethanes (15)% 2% (2)% (c) (15)%
Performance Products (11)% (2)% --- (d) (13)%
Advanced Materials (6)% (1)% (1)% (e) (8)%
Textile Effects (7)% 4% (8)% (11)%
Pigments & Additives (18)% 1% (2)% (f) (19)%
Total Company (14)% 3% (2)% (c)(d)(e)(f) (13)%
(a) Excludes sales from tolling
arrangements, by-products and raw
materials.
(b) Excludes sales from by-
products and raw materials.
(c) Excludes volume impact from
planned maintenance at our PO/
MTBE facility in 1H15.
(d) Excludes volume impact from
closure of our European
surfactants plant in 2Q14.
(e) Excludes volume impact from de-
selection of lower margin business
in 2015.
(f) Excludes volume impact from
nitrogen tank incident at our
Uerdingen, Germany facility in
3Q15.
Table 6 - Reconciliation of U.S. GAAP to Non-GAAP Measures
----------------------------------------------------------
Income Tax Net Income Diluted Income
EBITDA 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 2015 2014 2015 2014 2015 2014 2015 2014
----------------------------- ---- ---- ---- ---- ---- ---- ---- ----
GAAP(1) $255 $293 $(49) $40 $55 $188 $0.22 $0.76
Adjustments:
Acquisition and integration
expenses, purchase accounting
adjustments 10 10 (2) (2) 8 8 0.03 0.03
Impact of certain foreign tax
credit elections N/A N/A - (94) - (94) - (0.38)
Loss from discontinued
operations, net of tax(3) 1 - N/A N/A - - - -
Loss on early extinguishment of
debt 8 - (3) - 5 - 0.02 -
Certain legal settlements and
related expenses 1 1 - - 1 1 - -
Plant incident remediation
costs 3 - (1) - 2 - 0.01 -
Amortization of pension and
postretirement actuarial
losses 19 12 (4) (2) 15 10 0.06 0.04
Restructuring, impairment,
plant closing and transition
costs 14 40 15 (6) 29 34 0.12 0.14
Adjusted(1) $311 $356 $(44) $(64) $115 $147 $0.47 $0.60
==== ==== ==== ==== ==== ==== ----- -----
Adjusted income tax expense 44 64
Net income attributable to
noncontrolling interests, net
of tax 8 6
Adjusted pre-tax income(1) $167 $217
==== ====
Adjusted effective tax rate 26% 29%
Income Tax Net Income Diluted Income
EBITDA Expense Attrib. to HUN Corp. Per Share
------ ------- -------------------- ---------
Three months ended Three months ended Three months ended Three months ended
June 30, June 30, June 30, June 30,
In millions, except per share
amounts, unaudited 2015 2015 2015 2015
----------------------------- ---- ---- ---- ----
GAAP(1) $216 $(34) $29 $0.12
Adjustments:
Acquisition and integration
expenses, purchase accounting
adjustments 12 (3) 9 0.04
Loss from discontinued
operations, net of tax(3) 1 N/A 2 0.01
Loss on disposition of
businesses/assets 1 - 1 -
Loss on early extinguishment of
debt 20 (7) 13 0.05
Certain legal settlements and
related expenses 1 (1) - -
Amortization of pension and
postretirement actuarial
losses 19 (5) 14 0.06
Restructuring, impairment,
plant closing and transition
costs 115 (28) 87 0.35
Adjusted(1) $385 $(78) $155 $0.63
==== ==== ==== -----
Adjusted income tax expense 78
Net income attributable to
noncontrolling interests, net
of tax 10
Adjusted pre-tax income(1) $243
====
Adjusted effective tax rate 32%
Income Tax Net Income Diluted Income
EBITDA Expense (Benefit) Attrib. to HUN Corp. Per Share
------ ---------------- -------------------- ---------
Nine months ended Nine months ended Nine months ended Nine months ended
September 30, September 30, September 30, September 30,
------------- ------------- ------------- -------------
In millions, except per share
amounts, unaudited 2015 2014 2015 2014 2015 2014 2015 2014
----------------------------- ---- ---- ---- ---- ---- ---- ---- ----
GAAP(1) $630 $881 $(85) $(39) $89 $361 $0.36 $1.47
Adjustments:
Acquisition and integration
expenses, purchase accounting
adjustments 31 27 (7) (6) 24 21 0.10 0.09
Impact of certain foreign tax
credit elections N/A N/A - (94) - (94) - (0.38)
Loss from discontinued
operations, net of tax(3) 3 9 N/A N/A 4 7 0.02 0.03
Loss (gain) on disposition of
businesses/assets 1 (2) - 1 1 (1) - -
Loss on early extinguishment of
debt 31 - (11) - 20 - 0.08 -
Certain legal settlements and
related expenses 3 3 (1) - 2 3 0.01 0.01
Plant incident remediation
costs 3 - (1) - 2 - 0.01 -
Amortization of pension and
postretirement actuarial
losses 56 37 (14) (10) 42 27 0.17 0.11
Restructuring, impairment,
plant closing and transition
costs 223 93 (39) (20) 184 73 0.74 0.30
Adjusted(1) $981 $1,048 $(158) $(168) $368 $397 $1.49 $1.62
==== ====== ===== ===== ==== ==== ----- -----
Adjusted income tax expense 158 168
Net income attributable to
noncontrolling interests, net
of tax 28 19
Adjusted pre-tax income(1) $554 $584
==== ====
Adjusted effective tax rate 29% 29%
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
September 30,
-------------
In millions, except per share amounts,
unaudited, pro forma 2015 2014
-------------------------------------- ---- ----
GAAP(1) $255 $333
Adjustments:
Allocation of Rockwood general
corporate overhead - 5
Acquisition and integration expenses,
purchase accounting adjustments 10 4
Loss from discontinued operations, net
of tax(3) 1 -
Loss on early extinguishment of debt 8 -
Certain legal settlements and related
expenses 1 1
Plant incident remediation costs 3 -
Amortization of pension and
postretirement actuarial losses 19 13
Restructuring, impairment, plant
closing and transition costs 14 40
Pro forma adjusted(2) $311 $396
==== ====
Pro Forma EBITDA
----------------
Three months ended
June 30,
In millions, except per share amounts,
unaudited pro forma 2015
-------------------------------------- ----
GAAP(1) $216
Adjustments:
Acquisition and integration expenses,
purchase accounting adjustments 12
Loss from discontinued operations, net
of tax(3) 1
Loss on disposition of businesses/
assets 1
Loss on early extinguishment of debt 20
Certain legal settlements and related
expenses 1
Amortization of pension and
postretirement actuarial losses 19
Restructuring, impairment, plant
closing and transition costs 115
Pro forma adjusted(2) $385
====
Pro Forma EBITDA
----------------
Nine months ended
September 30,
-------------
In millions, except per share amounts,
unaudited pro forma 2015 2014
-------------------------------------- ---- ----
GAAP(1) $630 $1,023
Adjustments:
Allocation of general corporate
overhead - 20
Acquisition and integration expenses,
purchase accounting adjustments 31 9
Loss from discontinued operations, net
of tax(3) 3 9
Loss (gain) on disposition of
businesses/assets 1 (2)
Loss on early extinguishment of debt 31 -
Certain legal settlements and related
expenses 3 3
Plant incident remediation costs 3 -
Amortization of pension and
postretirement actuarial losses 56 40
Restructuring, impairment, plant
closing and transition costs 223 93
Pro forma adjusted(2) $981 $1,195
==== ======
See end of press release for footnote explanations
Table 8 - Reconciliation of Net Income to EBITDA
------------------------------------------------
Three months ended Nine months ended
------------------
September 30, June 30, September 30,
------------- -------------
In millions, unaudited 2015 2014 2015 2015 2014
---------------------- ---- ---- ---- ---- ----
Net income attributable to
Huntsman Corporation $55 $188 $29 $89 $361
Interest expense 49 49 53 158 148
Income tax expense (benefit)
from continuing operations 49 (40) 34 85 39
Income tax (benefit) expense
from discontinued
operations(3) (1) - 1 1 (2)
Depreciation and amortization 103 96 99 297 335
EBITDA(1) 255 293 216 630 881
--- --- --- --- ---
Pro forma adjustments to:
Net income attributable to
Huntsman Corporation - 15 - - 49
Interest expense - 11 - - 33
Income tax expense (benefit)
from continuing operations - 4 - - 30
Depreciation and amortization - 10 - - 30
Pro forma EBITDA(2) $255 $333 $216 $630 $1,023
==== ==== ==== ==== ======
See end of press release for footnote explanations
Table 9 - Selected Balance Sheet Items
--------------------------------------
September 30, June 30, December 31,
In
millions 2015 2015 2014
-------- ---- ---- ----
(unaudited) (unaudited)
Cash $437 $608 $870
Accounts
and
notes
receivable,
net 1,632 1,754 1,707
Inventories 1,850 1,938 2,025
Other
current
assets 332 295 437
Property,
plant
and
equipment,
net 4,380 4,328 4,423
Other
assets 1,605 1,655 1,540
Total
assets $10,236 $10,578 $11,002
======= ======= =======
Accounts
payable $1,068 $1,209 $1,275
Other
current
liabilities 839 786 790
Current
portion
of
debt 158 127 267
Long-
term
debt 4,709 4,920 4,933
Other
liabilities 1,671 1,694 1,786
Total
equity 1,791 1,842 1,951
Total
liabilities
and
equity $10,236 $10,578 $11,002
======= ======= =======
Table 10 - Outstanding Debt
---------------------------
September 30, June 30, December 31,
In
millions 2015 2015 2014
--------- ---- ---- ----
(unaudited) (unaudited)
Debt:
Senior
credit
facilities $2,507 $2,509 $2,528
Accounts
receivable
programs 217 217 229
Senior
notes 1,883 1,884 1,596
Senior
subordinated
notes - 198 531
Variable
interest
entities 158 165 207
Other debt 102 74 109
Total debt
-
excluding
affiliates 4,867 5,047 5,200
----- ----- -----
Total cash 437 608 870
--- --- ---
Net debt-
excluding
affiliates $4,430 $4,439 $4,330
====== ====== ======
Table 11 - Summarized Statement of Cash Flows
---------------------------------------------
Three months ended Nine months ended
September 30, September 30,
-------------
In millions, unaudited 2015 2015 2014
---------------------- ---- ---- ----
Total cash at
beginning of
period(a) $608 $870 $529
Net cash provided by
operating activities 206 387 343
Net cash used in
investing activities (150) (383) (337)
Net cash (used in)
provided by financing
activities (216) (418) 62
Effect of exchange
rate changes on cash (6) (13) (6)
Change in restricted
cash (5) (6) 1
Total cash at end of
period(a) $437 $437 $592
==== ==== ====
Supplemental cash flow
information:
Cash paid for interest $(43) $(158) $(145)
Cash paid for income
taxes (51) (81) (156)
Cash paid for capital
expenditures (158) (454) (351)
Depreciation and
amortization 103 297 335
Changes in primary
working capital:
Accounts and notes
receivable $89 $(53) $(161)
Inventories 39 46 (112)
Accounts payable (123) (111) 131
Total cash provided by
(used in) primary
working capital $5 $(118) $(142)
=== ===== =====
(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 8 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) plant incident
remediation costs; (i) amortization of
pension and postretirement actuarial losses
(gains); and (j) restructuring, impairment,
plant closing and transition costs (credits).
The reconciliation of adjusted EBITDA to
EBITDA is set forth in Table 6 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) plant
incident remediation costs; (k) amortization
of pension and postretirement actuarial
losses (gains); and (l) 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 6 above.
(2) Pro forma adjusted as if it had occurred at
the beginning of the relevant period to (a)
include the October 1, 2014 acquisition of
the Performance Additives and Titanium
Dioxide businesses of Rockwood Holdings,
Inc.; (b) to exclude the related sale of our
TR52 product line - used in printing inks -
to Henan Billions Chemicals Co., Ltd. in
December 2014; and (c) to 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.
Social Media:
Twitter: twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
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-reports-third-quarter-2015-adjusted-ebitda-of-311-million-and-announces-major-reduction-in-planned-capital-expenditures-300166572.html
SOURCE Huntsman Corporation
