HUNTSMAN CORPORATION THE WOODLANDS, Texas, Feb. 11, 2016 /PRNewswire/ --
Fourth Quarter 2015 Highlights
-- Adjusted EBITDA was $240 million compared to $292 million in the prior
year period and $311 million in the prior quarter.
-- Adjusted diluted income per share was $0.51 compared to $0.33 in the
prior year period and $0.47 in the prior quarter.
-- Net income attributable to Huntsman Corporation was $4 million compared
to net loss of $38 million in the prior year period and net income of
$55 million in the prior quarter.
-- The stronger U.S. dollar reduced adjusted EBITDA by an estimated $24
million compared to the prior year period; a negative impact of
approximately $0.07 loss per diluted share.
-- The combination of effective tax planning, certain unusual tax benefits
and regional mix of income created an approximate $0.25 per diluted
share net tax benefit during the fourth quarter 2015.
-- $100 million accelerated share repurchase program completed; $50 million
authorization remaining.
Full Year 2015 Highlights
-- Adjusted EBITDA was $1,221 million compared to $1,340 million in the
prior year.
-- Adjusted diluted income per share was $2.00 compared to $1.94 in the
prior year.
-- Net income attributable to Huntsman Corporation was $93 million compared
to $323 million in the prior year.
-- The stronger U.S. dollar reduced adjusted EBITDA by an estimated $136
million compared to the prior year; a negative impact of approximately
$0.39 loss per diluted share.
-- Planned PO/MTBE maintenance at our Port Neches, TX facility reduced
adjusted EBITDA in 2015 by approximately $95 million. This maintenance
occurs approximately once every five years.
Three months ended Twelve months
ended
December 31,
------------
December 31, September 30,
------------
In millions, except
per share amounts,
unaudited 2015 2014 2015 2015 2014
------------------- ---- ---- ---- ---- ----
Revenues $2,332 $2,951 $2,638 $10,299 $11,578
Net income (loss)
attributable to
Huntsman
Corporation $4 $(38) $55 $93 $323
Adjusted net
income(1) $124 $81 $115 $492 $478
Diluted income
(loss) per share $0.02 $(0.16) $0.22 $0.38 $1.31
Adjusted diluted
income per share(1) $0.51 $0.33 $0.47 $2.00 $1.94
EBITDA(1) $111 $141 $255 $741 $1,022
Adjusted EBITDA(1) $240 $292 $311 $1,221 $1,340
See end of press release for footnote explanations
Huntsman Corporation (NYSE: HUN) today reported fourth quarter 2015 results with revenues of $2,332 million and adjusted EBITDA of $240 million.
Peter R. Huntsman, our President and CEO, commented:
"During the fourth quarter this year, EBITDA from our cyclical businesses - which include our MTBE, ethylene and TiO2 products - decreased approximately $78 million compared to the prior year. This overshadowed the real strength of our portfolio which is in our downstream differentiated businesses. Excluding approximately $24 million of foreign currency headwind, the EBITDA from our differentiated businesses improved approximately $50 million compared to the prior year or 27%.
"In 2016, primarily as a result of lower priced oil and a lower global economic growth environment, we expect continued EBITDA pressure on our cyclical businesses. Growth from our differentiated businesses will offset cyclical pressure and inflationary costs such that we expect our 2016 EBITDA to be a similar amount to 2015. Importantly however, we expect our free cash flow generation to improve by $350 million in 2016 through lower capital expenditures, restructuring and maintenance. In 2016 we will continue to pursue actively a separation of our TiO2 business through a spinoff to shareholders or other strategic transaction."
Segment Analysis for 4Q15 Compared to 4Q14
Polyurethanes
The decrease in revenues in our Polyurethanes division for the three months ended December 31, 2015 compared to the same period in 2014 was due to lower average selling prices and lower MTBE 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 primarily against the Euro. PO/MTBE average selling prices decreased in-line with lower pricing for high octane gasoline. MDI sales volumes increased due to higher demand as well as competitor outages in the Asian region. The decrease in adjusted EBITDA was primarily due to lower MTBE contribution margins and the foreign currency exchange impact of a stronger U.S. dollar primarily against the Euro partially offset by higher MDI contribution margins.
Performance Products
The decrease in revenues in our Performance Products division for the three months ended December 31, 2015 compared to the same period in 2014 was primarily due to lower average selling prices and lower 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 primarily against the Euro. Sales volumes decreased primarily due to customer destocking and competitive pressure. The decrease in adjusted EBITDA was primarily due to lower ethylene contribution margins partially offset by higher contribution margins in our amines business.
Advanced Materials
The decrease in revenues in our Advanced Materials division for the three months ended December 31, 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 primarily due to our focus on higher value markets but this was more than offset by the foreign currency exchange impact of a stronger U.S. dollar primarily against the Euro globally. The increase in adjusted EBITDA was primarily due to higher global contribution margins from lower raw material costs and higher selling prices in the Americas.
Textile Effects
The decrease in revenues in our Textile Effects division for the three months ended December 31, 2015 compared to the same period in 2014 was due to lower average selling prices and lower sales volumes. Average selling prices increased on a local currency basis due to certain price increase initiatives but this was more than offset by the foreign currency exchange impact of a stronger U.S. dollar primarily against the Euro. Sales volumes decreased primarily due to the de-selection of lower value business and challenging market conditions. The increase in adjusted EBITDA was primarily due to higher contribution margins from lower raw material costs and product mix improvements.
Pigments and Additives
The decrease in revenues in our Pigments and Additives division for the three months ended December 31, 2015 compared to the same period in 2014 was due to lower average selling prices and lower sales volumes. Average selling prices decreased primarily as a result of titanium dioxide over supply in the market place and the foreign currency exchange impact of a stronger U.S. dollar primarily against the Euro. Sales volumes decreased primarily as a result of lower end use demand. The decrease in adjusted EBITDA was primarily due to lower contribution margins for titanium dioxide.
Corporate, LIFO and Other
Adjusted EBITDA from Corporate, LIFO and Other increased by $10 million to a loss of $38 million for the three months ended December 31, 2015 compared to a loss of $48 million for the same period in 2014. The increase in adjusted EBITDA was primarily the result of an increase in income from benzene sales of $7 million.
Liquidity, Capital Resources and Outstanding Debt
As of December 31, 2015, we had $1,023 million of combined cash and unused borrowing capacity compared to $1,601 million on December 31, 2014.
On September 29, 2015, our Board of Directors authorized the repurchase of up to $150 million in shares of our common stock. On October 27, 2015 we entered into and funded an accelerated share repurchase agreement to repurchase $100 million of our common stock. The accelerated share repurchase was completed in January 2016 with 8.6 million shares repurchased.
During 2015 we spent $663 million on capital expenditures; we expect to spend approximately $450 million annually on capital expenditures in 2016 and 2017.
Income Taxes
During the three months ended December 31, 2015, we recorded an income tax benefit of $39 million as a result of the combination of effective tax planning, certain unusual tax benefits and the regional mix of income. During the same period we paid $45 million in cash for income taxes.
We expect our 2016 and long term adjusted effective tax rate to be approximately 30%.
Earnings Conference Call Information
We will hold a conference call to discuss our fourth quarter and full year 2015 financial results on Thursday, February 11, 2016 at 9:00 a.m. ET.
Call-in numbers for the conference call:
U.S. participants (888) 713 - 4199
International participants (617) 213 - 4861
Passcode 810 262 68#
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=P8K7QH79L
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 11, 2016 and ending February 18, 2016.
Call-in numbers for the replay:
U.S. participants (888) 286 - 8010
International participants (617) 801 - 6888
Replay code 29385180
Table 1 - Results of Operations
-------------------------------
Three months ended Twelve months ended
December 31, December 31,
------------ ------------
In millions,
except per
share
amounts,
unaudited 2015 2014 2015 2014
------------ ---- ---- ---- ----
Revenues $2,332 $2,951 $10,299 $11,578
Cost of
goods sold 1,956 2,502 8,451 9,659
----- ----- ----- -----
Gross profit 376 449 1,848 1,919
Operating
expenses 282 317 1,141 1,128
Restructuring,
impairment
and plant
closing
costs 81 67 302 158
--- --- --- ---
Operating
income 13 65 405 633
Interest
expense (47) (57) (205) (205)
Equity in
income of
investment
in
unconsolidated
affiliates 1 - 6 6
Loss on
early
extinguishment
of debt - (28) (31) (28)
Other income
(loss) 3 (2) 1 (2)
--- ---
(Loss)
income
before
income
taxes (30) (22) 176 404
Income tax
benefit
(expense) 39 (12) (46) (51)
--- ---
Income
(loss) from
continuing
operations 9 (34) 130 353
Loss from
discontinued
operations,
net of
tax(3) - (1) (4) (8)
Net income
(loss) 9 (35) 126 345
Net income
attributable
to
noncontrolling
interests,
net of tax (5) (3) (33) (22)
Net income
(loss)
attributable
to Huntsman
Corporation $4 $(38) $93 $323
=== ==== === ====
Adjusted
EBITDA(1) $240 $292 $1,221 $1,340
Adjusted net
income(1) $124 $81 $492 $478
Basic income
(loss) per
share $0.02 $(0.16) $0.38 $1.33
Diluted
income
(loss) per
share $0.02 $(0.16) $0.38 $1.31
Adjusted
diluted
income per
share(1) $0.51 $0.33 $2.00 $1.94
Common share
information:
Basic shares
outstanding 239 243 243 242
Diluted
shares 241 243 245 246
Diluted
shares for
adjusted
diluted
income per
share 241 247 245 246
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 /
(Worse) (Worse)
------ ------
In millions, unaudited 2015 2014 2015 2014
---------------------- ---- ---- ---- ----
Segment Revenues:
Polyurethanes $909 $1,201 (24)% $3,811 $5,032 (24)%
Performance Products 552 712 (22)% 2,501 3,072 (19)%
Advanced Materials 256 295 (13)% 1,103 1,248 (12)%
Textile Effects 186 203 (8)% 804 896 (10)%
Pigments & Additives 453 573 (21)% 2,160 1,549 39%
Eliminations and other (24) (33) 27% (80) (219) 63%
--- --- --- ----
Total $2,332 $2,951 (21)% $10,299 $11,578 (11)%
====== ====== ======= =======
Segment Adjusted EBITDA(1):
Polyurethanes $141 $171 (18)% $573 $722 (21)%
Performance Products 76 111 (32)% 460 473 (3)%
Advanced Materials 48 43 12% 220 199 11%
Textile Effects 13 6 117% 63 58 9%
Pigments & Additives - 9 (100)% 61 76 (20)%
Corporate, LIFO and other (38) (48) 21% (156) (188) 17%
Total $240 $292 (18)% $1,221 $1,340 (9)%
==== ==== ====== ======
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 /
(Worse) (Worse)
------ ------
In millions, unaudited, pro
forma 2015 2014 2015 2014
--------------------------- ---- ---- ---- ----
Segment Revenues:
Polyurethanes $909 $1,201 (24)% $3,811 $5,053 (25)%
Performance Products 552 712 (22)% 2,501 3,072 (19)%
Advanced Materials 256 295 (13)% 1,103 1,248 (12)%
Textile Effects 186 203 (8)% 804 896 (10)%
Pigments & Additives 453 559 (19)% 2,160 2,673 (19)%
Eliminations and other (24) (33) 27% (80) (219) 63%
--- --- --- ----
Pro forma total $2,332 $2,937 (21)% $10,299 $12,723 (19)%
====== ====== ======= =======
Segment Adjusted EBITDA(1):
Polyurethanes $141 $171 (18)% $573 $728 (21)%
Performance Products 76 111 (32)% 460 473 (3)%
Advanced Materials 48 43 12% 220 199 11%
Textile Effects 13 6 117% 63 58 9%
Pigments & Additives - 17 (100)% 61 225 (73)%
Corporate, LIFO and other (38) (48) 21% (156) (188) 17%
Pro forma total $240 $300 (20)% $1,221 $1,495 (18)%
==== ==== ====== ======
See end of press release for footnote explanations
Table 4 - Factors Impacting Sales Revenues
------------------------------------------
Three months ended
December 31, 2015 vs. 2014
--------------------------
Average Selling Price(a)
-----------------------
Local Exchange Sales Mix Sales
Unaudited Currency Rate & Other Volume(b) Total
--------- -------- ---- ------- -------- -----
Polyurethanes (19)% (4)% 2% (3)% (24)%
Performance Products (11)% (4)% (1)% (6)% (22)%
Advanced Materials 2% (8)% 1% (8)% (13)%
Textile Effects 2% (7)% 0% (3)% (8)%
Pigments & Additives (9)% (7)% (2)% (3)% (21)%
Total Company (14)% (5)% 2% (4)% (21)%
Twelve months ended
December 31, 2015 vs. 2014
--------------------------
Average Selling Price(a)
-----------------------
Local Exchange Sales Mix Sales
Unaudited Currency Rate & Other(c) Volume(b) Total
--------- -------- ---- --------- -------- -----
Polyurethanes (12)% (5)% 3% (10)% (24)%
Performance Products (7)% (5)% (3)% (4)% (19)%
Advanced Materials 2% (8)% (1)% (5)% (12)%
Textile Effects 1% (6)% 2% (7)% (10)%
Pigments & Additives (10)% (8)% 62% (5)% 39%
Total Company (8)% (6)% 10% (7)% (11)%
Pro forma
Twelve months ended
December 31, 2015 vs. 2014
--------------------------
Average
Selling Sales Mix Sales
Unaudited, pro forma Price(a) & Other Volume(b) Total
-------------------- ------- ------- -------- -----
Polyurethanes (17)% 2% (2)% (17)% (d)
Performance Products (12)% (3)% (2)% (17)% (e)
Advanced Materials (6)% (1)% (5)% (12)%
Textile Effects (5)% 2% (7)% (10)%
Pigments & Additives (19)% 2% (2)% (19)% (f)
Total Company (15)% 2% (2)% (15)%
(a) Excludes sales from tolling
arrangements, by-products and raw
materials.
(b) Excludes sales from by-products
and raw materials.
(c) Includes impact from the
acquisition of the Performance
Additives and Titanium Dioxide
businesses of Rockwood Holdings,
Inc. on October 1, 2014.
(d) Excludes volume impact from planned
maintenance at our PO/MTBE
facility in 1H15.
(e) Excludes volume impact from closure
of our European surfactants plant
in 2Q14.
(f) Excludes volume impact from
nitrogen tank incident at our
Uerdingen, Germany facility in
3Q15.
Table 5 - Reconciliation of U.S. GAAP to Non-GAAP Measures
----------------------------------------------------------
Income Tax Net Income (Loss) Diluted Income
EBITDA Benefit (Expense) 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 2015 2014 2015 2014 2015 2014 2015 2014
----------------------------- ---- ---- ---- ---- ---- ---- ---- ----
GAAP(1) $111 $141 $39 $(12) $4 $(38) $0.02 $(0.16)
Adjustments:
Acquisition and integration
expenses, purchase accounting
adjustments 22 40 (6) (4) 16 36 0.07 0.15
Loss from discontinued
operations, net of tax(3) 3 1 N/A N/A - 1 - -
Loss (gain) on disposition of
businesses/assets 1 (1) - - 1 (1) - -
Loss on early extinguishment of
debt - 28 - (10) - 18 - 0.07
Certain legal settlements and
related expenses 1 - - - 1 - - -
Plant incident remediation
costs 1 - - - 1 - - -
Amortization of pension and
postretirement actuarial
losses 18 14 (3) - 15 14 0.06 0.06
Restructuring, impairment,
plant closing and transition
costs 83 69 3 (18) 86 51 0.36 0.21
Adjusted(1) $240 $292 $33 $(44) $124 $81 $0.51 $0.33
==== ==== === ==== ==== === ----- -----
Adjusted income tax (benefit)
expense (33) 44
Net income attributable to
noncontrolling interests, net
of tax 5 3
Adjusted pre-tax income(1) $96 $128
=== ====
Adjusted effective tax rate -34% 34%
Income Tax Net Income Diluted Income
EBITDA (Expense) Benefit 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 2015 2015 2015
----------------------------- ---- ---- ---- ----
GAAP(1) $255 $(49) $55 $0.22
Adjustments:
Acquisition and integration
expenses, purchase accounting
adjustments 10 (2) 8 0.03
Loss from discontinued
operations, net of tax(3) 1 N/A - -
Loss on early extinguishment of
debt 8 (3) 5 0.02
Certain legal settlements and
related expenses 1 - 1 -
Plant incident remediation
costs 3 (1) 2 0.01
Amortization of pension and
postretirement actuarial
losses 19 (4) 15 0.06
Restructuring, impairment,
plant closing and transition
costs 14 15 29 0.12
Adjusted(1) $311 $(44) $115 $0.47
==== ==== ==== -----
Adjusted income tax expense 44
Net income attributable to
noncontrolling interests, net
of tax 8
Adjusted pre-tax income(1) $167
====
Adjusted effective tax rate 26%
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 2015 2014 2015 2014 2015 2014 2015 2014
----------------------------- ---- ---- ---- ---- ---- ---- ---- ----
GAAP(1) $741 $1,022 $(46) $(51) $93 $323 $0.38 $1.31
Adjustments:
Acquisition and integration
expenses, purchase accounting
adjustments 53 67 (13) (10) 40 57 0.16 0.23
Impact of certain foreign tax
credit elections N/A N/A - (94) - (94) - (0.38)
Loss from discontinued
operations, net of tax(3) 6 10 N/A N/A 4 8 0.02 0.03
Loss (gain) on disposition of
businesses/assets 2 (3) - 1 2 (2) 0.01 (0.01)
Loss on early extinguishment of
debt 31 28 (11) (10) 20 18 0.08 0.07
Certain legal settlements and
related expenses 4 3 (1) - 3 3 0.01 0.01
Plant incident remediation
costs 4 - (1) - 3 - 0.01 -
Amortization of pension and
postretirement actuarial
losses 74 51 (17) (10) 57 41 0.23 0.17
Restructuring, impairment,
plant closing and transition
costs 306 162 (36) (38) 270 124 1.10 0.50
Adjusted(1) $1,221 $1,340 $(125) $(212) $492 $478 $2.00 $1.94
====== ====== ===== ===== ==== ==== ----- -----
Adjusted income tax expense 125 212
Net income attributable to
noncontrolling interests, net
of tax 33 22
Adjusted pre-tax income(1) $650 $712
==== ====
Adjusted effective tax rate 19% 30%
See end of press release for footnote explanations
Table 6 - 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 2015 2014
-------------------------- ---- ----
GAAP(1) $111 $191
Adjustments:
Acquisition and
integration expenses,
purchase accounting
adjustments 22 (2)
Loss from discontinued
operations, net of tax(3) 3 1
Loss (gain) on disposition
of businesses/assets 1 (1)
Loss on early
extinguishment of debt - 28
Certain legal settlements
and related expenses 1 -
Plant incident remediation
costs 1 -
Amortization of pension
and postretirement
actuarial losses 18 14
Restructuring, impairment,
plant closing and
transition costs 83 69
Pro forma adjusted(2) $240 $300
==== ====
Pro Forma EBITDA
----------------
Three months ended
September 30,
In millions, except per
share amounts, unaudited
pro forma 2015
------------------------- ----
GAAP(1) $255
Adjustments:
Acquisition and
integration expenses,
purchase accounting
adjustments 10
Loss from discontinued
operations, net of tax(3) 1
Loss on early
extinguishment of debt 8
Certain legal settlements
and related expenses 1
Plant incident remediation
costs 3
Amortization of pension
and postretirement
actuarial losses 19
Restructuring, impairment,
plant closing and
transition costs 14
Pro forma adjusted(2) $311
====
Pro Forma EBITDA
----------------
Twelve months ended
December 31,
------------
In millions, except per
share amounts, unaudited
pro forma 2015 2014
------------------------- ---- ----
GAAP(1) $741 $1,214
Adjustments:
Allocation of general
corporate overhead - 20
Acquisition and
integration expenses,
purchase accounting
adjustments 53 7
Loss from discontinued
operations, net of tax(3) 6 10
Loss (gain) on disposition
of businesses/assets 2 (3)
Loss on early
extinguishment of debt 31 28
Certain legal settlements
and related expenses 4 3
Plant incident remediation
costs 4 -
Amortization of pension
and postretirement
actuarial losses 74 54
Restructuring, impairment,
plant closing and
transition costs 306 162
Pro forma adjusted(2) $1,221 $1,495
====== ======
See end of press release for
footnote explanations
Table 7 - Reconciliation of Net Income to EBITDA
------------------------------------------------
Three months ended Twelve months ended
------------------
December 31, September 30, December 31,
------------ ------------
In millions,
unaudited 2015 2014 2015 2015 2014
------------ ---- ---- ---- ---- ----
Net income (loss)
attributable to
Huntsman
Corporation $4 $(38) $55 $93 $323
Interest expense 47 57 49 205 205
Income tax (benefit)
expense from
continuing
operations (39) 12 49 46 51
Income tax benefit
from discontinued
operations(3) (3) - (1) (2) (2)
Depreciation and
amortization 102 110 103 399 445
EBITDA(1) 111 141 255 741 1,022
--- --- --- --- -----
Pro forma
adjustments to:
Net income (loss)
attributable to
Huntsman
Corporation - 26 - - 75
Interest expense - 1 - - 34
Income tax (benefit)
expense from
continuing
operations - 13 - - 43
Depreciation and
amortization - 10 - - 40
Pro forma EBITDA(2) $111 $191 $255 $741 $1,214
==== ==== ==== ==== ======
See end of press release for footnote explanations
Table 8 - Selected Balance Sheet Items
--------------------------------------
December 31, September 30, December 31,
In
millions 2015 2015 2014
-------- ---- ---- ----
(unaudited)
Cash $269 $437 $870
Accounts
and
notes
receivable,
net 1,449 1,632 1,707
Inventories 1,692 1,850 2,025
Other
current
assets 424 332 437
Property,
plant
and
equipment,
net 4,446 4,380 4,423
Other
assets 1,540 1,535 1,461
Total
assets $9,820 $10,166 $10,923
====== ======= =======
Accounts
payable $1,061 $1,068 $1,275
Other
current
liabilities 686 839 790
Current
portion
of
debt 170 158 267
Long-
term
debt 4,625 4,639 4,854
Other
liabilities 1,649 1,671 1,786
Total
equity 1,629 1,791 1,951
Total
liabilities
and
equity $9,820 $10,166 $10,923
====== ======= =======
Table 9 - Outstanding Debt
--------------------------
December 31, September 30, December 31,
In
millions 2015 2015 2014
--------- ---- ---- ----
(unaudited)
Debt:
Senior
credit
facilities $2,454 $2,453 $2,468
Accounts
receivable
programs 215 217 229
Senior
notes 1,850 1,867 1,582
Senior
subordinated
notes - - 526
Variable
interest
entities 151 158 207
Other
debt 125 102 109
Total
debt -
excluding
affiliates 4,795 4,797 5,121
----- ----- -----
Total
cash 269 437 870
--- --- ---
Net debt-
excluding
affiliates $4,526 $4,360 $4,251
====== ====== ======
Table 10 - Summarized Statement of Cash Flows
---------------------------------------------
Three months ended Year ended
December 31, December 31,
------------
In millions,
unaudited 2015 2015 2014
------------ ---- ---- ----
Total cash at
beginning of
period(a) $437 $870 $529
Net cash provided by
operating
activities 188 575 760
Net cash used in
investing
activities (217) (600) (1,606)
Net cash (used in)
provided by
financing
activities (144) (562) 1,197
Effect of exchange
rate changes on
cash (3) (16) (11)
Change in restricted
cash 8 2 1
Total cash at end of
period(a) $269 $269 $870
==== ==== ====
Supplemental cash
flow information:
Cash paid for
interest $(67) $(225) $(208)
Cash paid for income
taxes (45) (126) (165)
Cash paid for
capital
expenditures (209) (663) (601)
Depreciation and
amortization 102 399 445
Changes in primary
working capital:
Accounts and notes
receivable $174 $121 $2
Inventories 133 179 (20)
Accounts payable (46) (157) 86
Total cash provided
by primary working
capital $261 $143 $68
==== ==== ===
(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 7 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 5 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 5 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 2015 revenues of approximately $10 billion. 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 approximately 30 countries and employ approximately 15,000 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-fourth-quarter-and-full-year-2015-results-2015-adjusted-eps-improves-to-200-from-194-in-2014-300218717.html
SOURCE Huntsman Corporation
