CRANBURY, N.J., Feb. 14, 2013 /PRNewswire/ -- Innophos Holdings, Inc. (NASDAQ: IPHS), a leading international producer of performance-critical and nutritional specialty ingredients, with applications in food, beverage, dietary supplements, pharmaceutical, oral care and industrial end markets, today announced its financial results for the fourth quarter and full year 2012.
Fourth Quarter Results
- Net sales for the fourth quarter 2012 were $209 million, flat with fourth quarter 2011.
- Specialty Phosphates fourth quarter 2012 sales of $185 million decreased 1% compared to fourth quarter 2011.
- US/Canada Specialty Phosphates sales were up 4% entirely on growth related to acquisitions. Excluding acquisition benefits, sales were level compared to last year with the business experiencing a greater than normal seasonal slowdown arising from year-end customer destocking actions.
- Mexico Specialty Phosphates sales improved on a sequential basis but were lower by 11% compared to the year ago period.
- GTSP & Other sales at $24 million for the 2012 fourth quarter were $1 million above the year ago level on lower market prices, but higher volumes.
- Diluted EPS for the fourth quarter 2012 was $0.60 compared to $0.93 for the fourth quarter 2011. Included in the current quarter was $0.02 per share expense for accelerated deferred financing and interest rate premiums related to the senior credit facility refinanced in December 2012. The fourth quarter 2011 results included a $0.05 per share benefit for changes in estimates on Mexican water duty charges and currency translation effects on the Mexican effective tax rate. Giving effect to these adjustments, fourth quarter 2012 diluted EPS would have been $0.62 compared to $0.88 for the fourth quarter 2011.
Full Year Results
- Net sales for 2012 were $862 million, a 6% increase over 2011.
- Specialty Phosphates 2012 sales of $758 million increased 6% compared to 2011 primarily on higher prices. US/Canada organic volumes were flat, and acquisitions added 3% growth which exceeded a decline in Mexico volumes.
- GTSP & Other sales at $105 million for 2012 were $6 million above the year ago level on lower market prices, but higher volumes.
- Diluted EPS for 2012 was $3.30 compared to $3.83 for 2011. The fourth quarter adjustment items noted above, together with earlier adjustments noted in prior quarters, amounted to $0.22 per share for full year 2012 and $0.02 per share for full year 2011. Giving effect to these adjustments, 2012 diluted EPS would have been $3.08 compared to $3.81 for 2011.
Randy Gress, CEO of Innophos, commented on the results, "I am satisfied with the progress we made throughout 2012 in delivering on our strategic objectives and positioning the business for future growth. However, our results in 2012 have also reflected the challenging market conditions we have experienced. The environment was particularly reflected in the fourth quarter, as the timing of the holiday season, combined with customer efforts to reduce inventories in an uncertain demand environment, resulted in a significantly more pronounced fourth quarter seasonal slowdown in our US and Canada Specialty Phosphates business. That said, volumes have since recovered strongly in January 2013, which gives us confidence that the effect was limited to the fourth quarter."
Mr. Gress continued, "Our strategic accomplishments in 2012 included two acquisitions in the attractive high growth nutritional ingredients space, as well as a significant step forward in the resources and capabilities dedicated to developing our business in higher growth geographies such as the Asia Pacific region. Our latest acquisition, Triarco, was completed on December 31st, and I believe Triarco's botanical and enzyme based ingredients business will prove highly complementary to the two mineral ingredients businesses, Kelatron and AMT, that we acquired in late 2011 and mid-2012. Through these acquisitions we have built a strong platform for future growth that will also support growth in our Specialty Phosphate product range."
Mr. Gress concluded, "Looking ahead to the coming year, we are encouraged by what looks to be a strong start and we are confident of continued success with our strategic initiatives. We will also continue to take the necessary steps to ensure we are maximizing shareholder value by leveraging our strong cash flow and balance sheet both to invest in growth and improve cash returns to shareholders, and I expect 2013 to show further progress against both of these goals."
Segment Results - full year and fourth quarter 2012 versus 2011
Specialty Phosphates
For the full year, Specialty Phosphates sales revenue was up 6% year over year with prices up 5%. US/Canada volumes were up 4%, with moderately lower market demand offset by growth initiatives, while acquisitions contributed 3% to growth. Mexico volumes were also affected adversely by lower market demand.
For the quarter, Specialty Phosphates sales revenue was down 1% year over year.
Full year operating income at $108 million was $8 million below 2011 levels as the effects of 2011's market raw material cost inflation were more fully realized in cost of goods sold, thus catching up to selling price increases achieved in earlier periods. Operating income margin for 2012 was 14%, down 210 basis points from 2011 levels, with US/Canada at 15% and Mexico at its expected 12%.
For the quarter, operating income at $20 million was $6 million below fourth quarter 2011 levels primarily due to lower volumes in Mexico. Fourth quarter operating income margin was 11%, down 290 basis points against the fourth quarter 2011 and down 240 points sequentially, with lower volumes and unfavorable mix the primary reason for the quarter margin sequential decline.
US/Canada
US/Canada Specialty Phosphates sales increased 8% for 2012 on 5% higher prices and 3% growth from acquisitions. Excluding acquisitions, volumes were flat due to moderately lower market demand offset by growth initiatives.
For the quarter, sales increased 4%, all attributable to acquisitions. Prices were flat with the year ago period, while continuing success with growth initiatives was fully offset by a greater than anticipated year-end destocking effect.
Operating income at $86 million for 2012 was $8 million below 2011, as the effects described above of raw material cost increases catching up to selling price increases outweighed the selling price increases recognized in 2012. As a result, operating income margins for 2012 at 15% were 280 basis points below 2011 levels.
For the fourth quarter 2012, operating income of $16 million was similar to the year ago quarter, but down $7 million sequentially, resulting in an operating margin of 12%, down 90 basis points against fourth quarter 2011 and down 420 basis points sequentially. The large sequential decline is primarily due to lower volumes causing lower cost leverage with unfavorable product mix also contributing.
Mexico
Mexico Specialty Phosphates 2012 sales were 1% above 2011 on 6% higher prices, but 5% lower volumes, due to soft market demand.
Fourth quarter 2012 volumes improved sequentially to similar levels seen in the 2012 first half. However, fourth quarter sales were down 11% against a very strong fourth quarter 2011, with prices down 5% in the less differentiated technical grade products and volumes down 6%.
Operating income at $22 million for 2012 was flat with 2011 despite the previously noted lower volumes. Operating income margin was 12% for 2012, level with 2011.
For the fourth quarter 2012, operating income of $5 million was down $5 million from fourth quarter 2011 levels, but up $2 million sequentially. The variance against prior year is primarily due to lower sales, along with $2 million of planned maintenance outage expenses in the current quarter. Operating income margin was 10% for the 2012 fourth quarter, below the full year average, as a result of the higher maintenance expense.
GTSP & Other
GTSP & Other sales (primarily fertilizer co-product) increased 6% for 2012 compared to 2011, with volumes up 19% but prices down 13% on average. Market prices increased during the first half of 2012, but fell throughout the second half, returning back to the seasonal lows seen at the beginning of the year.
For the fourth quarter, sales increased 2% compared to fourth quarter 2011, with volumes up 14%, but prices down 12%.
GTSP & Other recorded $2 million of operating income in 2012 compared to $21 million for 2011. Included in the 2012 results is $7 million of income related to the settlement with Rhodia over Mexican water duties charges and $2 million of adjustments related to prior periods. 2011 included $3 million of income resulting from a reduction in the provision for excess Mexican water duties charges. Excluding these adjustments, 2012 had an operating loss of $3 million compared to an operating income of $18 million for 2011. Operating income margins were -3% for 2012 compared to 18% for 2011, excluding the noted adjustments.
For the fourth quarter 2012, GTSP & Other was just above break-even at $0.5 million, down $4 million from the year ago period on a combination of lower phosphate fertilizer market prices and relatively high market raw material costs. Operating income margins were 2% for the fourth quarter 2012 compared to 20% for the fourth quarter 2011.
Recent Trends and Outlook
Market demand was flat to moderately lower in 2012, with this trend accentuated by the year-end destocking already noted. Although we are encouraged by what looks to be a strong start to 2013, this partly represents a carry-over of December orders to January, and we remain cautious on overall demand levels for 2013.
Momentum continues to improve in our product innovation and geographic expansion initiatives; however, we currently expect only modest market growth in 2013. Overall, we expect growth in Specialty Phosphates around the low end of our 4-6% long term target, with further growth of approximately 5% anticipated from the full year benefit of acquisitions completed in 2012. First quarter 2013 revenue growth is expected to be moderately below the full year expectation in comparison to a strong first quarter 2012 for Mexico Specialty Phosphates.
We do not expect any major change in raw material purchase prices or underlying selling prices through the first quarter 2013. However, the US & Canada segment will have higher sequential costs of goods sold in the first quarter reflecting purchase accounting effects for the Triarco acquisition.
We will see a further significant reduction in depreciation as the stepped up asset values created at the formation of the Company in 2004 reach the end of their depreciation lives. This will be partly offset by the amortization of the intangibles associated with recent acquisitions. Overall, we expect depreciation and amortization expense to be $7 million lower in 2013 than in 2012, of which $4.5 million will benefit Specialty Phosphates. This benefit, combined with improved mix and better operating leverage, is expected to increase Specialty Phosphates operating income margins by approximately 200 basis points sequentially. We expect full year Specialty Phosphates operating income margins to be similar to the 15% achieved for the first three quarters of 2012.
For the short term, GTSP is expected to continue near break-even through the first quarter. As with last year, fertilizer prices have been declining through the winter period, and no improvement in pricing is anticipated before the second quarter. Mining expenses for the development of our Mexico phosphate concessions were lower than initially anticipated in the second half of 2012 and are expected to continue at approximately their current run rate for the first half of 2013.
Net debt increased by $69 million in the 2012 fourth quarter to $149 million resulting primarily from the $45 million of cash paid for the Triarco acquisition and a temporary increase in Mexico working capital.
Capital Expenditures
Capital expenditures were $33 million in 2012, with a higher spend rate in the fourth quarter as activity increased on some of the larger initiatives that had been delayed from earlier in the year by changes in engineering specifications. Investment continues to be focused on capacity enhancements for US/Canada and Mexico Specialty Ingredients facilities, expanding geographically, including the investment in China, and enhancing Mexico's capability to process multiple grades of rock, consistent with the Company's supply chain diversification strategy. Our expectation for 2013 is for capital expenditures in the $40-45 million range.
About Innophos Holdings, Inc.
Innophos is a leading international producer of performance-critical and nutritional specialty ingredients, with applications in food, beverage, dietary supplements, pharmaceutical, oral care and industrial end markets. Innophos combines more than a century of experience in specialty phosphate manufacturing with a growing capability in a broad range of other specialty ingredients to supply a product range produced to stringent regulatory manufacturing standards and the quality demanded by customers worldwide. Innophos is continually developing new and innovative specialty ingredients addressing specific customer applications and supports these high-value products with industry-leading technical service. Headquartered in Cranbury, New Jersey, Innophos has manufacturing operations in Nashville, TN; Chicago Heights, IL; Chicago (Waterway), IL; Geismar, LA; Ogden, UT; North Salt Lake, UT; Paterson, NJ; Green Pond, SC; Port Maitland, ON (Canada); and Coatzacoalcos, Veracruz and San Jose de Iturbide (Mission Hills), Guanajuato (Mexico). For more information please visit www.innophos.com. 'IPHS-G'
Financial Tables Follow
Innophos Holdings, Inc. | FTI Consulting, Inc. |
Investor Relations: (609) 366-1299 | Alexandra Tramont/Matt Steinberg |
investor.relations@innophos.com | 212-850-5600 |
Conference Call Details
The conference call is scheduled for Friday, February 15, 2013 at 10:00 am ET and can be accessed by dialing 888-206-4065 (U.S.) or 630-827-5974 (international) and entering passcode 34232459. Please dial in approximately 15 minutes ahead of the start time to ensure timely entry to the call. A replay will be available between 1:00 pm ET on February 15 and 1:00 pm ET on February 28, 2013. The replay is accessible by dialing 888-843-7419 (U.S.) or 630-652-3042 (international) and entering passcode 6861213#.
Safe Harbor for Forward-Looking and Cautionary Statements
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. As such, final results could differ from estimates or expectations due to risks and uncertainties, including but not limited to: incomplete or preliminary information; changes in government regulations and policies; continued acceptance of Innophos' products and services in the marketplace; competitive factors; technological changes; Innophos' dependence upon fourth-party suppliers; and other risks. For any of these factors, Innophos claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, as amended.
Summary Profit & Loss Statement - Fourth Quarter
INNOPHOS HOLDINGS, INC. AND SUBSIDIARIES | |||
Condensed Consolidated Statement of Operations (Unaudited) | |||
(Dollars In thousands, except per share amounts or share amounts) | |||
Three months ended | Three months ended | ||
December 31, | December 31, | ||
2012 | 2011 | ||
Net sales | $208,779 | $209,160 | |
Cost of goods sold | 172,374 | 159,568 | |
Gross profit | 36,405 | 49,592 | |
Operating expenses: | |||
Selling, general and administrative | 14,633 | 18,426 | |
Research& development expenses | 787 | 718 | |
Total operating expenses | 15,420 | 19,144 | |
Operating income | 20,985 | 30,448 | |
Interest expense, net | 1,441 | 1,639 | |
Foreign exchange loss (gain) | 242 | (1,143) | |
Income before income taxes | 19,302 | 29,952 | |
Provision for income taxes | 5,910 | 9,002 | |
Net income | $13,392 | $20,950 | |
Diluted Earnings Per Share | $0.60 | $0.93 | |
Diluted weighted average common shares outstanding: | 22,349,160 | 22,500,590 | |
Dividends paid per share of common stock | $0.35 | $0.25 | |
Dividends declared per share of common stock | $0.35 | $0.25 | |
Segment Reporting - Fourth Quarter
The Company reports its operations in three segments: Specialty Phosphates US & Canada, Specialty Phosphates Mexico and GTSP & Other. The primary performance indicators for the chief operating decision maker are sales and operating income, with sales on a ship-from basis. Sales on a ship-from basis are on the same revenue recognition as a ship-to basis and are recognized when delivery has occurred and title and risk of loss passes to the customer. The following table sets forth the historical results of these indicators by segment:
Three months ended | Three months ended | ||||
December 31, | December 31, | Net Sales | |||
2012 | 2011 | %Change | |||
Segment Net Sales | |||||
Specialty Phosphates US& Canada | $137,288 | $132,400 | 3.7% | ||
Specialty Phosphates Mexico | 47,792 | 53,577 | -10.8% | ||
Total Specialty Phosphates | 185,080 | 185,977 | -0.5% | ||
GTSP& Other | 23,699 | 23,183 | 2.2% | ||
Total | $208,779 | $209,160 | -0.2% | ||
Segment Operating Income | |||||
Specialty Phosphates US& Canada | $15,740 | $16,442 | |||
Specialty Phosphates Mexico | 4,757 | 9,590 | |||
Total Specialty Phosphates | 20,497 | 26,032 | |||
GTSP& Other (a) | 488 | 4,416 | |||
Total | $20,985 | $30,448 | |||
Segment Operating Income % of net sales | |||||
Specialty Phosphates US& Canada | 11.5% | 12.4% | |||
Specialty Phosphates Mexico | 10.0% | 17.9% | |||
Total Specialty Phosphates | 11.1% | 14.0% | |||
GTSP& Other (a) | 2.1% | 19.0% | |||
Total | 10.1% | 14.6% | |||
Depreciation and amortization expense | |||||
Specialty Phosphates US& Canada | $5,935 | $4,911 | |||
Specialty Phosphates Mexico | 3,345 | 5,236 | |||
Total Specialty Phosphates | 9,280 | 10,147 | |||
GTSP& Other | 937 | 1,086 | |||
Total | $10,217 | $11,233 | |||
(a) The three month period ended December 31, 2011 includes a $0.2 million charge to earnings related to | |||||
updates to the provision for Mexican water duties. | |||||
Price / Volume - Fourth Quarter
The Company calculates pure selling price dollar variances as the selling price for the current year to date period minus the selling price for the prior year to date period, and then multiplies the resulting selling price difference by the prior year to date period volume. The current quarter selling price dollar variance is derived from the current quarter year to date selling price dollar variance less the previous quarter year to date selling price dollar variance. The selling price dollar variance is then divided by the prior period sales dollars to calculate the percentage change. Volume variance is calculated as the total sales variance minus the selling price variance and refers to the revenue effect of changes in tons sold at the relative prices applicable to the variation in tons, otherwise known as volume/mix.
The following tables illustrate for the three months ended December 31, 2012 the percentage changes in net sales by reportable segments and by Specialty Phosphates product lines compared with the same period of the prior year, including the effect of selling price and volume/mix changes upon revenue:
Reportable Segments | Price | Volume/Mix | Total | |||
Specialty Phosphates US& Canada | -0.1% | 3.8% | 3.7% | |||
Specialty Phosphates Mexico | -5.0% | -5.8% | -10.8% | |||
Total Specialty Phosphates | -1.5% | 1.0% | -0.5% | |||
GTSP& Other | -11.7% | 13.9% | 2.2% | |||
Total | -2.7% | 2.5% | -0.2% | |||
Note: Includes Kelatron/AMT benefit of 3.6% in Specialty Phosphates US & Canada | ||||||
Volume/Mix and 2.6% in Total Specialty Phosphates Volume/Mix | ||||||
Specialty Phosphates Product Lines | Price | Volume/Mix | Total | |||
Specialty Ingredients | -1.1% | -0.6% | -1.7% | |||
Food& Technical Grade PPA | -4.7% | 8.1% | 3.4% | |||
STPP& Detergent Grade PPA | 1.5% | -1.5% | 0.0% | |||
Note: Includes Kelatron/AMT benefit of 3.9% in Specialty Ingredients Volume/Mix | ||||||
Summary Profit & Loss Statement - Full Year
INNOPHOS HOLDINGS, INC. AND SUBSIDIARIES | |||
Condensed Consolidated Statement of Operations (Unaudited) | |||
(Dollars In thousands, except per share amounts or share amounts) | |||
Year Ended December 31 | |||
2012 | 2011 | ||
Net sales | $862,399 | $810,487 | |
Cost of goods sold | 684,979 | 605,172 | |
Gross profit | 177,420 | 205,315 | |
Operating expenses: | |||
Selling, general and administrative | 64,320 | 65,380 | |
Research& development expenses | 3,107 | 2,923 | |
Total operating expenses | 67,427 | 68,303 | |
Operating income | 109,993 | 137,012 | |
Interest expense, net | 5,977 | 5,726 | |
Foreign exchange (gain) loss | (1,957) | 875 | |
Income before income taxes | 105,973 | 130,411 | |
Provision for income taxes | 31,783 | 43,889 | |
Net income | $74,190 | $86,522 | |
Diluted Earnings Per Share | $3.30 | $3.83 | |
Diluted weighted average common shares outstanding: | 22,475,881 | 22,578,567 | |
Dividends paid per share of common stock | $1.14 | $0.92 | |
Dividends declared per share of common stock | $0.89 | $1.00 | |
Segment Reporting - Full Year
The Company reports its operations in three segments: Specialty Phosphates US & Canada, Specialty Phosphates Mexico and GTSP & Other. The primary performance indicators for the chief operating decision maker are sales and operating income, with sales on a ship-from basis. Sales on a ship-from basis are on the same revenue recognition as a ship-to basis and are recognized when delivery has occurred and title and risk of loss passes to the customer. The following table sets forth the historical results of these indicators by segment:
Year ended December 31 | Net Sales | |||||
2012 | 2011 | %Change | ||||
Segment Net Sales | ||||||
Specialty Phosphates US& Canada | $569,816 | $525,662 | 8.4% | |||
Specialty Phosphates Mexico | 187,743 | 186,211 | 0.8% | |||
Total Specialty Phosphates | 757,559 | 711,873 | 6.4% | |||
GTSP& Other | 104,840 | 98,614 | 6.3% | |||
Total | $862,399 | $810,487 | 6.4% | |||
Segment Operating Income | ||||||
Specialty Phosphates US& Canada | $86,002 | $94,055 | ||||
Specialty Phosphates Mexico | 21,913 | 21,948 | ||||
Total Specialty Phosphates | 107,915 | 116,003 | ||||
GTSP& Other (a) (b) | 2,078 | 21,009 | ||||
Total | $109,993 | $137,012 | ||||
Segment Operating Income % of net sales | ||||||
Specialty Phosphates US& Canada | 15.1% | 17.9% | ||||
Specialty Phosphates Mexico | 11.7% | 11.8% | ||||
Total Specialty Phosphates | 14.2% | 16.3% | ||||
GTSP& Other (a) (b) | 2.0% | 21.3% | ||||
Total | 12.8% | 16.9% | ||||
Depreciation and amortization expense | ||||||
Specialty Phosphates US& Canada | $23,215 | $19,808 | ||||
Specialty Phosphates Mexico | 14,578 | 18,050 | ||||
Total Specialty Phosphates | 37,793 | 37,858 | ||||
GTSP& Other | 4,542 | 5,818 | ||||
Total | $42,335 | $43,676 | ||||
(a) The year ended December 31, 2012 includes a $7.1 million benefit to earnings primarily for the settlement | ||||||
with Rhodia on their liability for the charges to be paid for Mexican water duties and a $2.4 million charge | ||||||
to earnings for prior period adjustments. | ||||||
(b) The year ended December 31, 2011 includes a $3.4 million benefit to earnings related to updates to the | ||||||
provision for Mexican water duties. | ||||||
Price / Volume - Full Year
The Company calculates pure selling price dollar variances as the selling price for the current year to date period minus the selling price for the prior year to date period, and then multiplies the resulting selling price difference by the prior year to date period volume. The current quarter selling price dollar variance is derived from the current quarter year to date selling price dollar variance less the previous quarter year to date selling price dollar variance. The selling price dollar variance is then divided by the prior period sales dollars to calculate the percentage change. Volume variance is calculated as the total sales variance minus the selling price variance and refers to the revenue effect of changes in tons sold at the relative prices applicable to the variation in tons, otherwise known as volume/mix.
The following tables illustrate for the year ended December 31, 2012 the percentage changes in net sales by reportable segments and by Specialty Phosphates product lines compared with the same period of the prior year, including the effect of selling price and volume/mix changes upon revenue:
Reportable Segments | Price | Volume/Mix | Total | |||
Specialty Phosphates US& Canada | 4.8% | 3.6% | 8.4% | |||
Specialty Phosphates Mexico | 6.1% | -5.3% | 0.8% | |||
Total Specialty Phosphates | 5.1% | 1.3% | 6.4% | |||
GTSP& Other | -13.2% | 19.5% | 6.3% | |||
Total | 2.9% | 3.5% | 6.4% | |||
Note: Includes Kelatron/AMT benefit of 3.6% in Specialty Phosphates US & Canada | ||||||
Volume/Mix and 2.7% in Total Specialty Phosphates Volume/Mix | ||||||
Specialty Phosphates Product Lines | Price | Volume/Mix | Total | |||
Specialty Ingredients | 4.8% | 1.0% | 5.8% | |||
Food& Technical Grade PPA | 6.4% | 7.2% | 13.6% | |||
STPP& Detergent Grade PPA | 4.8% | -5.4% | -0.6% | |||
Note: Includes Kelatron/AMT benefit of 3.9% in Specialty Ingredients Volume/Mix | ||||||
Summary Cash Flow Statement
INNOPHOS HOLDINGS, INC. AND SUBSIDIARIES | |||
Condensed Consolidated Statements of Cash Flows (Unaudited) | |||
(Dollars in thousands) | |||
Year ended | Year ended | ||
December 31, | December 31, | ||
2012 | 2011 | ||
Cash flows from operating activities | |||
Net income | $74,190 | $86,522 | |
Adjustments to reconcile net income to net cash provided from | |||
operating activities: | |||
Depreciation and amortization | 42,334 | 43,676 | |
Amortization of deferred financing charges | 884 | 608 | |
Deferred income tax provision | 167 | 5,379 | |
Deferred profit sharing | - | (286) | |
Share-based compensation | 1,912 | 6,250 | |
Changes in assets and liabilities: | |||
Decrease (increase) in accounts receivable | 13,017 | (28,154) | |
Decrease (increase) in inventories | 12,154 | (45,021) | |
(Increase) decrease in other current assets | (21,283) | 3,238 | |
Increase (decrease) in accounts payable | 2,059 | (5,939) | |
Decrease in other current liabilities | (20,573) | (14,685) | |
Changes in other long-term assets and liabilities | (3,456) | (5,242) | |
Net cash provided from operating activities | 101,405 | 46,346 | |
Cash flows from investing activities: | |||
Capital expenditures | (33,060) | (34,195) | |
Acquisition of businesses, net of cash acquired | (71,706) | (20,533) | |
Net cash used for investing activities | (104,766) | (54,728) | |
Cash flows used for financing activities: | |||
Proceeds from exercise of stock options | 528 | 484 | |
Long-term debt borrowings | 333,000 | 22,000 | |
Long-term debt repayments | (309,000) | (19,000) | |
Deferred financing costs | (1,461) | - | |
Excess tax benefits from exercise of stock options | 3,931 | 2,511 | |
Common stock repurchases | (7,254) | (6,156) | |
Dividends paid | (24,810) | (19,921) | |
Net cash used for financing activities | (5,066) | (20,082) | |
Net change in cash | (8,427) | (28,464) | |
Cash and cash equivalents at beginning of period | 35,242 | 63,706 | |
Cash and cash equivalents at end of period | $26,815 | $35,242 | |
Summary Balance Sheets
INNOPHOS HOLDINGS, INC. AND SUBSIDIARIES | |||
Condensed Consolidated Balance Sheets (Unaudited) | |||
(Dollars In thousands) | |||
December 31, 2012 | December 31, 2011 | ||
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $26,815 | $35,242 | |
Accounts receivable - trade | 94,033 | 104,421 | |
Inventories | 163,606 | 169,728 | |
Other current assets | 94,561 | 75,316 | |
Total current assets | 379,015 | 384,707 | |
Property, plant and equipment, net | 195,723 | 187,421 | |
Goodwill | 83,214 | 61,587 | |
Intangibles and other assets, net | 79,225 | 53,300 | |
Total assets | $737,177 | $687,015 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Current liabilities: | |||
Current portion of long-term debt | $4,000 | $4,000 | |
Accounts payable, trade and other | 36,485 | 32,640 | |
Other current liabilities | 46,030 | 71,609 | |
Total current liabilities | 86,515 | 108,249 | |
Long-term debt | 172,000 | 148,000 | |
Other long-term liabilities | 34,339 | 37,558 | |
Total liabilities | 292,854 | 293,807 | |
Total stockholders' equity | 444,323 | 393,208 | |
Total liabilities and stockholders' equity | $737,177 | $687,015 | |
Additional Information
Net debt is a supplemental financial measure that is not required by, or presented in accordance with, USGAAP. The Company believes net debt is helpful in analyzing leverage and as a performance measure for purposes of presentation in this release. The Company defines net debt as total long-term debt (including any current portion) less cash and cash equivalents.
SOURCE Innophos Holdings, Inc.
