Highlights
- First quarter 2023 net income of $156.3
million, or $1.16 per diluted
share
- Quarterly adjusted EBITDA of $434.1
million
- Share repurchases of $206.1
million in first quarter 2023
- Expect 2023 adjusted EBITDA of $1.6 to $1.9
billion
CLAYTON,
Mo., April 27, 2023 /PRNewswire/ -- Olin
Corporation (NYSE: OLN) announced financial results for the first
quarter ended March 31, 2023.
First quarter 2023 reported net income was $156.3 million, or $1.16 per diluted share, which compares to first
quarter 2022 reported net income of $393.0
million, or $2.48 per diluted
share. First quarter 2023 adjusted EBITDA of $434.1 million excludes depreciation and
amortization expense of $137.1
million and restructuring charges of $60.9 million. First quarter 2022 adjusted EBITDA
was $710.9 million. Sales in the
first quarter 2023 were $1,844.3
million compared to $2,461.4
million in the first quarter 2022.
Scott Sutton, Chairman,
President, and Chief Executive Officer, said, "Our team's
performance in the first quarter continues to demonstrate our
winning model's resilience and ability to deliver significantly
higher recessionary trough level adjusted EBITDA compared to Olin's
historical approach. During first quarter, our Chlor Alkali
Products and Vinyls team pivoted our market participation as
caustic soda became the weaker side of the Electrochemical Unit
(ECU) versus chlorine and chlorine derivatives. Olin realigned its
operating rates and product purchases to match the caustic soda
market conditions; thereby, refraining from selling incremental
volume into poor-quality markets. Our Epoxy business continues to
be challenged by European and North American demand weakness,
aggravated by elevated Asian exports and a muted recovery of
Chinese domestic demand. As expected, Winchester's decisive fourth
quarter actions delivered sequential improvement in its segment
results, which were further lifted by improved domestic and
international military demand.
"In light of the on-going challenging global economic
environment, we expect second quarter 2023 results from our
Chemical businesses to be slightly lower than first quarter 2023
levels. As commercial customer inventories become more normalized,
we expect our Winchester business second quarter 2023 results to
increase sequentially from first quarter 2023. Overall, we expect
Olin's second quarter 2023 adjusted EBITDA to be slightly lower
than first quarter 2023 levels."
SEGMENT REPORTING
Olin defines segment earnings as income (loss) before interest
expense, interest income, other operating income (expense),
non-operating pension income, other income, and income taxes.
CHLOR ALKALI PRODUCTS AND VINYLS
In first quarter 2023, the Blue Water Alliance joint venture
began operations and are consolidated in our Chlor Alkali Products
and Vinyls segment. Chlor Alkali Products and Vinyls sales for the
first quarter 2023 were $1,117.1
million compared to $1,245.2
million in the first quarter 2022. The decrease in Chlor
Alkali Products and Vinyls sales was primarily due to 12% lower
volumes partially offset by higher pricing. First quarter 2023
segment earnings were $245.9 million
compared to $328.6 million in the
first quarter 2022. The $82.7 million
decrease in segment earnings was primarily due to lower volumes
partially offset by higher pricing across all products except
vinyls intermediates, which declined. Chlor Alkali Products and
Vinyls first quarter 2023 results included depreciation and
amortization expense of $114.4
million compared to $123.1
million in the first quarter 2022.
EPOXY
Epoxy sales for the first quarter 2023 were $360.7 million compared to $789.5 million in the first quarter 2022. The
decrease in Epoxy sales was primarily due to 31% lower resin and
systems volumes and $184.7 million of
lower cumene and bisphenol A sales. As part of the Epoxy business
restructuring actions to right-size our global asset footprint to
the most cost-effective asset base to support our strategic
operating model, the Epoxy business ceased operations at our cumene
facility in Terneuzen, Netherlands
in first quarter 2023 and one of our bisphenol A production lines
at our Stade, Germany facility in
fourth quarter 2022. First quarter 2023 segment earnings were
$21.4 million compared to
$138.0 million in the first quarter
2022. The $116.6 million decrease in
Epoxy segment earnings was primarily due to lower volumes and lower
pricing, partially offset by lower raw material and operating
costs, mainly decreased natural gas and electrical power costs.
Epoxy first quarter 2023 results included depreciation and
amortization expense of $14.5 million
compared to $20.4 million in the
first quarter 2022.
WINCHESTER
Winchester sales for the first quarter 2023 were $366.5 million compared to $426.7 million in the first quarter 2022. The
decrease in Winchester sales was primarily due to lower commercial
ammunition shipments, partially offset by higher military and law
enforcement shipments. In fourth quarter 2022 and first quarter
2023, Winchester chose to preserve value by manufacturing and
selling less commercial ammunition to adjust overfilled supply
chains. First quarter 2023 segment earnings were $61.0 million compared to $118.9 million in the first quarter 2022. The
$57.9 million decrease in segment
earnings was primarily due to lower commercial ammunition shipments
and higher commodity and other materials costs partially offset by
higher military and law enforcement sales. Winchester first quarter
2023 and 2022 results included depreciation and amortization
expense of $6.2 million.
CORPORATE AND OTHER COSTS
Other corporate and unallocated costs in the first quarter of
2023 increased $4.0 million compared
to the first quarter 2022 primarily due to mark-to-market
adjustments on stock-based compensation.
LIQUIDITY AND SHARE REPURCHASES
The cash balance on March 31,
2023, was $176.0 million
and we ended first quarter 2023 with net debt of approximately
$2.6 billion and a net debt to
adjusted EBITDA ratio of 1.2 times. During first quarter 2023, net
debt increased by $211.5 million,
primarily due to the funding of inventory built in advance of a
planned maintenance turnaround and typical seasonal working
capital. The increase in working capital was $244.4 million in first quarter 2023. On
March 31, 2023, Olin had
approximately $1.3 billion of
available liquidity.
During first quarter 2023, approximately 3.6 million shares of
common stock were repurchased at a cost of $206.1 million. On March
31, 2023, Olin had approximately $1.5
billion available under its current share repurchase
authorization.
CONFERENCE CALL INFORMATION
Olin senior management will host a conference call to discuss
first quarter 2023 financial results at 9:00
a.m. Eastern time on Friday, April 28, 2023. Remarks will be
followed by a question-and-answer session. Associated slides, which
will be available the evening before the call, and the conference
call webcast will be accessible via Olin's
website, www.olin.com, under the first quarter conference call
icon. An archived replay of the webcast will also be available in
the Investor Relations section of Olin's website beginning at
12:00 p.m. Eastern time. A final
transcript of the call will be posted the next business day.
COMPANY DESCRIPTION
Olin Corporation is a leading vertically-integrated global
manufacturer and distributor of chemical products and a leading
U.S. manufacturer of ammunition. The chemical products produced
include chlorine and caustic soda, vinyls, epoxies, chlorinated
organics, bleach, hydrogen, and hydrochloric acid. Winchester's
principal manufacturing facilities produce and distribute sporting
ammunition, law enforcement ammunition, reloading components, small
caliber military ammunition and components, and industrial
cartridges.
Visit www.olin.com for more information on Olin.
FORWARD-LOOKING STATEMENTS
This communication includes forward-looking statements. These
statements relate to analyses and other information that are based
on management's beliefs, certain assumptions made by management,
forecasts of future results, and current expectations, estimates
and projections about the markets and economy in which we and our
various segments operate. The statements contained in this
communication that are not statements of historical fact may
include forward-looking statements that involve a number of risks
and uncertainties.
We have used the words "anticipate," "intend," "may," "expect,"
"believe," "should," "plan," "outlook," "project," "estimate,"
"forecast," "optimistic," "target," and variations of such words
and similar expressions in this communication to identify such
forward-looking statements. These forward-looking statements
include, but are not limited to, statements regarding the Company's
intent to repurchase, from time to time, the Company's common
stock. These statements are not guarantees of future performance
and involve certain risks, uncertainties, and assumptions, which
are difficult to predict and many of which are beyond our control.
Therefore, actual outcomes and results may differ materially from
those matters expressed or implied in such forward-looking
statements. We undertake no obligation to update publicly any
forward-looking statements, whether as a result of future events,
new information or otherwise. The payment of cash dividends is
subject to the discretion of our board of directors and will be
determined in light of then-current conditions, including our
earnings, our operations, our financial conditions, our capital
requirements and other factors deemed relevant by our board of
directors. In the future, our board of directors may change our
dividend policy, including the frequency or amount of any dividend,
in light of then-existing conditions.
The risks, uncertainties and assumptions involved in our
forward-looking statements, many of which are discussed in more
detail in our filings with the SEC, including without limitation
the "Risk Factors" section of our Annual Report on Form 10-K for
the year ended December 31, 2022, and
our Quarterly Reports on Form 10-Q and other reports furnished or
filed with the SEC, include, but are not limited to, the
following:
Business, Industry and Operational Risks
- sensitivity to economic, business and market conditions in
the United States and overseas,
including economic instability or a downturn in the sectors served
by us;
- declines in average selling prices for our products and the
supply/demand balance for our products, including the impact of
excess industry capacity or an imbalance in demand for our chlor
alkali products;
- unsuccessful execution of our strategic operating model, which
prioritizes Electrochemical Unit (ECU) margins over sales
volumes;
- failure to control costs and inflation impacts or failure to
achieve targeted cost reductions;
- our reliance on a limited number of suppliers for specified
feedstock and services and our reliance on third-party
transportation;
- the occurrence of unexpected manufacturing interruptions and
outages, including those occurring as a result of labor
disruptions, production hazards and weather-related events;
- availability of and/or higher-than-expected costs of raw
material, energy, transportation, and/or logistics;
- the failure or an interruption of our information technology
systems;
- failure to identify, attract, develop, retain and motivate
qualified employees throughout the organization;
- our inability to complete future acquisitions or joint venture
transactions or successfully integrate them into our business;
- risks associated with our international sales and operations,
including economic, political or regulatory changes;
- the negative impact from a public health crisis, such as a
pandemic, epidemic or outbreak of infectious disease, including the
COVID-19 pandemic and the global response to the pandemic,
including without limitation adverse impacts in complying with
governmental mandates;
- our indebtedness and debt service obligations;
- weak industry conditions affecting our ability to comply with
the financial maintenance covenants in our senior credit
facility;
- adverse conditions in the credit and capital markets, limiting
or preventing our ability to borrow or raise capital;
- the effects of any declines in global equity markets on asset
values and any declines in interest rates or other significant
assumptions used to value the liabilities in, and funding of, our
pension plans;
- our long-range plan assumptions not being realized causing a
non-cash impairment charge of long-lived assets;
Legal, Environmental and Regulatory Risks
- changes in, or failure to comply with, legislation or
government regulations or policies, including changes regarding our
ability to manufacture or use certain products and changes within
the international markets in which we operate;
- new regulations or public policy changes regarding the
transportation of hazardous chemicals and the security of chemical
manufacturing facilities;
- unexpected outcomes from legal or regulatory claims and
proceedings;
- costs and other expenditures in excess of those projected for
environmental investigation and remediation or other legal
proceedings;
- various risks associated with our Lake City U.S. Army
Ammunition Plant contract and performance under other governmental
contracts; and
- failure to effectively manage environmental, social and
governance (ESG) issues and related regulations, including climate
change and sustainability.
All of our forward-looking statements should be considered in
light of these factors. In addition, other risks and uncertainties
not presently known to us or that we consider immaterial could
affect the accuracy of our forward-looking statements.
2023-05
Olin
Corporation
|
|
|
Consolidated
Statements of Operations (a)
|
|
|
|
|
Three
Months
|
|
|
Ended March
31,
|
(In millions, except
per share amounts)
|
2023
|
2022
|
|
|
|
|
Sales
|
$
1,844.3
|
$
2,461.4
|
Operating
Expenses:
|
|
|
Cost of Goods Sold
|
1,441.7
|
1,807.5
|
Selling and Administration
|
111.8
|
104.3
|
Restructuring Charges (b)
|
60.9
|
3.1
|
Other Operating
Income
|
0.5
|
-
|
Operating Income
|
230.4
|
546.5
|
Interest
Expense
|
42.4
|
32.9
|
Interest
Income
|
1.1
|
0.4
|
Non-operating
Pension Income
|
5.7
|
9.6
|
Income before Taxes
|
194.8
|
523.6
|
Income Tax
Provision
|
40.8
|
130.6
|
Net
Income
|
154.0
|
393.0
|
Net Loss Attributable to Noncontrolling
Interests
|
(2.3)
|
-
|
Net Income
Attributable to Olin Corporation
|
$
156.3
|
$
393.0
|
Net Income
Attributable to Olin Corporation Per Common Share:
|
|
Basic
|
$
1.19
|
$
2.54
|
Diluted
|
$
1.16
|
$
2.48
|
Dividends Per Common
Share
|
$
0.20
|
$
0.20
|
Average Common
Shares Outstanding - Basic
|
|
131.0
|
154.7
|
Average Common
Shares Outstanding - Diluted
|
134.4
|
158.6
|
|
|
(a)
|
Unaudited.
|
(b)
|
Restructuring
charges for the three months ended March 31, 2023 were primarily
associated with operational cessation of our Cumene facility in
Terneuzen, Netherlands and the solid epoxy resin production at our
facilities in Gumi, South Korea and Guaruja, Brazil, of which $12.8
million of these charges were non-cash impairment charges for
equipment and facilities.
|
|
|
|
Olin
Corporation
|
|
|
|
Segment Information
(a)
|
|
|
|
|
|
Three
Months
|
|
|
Ended March
31,
|
(In
millions)
|
2023
|
|
2022
|
Sales:
|
|
|
|
|
Chlor Alkali
Products and Vinyls
|
$
1,117.1
|
|
$
1,245.2
|
|
Epoxy
|
360.7
|
|
789.5
|
|
Winchester
|
366.5
|
|
426.7
|
|
Total
Sales
|
$
1,844.3
|
|
$
2,461.4
|
Income before
Taxes:
|
|
|
|
|
Chlor Alkali
Products and Vinyls
|
$
245.9
|
|
$
328.6
|
|
Epoxy
|
21.4
|
|
138.0
|
|
Winchester
|
61.0
|
|
118.9
|
|
Corporate/Other:
|
|
|
|
|
Environmental
Expense
|
(3.2)
|
|
(5.6)
|
|
Other Corporate and
Unallocated Costs
|
(34.3)
|
|
(30.3)
|
|
Restructuring Charges
(b)
|
(60.9)
|
|
(3.1)
|
|
Other Operating
Income
|
0.5
|
|
-
|
|
Interest
Expense
|
(42.4)
|
|
(32.9)
|
|
Interest
Income
|
1.1
|
|
0.4
|
|
Non-operating
Pension Income
|
5.7
|
|
9.6
|
|
Income before
Taxes
|
$
194.8
|
|
$
523.6
|
|
|
(a)
|
Unaudited.
|
(b)
|
Restructuring
charges for the three months ended March 31, 2023 were primarily
associated with operational cessation of our Cumene facility in
Terneuzen, Netherlands and the solid epoxy resin production at our
facilities in Gumi, South Korea and Guaruja, Brazil, of which $12.8
million of these charges were non-cash impairment charges for
equipment and facilities.
|
|
|
Olin Corporation
|
|
|
|
|
|
|
|
Consolidated Balance Sheets(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
December 31,
|
|
March 31,
|
|
|
(In millions, except per share
data)
|
2023
|
|
2022
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
Assets:
|
|
|
|
|
|
|
|
Cash & Cash
Equivalents
|
$
176.0
|
|
$
194.0
|
|
$
197.9
|
|
|
Accounts Receivable, Net
|
932.1
|
|
924.6
|
|
1,181.2
|
|
|
Income Taxes Receivable
|
29.7
|
|
43.2
|
|
1.2
|
|
|
Inventories, Net
|
1,089.9
|
|
941.9
|
|
909.2
|
|
|
Other Current Assets
|
70.5
|
|
52.7
|
|
148.9
|
|
|
Total Current
Assets
|
2,298.2
|
|
2,156.4
|
|
2,438.4
|
|
|
Property, Plant and
Equipment
|
|
|
|
|
|
|
|
(Less Accumulated
Depreciation of $4,536.5, $4,413.1 and
$4,182.0)
|
2,606.7
|
|
2,674.1
|
|
2,827.0
|
|
|
Operating Lease Assets,
Net
|
346.8
|
|
356.0
|
|
362.5
|
|
|
Deferred Income
Taxes
|
67.3
|
|
60.5
|
|
95.3
|
|
|
Other Assets
|
1,104.7
|
|
1,102.5
|
|
1,116.3
|
|
|
Intangibles, Net
|
264.8
|
|
273.8
|
|
314.5
|
|
|
Goodwill
|
1,420.9
|
|
1,420.9
|
|
1,420.7
|
|
|
Total Assets
|
$
8,109.4
|
|
$
8,044.2
|
|
$
8,574.7
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders'
Equity:
|
|
|
|
|
|
|
|
Current Installments of Long-term
Debt
|
$
9.6
|
|
$
9.7
|
|
$
201.2
|
|
|
Accounts Payable
|
817.1
|
|
837.7
|
|
791.5
|
|
|
Income Taxes Payable
|
109.1
|
|
133.4
|
|
184.9
|
|
|
Current Operating Lease
Liabilities
|
72.1
|
|
71.8
|
|
75.4
|
|
|
Accrued Liabilities
|
427.2
|
|
508.8
|
|
382.1
|
|
|
Total Current
Liabilities
|
1,435.1
|
|
1,561.4
|
|
1,635.1
|
|
|
Long-term Debt
|
2,764.6
|
|
2,571.0
|
|
2,578.9
|
|
|
Operating Lease
Liabilities
|
282.8
|
|
292.5
|
|
293.7
|
|
|
Accrued Pension
Liability
|
230.4
|
|
234.5
|
|
355.9
|
|
|
Deferred Income Taxes
|
505.0
|
|
507.3
|
|
577.2
|
|
|
Other Liabilities
|
356.9
|
|
333.9
|
|
348.0
|
|
|
Total Liabilities
|
5,574.8
|
|
5,500.6
|
|
5,788.8
|
|
|
Commitments and Contingencies
|
|
|
|
|
|
|
|
Shareholders' Equity:
|
|
|
|
|
|
|
|
Common Stock, $1.00
Par Value Per Share, Authorized 240.0 Shares:
|
|
|
|
|
|
|
|
Issued and Outstanding 129.3, 132.3 and 151.8
Shares
|
129.3
|
|
132.3
|
|
151.8
|
|
|
Additional Paid-in
Capital
|
491.6
|
|
682.7
|
|
1,719.3
|
|
|
Accumulated Other
Comprehensive Loss
|
(482.7)
|
|
(495.9)
|
|
(461.2)
|
|
|
Retained
Earnings
|
2,354.6
|
|
2,224.5
|
|
1,376.0
|
|
|
Olin
Corporation's Shareholders' Equity
|
2,492.8
|
|
2,543.6
|
|
2,785.9
|
|
|
Noncontrolling
Interests
|
41.8
|
|
-
|
|
-
|
|
|
Total
Equity
|
2,534.6
|
|
2,543.6
|
|
2,785.9
|
|
|
Total Liabilities and Equity
|
$
8,109.4
|
|
$
8,044.2
|
|
$
8,574.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Unaudited
|
|
|
|
|
|
|
|
Olin Corporation
|
|
|
|
Consolidated Statements of Cash Flows
(a)
|
|
|
|
|
Three Months Ended
|
|
March 31,
|
(In millions)
|
2023
|
|
2022
|
Operating Activities:
|
|
|
|
Net Income
|
$
154.0
|
|
$
393.0
|
Stock-based Compensation
|
3.7
|
|
3.1
|
Depreciation and Amortization
|
137.1
|
|
151.7
|
Deferred Income Taxes
|
(11.0)
|
|
7.9
|
Write-off of equipment and facility included in
restructuring charges
|
12.8
|
|
-
|
Qualified Pension Plan
Contributions
|
(0.8)
|
|
(0.4)
|
Qualified Pension Plan Income
|
(5.1)
|
|
(8.0)
|
Changes in:
|
|
|
|
Receivables
|
(4.5)
|
|
(85.6)
|
Income Taxes
Receivable/Payable
|
(11.9)
|
|
88.0
|
Inventories
|
(146.0)
|
|
(45.0)
|
Other Current
Assets
|
(15.9)
|
|
(20.3)
|
Accounts Payable
and Accrued Liabilities
|
(66.1)
|
|
(132.6)
|
Other
Assets
|
(10.5)
|
|
(0.8)
|
Other Noncurrent
Liabilities
|
6.0
|
|
2.8
|
Other Operating Activities
|
(4.3)
|
|
(0.3)
|
Net Operating
Activities
|
37.5
|
|
353.5
|
Investing Activities:
|
|
|
|
Capital Expenditures
|
(61.4)
|
|
(47.3)
|
Payments under Other Long-Term Supply
Contracts
|
(9.3)
|
|
-
|
Other Investing Activities
|
(0.4)
|
|
-
|
Net Investing
Activities
|
(71.1)
|
|
(47.3)
|
Financing Activities:
|
|
|
|
Long-term Debt Borrowings (Repayments),
Net
|
192.6
|
|
(0.2)
|
Common Stock Repurchased and
Retired
|
(206.1)
|
|
(263.2)
|
Stock Options Exercised
|
11.2
|
|
5.2
|
Dividends Paid
|
(26.2)
|
|
(30.8)
|
Contributions Received from Noncontrolling
Interests
|
44.1
|
|
-
|
Net Financing
Activities
|
15.6
|
|
(289.0)
|
Effect of Exchange Rate Changes on
Cash and Cash Equivalents
|
-
|
|
0.2
|
Net (Decrease) Increase in Cash and Cash
Equivalents
|
(18.0)
|
|
17.4
|
Cash and Cash Equivalents, Beginning of
Year
|
194.0
|
|
180.5
|
Cash and Cash Equivalents, End of
Period
|
$
176.0
|
|
$
197.9
|
|
|
|
|
(a) Unaudited.
|
|
|
|
Olin Corporation
|
|
|
|
Non-GAAP Financial Measures - Adjusted
EBITDA (a)
|
|
|
|
|
|
|
|
Olin's definition of Adjusted EBITDA (Earnings before
interest, taxes, depreciation, and amortization) is net income
(loss) plus an
add-back for depreciation and amortization, interest expense
(income), income tax expense (benefit), other expense (income),
restructuring charges, goodwill impairment charges and certain
other non-recurring items. Adjusted EBITDA is a non-GAAP
financial measure. Management believes that this measure is
meaningful to investors as a supplemental financial measure to
assess
the financial performance without regard to financing methods,
capital structures, taxes or historical cost basis. The use
of non-
GAAP financial measures is not intended to replace any measures of
performance determined in accordance with GAAP and
Adjusted EBITDA presented may not be comparable to similarly titled
measures of other companies. Reconciliation of forward-
looking non-GAAP financial measures to the most directly comparable
GAAP financial measures are omitted from this release
because Olin is unable to provide such reconciliations without the
use of unreasonable efforts. This inability results from the
inherent
difficulty in forecasting generally and quantifying certain
projected amounts that are necessary for such reconciliations. In
particular,
sufficient information is not available to calculate certain
adjustments required for such reconciliations, including interest
expense
(income), income tax expense (benefit), other expense (income) and
restructuring charges. Because of our inability to calculate
such
adjustments, forward-looking net income guidance is also omitted
from this release. We expect these adjustments to have a
potentially significant impact on our future GAAP financial
results.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
|
|
|
|
Ended March 31,
|
|
(In millions)
|
2023
|
2022
|
|
|
|
|
|
|
Reconciliation of Net Income to Adjusted
EBITDA:
|
|
|
|
Net Income
|
$
154.0
|
$
393.0
|
|
|
Add Back:
|
|
|
|
|
Interest Expense
|
42.4
|
32.9
|
|
|
Interest Income
|
(1.1)
|
(0.4)
|
|
|
Income Tax Provision
|
40.8
|
130.6
|
|
|
Depreciation and Amortization
|
137.1
|
151.7
|
|
EBITDA
|
373.2
|
707.8
|
|
|
Add Back:
|
|
|
|
|
Restructuring Charges
|
60.9
|
3.1
|
|
Adjusted EBITDA
|
$
434.1
|
$
710.9
|
|
|
|
|
|
|
(a) Unaudited.
|
|
Olin Corporation
|
|
|
|
|
|
|
Non-GAAP Financial Measures - Net Debt to Adjusted
EBITDA(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Olin's definition of Net Debt to Adjusted EBITDA is
Net Debt divided by Adjusted EBITDA. Net Debt at the end of
any reporting period is defined as the sum of our current
installments of long-term debt and long-term debt less cash and
cash equivalents. Trailing Twelve Months Adjusted EBITDA
(Earnings before interest, taxes, depreciation,
and amortization) is net income (loss) plus an add-back for
depreciation and amortization, interest expense (income), income
tax expense (benefit), other expense (income),
restructuring charges, goodwill impairment charges and certain
other non-recurring items for the previous twelve months. Net
Debt to Adjusted EBITDA is a non-GAAP
financial measure. Management believes that this measure is
meaningful to investors as a measure of our ability to manage our
indebtedness. The use of non-GAAP financial
measures is not intended to replace any measures of indebtedness or
liquidity determined in accordance with GAAP and Net Debt or Net
Debt to Adjusted EBITDA
presented may not be comparable to similarly titled measures of
other companies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
December 31,
|
|
March 31,
|
|
(In millions)
|
2023
|
|
2022
|
|
2022
|
|
|
|
|
|
|
|
|
|
Current Installments of Long-term
Debt
|
$
9.6
|
|
$
9.7
|
|
$
201.2
|
|
Long-term Debt
|
2,764.6
|
|
2,571.0
|
|
2,578.9
|
|
Total Debt
|
2,774.2
|
|
2,580.7
|
|
2,780.1
|
|
Less: Cash and Cash Equivalents
|
(176.0)
|
|
(194.0)
|
|
(197.9)
|
|
Net Debt
|
$
2,598.2
|
|
$
2,386.7
|
|
$
2,582.2
|
|
|
|
|
|
|
|
|
|
Trailing Twelve Months Adjusted EBITDA
(b)
|
$
2,151.0
|
|
$
2,427.8
|
|
$
2,663.8
|
|
|
|
|
|
|
|
|
|
Net Debt to Adjusted EBITDA
|
1.2
|
|
1.0
|
|
1.0
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Unaudited.
|
|
(b)
|
Trailing Twelve Months Adjusted EBITDA as of March
31, 2023 is calculated as the three months ended March 31, 2023
plus the year ended December 31, 2022 less the
three months ended March 31, 2022. Trailing Twelve Months Adjusted
EBITDA as of March 31, 2022 is calculated as the three months ended
March 31, 2022 plus the
year ended December 31, 2021 less the three months ended March 31,
2021.
|
|
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SOURCE Olin Corporation