Cabot Corporation Held Annual Meeting of Stockholders
Commenting on the company’s performance over the last five years, Prevost highlighted Cabot’s safety and environmental excellence, the completion of multiple strategic projects, and the launch of high-value products for specialized applications. With relation to Cabot’s fiscal 2014 financial performance, Prevost stated, “Our 2014 adjusted EBITDA was not only a record for the company, but also the fifth consecutive year we have increased our adjusted EBITDA levels.”
In discussing the strategy of the company and outlining the company’s financial track-record and a new long-term financial framework, Prevost said, “Over the last six years, we have demonstrated a track-record of achieving compounded double-digit annual EPS growth. In the future, our goal will be to deliver through-cycle earnings per share growth in the 10 to 15 percent range over time – realizing that there will be years when we do better, and years when we do worse.” Prevost also noted that Cabot would focus on the generation of strong free cash flow and return cash to shareholders through dividends and share repurchases.
In conclusion, Prevost said, “We are a robust company with leading industry positions, competitive global assets, superior technology platforms, and the best talent in the industry. Our focus on continuing to differentiate ourselves in the markets we serve is what will continue to result in creating superior value for our stakeholders.”
The meeting was webcast by
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Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Statements in the press release regarding Cabot's business that are not historical facts are forward looking statements that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward looking statements, see "Risk Factors" in the Company's Annual Report on Form 10-K.
Explanation of Non-GAAP Financial Measures
The preceding discussion includes reference to adjusted earnings per share (“EPS”) and adjusted EBITDA, which are non-GAAP financial measures. Our chief operating decision-maker uses these non-GAAP financial measures to evaluate the performance of the Company in terms of profitability. We believe that these measures also assist our investors in evaluating the changes in our results and the Company's performance.
In calculating adjusted EPS, we exclude from our net income per share from continuing operations certain items of expense and income that management does not consider representative of the Company's ongoing operations. Adjusted EPS should be considered as supplemental to, and not as a replacement for, EPS determined in accordance with GAAP. A reconciliation of historical adjusted EPS to EPS from continuing operations, the most directly comparable GAAP financial measure, is provided at the end of the presentation, “Cabot Corporation 2015 Annual Meeting of Stockholders” or in the Company's Annual Report on Form 10-K, both of which are available on the investor portion of our website at http://investor.cabot-corp.com.
“Adjusted EBITDA” is a non-GAAP financial measure and refers to earnings before interest, taxes, depreciation and amortization, excluding items that management does not consider representative of the fundamental segment results. A reconciliation of historical adjusted EBITDA from segment EBIT is provided at the end of the presentation, “Cabot Corporation 2015 Annual Meeting of Stockholders” or in the Company's Annual Report on Form 10-K, both of which are available on the investor portion of our website at http://investor.cabot-corp.com.
Source:
Cabot Corporation
Erica McLaughlin, 617-342-6090
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