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(State or Other Jurisdiction
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104
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Cover Page Interactive Data File (embedded within the Inline XBRL document)
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CABOT CORPORATION
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By: /s/ Lisa M. Dumont
Name: Lisa M. Dumont
Title: Vice President and Controller
|
Exhibit 99.1 |
Fiscal Year 2021 Diluted EPS of $4.34 and Adjusted EPS of $5.02
BOSTON--(BUSINESS WIRE)--November 8, 2021--Cabot Corporation (NYSE: CBT) today announced results for its fourth quarter and full fiscal year 2021.
Key Highlights
(In millions, except per share amounts) |
Three Months Ended |
Twelve Months Ended |
||||||||||
|
9/30/21 |
9/30/20 |
9/30/21 |
9/30/20 |
||||||||
|
||||||||||||
Net sales |
$ |
904 |
|
$ |
659 |
|
$ |
3,409 |
|
$ |
2,614 |
|
Net income (loss) attributable to Cabot Corporation |
$ |
29 |
|
$ |
(272 |
) |
$ |
250 |
|
$ |
(238 |
) |
|
|
|
|
|
||||||||
Net earnings (loss) per share attributable to Cabot Corporation |
$ |
0.50 |
|
$ |
(4.81 |
) |
$ |
4.34 |
|
$ |
(4.21 |
) |
Less: Certain items after tax per share |
$ |
(0.61 |
) |
$ |
(5.49 |
) |
$ |
(0.68 |
) |
$ |
(6.29 |
) |
Adjusted EPS |
$ |
1.11 |
|
$ |
0.68 |
|
$ |
5.02 |
|
$ |
2.08 |
|
Commenting on the results, Cabot President and CEO Sean Keohane said, “I am very pleased that we delivered record Adjusted EPS in fiscal 2021, with significant year over year growth across the segments. Reinforcement Materials led the way delivering an increase in EBIT of $167 million while Performance Chemicals also recorded strong results across all major product lines with an increase in segment EBIT of $93 million. The Cabot team executed extraordinarily well during the fiscal year as we navigated through the continuing COVID-19 pandemic. In addition, discretionary free cash flow reached a historical high of $353 million in the fiscal year and we paid $80 million in dividends to shareholders. We also reduced our net debt to EBITDA ratio from 2.5 times at the end of fiscal 2020 to 1.6 times at the end of fiscal 2021.”
Keohane continued, “In the fourth quarter, we delivered 63% growth year over year in Adjusted EPS from higher volumes and improved margins. We delivered these results while managing through plant outages, global supply chain disruptions, and the impact to our businesses from the semiconductor chip shortage on automotive production.”
Keohane concluded, “Our record fiscal 2021 financial performance demonstrates the strength of our businesses and successful execution of our corporate strategy. Furthermore, the investments that we have made throughout the year have laid the foundation for advantaged growth in the future.”
Financial Detail
For the fourth quarter of fiscal 2021, net income attributable to Cabot Corporation was $29 million ($0.50 per diluted common share). Net income reflects an after-tax per share charge from certain items of $0.61. Adjusted EPS for the fourth quarter of fiscal 2021 was $1.11 per share.
Segment Results
Reinforcement Materials – Fourth quarter fiscal 2021 EBIT in Reinforcement Materials increased by $8 million compared to the fourth quarter of fiscal 2020. The increase in EBIT was driven by higher volumes and strong pricing in Asia. Higher volumes were driven by demand increases across all regions compared to the same quarter last year, which was still recovering from COVID-19 customer shutdowns in fiscal 2020.
Global and regional volume changes for Reinforcement Materials for the fourth quarter of fiscal 2021 as compared to the same quarter of the prior year are set forth in the table below:
|
Fourth Quarter Year-over-Year Change |
|
Global Reinforcement Materials Volumes |
6 |
% |
Asia |
7 |
% |
Europe, Middle East, Africa |
5 |
% |
Americas |
6 |
% |
Performance Chemicals – Fourth quarter fiscal 2021 EBIT in Performance Chemicals increased by $20 million compared to the fourth quarter of fiscal 2020, primarily due to improved product mix driven by higher sales into automotive and conductive applications in our specialty carbons product line and higher pricing in our fumed silica product line. Performance Additives volumes increased 2% as compared to the fourth quarter of the prior year and Formulated Solutions decreased 8% as compared to the fourth quarter of the prior year, with both comparisons reflecting the impact of plant outages on sales volumes.
Purification Solutions – Fourth quarter fiscal 2021 EBIT in Purification Solutions increased by $4 million compared to the fourth quarter of fiscal 2020. The increase in EBIT was largely due to higher prices in our specialty applications and lower fixed costs resulting from the sale of our mine in Texas and the related long-term activated carbon supply agreement.
Cash Performance – The Company ended the fourth quarter of fiscal 2021 with a cash balance of $168 million. During the fourth quarter of fiscal 2021, cash flows from operating activities were a source of $100 million. Capital expenditures for the fourth quarter of fiscal 2021 were $80 million. Additional uses of cash during the fourth quarter included $20 million for the payment of dividends.
Taxes – During the fourth quarter of fiscal 2021, the Company recorded a tax provision of $30 million for an effective tax rate of 48%. The provision reflected a $7 million net charge for non-GAAP tax adjustments. The operating tax rate for fiscal year 2021 was 27%. We expect our operating tax rate for fiscal 2022 to be in the range of 27% to 29%.
Outlook
Commenting on the outlook for the Company, Keohane said, “Looking forward to fiscal 2022, we believe robust end-market demand will continue and the benefits from our growth investments will support another year of strong results. In our Reinforcement Materials segment, we expect to benefit from higher volumes driven by strong forecasted levels of tire production and higher pricing in our calendar year 2022 customer agreements as customers are placing a premium on supply security. In our Performance Chemicals segment, we anticipate continued demand growth across our broad set of applications, with particular strength in battery materials and inkjet packaging. While external challenges, such as rising input costs, global supply chain disruptions and the semi-conductor chip shortage, are likely to remain in the short-term, we expect they will moderate as we move through the fiscal year. Consistent with this outlook, we expect fiscal year 2022 adjusted earnings per share to be in the range of $5.20 to $5.60.
Keohane continued, “Overall, we are excited about the outlook for our high growth investments, particularly in batteries as electrification of the car fleet continues to build momentum. At the same time, we remain focused on generating strong discretionary free cash flow and returning cash to shareholders. We will share more about our long-term strategic and financial outlook at our upcoming Investor Day on December 2, 2021.”
Earnings Call
The Company will host a conference call with industry analysts at 8:00 a.m. Eastern time on Tuesday, November 9, 2021. The call can be accessed through Cabot’s investor relations website at http://investor.cabot-corp.com.
About Cabot Corporation
Cabot Corporation (NYSE: CBT) is a global specialty chemicals and performance materials company, headquartered in Boston, Massachusetts. The company is a leading provider of reinforcement bber and specialty carbons, activated carbon, inkjet colorants, masterbatches and conductive compounds, fumed silica, and aerogel. For more information on Cabot, please visit the company’s website at: http://www.cabotcorp.com. The Company encourages investors and potential investors to consult the Cabot website regularly.
Forward-Looking Statements – This earnings release contains forward-looking statements. All statements that address expectations or projections about the future, including with respect to our expectations for our performance in fiscal year 2022, including our expectations for adjusted earnings per share and the strength of demand and the benefits of our investments, the factors that we expect will impact our results of operations, and our expected operating tax rate for fiscal 2022, are forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties, potentially inaccurate assumptions, and other factors, some of which are beyond our control and difficult to predict. If known or unknown risks materialize, or should underlying assumptions prove inaccurate, our actual results could differ materially from past results and from those expressed or implied by forward-looking statements. Important factors that could cause our results to differ materially from those expressed or implied in the forward-looking statements include, but are not limited to, competition from other specialty chemical companies; volatility in the price of energy and raw materials; a significant adverse change in a customer relationship; safety, health and environmental requirements; unanticipated delays in, or increased cost of, site development projects; negative or uncertain worldwide or regional economic conditions and market opportunities, including from trade relations or global health matters; and fluctuations in foreign currency exchange and interest rates. These factors are discussed more fully in the reports we file with the Securities and Exchange Commission (“SEC”), particularly under the heading “Risk Factors” in our annual report on Form 10-K for our fiscal year ended September 30, 2020, filed with the SEC at www.sec.gov. We assume no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by securities and other applicable laws.
Use of Non-GAAP Financial Measures
To supplement Cabot’s consolidated financial statements presented on a generally accepted accounting principle (“GAAP”) basis, the preceding discussion of our results and the accompanying financial tables report Adjusted EPS, Total Segment EBIT, Total Segment EBITDA, Adjusted EBITDA, our operating tax rate, Free Cash Flow and Discretionary Free Cash Flow, all of which are non-GAAP financial measures. These non-GAAP financial measures are not computed in accordance with, or as an alternative to, GAAP, and the definitions of these measures may not be comparable to those used by other companies. Reconciliations of Adjusted EPS to net income (loss) per share attributable to Cabot Corporation, the most directly comparable GAAP financial measure, Total Segment EBIT, Total Segment EBITDA, and Adjusted EBITDA to income (loss) from continuing operations before income taxes and equity in earnings of affiliated companies, the most directly comparable GAAP financial measure of each such non-GAAP measure, operating tax rate to effective tax rate, the most directly comparable GAAP financial measure and Free Cash Flow and Discretionary Free Cash Flow to Cash flow from operating activities, the most directly comparable GAAP financial measure, are provided in the tables titled “Cabot Corporation Certain Items and Reconciliation of Adjusted EPS and Operating Tax Rate” and “Cabot Corporation Reconciliation of Non-GAAP Financial Measures.”
Management believes these non-GAAP measures provide investors with greater transparency to the information used by Cabot management in its financial and operational decision-making, allow investors to see Cabot’s results through the eyes of management, and better enable Cabot’s investors to understand Cabot’s operating performance and financial condition.
Adjusted EPS. In calculating Adjusted EPS, we exclude from our net income (loss) attributable to Cabot Corporation items of expense and income that management does not consider representative of the Company’s business operations. Accordingly, reporting earnings on an adjusted basis supplements the GAAP measure of performance and provides additional information related to the underlying performance of the business. For example, certain of the items we exclude are items that we are required by GAAP to recognize in one period that relate to activities extending over several periods or relate to single events that management considers to be unusual and infrequent, although not necessarily non-recurring. We refer to these items as “certain items.” Management believes excluding these items facilitates operating performance comparisons from period to period by eliminating differences caused by the existence and timing of certain expense and income items that would not otherwise be apparent on a GAAP basis and evaluates the Company’s operating performance without the impact of these costs or benefits. Management also uses Adjusted EPS as a key measure in evaluating management performance for incentive compensation purposes.
The items of income and expense that we exclude from our calculations of Adjusted EPS but that are included in our GAAP net income (loss) per share, as applicable in a particular reporting period, include, but are not limited to, the following:
Cabot does not provide an expected GAAP EPS range or reconciliation of the Adjusted EPS range with an expected GAAP EPS range because, without unreasonable effort, we are unable to predict with reasonable certainty the matters we would allocate to “certain items,” including unusual gains and losses, costs associated with future restructurings, acquisition-related expenses and litigation outcomes. These items are uncertain, depend on various factors, and could have a material impact on GAAP EPS in future periods.
Total Segment EBIT. Total segment EBIT reflects the sum of EBIT from our three reportable segments. In calculating Total segment EBIT we exclude from our income (loss) from continuing operations before income taxes and equity in earnings of affiliated companies, certain items and items that, because they are not controlled by the business segments and primarily benefit corporate objectives, are not allocated to our business segments, such as interest expense and other corporate costs, which include unallocated corporate overhead expenses such as certain corporate salaries and headquarter expenses, plus costs related to corporate projects and initiatives.
Total Segment EBITDA. Total Segment EBITDA is equal to Total Segment EBIT (as defined above), but further adjusted for depreciation and amortization.
Adjusted EBITDA. Adjusted EBITDA reflects Total Segment EBITDA and is further adjusted for unallocated corporate costs, which include unallocated corporate overhead expenses such as certain corporate salaries and headquarter expenses, plus costs related to corporate projects and initiatives.
Free Cash Flow. To calculate “Free Cash Flow” we deduct Additions to property, plant and equipment from cash flow from operating activities.
Discretionary Free Cash Flow. To calculate “Discretionary Free Cash Flow” we deduct sustaining and compliance capital expenditures and changes in Net Working Capital from cash flow from operating activities.
Operating Tax Rate. Our “operating tax rate” is calculated by excluding the income tax (expense) benefit on certain items and discrete tax items. The income tax (expense) benefit on certain items is determined using the applicable rates in the taxing jurisdictions in which the certain items occurred and includes both current and deferred income tax (expense) benefit based on the nature of the certain items. Discrete tax items include, but are not limited to, changes in valuation allowance, uncertain tax positions, and other tax items, such as the tax impact of legislative changes. Management believes that this non-GAAP financial measure is useful supplemental information because it helps our investors compare our tax rate year to year on a consistent basis and to understand what our tax rate on current operations would be without the impact of these items.
Cabot does not provide a forward-looking reconciliation of the operating tax rate range with an effective tax rate range because, without unreasonable effort, we are unable to predict with reasonable certainty the matters we would allocate to “certain items,” including unusual gains and losses, costs associated with future restructurings, acquisition-related expenses and litigation outcomes. These items are uncertain, depend on various factors, and could have a material impact on the effective tax rate in future periods.
Explanation of Terms Used
Product Mix. The term “product mix” refers to the mix of types and grade of products sold or the mix of geographic regions where products are sold, and the positive or negative impact this has on the revenue or profitability of the business or segment.
Net Working Capital. The term “net working capital” includes accounts receivable, inventory and accounts payable and accrued expenses.
Fourth Quarter Earnings Announcement, Fiscal 2021 | ||||||||||||||||
CABOT CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
Periods ended September 30 | Three Months | Twelve Months | ||||||||||||||
Dollars in millions, except per share amounts (unaudited) |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
||||
Net sales and other operating revenues |
$ |
904 |
|
$ |
659 |
|
$ |
3,409 |
|
$ |
2,614 |
|
||||
Cost of sales |
|
726 |
|
|
522 |
|
|
2,610 |
|
|
2,114 |
|
||||
Gross profit |
|
178 |
|
|
137 |
|
|
799 |
|
|
500 |
|
||||
Selling and administrative expenses |
|
89 |
|
|
62 |
|
|
289 |
|
|
292 |
|
||||
Research and technical expenses |
|
15 |
|
|
16 |
|
|
56 |
|
|
57 |
|
||||
Specialty Fluids loss on sale and asset impairment charge |
|
— |
|
|
— |
|
|
— |
|
|
1 |
|
||||
Marshall Mine loss on sale and asset impairment charge |
|
— |
|
|
129 |
|
|
— |
|
|
129 |
|
||||
Income (loss) from operations |
|
74 |
|
|
(70 |
) |
|
454 |
|
|
21 |
|
||||
Other income (expense) | ||||||||||||||||
Interest and dividend income |
|
2 |
|
|
1 |
|
|
8 |
|
|
8 |
|
||||
Interest expense |
|
(12 |
) |
|
(12 |
) |
|
(49 |
) |
|
(53 |
) |
||||
Other income (expense) |
|
2 |
|
|
(3 |
) |
|
(7 |
) |
|
(9 |
) |
||||
Total other income (expense) |
|
(8 |
) |
|
(14 |
) |
|
(48 |
) |
|
(54 |
) |
||||
Income (loss) before income taxes and equity in | ||||||||||||||||
earnings of affiliated companies |
|
66 |
|
|
(84 |
) |
|
406 |
|
|
(33 |
) |
||||
(Provision) benefit for income taxes |
|
(30 |
) |
|
(182 |
) |
|
(123 |
) |
|
(191 |
) |
||||
Equity in earnings of affiliated companies, net of tax |
|
— |
|
|
1 |
|
|
3 |
|
|
3 |
|
||||
Net income (loss) |
|
36 |
|
|
(265 |
) |
|
286 |
|
|
(221 |
) |
||||
Net income (loss) attributable to noncontrolling interests |
|
7 |
|
|
7 |
|
|
36 |
|
|
17 |
|
||||
Net income (loss) attributable to Cabot Corporation |
$ |
29 |
|
$ |
(272 |
) |
$ |
250 |
|
$ |
(238 |
) |
||||
Diluted earnings (loss) per share of common stock | ||||||||||||||||
attributable to Cabot Corporation |
$ |
0.50 |
|
$ |
(4.81 |
) |
$ |
4.34 |
|
$ |
(4.21 |
) |
||||
Diluted weighted average common shares outstanding |
|
56.9 |
|
|
56.5 |
|
|
56.8 |
|
|
56.6 |
|
CABOT CORPORATION SUMMARY RESULTS BY SEGMENT | |||||||||||||||||
Periods ended September 30 | Three Months | Twelve Months | |||||||||||||||
Dollars in millions, except per share amounts (unaudited) |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|||||
Sales | |||||||||||||||||
Reinforcement Materials |
$ |
493 |
|
$ |
325 |
|
$ |
1,781 |
|
$ |
1,256 |
|
|||||
Performance Chemicals |
|
284 |
|
|
226 |
|
|
1,148 |
|
|
933 |
|
|||||
Performance Additives |
|
201 |
|
|
156 |
|
|
796 |
|
|
645 |
|
|||||
Formulated Solutions |
|
83 |
|
|
70 |
|
|
352 |
|
|
288 |
|
|||||
Purification Solutions |
|
66 |
|
|
67 |
|
|
257 |
|
|
253 |
|
|||||
Segment sales |
|
843 |
|
|
618 |
|
|
3,186 |
|
|
2,442 |
|
|||||
Unallocated and other (A) |
|
61 |
|
|
41 |
|
|
223 |
|
|
172 |
|
|||||
Net sales and other operating revenues |
$ |
904 |
|
$ |
659 |
|
$ |
3,409 |
|
$ |
2,614 |
|
|||||
Segment Earnings Before Interest and Taxes (B) | |||||||||||||||||
Reinforcement Materials |
$ |
67 |
|
$ |
59 |
|
$ |
329 |
|
$ |
162 |
|
|||||
Performance Chemicals |
|
45 |
|
|
25 |
|
|
211 |
|
|
118 |
|
|||||
Purification Solutions |
|
4 |
|
|
— |
|
|
10 |
|
|
3 |
|
|||||
Total Segment Earnings Before Interest and Taxes |
|
116 |
|
|
84 |
|
|
550 |
|
|
283 |
|
|||||
Unallocated and Other | |||||||||||||||||
Interest expense |
|
(12 |
) |
|
(12 |
) |
|
(49 |
) |
|
(53 |
) |
|||||
Certain items (C) |
|
(27 |
) |
|
(144 |
) |
|
(34 |
) |
|
(218 |
) |
|||||
Unallocated corporate costs |
|
(15 |
) |
|
(9 |
) |
|
(58 |
) |
|
(41 |
) |
|||||
General unallocated income (expense) (D) |
|
4 |
|
|
(2 |
) |
|
— |
|
|
(1 |
) |
|||||
Less: Equity in earnings of affiliated companies |
|
— |
|
|
1 |
|
|
3 |
|
|
3 |
|
|||||
Income (loss) before income taxes and equity in | |||||||||||||||||
earnings of affiliated companies |
|
66 |
|
|
(84 |
) |
|
406 |
|
|
(33 |
) |
|||||
(Provision) benefit for income taxes (including tax certain items) |
|
(30 |
) |
|
(182 |
) |
|
(123 |
) |
|
(191 |
) |
|||||
Equity in earnings of affiliated companies |
|
— |
|
|
1 |
|
|
3 |
|
|
3 |
|
|||||
Net income (loss) |
|
36 |
|
|
(265 |
) |
|
286 |
|
|
(221 |
) |
|||||
Net income (loss) attributable to noncontrolling interests |
|
7 |
|
|
7 |
|
|
36 |
|
|
17 |
|
|||||
Net income (loss) attributable to Cabot Corporation |
$ |
29 |
|
$ |
(272 |
) |
$ |
250 |
|
$ |
(238 |
) |
|||||
Diluted earnings (loss) per share of common stock | |||||||||||||||||
attributable to Cabot Corporation |
$ |
0.50 |
|
$ |
(4.81 |
) |
$ |
4.34 |
|
$ |
(4.21 |
) |
|||||
Adjusted earnings (loss) per share (E) |
$ |
1.11 |
|
$ |
0.68 |
|
$ |
5.02 |
|
$ |
2.08 |
|
|||||
Diluted weighted average common shares outstanding |
|
56.9 |
|
|
56.5 |
|
|
56.8 |
|
|
56.6 |
|
(A) | Unallocated and other reflects royalties, other operating revenues, external shipping and handling fees, the impact of the corporate adjustment for unearned revenue, the removal of 100% of the sales of an equity method affiliate, discounting charges for certain Notes receivable, and indirect tax settlement credits. | |||||||
(B) | Segment EBIT is a measure used by Cabot's Chief Operating Decision-Maker to measure consolidated operating results, assess segment performance and allocate resources. Segment EBIT includes equity in earnings of affiliated companies, royalty income, and allocated corporate costs. | |||||||
(C) | Details of Certain items are presented in the Certain Items and Reconciliation of Adjusted EPS and Operating Tax Rate table. | |||||||
(D) | General unallocated income (expense) consists of gains (losses) arising from foreign currency transactions, net of other foreign currency risk management activities, Interest and dividend income, the profit or loss related to the corporate adjustment for unearned revenue, the impact of including the full operating results of a contractual joint venture in Purification Solutions Segment EBIT and unrealized holding gains (losses) for equity securities. | |||||||
(E) | Adjusted EPS is a non-GAAP measure, and a reconciliation of Adjusted EPS to GAAP EPS is presented in the Certain Items and Reconciliation of Adjusted EPS and Operating Tax Rate table. |
CABOT CORPORATION CONSOLIDATED STATEMENTS OF FINANCIAL POSITION | |||||||
September 30, | September 30, | ||||||
Dollars in millions (unaudited) |
2021 |
2020 |
|||||
Current assets: | |||||||
Cash and cash equivalents |
$ |
168 |
$ |
151 |
|||
Accounts and notes receivable, net of reserve for doubtful accounts of $4 and $2 |
|
645 |
|
418 |
|||
Inventories: | |||||||
Raw materials |
|
168 |
|
82 |
|||
Finished goods |
|
300 |
|
225 |
|||
Other |
|
55 |
|
52 |
|||
Total inventories |
|
523 |
|
359 |
|||
Prepaid expenses and other current assets |
|
89 |
|
50 |
|||
Total current assets |
|
1,425 |
|
978 |
|||
Property, plant and equipment, net |
|
1,376 |
|
1,314 |
|||
Goodwill |
|
140 |
|
134 |
|||
Equity affiliates |
|
40 |
|
39 |
|||
Intangible assets, net |
|
100 |
|
103 |
|||
Deferred income taxes |
|
53 |
|
53 |
|||
Other assets |
|
172 |
|
160 |
|||
Total assets |
$ |
3,306 |
$ |
2,781 |
CABOT CORPORATION CONSOLIDATED STATEMENTS OF FINANCIAL POSITION | |||||||||
September 30, | September 30, | ||||||||
Dollars in millions, except share and per share amounts (unaudited) |
2021 |
2020 |
|||||||
Current liabilities: | |||||||||
Short-term borrowings |
$ |
72 |
|
$ |
14 |
|
|||
Accounts payable and accrued liabilities |
|
667 |
|
|
488 |
|
|||
Income taxes payable |
|
35 |
|
|
20 |
|
|||
Current portion of long-term debt |
|
373 |
|
|
7 |
|
|||
Total current liabilities |
|
1,147 |
|
|
529 |
|
|||
Long-term debt |
|
717 |
|
|
1,094 |
|
|||
Deferred income taxes |
|
73 |
|
|
58 |
|
|||
Other liabilities |
|
279 |
|
|
286 |
|
|||
Stockholders' equity: | |||||||||
Preferred stock: | |||||||||
Authorized: 2,000,000 shares of $1 par value | |||||||||
Issued and Outstanding: None and none |
|
— |
|
|
— |
|
|||
Common stock: | |||||||||
Authorized: 200,000,000 shares of $1 par value, Issued: 56,870,237 and 56,616,030 shares, Outstanding: 56,726,818 and 56,466,638 shares | 57 | 57 | |||||||
Less cost of 143,419 and 149,392 shares of common treasury stock |
|
(4 |
) |
|
(4 |
) |
|||
Additional paid-in capital |
|
— |
|
|
— |
|
|||
Retained earnings |
|
1,183 |
|
|
989 |
|
|||
Accumulated other comprehensive income (loss) |
|
(289 |
) |
|
(351 |
) |
|||
Total Cabot Corporation stockholders' equity |
|
947 |
|
|
691 |
|
|||
Noncontrolling interests |
|
143 |
|
|
123 |
|
|||
Total stockholders' equity |
|
1,090 |
|
|
814 |
|
|||
Total liabilities and stockholders' equity |
$ |
3,306 |
|
$ |
2,781 |
|
CABOT CORPORATION QUARTERLY RESULTS BY SEGMENT | ||||||||||||||||||||||||||||||||||||||||||
Fiscal 2020 | Fiscal 2021 | |||||||||||||||||||||||||||||||||||||||||
Dollars in millions, | ||||||||||||||||||||||||||||||||||||||||||
except per share amounts (unaudited) | Dec. Q | Mar. Q | June Q | Sept. Q | FY | Dec. Q | Mar. Q | June Q | Sept. Q | FY | ||||||||||||||||||||||||||||||||
Sales | ||||||||||||||||||||||||||||||||||||||||||
Reinforcement Materials |
$ |
379 |
|
$ |
355 |
|
$ |
197 |
|
$ |
325 |
|
$ |
1,256 |
|
$ |
375 |
|
$ |
434 |
|
$ |
479 |
|
$ |
493 |
|
$ |
1,781 |
|
||||||||||||
Performance Chemicals |
|
242 |
|
|
245 |
|
|
220 |
|
|
226 |
|
|
933 |
|
|
267 |
|
|
294 |
|
|
303 |
|
|
284 |
|
|
1,148 |
|
||||||||||||
Performance Additives |
|
170 |
|
|
168 |
|
|
151 |
|
|
156 |
|
|
645 |
|
|
184 |
|
|
203 |
|
|
208 |
|
|
201 |
|
|
796 |
|
||||||||||||
Formulated Solutions |
|
72 |
|
|
77 |
|
|
69 |
|
|
70 |
|
|
288 |
|
|
83 |
|
|
91 |
|
|
95 |
|
|
83 |
|
|
352 |
|
||||||||||||
Purification Solutions |
|
59 |
|
|
64 |
|
|
63 |
|
|
67 |
|
|
253 |
|
|
59 |
|
|
63 |
|
|
69 |
|
|
66 |
|
|
257 |
|
||||||||||||
Segment sales |
|
680 |
|
|
664 |
|
|
480 |
|
|
618 |
|
|
2,442 |
|
|
701 |
|
|
791 |
|
|
851 |
|
|
843 |
|
|
3,186 |
|
||||||||||||
Unallocated and other (A) |
|
47 |
|
|
46 |
|
|
38 |
|
|
41 |
|
|
172 |
|
|
45 |
|
|
51 |
|
|
66 |
|
|
61 |
|
|
223 |
|
||||||||||||
Net sales and other operating revenues |
$ |
727 |
|
$ |
710 |
|
$ |
518 |
|
$ |
659 |
|
$ |
2,614 |
|
$ |
746 |
|
$ |
842 |
|
$ |
917 |
|
$ |
904 |
|
$ |
3,409 |
|
||||||||||||
Segment Earnings Before Interest and Taxes (B) | ||||||||||||||||||||||||||||||||||||||||||
Reinforcement Materials |
$ |
47 |
|
$ |
61 |
|
$ |
(5 |
) |
$ |
59 |
|
$ |
162 |
|
$ |
88 |
|
$ |
89 |
|
$ |
85 |
|
$ |
67 |
|
$ |
329 |
|
||||||||||||
Performance Chemicals |
|
41 |
|
|
31 |
|
|
21 |
|
|
25 |
|
|
118 |
|
|
54 |
|
|
58 |
|
|
54 |
|
|
45 |
|
|
211 |
|
||||||||||||
Purification Solutions |
|
(2 |
) |
|
3 |
|
|
2 |
|
|
— |
|
|
3 |
|
|
(2 |
) |
|
2 |
|
|
6 |
|
|
4 |
|
|
10 |
|
||||||||||||
Total Segment Earnings Before Interest and Taxes |
|
86 |
|
|
95 |
|
|
18 |
|
|
84 |
|
|
283 |
|
|
140 |
|
|
149 |
|
|
145 |
|
|
116 |
|
|
550 |
|
||||||||||||
Unallocated and Other | ||||||||||||||||||||||||||||||||||||||||||
Interest expense |
|
(14 |
) |
|
(14 |
) |
|
(13 |
) |
|
(12 |
) |
|
(53 |
) |
|
(12 |
) |
|
(13 |
) |
|
(12 |
) |
|
(12 |
) |
|
(49 |
) |
||||||||||||
Certain items (C) |
|
(11 |
) |
|
(56 |
) |
|
(7 |
) |
|
(144 |
) |
|
(218 |
) |
|
(11 |
) |
|
(1 |
) |
|
5 |
|
|
(27 |
) |
|
(34 |
) |
||||||||||||
Unallocated corporate costs |
|
(10 |
) |
|
(12 |
) |
|
(10 |
) |
|
(9 |
) |
|
(41 |
) |
|
(13 |
) |
|
(16 |
) |
|
(14 |
) |
|
(15 |
) |
|
(58 |
) |
||||||||||||
General unallocated income (expense) (D) |
|
(1 |
) |
|
— |
|
|
2 |
|
|
(2 |
) |
|
(1 |
) |
|
(5 |
) |
|
— |
|
|
1 |
|
|
4 |
|
|
— |
|
||||||||||||
Less: Equity in earnings of affiliated companies |
|
— |
|
|
1 |
|
|
1 |
|
|
1 |
|
|
3 |
|
|
— |
|
|
1 |
|
|
2 |
|
|
— |
|
|
3 |
|
||||||||||||
Income (loss) before income taxes and | ||||||||||||||||||||||||||||||||||||||||||
equity in earnings of affiliated companies |
|
50 |
|
|
12 |
|
|
(11 |
) |
|
(84 |
) |
|
(33 |
) |
|
99 |
|
|
118 |
|
|
123 |
|
|
66 |
|
|
406 |
|
||||||||||||
(Provision) benefit for income taxes (including tax certain items) |
|
(4 |
) |
|
(10 |
) |
|
5 |
|
|
(182 |
) |
|
(191 |
) |
|
(29 |
) |
|
(34 |
) |
|
(30 |
) |
|
(30 |
) |
|
(123 |
) |
||||||||||||
Equity in earnings of affiliated companies |
|
— |
|
|
1 |
|
|
1 |
|
|
1 |
|
|
3 |
|
|
— |
|
|
1 |
|
|
2 |
|
|
— |
|
|
3 |
|
||||||||||||
Net income (loss) |
|
46 |
|
|
3 |
|
|
(5 |
) |
|
(265 |
) |
|
(221 |
) |
|
70 |
|
|
85 |
|
|
95 |
|
|
36 |
|
|
286 |
|
||||||||||||
Net income (loss) attributable to noncontrolling interests |
|
5 |
|
|
4 |
|
|
1 |
|
|
7 |
|
|
17 |
|
|
10 |
|
|
10 |
|
|
9 |
|
|
7 |
|
|
36 |
|
||||||||||||
Net income (loss) attributable to Cabot Corporation |
$ |
41 |
|
$ |
(1 |
) |
$ |
(6 |
) |
$ |
(272 |
) |
$ |
(238 |
) |
$ |
60 |
|
$ |
75 |
|
$ |
86 |
|
$ |
29 |
|
$ |
250 |
|
||||||||||||
Diluted earnings (loss) per share of common stock | ||||||||||||||||||||||||||||||||||||||||||
attributable to Cabot Corporation |
$ |
0.70 |
|
$ |
(0.01 |
) |
$ |
(0.12 |
) |
$ |
(4.81 |
) |
$ |
(4.21 |
) |
$ |
1.06 |
|
$ |
1.30 |
|
$ |
1.48 |
|
$ |
0.50 |
|
$ |
4.34 |
|
||||||||||||
Adjusted earnings (loss) per share (E) |
$ |
0.69 |
|
$ |
0.77 |
|
$ |
(0.07 |
) |
$ |
0.68 |
|
$ |
2.08 |
|
$ |
1.18 |
|
$ |
1.38 |
|
$ |
1.35 |
|
$ |
1.11 |
|
$ |
5.02 |
|
||||||||||||
Diluted weighted average common shares outstanding |
|
57.0 |
|
|
56.6 |
|
|
56.5 |
|
|
56.5 |
|
|
56.6 |
|
|
56.6 |
|
|
56.7 |
|
|
57.0 |
|
|
56.9 |
|
|
56.8 |
|
(A) | Unallocated and other reflects royalties, other operating revenues, external shipping and handling fees, the impact of the corporate adjustment for unearned revenue, the removal of 100% of the sales of an equity method affiliate, discounting charges for certain Notes receivable, and indirect tax settlement credits. | ||||||||||||||||||||
(B) | Segment EBIT is a measure used by Cabot's Chief Operating Decision-Maker to measure consolidated operating results, assess segment performance and allocate resources. Segment EBIT includes equity in earnings of affiliated companies, royalty income, and allocated corporate costs. | ||||||||||||||||||||
(C) | Details of certain items are presented in the Certain Items and Reconciliation of Adjusted EPS and Operating Tax Rate table. | ||||||||||||||||||||
(D) | General unallocated income (expense) consists of gains (losses) arising from foreign currency transactions, net of other foreign currency risk management activities, Interest and dividend income, the profit or loss related to the corporate adjustment for unearned revenue, the impact of including the full operating results of a contractual joint venture in Purification Solutions Segment EBIT and unrealized holding gains (losses) for equity securities. | ||||||||||||||||||||
(E) | Adjusted EPS is a non-GAAP measure, and a reconciliation of Adjusted EPS to GAAP EPS is presented in the Certain Items and Reconciliation of Adjusted EPS and Operating Tax Rate table. | ||||||||||||||||||||
CABOT CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||||
Periods ended September 30 | Three Months | Twelve Months | ||||||||||||||
Dollars in millions (unaudited) |
2021 |
2020 |
2021 |
2020 |
||||||||||||
Cash Flows from Operating Activities: | ||||||||||||||||
Net income (loss) |
$ |
36 |
|
$ |
(265 |
) |
$ |
286 |
|
$ |
(221 |
) |
||||
Adjustments to reconcile net income to cash provided by operating activities: | ||||||||||||||||
Depreciation and amortization |
|
43 |
|
|
41 |
|
|
160 |
|
|
158 |
|
||||
Other non-cash charges, net |
|
19 |
|
|
290 |
|
|
53 |
|
|
277 |
|
||||
Cash dividends received from equity affiliates |
|
— |
|
|
— |
|
|
2 |
|
|
1 |
|
||||
Changes in assets and liabilities: | ||||||||||||||||
Changes in certain working capital items (A) |
|
4 |
|
|
7 |
|
|
(222 |
) |
|
185 |
|
||||
Changes in other assets and liabilities, net |
|
(2 |
) |
|
26 |
|
|
(22 |
) |
|
(23 |
) |
||||
Cash provided by (used in) operating activities |
|
100 |
|
|
99 |
|
|
257 |
|
|
377 |
|
||||
Cash Flows from Investing Activities: | ||||||||||||||||
Additions to property, plant and equipment |
|
(80 |
) |
|
(38 |
) |
|
(195 |
) |
|
(200 |
) |
||||
Cash paid for acquisition of business, net of cash acquired of $0, $0, $0, and $1 |
|
— |
|
|
— |
|
|
— |
|
|
(92 |
) |
||||
Other investing activities, net |
|
4 |
|
|
2 |
|
|
9 |
|
|
4 |
|
||||
Cash provided by (used in) investing activities |
|
(76 |
) |
|
(36 |
) |
|
(186 |
) |
|
(288 |
) |
||||
Cash Flows from Financing Activities: | ||||||||||||||||
Change in debt, net |
|
7 |
|
|
(75 |
) |
|
36 |
|
|
15 |
|
||||
Cash dividends paid to common stockholders |
|
(20 |
) |
|
(20 |
) |
|
(80 |
) |
|
(80 |
) |
||||
Other financing activities, net |
|
1 |
|
|
— |
|
|
(16 |
) |
|
(67 |
) |
||||
Cash provided by (used in) financing activities |
|
(12 |
) |
|
(95 |
) |
|
(60 |
) |
|
(132 |
) |
||||
Effect of exchange rates on cash |
|
(15 |
) |
|
21 |
|
|
8 |
|
|
25 |
|
||||
Increase (decrease) in cash, cash equivalents and restricted cash |
|
(3 |
) |
|
(11 |
) |
|
19 |
|
|
(18 |
) |
||||
Cash and cash equivalents and restricted cash at beginning of period |
|
173 |
|
|
162 |
|
|
151 |
|
|
169 |
|
||||
Cash, cash equivalents and restricted cash at end of period (B) |
$ |
170 |
|
$ |
151 |
|
$ |
170 |
|
$ |
151 |
|
(A) | Includes Accounts and notes receivable, Inventories, and Accounts payable and accrued liabilities. | |||||||
(B) | Restricted cash was $2 million as of September 30, 2021. There was no restricted cash as of September 30, 2020. |
CABOT CORPORATION CERTAIN ITEMS AND RECONCILIATION OF ADJUSTED EPS AND OPERATING TAX RATE | ||||||||||||||||||
TABLE 1: DETAIL OF CERTAIN ITEMS | ||||||||||||||||||
Periods ended September 30 | Three Months | Twelve Months | ||||||||||||||||
Dollars in millions, except per share amounts (unaudited) |
2021 |
2020 |
2021 |
2020 |
||||||||||||||
Certain items before and after income taxes | ||||||||||||||||||
Indirect tax settlement credits |
$ |
— |
— |
$ |
12 |
3 |
||||||||||||
Legal and environmental matters and reserves |
|
(25 |
) |
|
(3 |
) |
|
(25 |
) |
|
(54 |
) |
||||||
Global restructuring activities |
|
(3 |
) |
|
(3 |
) |
|
(11 |
) |
|
(19 |
) |
||||||
Acquisition and integration-related charges |
|
(1 |
) |
|
(2 |
) |
|
(5 |
) |
|
(5 |
) |
||||||
Employee benefit plan settlement and other charges |
|
2 |
|
|
(5 |
) |
|
(4 |
) |
|
(10 |
) |
||||||
Marshall Mine loss on sale and asset impairment charge |
|
— |
|
|
(129 |
) |
|
— |
|
|
(129 |
) |
||||||
Inventory reserve adjustment |
|
— |
|
|
(2 |
) |
|
— |
|
|
(2 |
) |
||||||
Specialty Fluids loss on sale and asset impairment charges |
|
— |
|
|
— |
|
|
— |
|
|
(1 |
) |
||||||
Other certain items |
|
— |
|
|
— |
|
|
(1 |
) |
|
(1 |
) |
||||||
Total certain items, pre-tax |
|
(27 |
) |
|
(144 |
) |
|
(34 |
) |
|
(218 |
) |
||||||
Non-GAAP tax adjustments(A) |
|
(7 |
) |
|
(166 |
) |
|
(4 |
) |
|
(139 |
) |
||||||
Total certain items after tax |
$ |
(34 |
) |
$ |
(310 |
) |
$ |
(38 |
) |
$ |
(357 |
) |
||||||
Total certain items after tax per share impact |
$ |
(0.61 |
) |
$ |
(5.49 |
) |
$ |
(0.68 |
) |
$ |
(6.29 |
) |
||||||
TABLE 2: CERTAIN ITEMS STATEMENT OF OPERATIONS LINE ITEM | ||||||||||||||||||
Periods ended September 30 | Three Months | Twelve Months | ||||||||||||||||
Dollars in millions, Pre-Tax (unaudited) |
2021 |
2020 |
2021 |
2020 |
||||||||||||||
Statement of Operations Line Item (B) | ||||||||||||||||||
Net sales and other operating revenues |
$ |
— |
$ |
— |
$ |
9 |
$ |
— |
||||||||||
Cost of sales |
|
(5 |
) |
|
(3 |
) |
|
(12 |
) |
|
(9 |
) |
||||||
Selling and administrative expenses |
|
(25 |
) |
|
(6 |
) |
|
(29 |
) |
|
(68 |
) |
||||||
Research and technical expenses |
|
— |
|
|
— |
|
|
(1 |
) |
|
— |
|
||||||
Other income (expense) |
|
3 |
|
|
(6 |
) |
|
(1 |
) |
|
(11 |
) |
||||||
Specialty Fluids loss on sale and asset impairment charges |
|
— |
|
|
— |
|
|
— |
|
|
(1 |
) |
||||||
Marshall Mine loss on sale and asset impairment charges |
|
— |
|
|
(129 |
) |
|
— |
|
|
(129 |
) |
||||||
Total certain items, pre-tax |
$ |
(27 |
) |
$ |
(144 |
) |
$ |
(34 |
) |
$ |
(218 |
) |
||||||
TABLE 3: RECONCILIATION OF EFFECTIVE TAX RATE TO OPERATING TAX RATE | ||||||||||||||||||
Three months ended September 30 |
2021 |
2020 |
||||||||||||||||
Dollars in millions (unaudited) | (Provision) / Benefit for Income Taxes |
Rate | (Provision) / Benefit for Income Taxes |
Rate | ||||||||||||||
Effective Tax Rate |
$ |
(30 |
) |
|
48 |
% |
$ |
(182 |
) |
|
-217 |
% |
||||||
Less: Non-GAAP tax adjustments(A) |
|
(7 |
) |
|
(166 |
) |
||||||||||||
Operating tax rate (C) |
$ |
(23 |
) |
|
26 |
% |
$ |
(16 |
) |
|
28 |
% |
||||||
Twelve months ended September 30 |
2021 |
2020 |
||||||||||||||||
Dollars in millions (unaudited) | (Provision) / Benefit for Income Taxes |
Rate | (Provision) / Benefit for Income Taxes |
Rate | ||||||||||||||
Effective Tax Rate |
$ |
(123 |
) |
|
30 |
% |
$ |
(191 |
) |
|
-587 |
% |
||||||
Less: Non-GAAP tax adjustments(A) |
|
(4 |
) |
|
(139 |
) |
||||||||||||
Operating tax rate (C) |
$ |
(119 |
) |
|
27 |
% |
$ |
(52 |
) |
|
28 |
% |
||||||
TABLE 4: RECONCILIATION OF ADJUSTED EPS BY QUARTER FOR FISCAL 2021 and FISCAL 2020 | ||||||||||||||||||
Fiscal 2021 (D) | ||||||||||||||||||
Periods ended (unaudited) | Dec. Q | Mar. Q | June Q | Sept. Q | FY 2021 | |||||||||||||
Reconciliation of Adjusted EPS to GAAP EPS | ||||||||||||||||||
Net income (loss) per share attributable to Cabot Corporation |
$ |
1.06 |
|
$ |
1.30 |
|
$ |
1.48 |
|
$ |
0.50 |
|
$ |
4.34 |
|
|||
Less: Certain items after tax per share |
|
(0.12 |
) |
|
(0.08 |
) |
|
0.13 |
|
|
(0.61 |
) |
|
(0.68 |
) |
|||
Adjusted earnings (loss) per share |
$ |
1.18 |
|
$ |
1.38 |
|
$ |
1.35 |
|
$ |
1.11 |
|
$ |
5.02 |
|
|||
Fiscal 2020 (D) | ||||||||||||||||||
Periods ended (unaudited) | Dec. Q | Mar. Q | June Q | Sept. Q | FY 2020 | |||||||||||||
Reconciliation of Adjusted EPS to GAAP EPS | ||||||||||||||||||
Net income (loss) per share attributable to Cabot Corporation |
$ |
0.70 |
|
$ |
(0.01 |
) |
$ |
(0.12 |
) |
$ |
(4.81 |
) |
$ |
(4.21 |
) |
|||
Less: Certain items after tax per share |
|
0.01 |
|
|
(0.78 |
) |
|
(0.05 |
) |
|
(5.49 |
) |
|
(6.29 |
) |
|||
Adjusted earnings (loss) per share |
$ |
0.69 |
|
$ |
0.77 |
|
$ |
(0.07 |
) |
$ |
0.68 |
|
$ |
2.08 |
|
(A) | Non-GAAP tax adjustments are made to arrive at the operating tax provision. It includes the income tax (expense) benefit on certain items, discrete tax items, and, on a quarterly basis the timing of losses in certain jurisdictions. The income tax (expense) benefit on certain items is determined using the applicable rates in the taxing jurisdictions in which the certain items occurred and includes both current and deferred income tax (expense) benefit based on the nature of the certain items. Discrete tax items include, but are not limited to, changes in valuation allowance, uncertain tax positions, and other tax items, such as the tax impact of legislative changes. | |||||||
(B) | This table indicates the line items where certain items are recorded in the Consolidated Statements of Operations. | |||||||
(C) | Our operating tax rate for fiscal 2022 is expected to be in the range of 27% to 29%. | |||||||
(D) | Per share amounts are calculated after tax. |
CABOT CORPORATION RECONCILIATION OF NON-GAAP FINANCIAL MEASURES | ||||||||||||||||
Fiscal 2021 (A) | ||||||||||||||||
Dec. Q | Mar. Q | June Q | Sept. Q | FY 2021 | ||||||||||||
Reconciliation of Adjusted EPS to GAAP EPS | ||||||||||||||||
Net income (loss) per share attributable to Cabot Corporation |
$ |
1.06 |
|
$ |
1.30 |
|
$ |
1.48 |
|
$ |
0.50 |
|
$ |
4.34 |
|
|
Less: Certain items after tax per share |
|
(0.12 |
) |
|
(0.08 |
) |
|
0.13 |
|
|
(0.61 |
) |
|
(0.68 |
) |
|
Adjusted earnings (loss) per share |
$ |
1.18 |
|
$ |
1.38 |
|
$ |
1.35 |
|
$ |
1.11 |
|
$ |
5.02 |
|
|
Fiscal 2020 (A) | ||||||||||||||||
Dec. Q | Mar. Q | June Q | Sept. Q | FY 2020 | ||||||||||||
Reconciliation of Adjusted EPS to GAAP EPS | ||||||||||||||||
Net income (loss) per share attributable to Cabot Corporation |
$ |
0.70 |
|
$ |
(0.01 |
) |
$ |
(0.12 |
) |
$ |
(4.81 |
) |
$ |
(4.21 |
) |
|
Less: Certain items after tax per share |
|
0.01 |
|
|
(0.78 |
) |
|
(0.05 |
) |
|
(5.49 |
) |
|
(6.29 |
) |
|
Adjusted earnings (loss) per share |
$ |
0.69 |
|
$ |
0.77 |
|
$ |
(0.07 |
) |
$ |
0.68 |
|
$ |
2.08 |
|
|
(A) Per share amounts are calculated after tax. | ||||||||||||||||
Dollars in millions | Fiscal 2021 | |||||||||||||||
Dec. Q | Mar. Q | June Q | Sept. Q | FY 2021 | ||||||||||||
Reconciliation of Total Segment EBIT, Total Segment EBITDA and Adjusted EBITDA to Net Income and Segment EBITDA Margin | ||||||||||||||||
Net income (loss) attributable to Cabot Corporation |
$ |
60 |
|
$ |
75 |
|
$ |
86 |
|
$ |
29 |
|
$ |
250 |
|
|
Net income (loss) attributable to noncontrolling interests |
|
10 |
|
|
10 |
|
|
9 |
|
|
7 |
|
|
36 |
|
|
Equity in earnings of affiliated companies, net of tax |
|
— |
|
|
(1 |
) |
|
(2 |
) |
|
— |
|
|
(3 |
) |
|
Provision (benefit) for income taxes |
|
29 |
|
|
34 |
|
|
30 |
|
|
30 |
|
|
123 |
|
|
Income (loss) before income taxes and equity in earnings of affiliated companies |
$ |
99 |
|
$ |
118 |
|
$ |
123 |
|
$ |
66 |
|
$ |
406 |
|
|
Interest expense |
|
12 |
|
|
13 |
|
|
12 |
|
|
12 |
|
|
49 |
|
|
Certain items |
|
11 |
|
|
1 |
|
|
(5 |
) |
|
27 |
|
|
34 |
|
|
Unallocated corporate costs |
|
13 |
|
|
16 |
|
|
14 |
|
|
15 |
|
|
58 |
|
|
General unallocated (income) expense |
|
5 |
|
|
— |
|
|
(1 |
) |
|
(4 |
) |
|
— |
|
|
Less: Equity in earnings of affiliated companies |
|
— |
|
|
(1 |
) |
|
(2 |
) |
|
— |
|
|
(3 |
) |
|
Total Segment EBIT |
$ |
140 |
|
$ |
149 |
|
$ |
145 |
|
$ |
116 |
|
$ |
550 |
|
|
Depreciation and amortization |
|
39 |
|
|
38 |
|
|
40 |
|
|
43 |
|
|
160 |
|
|
Adjustments to depreciation (B) |
|
— |
|
|
2 |
|
|
(1 |
) |
|
(2 |
) |
|
(1 |
) |
|
Total Segment EBITDA |
$ |
179 |
|
$ |
189 |
|
$ |
184 |
|
$ |
157 |
|
$ |
709 |
|
|
Less: Unallocated corporate costs before corporate depreciation |
|
13 |
|
|
16 |
|
|
14 |
|
|
14 |
|
|
57 |
|
|
Adjusted EBITDA |
$ |
166 |
|
$ |
173 |
|
$ |
170 |
|
$ |
143 |
|
$ |
652 |
|
|
(B) Adjustments to depreciation includes the addition of the depreciation expense of a contractual joint venture in Purification Solutions less accelerated depreciation expense not allocated to a business. | ||||||||||||||||
Dollars in millions | Dec. Q | Mar. Q | June Q | Sept. Q | FY 2021 | |||||||||||
Reinforcement Materials EBIT |
$ |
88 |
|
$ |
89 |
|
$ |
85 |
|
$ |
67 |
|
$ |
329 |
|
|
Reinforcement Materials Depreciation and amortization |
|
17 |
|
|
18 |
|
|
17 |
|
|
18 |
|
|
70 |
|
|
Reinforcement Materials EBITDA |
$ |
105 |
|
$ |
107 |
|
$ |
102 |
|
$ |
85 |
|
$ |
399 |
|
|
Reinforcement Materials Sales |
$ |
375 |
|
$ |
434 |
|
$ |
479 |
|
$ |
493 |
|
$ |
1,781 |
|
|
Reinforcement Materials EBITDA Margin |
|
28 |
% |
|
25 |
% |
|
21 |
% |
|
17 |
% |
|
22 |
% |
|
Dollars in millions | Dec. Q | Mar. Q | June Q | Sept. Q | FY 2021 | |||||||||||
Performance Chemicals EBIT |
$ |
54 |
|
$ |
58 |
|
$ |
54 |
|
$ |
45 |
|
$ |
211 |
|
|
Performance Chemicals Depreciation and amortization |
|
18 |
|
|
19 |
|
|
18 |
|
|
18 |
|
|
73 |
|
|
Performance Chemicals EBITDA |
$ |
72 |
|
$ |
77 |
|
$ |
72 |
|
$ |
63 |
|
$ |
284 |
|
|
Performance Chemicals Sales |
$ |
267 |
|
$ |
294 |
|
$ |
303 |
|
$ |
284 |
|
$ |
1,148 |
|
|
Performance Chemicals EBITDA Margin |
|
27 |
% |
|
26 |
% |
|
24 |
% |
|
22 |
% |
|
25 |
% |
|
Dollars in millions | Dec. Q | Mar. Q | June Q | Sept. Q | FY 2021 | |||||||||||
Purification Solutions EBIT |
$ |
(2 |
) |
$ |
2 |
|
$ |
6 |
|
$ |
4 |
|
$ |
10 |
|
|
Purification Solutions Depreciation and amortization |
|
4 |
|
|
3 |
|
|
4 |
|
|
5 |
|
|
16 |
|
|
Purification Solutions EBITDA |
$ |
2 |
|
$ |
5 |
|
$ |
10 |
|
$ |
9 |
|
$ |
26 |
|
|
Purification Solutions Sales |
$ |
59 |
|
$ |
63 |
|
$ |
69 |
|
$ |
66 |
|
$ |
257 |
|
|
Purification Solutions EBITDA Margin |
|
3 |
% |
|
8 |
% |
|
14 |
% |
|
14 |
% |
|
10 |
% |
|
Dollars in millions | Fiscal 2021 | |||||||||||||||
Reconciliation of Free Cash Flow and Discretionary Free Cash Flow to Cash Flow from Operating Activities | Dec. Q | Mar. Q | June Q | Sept. Q | FY 2021 | |||||||||||
Cash flow from operating activities (C) |
$ |
21 |
|
$ |
65 |
|
$ |
71 |
|
$ |
100 |
|
$ |
257 |
|
|
Less: Additions to property, plant and equipment |
|
29 |
|
|
40 |
|
|
46 |
|
|
80 |
|
|
195 |
|
|
Free cash flow |
$ |
(8 |
) |
$ |
25 |
|
$ |
25 |
|
$ |
20 |
|
$ |
62 |
|
|
Plus: Additions to property, plant and equipment |
|
29 |
|
|
40 |
|
|
46 |
|
|
80 |
|
|
195 |
|
|
Less: Changes in net working capital (D) |
|
(99 |
) |
|
(80 |
) |
|
(47 |
) |
|
4 |
|
|
(222 |
) |
|
Less: Sustaining and compliance capital expenditures |
|
21 |
|
|
27 |
|
|
26 |
|
|
52 |
|
|
126 |
|
|
Discretionary free cash flow |
$ |
99 |
|
$ |
118 |
|
$ |
92 |
|
$ |
44 |
|
$ |
353 |
|
|
(C) As provided in the Condensed Consolidated Statements of Cash Flows. | ||||||||||||||||
(D) Defined as changes in accounts receivable, inventory and accounts payable and accrued liabilities as presented on the Condensed Consolidated Statements of Cash Flows. |