Press Releases
Quaker Chemical Announces First Quarter 2013 Results
(Logo: http://photos.prnewswire.com/prnh/20120910/PH70044LOGO )
Mr. Barry concluded, "Going forward, we believe we will continue to face challenging market conditions around the world with
Net sales for the first quarter of 2013 were
Gross profit increased approximately
Selling, general and administrative expenses ("SG&A") increased approximately
The decrease in interest expense was due to lower average borrowings and lower interest rates experienced in the first quarter of 2013 as compared to the first quarter of 2012.
The Company's effective tax rates for the first quarters of 2013 and 2012 of 24.1% and 21.5%, respectively, reflect decreases in reserves for uncertain tax positions due to the expiration of applicable statutes of limitations for certain tax years of approximately
The increase in equity in net income of associated companies was primarily due to higher earnings related to the Company's equity interest in a captive insurance company in the first quarter of 2013 compared to the first quarter of 2012 of
Changes in foreign exchange rates negatively impacted the first quarter of 2013 net income by approximately
Balance Sheet and Cash Flow Items
Net operating cash flow increased to
Non-GAAP Measures
Included in this public release is a non-GAAP financial measure of non-GAAP earnings per diluted share. The Company believes this non-GAAP financial measure provides meaningful supplemental information as it enhances a reader's understanding of the financial performance of the Company, is more indicative of future operating performance of the Company, and facilitates a better comparison among fiscal periods, as the non-GAAP measure excludes items that are not considered core to the Company's operations. Non-GAAP results are presented for supplemental informational purposes only and should not be considered a substitute for the financial information presented in accordance with GAAP.
The following is a reconciliation between the non-GAAP (unaudited) financial measure of non-GAAP earnings per diluted share to its most directly comparable GAAP (unaudited) measure:
Three Months Ended March 31, |
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2013 |
2012 |
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GAAP earnings per diluted share attributable to Quaker Chemical Corporation Common Shareholders |
$ 1.04 |
$ 0.95 |
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Devaluation of the Venezuelan Bolivar per diluted share |
0.03 |
-- |
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Equity income in a captive insurance company per diluted share |
(0.11) |
(0.04) |
||
Non-GAAP earnings per diluted share attributable to Quaker Chemical Corporation Common Shareholders |
$ 0.96 |
$ 0.91 |
Forward-Looking Statements
This release contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected in such statements. A major risk is that the Company's demand is largely derived from the demand for its customers' products, which subjects the Company to downturns in a customer's business and unanticipated customer production shutdowns. Other major risks and uncertainties include, but are not limited to, significant increases in raw material costs, customer financial stability, worldwide economic and political conditions, foreign currency fluctuations, future terrorist attacks and other acts of violence. Other factors could also adversely affect us. Therefore, we caution you not to place undue reliance on our forward-looking statements. This discussion is provided as permitted by the Private Securities Litigation Reform Act of 1995.
Conference Call
As previously announced,
About Quaker
Quaker Chemical Corporation |
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Condensed Consolidated Statement of Income |
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(Dollars in thousands, except per share data and share amounts) |
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(Unaudited) |
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Three Months Ended March 31, |
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2013 |
2012 |
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Net sales |
$ 176,193 |
$ 177,638 |
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Cost of goods sold |
113,585 |
117,843 |
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Gross profit |
62,608 |
59,795 |
||
% |
35.5% |
33.7% |
||
Selling, general and administrative expenses |
45,197 |
43,093 |
||
Operating income |
17,411 |
16,702 |
||
% |
9.9% |
9.4% |
||
Other income, net |
346 |
341 |
||
Interest expense |
(744) |
(1,174) |
||
Interest income |
169 |
123 |
||
Income before taxes and equity in net income of associated companies |
17,182 |
15,992 |
||
Taxes on income before equity in net income of associated companies |
4,133 |
3,445 |
||
Income before equity in net income of associated companies |
13,049 |
12,547 |
||
Equity in net income of associated companies |
1,142 |
565 |
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Net income |
14,191 |
13,112 |
||
Less: Net income attributable to noncontrolling interest |
572 |
747 |
||
Net income attributable to Quaker Chemical Corporation |
$ 13,619 |
$ 12,365 |
||
% |
7.7% |
7.0% |
||
Per share data: |
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Net income attributable to Quaker Chemical Corporation Common Shareholders - basic |
$ 1.04 |
$ 0.96 |
||
Net income attributable to Quaker Chemical Corporation Common Shareholders - diluted |
$ 1.04 |
$ 0.95 |
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Quaker Chemical Corporation Condensed Consolidated Balance Sheet (Dollars in thousands, except par value and share amounts) (Unaudited) March 31, December 31, 2013 2012 ASSETS Current assets Cash and cash equivalents $ 35,256 $ 32,547 Accounts receivable, net 157,163 154,197 Inventories 73,965 72,471 Prepaid expenses and other current assets 17,763 18,595 Total current assets 284,147 277,810 Property, plant and equipment, net 84,928 85,112 Goodwill 59,248 59,169 Other intangible assets, net 32,972 32,809 Investments in associated companies 15,605 16,603 Deferred income taxes 28,935 30,673 Other assets 34,752 34,458 Total assets $ 540,587 $ 536,634 LIABILITIES AND EQUITY Current liabilities Short-term borrowings and current portion of long-term debt $ 1,905 $ 1,468 Accounts and other payables 74,807 70,794 Accrued compensation 11,016 16,842 Other current liabilities 25,280 18,688 Total current liabilities 113,008 107,792 Long-term debt 27,675 30,000 Deferred income taxes 6,256 6,383 Other non-current liabilities 91,675 102,783 Total liabilities 238,614 246,958 Equity Common stock, $1 par value; authorized 30,000,000 shares; issued 13,139,691 13,140 13,095 Capital in excess of par value 95,775 94,470 Retained earnings 225,790 215,390 Accumulated other comprehensive loss (41,747) (41,855) Total Quaker shareholders' equity 292,958 281,100 Noncontrolling interest 9,015 8,576 Total equity 301,973 289,676 Total liabilities and equity $ 540,587 $ 536,634 Quaker Chemical Corporation Condensed Consolidated Statement of Cash Flows For the three months ended March 31, (Dollars in thousands) (Unaudited) 2013 2012 Cash flows from operating activities Net income $ 14,191 $ 13,112 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 3,056 3,057 Amortization 879 746 Equity in undistributed earnings of associated companies, net of dividends 921 (381) Deferred compensation and other, net (861) (103) Stock-based compensation 1,040 1,186 Gain on disposal of property, plant and equipment (2) (14) Insurance settlement realized - (483) Pension and other postretirement benefits (2,521) (2,357) (Decrease) increase in cash from changes in current assets and current liabilities, net of acquisitions: Accounts receivable (3,977) (9,764) Inventories (1,837) 352 Prepaid expenses and other current assets (457) (557) Accounts payable and accrued liabilities 874 1,938 Net cash provided by operating activities 11,306 6,732 Cash flows from investing activities Investments in property, plant and equipment (2,723) (3,178) Payments related to acquisitions, net of cash acquired (647) - Proceeds from disposition of assets 13 64 Insurance settlement received and interest earned 14 18 Change in restricted cash, net (14) 465 Net cash used in investing activities (3,357) (2,631) Cash flows from financing activities Net increase in short-term borrowings 594 - Proceeds from long-term debt - 1,350 Repayment of long-term debt (2,438) (189) Dividends paid (3,208) (3,105) Stock options exercised, other (59) (1,288) Excess tax benefit related to stock option exercises 369 546 Net cash used in financing activities (4,742) (2,686) Effect of exchange rate changes on cash (498) 640 Net increase in cash and cash equivalents 2,709 2,055 Cash and cash equivalents at the beginning of the period 32,547 16,909 Cash and cash equivalents at the end of the period $ 35,256 $ 18,964
SOURCE
Margaret M. Loebl, Vice President, Chief Financial Officer & Treasurer, loeblm@quakerchem.com, T. 610.832.4160