First quarter 2016 net income of
"We delivered solid results for the first quarter of 2016 as we benefitted from lower cost feedstocks and strong global demand for both polyethylene and PVC," said
EBITDA (earnings before interest expense, income taxes, depreciation and amortization) of
Net cash provided by operating activities was
OLEFINS SEGMENT
The Olefins segment reported income from operations of
The Olefins segment income from operations of
VINYLS SEGMENT
The Vinyls segment reported income from operations of
The Vinyls segment income from operations of
The statements in this release and the related teleconference relating to matters that are not historical facts, such as statements regarding the timing and results of expansion projects and anticipated balancing of our ethylene requirements in
Use of Non-GAAP Financial Measures
This release makes reference to certain "non-GAAP" financial measures, such as EBITDA, as defined in Regulation G of the U.S. Securities Exchange Act of 1934, as amended. We report our financial results in accordance with U.S. generally accepted accounting principles ("U.S. GAAP"), but believe that certain non-GAAP financial measures, such as EBITDA, provide useful supplemental information to investors regarding the underlying business trends and performance of the company's ongoing operations and are useful for period-over-period comparisons of such operations. These non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, the financial measures prepared in accordance with U.S. GAAP. A reconciliation of EBITDA to reported net income and to net cash provided by operating activities can be found in the financial schedules at the end of this press release.
Westlake Chemical Corporation Conference Call Information:
A conference call to discuss
A replay of the conference call will be available beginning two hours after its conclusion until
The conference call will also be available via webcast at: http://edge.media-server.com/m/p/wugjxpzb and the earnings release can be obtained via the company's web page at: http://www.westlake.com/fw/main/IR_Home_Page-123.html
WESTLAKE CHEMICAL CORPORATION |
||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||
(Unaudited) |
||||||||
Three Months Ended March 31, |
||||||||
2016 |
2015 |
|||||||
(In thousands of dollars, |
||||||||
Net sales |
$ |
975,187 |
$ |
1,103,531 |
||||
Cost of sales |
719,602 |
818,985 |
||||||
Gross profit |
255,585 |
284,546 |
||||||
Selling, general and administrative expenses |
53,309 |
55,266 |
||||||
Income from operations |
202,276 |
229,280 |
||||||
Interest expense |
(6,685) |
(9,591) |
||||||
Other income, net |
2,645 |
9,096 |
||||||
Income before income taxes |
198,236 |
228,785 |
||||||
Provision for income taxes |
69,300 |
78,378 |
||||||
Net income |
128,936 |
150,407 |
||||||
Net income attributable to noncontrolling interests |
5,808 |
4,065 |
||||||
Net income attributable to Westlake Chemical Corporation |
$ |
123,128 |
$ |
146,342 |
||||
Earnings per common share attributable to Westlake Chemical Corporation: |
||||||||
Basic |
$ |
0.94 |
$ |
1.10 |
||||
Diluted |
$ |
0.94 |
$ |
1.10 |
WESTLAKE CHEMICAL CORPORATION |
||||||||
CONSOLIDATED BALANCE SHEETS |
||||||||
(Unaudited) |
||||||||
March 31, |
December 31, |
|||||||
(In thousands of dollars) |
||||||||
ASSETS |
||||||||
Current assets |
||||||||
Cash and cash equivalents |
$ |
614,976 |
$ |
662,525 |
||||
Marketable securities |
525,008 |
520,144 |
||||||
Accounts receivable, net |
549,037 |
508,532 |
||||||
Inventories |
478,656 |
434,060 |
||||||
Other current assets |
24,057 |
49,928 |
||||||
Total current assets |
2,191,734 |
2,175,189 |
||||||
Property, plant and equipment, net |
3,114,821 |
3,004,067 |
||||||
Other assets, net |
417,846 |
390,029 |
||||||
Total assets |
$ |
5,724,401 |
$ |
5,569,285 |
||||
LIABILITIES AND EQUITY |
||||||||
Current liabilities (accounts payable and accrued liabilities) |
$ |
506,161 |
$ |
522,642 |
||||
Long-term debt |
758,300 |
758,148 |
||||||
Other liabilities |
755,538 |
726,564 |
||||||
Total liabilities |
2,019,999 |
2,007,354 |
||||||
Total Westlake Chemical Corporation stockholders' equity |
3,406,526 |
3,265,878 |
||||||
Noncontrolling interests |
297,876 |
296,053 |
||||||
Total equity |
3,704,402 |
3,561,931 |
||||||
Total liabilities and equity |
$ |
5,724,401 |
$ |
5,569,285 |
WESTLAKE CHEMICAL CORPORATION |
||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
(Unaudited) |
||||||||
Three Months Ended March 31, |
||||||||
2016 |
2015 |
|||||||
(In thousands of dollars) |
||||||||
Cash flows from operating activities |
||||||||
Net income |
$ |
128,936 |
$ |
150,407 |
||||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
Depreciation and amortization |
65,714 |
58,641 |
||||||
Deferred income taxes |
58,637 |
5,331 |
||||||
Other balance sheet changes |
(124,352) |
(23,823) |
||||||
Net cash provided by operating activities |
128,935 |
190,556 |
||||||
Cash flows from investing activities |
||||||||
Additions to property, plant and equipment |
(136,328) |
(95,822) |
||||||
Proceeds from sales and maturities of securities |
26,859 |
— |
||||||
Purchase of securities |
(36,637) |
— |
||||||
Other, net |
(1,115) |
(833) |
||||||
Net cash used for investing activities |
(147,221) |
(96,655) |
||||||
Cash flows from financing activities |
||||||||
Dividends paid |
(23,700) |
(21,964) |
||||||
Distributions to noncontrolling interests |
(3,985) |
(3,558) |
||||||
Proceeds from exercise of stock options |
22 |
157 |
||||||
Proceeds from issuance of notes payable |
2,050 |
— |
||||||
Repayment of notes payable |
(7,095) |
— |
||||||
Repurchase of common stock for treasury |
(679) |
(2,000) |
||||||
Other, net |
266 |
1,701 |
||||||
Net cash used for financing activities |
(33,121) |
(25,664) |
||||||
Effect of exchange rate changes on cash and cash equivalents |
3,858 |
(3,189) |
||||||
Net (decrease) increase in cash and cash equivalents |
(47,549) |
65,048 |
||||||
Cash and cash equivalents at beginning of period |
662,525 |
880,601 |
||||||
Cash and cash equivalents at end of period |
$ |
614,976 |
$ |
945,649 |
WESTLAKE CHEMICAL CORPORATION |
||||||||
SEGMENT INFORMATION |
||||||||
(Unaudited) |
||||||||
Three Months Ended March 31, |
||||||||
2016 |
2015 |
|||||||
(In thousands of dollars) |
||||||||
Net external sales |
||||||||
Olefins |
$ |
431,020 |
$ |
583,077 |
||||
Vinyls |
544,167 |
520,454 |
||||||
$ |
975,187 |
$ |
1,103,531 |
|||||
Income (loss) from operations |
||||||||
Olefins |
$ |
149,235 |
$ |
191,103 |
||||
Vinyls |
62,116 |
47,086 |
||||||
Corporate and other |
(9,075) |
(8,909) |
||||||
$ |
202,276 |
$ |
229,280 |
|||||
Depreciation and amortization |
||||||||
Olefins |
$ |
28,697 |
$ |
26,939 |
||||
Vinyls |
36,287 |
31,584 |
||||||
Corporate and other |
730 |
118 |
||||||
$ |
65,714 |
$ |
58,641 |
|||||
Other income (expense), net |
||||||||
Olefins |
$ |
1,513 |
$ |
2,552 |
||||
Vinyls |
(1,519) |
5,503 |
||||||
Corporate and other |
2,651 |
1,041 |
||||||
$ |
2,645 |
$ |
9,096 |
WESTLAKE CHEMICAL CORPORATION |
||||||||||||
RECONCILIATION OF EBITDA TO NET INCOME AND |
||||||||||||
TO NET CASH PROVIDED BY OPERATING ACTIVITIES |
||||||||||||
(Unaudited) |
||||||||||||
Three Months Ended |
Three Months Ended |
|||||||||||
2015 |
2016 |
2015 |
||||||||||
(In thousands of dollars) |
||||||||||||
EBITDA |
$ |
251,153 |
$ |
270,635 |
$ |
297,017 |
||||||
Less: |
||||||||||||
Provision for income taxes |
61,572 |
69,300 |
78,378 |
|||||||||
Interest expense |
7,896 |
6,685 |
9,591 |
|||||||||
Depreciation and amortization |
65,528 |
65,714 |
58,641 |
|||||||||
Net income |
116,157 |
128,936 |
150,407 |
|||||||||
Changes in operating assets and liabilities |
89,180 |
(58,638) |
34,818 |
|||||||||
Deferred income taxes |
32,199 |
58,637 |
5,331 |
|||||||||
Net cash provided by operating activities |
$ |
237,536 |
$ |
128,935 |
$ |
190,556 |
WESTLAKE CHEMICAL CORPORATION |
||||||||||||
SUPPLEMENTAL INFORMATION |
||||||||||||
Product Sales Price and Volume Variance by Operating Segments |
||||||||||||
First Quarter 2016 vs. |
First Quarter 2016 vs. |
|||||||||||
Average |
Volume |
Average |
Volume |
|||||||||
Olefins |
-17.5% |
-8.6% |
-7.8% |
-0.2% |
||||||||
Vinyls |
-8.6% |
+13.2% |
-2.5% |
+7.4% |
||||||||
Company |
-13.3% |
+1.7% |
-5.0% |
+3.8% |
Average Quarterly Industry Prices (1) |
||||||||||
Quarter Ended |
||||||||||
March 31, |
June 30, |
September 30, |
December 31, |
March 31, |
||||||
Ethane (cents/lb) |
6.3 |
6.2 |
6.4 |
5.9 |
5.3 |
|||||
Propane (cents/lb) |
12.6 |
10.8 |
9.6 |
9.9 |
9.1 |
|||||
Ethylene (cents/lb) (2) |
36.6 |
36.1 |
28.2 |
21.4 |
21.1 |
|||||
Polyethylene (cents/lb) (3) |
76.7 |
78.3 |
75.3 |
71.0 |
68.3 |
|||||
Styrene (cents/lb) (4) |
54.3 |
65.8 |
64.2 |
58.3 |
58.0 |
|||||
Caustic soda ($/short ton) (5) |
588.3 |
576.7 |
563.3 |
595.8 |
582.5 |
|||||
Chlorine ($/short ton) (6) |
239.2 |
268.3 |
275.0 |
285.0 |
285.0 |
|||||
PVC (cents/lb) (7) |
65.5 |
67.5 |
66.5 |
64.5 |
64.8 |
(1) |
Industry pricing data was obtained from IHS Chemical. We have not independently verified the data. |
(2) |
Represents average North American spot prices of ethylene over the period as reported by IHS Chemical. |
(3) |
Represents average North American contract prices of polyethylene low density GP-Film grade over the period as reported by IHS Chemical. |
(4) |
Represents average North American contract prices of styrene over the period as reported by IHS Chemical. |
(5) |
Represents average North American undiscounted contract prices of caustic soda over the period as reported by IHS Chemical. |
(6) |
Represents average North American contract prices of chlorine (into chemicals) over the period as reported by IHS Chemical. |
(7) |
Represents average North American contract prices of PVC over the period as reported by IHS Chemical. |
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/westlake-chemical-corporation-announces-first-quarter-2016-earnings-300261107.html
SOURCE
(713) 960-9111, Investors--Steve Bender, Media--Ben Ederington