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Huntsman Releases Fourth Quarter And Full Year 2014 Results; Full Year Adjusted Earnings Per Share Grows 20%

THE WOODLANDS, Texas, Feb. 18, 2015 /PRNewswire/ --

Fourth Quarter 2014 Highlights

  • Adjusted EBITDA was $292 million compared to $313 million in the prior year period.  Pro forma for the Rockwood acquisition our adjusted EBITDA was $300 million compared to $341 in the prior year period.  The decrease was primarily attributable to lower earnings in our Pigments and Additives division.
  • Adjusted diluted income per share was $0.33 compared to $0.48 in the prior year period.
  • Net loss attributable to Huntsman Corporation was $38 million compared to net income of $41 million in the prior year period.
  • Approximate negative foreign currency adjusted EBITDA impact of $11 million compared to the prior year period, primarily from a stronger U.S. dollar against major European currencies.

Full Year 2014 Highlights

  • Adjusted EBITDA was $1,340 million compared to $1,213 million in the prior year.   Pro forma for the Rockwood acquisition our adjusted EBITDA was $1,495 million compared to $1,323 in the prior year period.
  • Adjusted diluted income per share was $1.94 compared to $1.61 in the prior year, an increase of 20%.
  • Net income attributable to Huntsman Corporation was $323 million compared to $128 million in the prior year.

 



Three months ended


Twelve months ended



December 31,


September 30,


December 31,

In millions, except per share amounts, unaudited


2014


2013


2014


2014


2013












Revenues


$2,951


$2,705


$            2,884


$11,578


$11,079

Pro forma revenues(2)


$2,937


$3,052


$            3,258


$12,723


$12,598












Net (loss) income attributable to Huntsman Corporation

$    (38)


$     41


$              188


$     323


$     128

Adjusted net income(1)


$     81


$   118


$              147


$     478


$     390












Diluted (loss) income per share


$ (0.16)


$  0.17


$             0.76


$    1.31


$    0.53

Adjusted diluted income per share(1)


$  0.33


$  0.48


$             0.60


$    1.94


$    1.61












EBITDA(1)


$   141


$   225


$              293


$  1,022


$     889

Adjusted EBITDA(1)


$   292


$   313


$              356


$  1,340


$  1,213

Pro forma adjusted EBITDA(2)


$   300


$   341


$              396


$  1,495


$  1,323












See end of press release for footnote explanations




 

Huntsman Corporation (NYSE: HUN) today reported fourth quarter 2014 results with revenues of $2,951 million and adjusted EBITDA of $292 million. 

Peter R. Huntsman, our President and CEO, commented:

"2014 was a remarkable year for us; our differentiated businesses that include our MDI urethanes, Performance Products, Advanced Materials and Textile Effects collectively increased their adjusted EBITDA by more than $200 million.  I am encouraged by the attractive growth profile of these businesses and expect them to perform even better in 2015. 

We have a number of initiatives underway that will improve the competitiveness and strength of our entire company.  We are investing in growth projects that we expect will add more than $200 million of annual EBITDA over the next few years.  We are aggressively taking action to deliver $130 million of synergies as we integrate the businesses we purchased from Rockwood this past October.  In addition, we recently took action to rationalize our European titanium dioxide capacity with expected EBITDA benefits of approximately $35 million.

Notwithstanding near term headwinds and shocks to the business landscape such as meaningful movements in foreign currency rates and lower priced oil, I believe we are well positioned to deliver increased earnings, an improvement in free cash flow and increased shareholder value over the next several years."

Segment Analysis for 4Q14 Compared to 4Q13

Polyurethanes

The decrease in revenues in our Polyurethanes division for the three months ended December 31, 2014 compared to the same period in 2013 was primarily due to lower PO/MTBE average selling prices and the impact of a stronger U.S. dollar against major European currencies, partially offset by higher MDI local currency average selling prices and increased MDI sales volumes.  PO/MTBE average selling prices decreased following lower pricing for high octane gasoline.  MDI average selling prices increased in the Americas and Europe, partially offset by lower component pricing in China.  MDI sales volumes grew in the Americas and Asia and were essentially flat in Europe.  Adjusted EBITDA was essentially flat as higher MDI margins offset most of the $7 million negative impact from the stronger U.S. dollar against major European currencies.

Performance Products

The decrease in revenues in our Performance Products division for the three months ended December 31, 2014 compared to the same period in 2013 was due to lower sales volumes, partially offset by higher average selling prices.  Sales volumes decreased primarily due to the sale of our European surfactants business in the second quarter of 2014, partially offset by increased sales volumes in amines and maleic anhydride.  Average selling prices increased in response to higher raw materials costs and continued strong market conditions for amines, maleic anhydride and specialty surfactants, partially offset by the impact of a stronger U.S. dollar against major European currencies.  The decrease in adjusted EBITDA was primarily due to lower sales volumes and $5 million of inventory revaluation costs as a result of our successful efforts to reduce our investment in inventory.

Advanced Materials

The decrease in revenues in our Advanced Materials division for the three months ended December 31, 2014 compared to the same period in 2013 was due to lower sales volumes, partially offset by higher average selling prices and improved sales mix.  Sales volumes decreased primarily due to the de-selection of certain business and our restructuring efforts.  Average selling prices increased in all regions on a local currency basis and across most markets primarily due to certain price increase initiatives and our focus on higher value markets, partially offset by the impact of a stronger U.S. dollar against major European currencies.  The increase in adjusted EBITDA was primarily due to higher contribution margins from our focus on higher value business and lower fixed costs.

Textile Effects

The decrease in revenues in our Textile Effects division for the three months ended December 31, 2014 compared to the same period in 2013 was primarily due to lower sales volumes, partially offset by higher average selling prices.  Sales volumes decreased primarily due to the de-selection of lower value business and destocking within the fibers and dyes supply chain.  Average selling prices increased primarily in response to higher raw material costs.  The decrease in adjusted EBITDA was primarily due to $12 million of inventory revaluation costs as a result of our successful efforts to reduce our investment in inventory and higher raw material costs.

Pigments and Additives

Pro forma for the acquisition of Rockwood Performance Additives and Titanium Dioxide businesses, revenues decreased in our Pigments and Additives division for the three months ended December 31, 2014 compared to the same period in 2013 due to lower sales volumes and lower average selling prices.  Sales volumes decreased primarily as a result of lower end use demand in Europe which is our largest market.  Average selling prices decreased primarily as a result of high titanium dioxide industry inventory levels and the impact of a stronger U.S. dollar against major European currencies.  The decrease in pro forma adjusted EBITDA was primarily due to lower contribution margins for titanium dioxide, whereas the combined adjusted EBITDA for additives was essentially flat.

Corporate, LIFO and Other

Adjusted EBITDA from Corporate, LIFO and Other increased by $2 million to a loss of $48 million for the three months ended December 31, 2014 compared to a loss of $50 million for the same period in 2013.

Liquidity, Capital Resources and Outstanding Debt

As of December 31, 2014, we had $1,601 million of combined cash and unused borrowing capacity compared to $1,048 million at December 31, 2013.

In November 2014, we issued $400 million of 5.125% senior notes due 2022.  We used the proceeds to redeem all of our outstanding 8.625% senior subordinated notes due 2020, pay associated accrued interest and for general corporate purposes.  We expect to save approximately $12 million in annual interest expense as a result of this refinancing.

On October 1, 2014, we successfully completed the acquisition of the Performance Additives and Titanium Dioxide businesses of Rockwood for $1.04 billion in cash and subject to certain purchase price adjustments.  The acquisition was funded by a new $1.2 billion term loan due 2021.

Total capital expenditures for the three months ended December 31, 2014 were $250 million and for the year ended December 31, 2014 were $601 million.  We expect to spend approximately $525 million on base capital expenditures in 2015, net of reimbursements.  In addition, in 2015 we expect to spend approximately $100 million combined on our new Chinese MDI facility, the completion of the Augusta, Georgia color pigments facility and replacement of Rockwood computer systems.

Now that we have completed the preliminary allocation of the purchase accounting for the Rockwood Performance Additives and Titanium Dioxide businesses, we expect our annual depreciation and amortization rate to be approximately $450 million.

Income Taxes

During the three months ended December 31, 2014 we recorded an income tax expense of $12 million and paid $9 million in cash for income taxes.  Our adjusted effective income tax rate for the three months and year ended December 31, 2014 were 34% and 30% respectively. 

We expect our long term adjusted effective tax rate to be approximately 30%.  We expect our 2015 adjusted effective tax rate to be slightly higher as a result of reduced earnings from our Pigments and Additives division which has a meaningful concentration of business in countries (primarily in Europe) where we have tax valuation allowances which prevent us from recording a tax benefit on pre-tax losses.

Earnings Conference Call Information

We will hold a conference call to discuss our fourth quarter and full year 2014 financial results on Wednesday, February 18, 2015 at 10:00 a.m. ET.

Call-in numbers for the conference call:

U.S. participants

(888) 680 - 0865

International participants

(617) 213 - 4853

Passcode

13264497

 

In order to facilitate the registration process, you may use the following link to pre-register for the conference call. Callers who pre-register will be given a unique PIN to gain immediate access to the call and bypass the live operator. You may pre-register at any time, including up to and after the call start time. To pre-register, please go to:

https://www.theconferencingservice.com/prereg/key.process?key=PCWMPQHEM

Webcast Information

The conference call will be available via webcast and can be accessed from the company's website at ir.huntsman.com.

Replay Information

The conference call will be available for replay beginning February 18, 2015 and ending February 25, 2015.

Call-in numbers for the replay:

U.S. participants

(888) 286 - 8010

International participants

(617) 801 - 6888

Replay code

99851834

 

 

Table 1 -- Results of Operations





















Three months ended


Twelve months ended



December 31,


December 31,

In millions, except per share amounts, unaudited


2014


2013


2014


2013










Revenues


$2,951


$2,705


$11,578


$11,079

Cost of goods sold


2,502


2,259


9,659


9,326

Gross profit


449


446


1,919


1,753

Operating expenses


317


284


1,128


1,092

Restructuring, impairment and plant closing costs


67


41


158


151

Operating income


65


121


633


510

Interest expense


(57)


(44)


(205)


(190)

Equity in income of investment in unconsolidated affiliates


-


2


6


8

Loss on early extinguishment of debt


(28)


(16)


(28)


(51)

Other (expense) income


(2)


-


(2)


2

(Loss) income before income taxes


(22)


63


404


279

Income tax expense


(12)


(20)


(51)


(125)

(Loss) income from continuing operations


(34)


43


353


154

Loss from discontinued operations, net of tax(3)


(1)


(1)


(8)


(5)

Net (loss) income


(35)


42


345


149

Net income attributable to noncontrolling interests, net of tax


(3)


(1)


(22)


(21)

Net (loss) income attributable to Huntsman Corporation


$    (38)


$     41


$     323


$     128



















Adjusted EBITDA(1)


$   292


$   313


$  1,340


$  1,213










Adjusted net income(1)


$     81


$   118


$     478


$     390



















Basic (loss) income per share


$ (0.16)


$  0.17


$    1.33


$    0.53

Diluted (loss) income per share


$ (0.16)


$  0.17


$    1.31


$    0.53

Adjusted diluted income per share(1)


$  0.33


$  0.48


$    1.94


$    1.61










Common share information:









Basic shares outstanding


243.0


240.2


242.1


239.7

Diluted shares


243.0


243.9


246.0


242.4

Diluted shares for adjusted diluted income per share


246.9


243.9


246.0


242.4










See end of press release for footnote explanations









 

Table 2 -- Results of Operations by Segment





























Three months ended



Twelve months ended





December 31,


Better /


December 31,


Better /

In millions, unaudited


2014


2013


(Worse)


2014


2013


(Worse)














Segment Revenues:













Polyurethanes


$1,201


$1,230


(2)%


$  5,032


$  4,964


1%

Performance Products


712


741


(4)%


3,072


3,019


2%

Advanced Materials


295


301


(2)%


1,248


1,267


(1)%

Textile Effects


203


209


(3)%


896


811


10%

Pigments & Additives


573


295


94%


1,549


1,269


22%

Eliminations and other


(33)


(71)


54%


(219)


(251)


13%














Total


$2,951


$2,705


9%


$11,578


$11,079


5%














Segment Adjusted EBITDA(1):












Polyurethanes


$   171


$   173


(1)%


$     722


$     740


(2)%

Performance Products


111


116


(4)%


473


403


17%

Advanced Materials


43


33


30%


199


131


52%

Textile Effects


6


8


(25)%


58


16


263%

Pigments & Additives


9


33


(73)%


76


111


(32)%

Corporate, LIFO and other


(48)


(50)


4%


(188)


(188)


----














Total


$   292


$   313


(7)%


$  1,340


$  1,213


10%














See end of press release for footnote explanations



 

Table 3 -- Pro Forma(2) Results of Operations by Segment





























Three months ended



Twelve months ended





December 31,


Better /


December 31,


Better /

In millions, unaudited, pro forma


2014


2013


(Worse)


2014


2013


(Worse)














Segment Revenues:













Polyurethanes


$1,201


$1,237


(3)%


$  5,053


$  4,991


1%

Performance Products


712


741


(4)%


3,072


3,019


2%

Advanced Materials


295


301


(2)%


1,248


1,267


(1)%

Textile Effects


203


209


(3)%


896


811


10%

Pigments & Additives


559


635


(12)%


2,673


2,761


(3)%

Eliminations and other


(33)


(71)


54%


(219)


(251)


13%














Pro forma total


$2,937


$3,052


(4)%


$12,723


$12,598


1%














Segment Adjusted EBITDA(2):












Polyurethanes


$   171


$   174


(2)%


$     728


$     746


(2)%

Performance Products


111


116


(4)%


473


403


17%

Advanced Materials


43


33


30%


199


131


52%

Textile Effects


6


8


(25)%


58


16


263%

Pigments & Additives


17


60


(72)%


225


215


5%

Corporate, LIFO and other


(48)


(50)


4%


(188)


(188)


----














Pro forma total


$   300


$   341


(12)%


$  1,495


$  1,323


13%














See end of press release for footnote explanations



 

Table 4 -- Factors Impacting Sales Revenue

























Three months ended



December 31, 2014 vs. 2013



Average Selling Price(a)









Local


Exchange


Sales Mix


Sales



Unaudited


Currency


Rate


& Other(c)


Volume(b)


Total












Polyurethanes


(2)%


(2)%


(3)%


5%


(2)%

Performance Products


4%


(2)%


2%


(8)%


(4)%

Advanced Materials


3%


(4)%


4%


(5)%


(2)%

Textile Effects


9%


(3)%


----


(9)%


(3)%

Pigments & Additives


1%


(9)%


110%


(8)%


94%

Total Company


2%


(3)%


12%


(2)%


9%














Twelve months ended



December 31, 2014 vs. 2013



Average Selling Price(a)









Local


Exchange


Sales Mix


Sales



Unaudited


Currency


Rate


& Other(c)


Volume(b)


Total












Polyurethanes


(2)%


----


1%


2%


1%

Performance Products


4%


----


(1)%


(1)%


2%

Advanced Materials


5%


----


4%


(10)%


(1)%

Textile Effects


15%


(1)%


----


(4)%


10%

Pigments & Additives


(6)%


2%


26%


----


22%

Total Company


2%


----


3%


----


5%












(a) Excludes sales from tolling arrangements, by-products and raw materials.

(b) Excludes sales from by-products and raw materials.

(c) Includes full revenue impact from the October 1, 2014 acquisition of the Performance Additives and

        Titanium Dioxide businesses of Rockwood Holdings, Inc.

 

Table 5 -- Factors Impacting Pro Forma(2) Sales Revenue

























Three months ended



December 31, 2014 vs. 2013



Average Selling Price(a)









Local


Exchange


Sales Mix


Sales



Unaudited, pro forma


Currency


Rate


& Other


Volume(b)


Total












Polyurethanes


(2)%


(2)%


(4)%


5%


(3)%

Performance Products


4%


(2)%


2%


(8)%


(4)%

Advanced Materials


3%


(4)%


4%


(5)%


(2)%

Textile Effects


9%


(3)%


----


(9)%


(3)%

Pigments & Additives


(8)%


NA


2%


(6)%


(12)%

Total Company


(2)%


NA


1%


(3)%


(4)%














Twelve months ended



December 31, 2014 vs. 2013



Average Selling Price(a)









Local


Exchange


Sales Mix


Sales



Unaudited, pro forma


Currency


Rate


& Other


Volume(b)


Total












Polyurethanes


(2)%


----


1%


2%


1%

Performance Products


4%


----


(1)%


(1)%


2%

Advanced Materials


5%


----


4%


(10)%


(1)%

Textile Effects


15%


(1)%


----


(4)%


10%

Pigments & Additives


(2)%


NA


----


(1)%


(3)%

Total Company


2%


NA


(1)%


----


1%












NA = foreign exchange rate data not available

(a) Excludes sales from tolling arrangements, by-products and raw materials.

(b) Excludes sales from by-products and raw materials.

 

Table 6 -- Reconciliation of U.S. GAAP to Non-GAAP Measures









































 Income Tax 


 Net (Loss) Income 


 Diluted (Loss) Income 



 EBITDA 


 (Expense) Benefit 


 Attrib. to HUN Corp. 


 Per Share 



Three months ended


Three months ended


Three months ended


Three months ended



December 31,


December 31,


December 31,


December 31,

In millions, except per share amounts, unaudited


2014


2013


2014


2013


2014


2013


2014


2013


















GAAP(1)


$      141


$      225


$      (12)


$      (20)


$      (38)


$       41


$    (0.16)


$     0.17

Adjustments:

















Acquisition and integration expenses, purchase accounting adjustments


40


7


(4)


(3)


36


4


0.15


0.02

Loss from discontinued operations, net of tax(3)


1


2


 N/A 


 N/A 


1


1


-


-

Discount amortization on settlement financing associated with the terminated merger


 N/A 


 N/A 


-


(1)


-


1


-


-

Gain on disposition of businesses/assets


(1)


-


-


-


(1)


-


-


-

Loss on early extinguishment of debt


28


16


(10)


(6)


18


10


0.07


0.04

Certain legal settlements and related expenses


-


1


-


-


-


1


-


-

Amortization of pension and postretirement actuarial losses


14


18


-


(7)


14


11


0.06


0.05

Restructuring, impairment and plant closing and transition costs


69


44


(18)


5


51


49


0.21


0.20


















Adjusted(1)


$      292


$      313


$      (44)


$      (32)


$       81


$      118


$     0.33


$     0.48


















Adjusted income tax expense










44


32





Net income attributable to noncontrolling interests, net of tax










3


1






















Adjusted pre-tax income(1)










$      128


$      151






















Adjusted effective tax rate










34%


21%













































 Income Tax 


 Net Income 


 Diluted Income 



 EBITDA 


Benefit (Expense)


 Attrib. to HUN Corp. 


 Per Share 



Three months ended


Three months ended


Three months ended


Three months ended



September 30,


September 30,


September 30,


September 30,

In millions, except per share amounts, unaudited


2014


2014


2014


2014


















GAAP(1)


$      293




$       40




$      188




$     0.76



Adjustments:

















Acquisition and integration expenses, purchase accounting adjustments


10




(2)




8




0.03



Impact of certain foreign tax credit elections


 N/A 




(94)




(94)




(0.38)



Certain legal settlements and related expenses


1




-




1




-



Amortization of pension and postretirement actuarial losses


12




(2)




10




0.04



Restructuring, impairment and plant closing and transition costs


40




(6)




34




0.14




















Adjusted(1)


$      356




$      (64)




$      147




$     0.60




















Adjusted income tax expense










64







Net income attributable to noncontrolling interests, net of tax










6
























Adjusted pre-tax income(1)










$      217
























Adjusted effective tax rate










29%















































 Income Tax 


 Net Income 


 Diluted Income 



 EBITDA 


 (Expense) Benefit 


 Attrib. to HUN Corp. 


 Per Share 



Twelve months ended


Twelve months ended


Twelve months ended


Twelve months ended



December 31,


December 31,


December 31,


December 31,

In millions, except per share amounts, unaudited


2014


2013


2014


2013


2014


2013


2014


2013


















GAAP(1)


$   1,022


$      889


$      (51)


$     (125)


$      323


$      128


$     1.31


$     0.53

Adjustments:

















Acquisition and integration expenses, purchase accounting adjustments


67


21


(10)


(5)


57


16


0.23


0.07

Impact of certain foreign tax credit elections


 N/A 


 N/A 


(94)


-


(94)


-


(0.38)


-

Loss from discontinued operations, net of tax(3)


10


5


 N/A 


 N/A 


8


5


0.03


0.02

Discount amortization on settlement financing associated with the terminated merger


 N/A 


 N/A 


-


(3)


-


6


-


0.02

Gain on disposition of businesses/assets


(3)


-


1


-


(2)


-


(0.01)


-

Loss on early extinguishment of debt


28


51


(10)


(19)


18


32


0.07


0.13

Certain legal settlements and related expenses


3


9


-


(2)


3


7


0.01


0.03

Amortization of pension and postretirement actuarial losses


51


74


(10)


(20)


41


54


0.17


0.22

Restructuring, impairment and plant closing and transition costs


162


164


(38)


(22)


124


142


0.50


0.59


















Adjusted(1)


$   1,340


$   1,213


$     (212)


$     (196)


$      478


$      390


$     1.94


$     1.61


















Adjusted income tax expense










212


196





Net income attributable to noncontrolling interests, net of tax










22


21






















Adjusted pre-tax income(1)










$      712


$      607






















Adjusted effective tax rate










30%


32%






















See end of press release for footnote explanations







 

Table 7 -- Pro Forma(2) Reconciliation of U.S. GAAP to Non-GAAP Measures


















 Pro Forma EBITDA 



Three months ended



December 31,

In millions, except per share amounts, unaudited, pro forma


2014


2013






GAAP(1)


$    191


$    247

Adjustments:





Allocation of general corporate overhead


-


7

Acquisition and integration expenses, purchase accounting adjustments


(2)


3

Loss from discontinued operations, net of tax(3)


1


2

Gain on disposition of businesses/assets


(1)


-

Loss on early extinguishment of debt


28


16

Certain legal settlements and related expenses


-


1

Amortization of pension and postretirement actuarial losses


14


21

Restructuring, impairment and plant closing and transition costs


69


44






Pro forma adjusted(2)


$    300


$    341


















 Pro Forma EBITDA 



Three months ended



September 30,

In millions, except per share amounts, unaudited pro forma


2014






GAAP(1)


$    333



Adjustments:





Allocation of general corporate overhead


5



Acquisition and integration expenses, purchase accounting adjustments


4



Certain legal settlements and related expenses


1



Amortization of pension and postretirement actuarial losses


13



Restructuring, impairment and plant closing and transition costs


40








Pro forma adjusted(2)


$    396




















 Pro Forma EBITDA 



Twelve months ended



December 31,

In millions, except per share amounts, unaudited pro forma


2014


2013






GAAP(1)


$ 1,214


$    956

Adjustments:





Allocation of general corporate overhead


20


24

Acquisition and integration expenses, purchase accounting adjustments


7


11

Loss from discontinued operations, net of tax(3)


10


5

Gain on disposition of businesses/assets


(3)


-

Loss on early extinguishment of debt


28


68

Certain legal settlements and related expenses


3


9

Amortization of pension and postretirement actuarial losses


54


84

Restructuring, impairment and plant closing and transition costs


162


166






Pro forma adjusted(2)


$ 1,495


$ 1,323






See end of press release for footnote explanations

 

Table 8 -- Reconciliation of Net Income to EBITDA

























Three months ended


 Twelve months ended 



December 31,


September 30,


 December 31, 

In millions, unaudited


2014


2013


2014


2014


2013












Net (loss) income attributable to Huntsman Corporation


$ (38)


$  41


$              188


$   323


$128

Interest expense


57


44


49


205


190

Income tax expense (benefit) from continuing operations


12


20


(40)


51


125

Income tax benefit from discontinued operations(3)


-


(2)


-


(2)


(2)

Depreciation and amortization


110


122


96


445


448












EBITDA(1)


141


225


293


1,022


889












Pro forma adjustments to:











Net income (loss) attributable to Huntsman Corporation


26


(1)


15


75


(28)

Interest expense


1


11


11


34


53

Income tax expense from continuing operations(3)


13


2


4


43


2

Depreciation and amortization


10


10


10


40


40












Pro forma EBITDA(2)


$191


$247


$              333


$1,214


$956












See end of press release for footnote explanations

 

Table 9 -- Selected Balance Sheet Items

















December 31,


September 30,


December 31,

In millions


2014


2014


2013





(unaudited)










Cash


$             870


$              592


$             529

Accounts and notes receivable, net


1,707


1,676


1,575

Inventories


2,025


1,788


1,741

Other current assets


437


438


314

Property, plant and equipment, net


4,423


3,703


3,824

Other assets


1,540


1,212


1,205








Total assets


$        11,002


$            9,409


$          9,188








Accounts payable


$          1,275


$            1,176


$          1,113

Other current liabilities


790


672


769

Current portion of debt


267


274


277

Long-term debt


4,933


3,752


3,633

Other liabilities


1,786


1,139


1,267

Total equity


1,951


2,396


2,129








Total liabilities and equity


$         11,002


$            9,409


$          9,188

 

Table 10 -- Outstanding Debt

















December 31,


September 30,


December 31,

In millions


2014


2014


2013





(unaudited)










Debt:







Senior credit facilities


$          2,528


$            1,339


$          1,351

Accounts receivable programs


229


235


248

Senior notes


1,596


1,219


1,061

Senior subordinated notes


531


890


891

Variable interest entities


207


220


247

Other debt


109


123


112








Total debt - excluding affiliates


5,200


4,026


3,910








Total cash


870


592


529








Net debt- excluding affiliates


$          4,330


$            3,434


$          3,381

 

Table 11 -- Summarized Statement of Cash Flows

















Three months ended


Year ended



December 31,


December 31,

In millions, unaudited


2014


2014


2013








Total cash at beginning of period(a)


$                        592


$  529


$ 396








Net cash provided by operating activities


417


760


708

Net cash used in investing activities


(1,269)


(1,606)


(566)

Net cash provided by (used in) financing activities


1,135


1,197


(6)

Effect of exchange rate changes on cash


(5)


(11)


(3)

Change in restricted cash


-


1


-








Total cash at end of period(a)


$                         870


$  870


$ 529








Supplemental cash flow information:







Cash paid for interest


$                         (63)


$ (208)


$(187)

Cash paid for income taxes


$                           (9)


$ (165)


$  (78)

Cash paid for capital expenditures


$                       (250)


$ (601)


$(471)

Depreciation and amortization


$                         110


$  445


$ 448








Changes in primary working capital:







Accounts and notes receivable


$                        163


$      2


$  (11)

Inventories


92


(20)


77

Accounts payable


(45)


86


(12)








Total cash provided by primary working capital


$                        210


$    68


$   54















(a) Includes restricted cash.



 

Footnotes


(1)

We use EBITDA and adjusted EBITDA to measure the operating performance of our business.  We provide adjusted net income because we feel it provides meaningful insight for the investment community into the performance of our business.  We believe that net income (loss) attributable to Huntsman Corporation is the performance measure calculated and presented in accordance with generally accepted accounting principles in the U.S. ("GAAP") that is most directly comparable to EBITDA, adjusted EBITDA and adjusted net income. Additional information with respect to our use of each of these financial measures follows:




EBITDA is defined as net income (loss) attributable to Huntsman Corporation before interest, income taxes, and depreciation and amortization. EBITDA as used herein is not necessarily comparable to other similarly titled measures of other companies. The reconciliation of EBITDA to net income (loss) attributable to Huntsman Corporation is set forth in Table 5 above.




Adjusted EBITDA is computed by eliminating the following from EBITDA:  (a) acquisition and integration expenses, purchase accounting adjustments; (b) loss (gain) on initial consolidation of subsidiaries; (c) EBITDA from discontinued operations; (d) loss (gain) on disposition of businesses/assets; (e) loss on early extinguishment of debt; (f) extraordinary loss (gain) on the acquisition of a business; (g) certain legal settlements and related expenses; (h) amortization of pension and postretirement actuarial losses (gains); and (i) restructuring, impairment, plant closing and transition costs (credits).  The reconciliation of adjusted EBITDA to EBITDA is set forth in Table 4 above.




Adjusted net income (loss) is computed by eliminating the after tax impact of the following items  from net income (loss) attributable to Huntsman Corporation: (a) acquisition and integration expenses, purchase accounting adjustments; (b) impact of certain foreign tax credit elections; (c) loss (gain) on initial consolidation of subsidiaries; (d) loss (income) from discontinued operations; (e) discount amortization on settlement financing associated with the terminated merger; (f) loss (gain) on disposition of businesses/assets; (g) loss on early extinguishment of debt; (h) extraordinary loss (gain) on the acquisition of a business; (i) certain legal settlements and related expenses; (j) amortization of pension and postretirement actuarial losses (gains); and (k) restructuring, impairment, plant closing and transition costs (credits).   We do not adjust for changes in tax valuation allowances because we do not believe it provides more meaningful information than is provided under GAAP.  The reconciliation of adjusted net income (loss) to net income (loss) attributable to Huntsman Corporation common stockholders is set forth in Table 4 above.



(2)

Pro forma adjusted as if it had occurred at the beginning of the relevant period to include the October 1, 2014 acquisition of the Performance Additives and Titanium Dioxide businesses of Rockwood Holdings, Inc.; exclude the related sale of our TR52 product line – used in printing inks – to Henan Billions Chemicals Co., Ltd. in December 2014; and exclude the allocation of general corporate overhead by Rockwood.



(3)

During the first quarter 2010 we closed our Australian styrenics operations; results from this business are treated as discontinued operations. 

 

About Huntsman:

Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2014 revenues of approximately $13 billion including the acquisition of Rockwood's performance additives and titanium dioxide businesses. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets.  We operate more than 100 manufacturing and R&D facilities in more than 30 countries and employ approximately 16,000 associates within our 5 distinct business divisions.  For more information about Huntsman, please visit the company's website at www.huntsman.com.

Forward-Looking Statements:

Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, financial, economic, competitive, environmental, political, legal, regulatory and technological factors.  The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/huntsman-releases-fourth-quarter-and-full-year-2014-results-full-year-adjusted-earnings-per-share-grows-20-300037560.html

SOURCE Huntsman Corporation