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Huntsman Reports Third Quarter 2015 Adjusted EBITDA Of $311 Million And Announces Major Reduction In Planned Capital Expenditures

THE WOODLANDS, Texas, Oct. 27, 2015 /PRNewswire/ --

Third Quarter 2015 Highlights

  • Announces $150 million reduction in planned capital expenditures for 2016 and 2017 combined.
  • Announces intention to enter into a $100 million accelerated share repurchase transaction as part of the board authorized $150 million share repurchase program.
  • Pigments and Additives synergy and restructuring savings remain on track, planned separation well advanced.
  • Adjusted EBITDA was $311 million compared to $356 million in the prior year period and $385 million in the prior quarter.
  • Adjusted diluted income per share was $0.47 compared to $0.60 in the prior year period and $0.63 in the prior quarter.
  • Net income attributable to Huntsman Corporation was $55 million compared to net income of $188 million in the prior year period and $29 million in the prior quarter.
  • The stronger U.S. dollar reduced adjusted EBITDA by an estimated $43 million compared to the prior year period.

 




Three months ended


Nine months ended



September 30,


June 30,


September 30,

In millions, except per share amounts, unaudited


2015


2014


2015


2015


2014












Revenues


$2,638


$2,884


$  2,740


$7,967


$8,627












Net income attributable to Huntsman Corporation


$     55


$   188


$      29


$     89


$   361

Adjusted net income(1)


$   115


$   147


$    155


$   368


$   397












Diluted income per share


$  0.22


$  0.76


$   0.12


$  0.36


$  1.47

Adjusted diluted income per share(1)


$  0.47


$  0.60


$   0.63


$  1.49


$  1.62












EBITDA(1)


$   255


$   293


$    216


$   630


$   881

Adjusted EBITDA(1)


$   311


$   356


$    385


$   981


$1,048


See end of press release for footnote explanations

Huntsman Corporation (NYSE: HUN) today reported third quarter 2015 results with revenues of $2,638 million and adjusted EBITDA of $311 million. 

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

"We are aggressively focused on those elements within our business that we can control and are fully committed to an improvement in our free cash flow generation.  We reduced our planned capital expenditures by a combined total of $150 million over the next two years and are determined to deliver more than $100 million of future synergy and restructuring savings.  We expect our 2016 free cash flow to improve by at least $350 million.

"As an expression of confidence in the company's future and our ability to deliver further shareholder value the board authorized $150 million of share repurchases.  We intend to enter into a $100 million accelerated share repurchase transaction which will be completed within the next several months.

"Our board of directors has made it clear that we intend to exit the TiO2 business.  We have narrowed our options to just two – one comprises a TiO2 spin to our shareholders and the other option constitutes a more strategic move.  More information will be forthcoming in the near future." 

Segment Analysis for 3Q15 Compared to 3Q14

Polyurethanes

The decrease in revenues in our Polyurethanes division for the three months ended September 30, 2015 compared to the same period in 2014 was primarily due to lower average selling prices partially offset by higher sales volumes.  MDI average selling prices decreased in response to lower raw material costs and the currency exchange impact of a stronger U.S. dollar against major European currencies.  PO/MTBE average selling prices decreased in-line with lower pricing for high octane gasoline.  PO/MTBE sales volumes increased primarily as a result of not experiencing an unplanned manufacturing disruption at our Port Neches, Texas facility as we did in the third quarter 2014.  MDI sales volumes decreased due to lower demand in the Asian and Americas regions partially offset by growth in the European region.  The decrease in adjusted EBITDA was primarily due to the foreign currency exchange impact of a stronger U.S. dollar against major European currencies and lower MDI sales volumes partially offset by higher MDI contribution margins.

Performance Products

The decrease in revenues in our Performance Products division for the three months ended September 30, 2015 compared to the same period in 2014 was primarily due to lower average selling prices, partially offset by higher sales volumes.  Average selling prices decreased primarily in response to lower raw material costs and the foreign currency exchange impact of a stronger U.S. dollar against major European currencies.  Sales volumes increased primarily due to higher sales volumes of ethylene oxide intermediates.  The decrease in adjusted EBITDA was primarily due to lower contribution margins in our upstream intermediates business, partially offset by higher contribution margins in our amines and maleic anhydride businesses.

Advanced Materials

The decrease in revenues in our Advanced Materials division for the three months ended September 30, 2015 compared to the same period in 2014 was due to lower sales volumes and lower average selling prices.  Sales volumes decreased primarily due to the de-selection of certain business, customer destocking and competitive pressure.  Average selling prices increased on a local currency basis in the Americas due to certain price increase initiatives and our focus on higher value markets; overall this was more than offset by the foreign currency exchange impact of a stronger U.S. dollar against major international currencies.  The decrease in adjusted EBITDA was primarily due to the foreign currency exchange impact of a stronger U.S. dollar against major international currencies.

Textile Effects

The decrease in revenues in our Textile Effects division for the three months ended September 30, 2015 compared to the same period in 2014 was due to lower average selling prices and lower sales volumes.  Average selling prices decreased in response to lower raw material costs and the foreign currency exchange impact of a stronger U.S. dollar against major international currencies.  Sales volumes decreased primarily due to the de-selection of lower value business and challenging market conditions.  The decrease in adjusted EBITDA was primarily due to the foreign currency exchange impact of a stronger U.S. dollar against major international currencies.

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 September 30, 2015 compared to the same period in 2014 due to lower average selling prices and lower sales volumes.  Average selling prices decreased primarily as a result of high titanium dioxide industry inventory levels and the foreign currency exchange impact of a stronger U.S. dollar against major European currencies.  Sales volumes decreased primarily as a result of lower end use demand and the impact of a nitrogen tank explosion owned and operated by a third party at our Uerdingen, Germany facility which disrupted our manufacturing.  The decrease in pro forma adjusted EBITDA was primarily due to lower contribution margins for titanium dioxide and the negative impact from the manufacturing disruption at our Uerdingen, Germany facility.  The total impact from the manufacturing disruption was approximately $8 million approximately $5 million related to lost sales volumes and unabsorbed fixed costs and approximately $3 million related to clean up costs that have been excluded from adjusted EBITDA.

Corporate, LIFO and Other

Adjusted EBITDA from Corporate, LIFO and Other decreased by $1 million to a loss of $50 million for the three months ended September 30, 2015 compared to a loss of $49 million for the same period in 2014.

Liquidity, Capital Resources and Outstanding Debt

As of September 30, 2015, we had $1,215 million of combined cash and unused borrowing capacity compared to $1,601 million at December 31, 2014.

In August 2015, we entered into an amendment of our credit agreement.  The amendment extends $773 million of our term loan B from 2017 to 2019.

In September 2015, we redeemed $198 million of 8 5/8% senior subordinated notes due 2021 with cash on hand.

We expect to spend approximately $450 million annually on capital expenditures in 2016 and 2017.  This represents a combined reduction of $150 million compared to prior guidance. 

Income Taxes

During the three months ended September 30, 2015, we recorded an income tax expense of $49 million and paid $51 million in cash for income taxes.  Our adjusted effective income tax rate for the three months ended September 30, 2015 was 26%.

We expect our 2015 and long term adjusted effective tax rate to be approximately 30%.

Earnings Conference Call Information

We will hold a conference call to discuss our third quarter 2015 financial results on Tuesday, October 27, 2015 at 10:00 a.m. ET.

Call-in numbers for the conference call:
U.S. participants                           (888) 679 - 8034
International participants                (617) 213 - 4847
Passcode                                    36096009

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=PN7J4EM4U

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 October 27, 2015 and ending November 4, 2015.

Call-in numbers for the replay:
U.S. participants                        (888) 286 - 8010
International participants             (617) 801 - 6888
Replay code                              29385180

Upcoming Conferences

During the fourth quarter a member of management will present at the Citi Basic Materials Conference, December 1, 2015.  A webcast of the presentation, if applicable, along with accompanying materials will be available at ir.huntsman.com.

 

Table 1 – Results of Operations




Three months ended


Nine months ended



September 30,


September 30,

In millions, except per share amounts, unaudited


2015


2014


2015


2014










Revenues


$2,638


$2,884


$7,967


$8,627

Cost of goods sold


2,165


2,369


6,495


7,157

Gross profit


473


515


1,472


1,470

Operating expenses


290


274


859


811

Restructuring, impairment and plant closing costs


14


39


221


91

Operating income


169


202


392


568

Interest expense


(49)


(49)


(158)


(148)

Equity in income of investment in unconsolidated affiliates


-


2


5


6

Loss on early extinguishment of debt


(8)


-


(31)


-

Other expense


-


(1)


(2)


-

Income before income taxes


112


154


206


426

Income tax (expense) benefit


(49)


40


(85)


(39)

Income from continuing operations


63


194


121


387

Loss from discontinued operations, net of tax(3)


-


-


(4)


(7)

Net income


63


194


117


380

Net income attributable to noncontrolling interests, net of tax


(8)


(6)


(28)


(19)

Net income attributable to Huntsman Corporation


$     55


$   188


$     89


$   361



















Adjusted EBITDA(1)


$   311


$   356


$   981


$1,048










Adjusted net income(1)


$   115


$   147


$   368


$   397



















Basic income per share


$  0.23


$  0.77


$  0.36


$  1.49

Diluted income per share


$  0.22


$  0.76


$  0.36


$  1.47

Adjusted diluted income per share(1)


$  0.47


$  0.60


$  1.49


$  1.62










Common share information:









Basic shares outstanding


244


243


244


242

Diluted shares


247


247


247


246

Diluted shares for adjusted diluted income per share


247


247


247


246










See end of press release for footnote explanations

 

Table 2 – Results of Operations by Segment




Three months ended



Nine months ended





September 30,


Better /


September 30,


Better /

In millions, unaudited


2015


2014


(Worse)


2015


2014


(Worse)














Segment Revenues:













Polyurethanes


$1,017


$1,321


(23)%


$2,902


$3,831


(24)%

Performance Products


618


762


(19)%


1,949


2,360


(17)%

Advanced Materials


275


310


(11)%


847


953


(11)%

Textile Effects


196


221


(11)%


618


693


(11)%

Pigments & Additives


543


318


71%


1,707


976


75%

Eliminations and other


(11)


(48)


77%


(56)


(186)


70%














Total


$2,638


$2,884


(9)%


$7,967


$8,627


(8)%














Segment Adjusted EBITDA(1):












Polyurethanes


$   168


$   187


(10)%


$   432


$   551


(22)%

Performance Products


122


129


(5)%


384


362


6%

Advanced Materials


56


57


(2)%


172


156


10%

Textile Effects


10


14


(29)%


50


52


(4)%

Pigments & Additives


5


18


(72)%


61


67


(9)%

Corporate, LIFO and other


(50)


(49)


(2)%


(118)


(140)


16%














Total


$   311


$   356


(13)%


$   981


$1,048


(6)%














See end of press release for footnote explanations

 

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




Three months ended



Nine months ended





September 30,


Better /


September 30,


Better /

In millions, unaudited, pro forma


2015


2014


(Worse)


2015


2014


(Worse)














Segment Revenues:













Polyurethanes


$1,017


$1,327


(23)%


$2,902


$3,852


(25)%

Performance Products


618


762


(19)%


1,949


2,360


(17)%

Advanced Materials


275


310


(11)%


847


953


(11)%

Textile Effects


196


221


(11)%


618


693


(11)%

Pigments & Additives


543


685


(21)%


1,707


2,114


(19)%

Eliminations and other


(11)


(48)


77%


(56)


(186)


70%














Pro forma total


$2,638


$3,257


(19)%


$7,967


$9,786


(19)%














Segment Adjusted EBITDA(1):












Polyurethanes


$   168


$   188


(11)%


$   432


$   557


(22)%

Performance Products


122


129


(5)%


384


362


6%

Advanced Materials


56


57


(2)%


172


156


10%

Textile Effects


10


14


(29)%


50


52


(4)%

Pigments & Additives


5


57


(91)%


61


208


(71)%

Corporate, LIFO and other


(50)


(49)


(2)%


(118)


(140)


16%














Pro forma total


$   311


$   396


(21)%


$   981


$1,195


(18)%














See end of press release for footnote explanations

 

Table 4 – Factors Impacting Sales Revenues




Three months ended



September 30, 2015 vs. 2014



Average Selling Price(a)









Local


Exchange


Sales Mix


Sales



Unaudited


Currency


Rate


& Other(c)


Volume(b)


Total












Polyurethanes


(13)%


(5)%


(7)%


2%


(23)%

Performance Products


(10)%


(5)%


(5)%


1%


(19)%

Advanced Materials


2%


(9)%


(2)%


(2)%


(11)%

Textile Effects


(1)%


(7)%


1%


(4)%


(11)%

Pigments & Additives


(12)%


(8)%


98%


(7)%


71%

Total Company


(9)%


(6)%


5%


1%


(9)%














Nine months ended



September 30, 2015 vs. 2014



Average Selling Price(a)









Local


Exchange


Sales Mix


Sales



Unaudited


Currency


Rate


& Other(c)


Volume(b)


Total












Polyurethanes


(9)%


(6)%


3%


(12)%


(24)%

Performance Products


(6)%


(5)%


(2)%


(4)%


(17)%

Advanced Materials


3%


(9)%


(1)%


(4)%


(11)%

Textile Effects


(1)%


(6)%


4%


(8)%


(11)%

Pigments & Additives


(9)%


(9)%


100%


(7)%


75%

Total Company


(6)%


(7)%


13%


(8)%


(8)%












(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 Revenues




Three months ended



September 30, 2015 vs. 2014



Average









Selling


Sales Mix


Sales



Unaudited, pro forma


Price(a)


& Other


Volume(b)


Total










Polyurethanes


(18)%


(7)%


2%


(23)%

Performance Products


(15)%


(5)%


1%


(19)%

Advanced Materials


(7)%


(2)%


1%

(e)

(8)%

Textile Effects


(8)%


1%


(4)%


(11)%

Pigments & Additives


(18)%


1%


(3)%

(f)

(20)%

Total Company


(16)%


(4)%


1%

(e)(f)

(19)%












Nine months ended



September 30, 2015 vs. 2014



Average









Selling


Sales Mix


Sales



Unaudited, pro forma


Price(a)


& Other


Volume(b)


Total










Polyurethanes


(15)%


2%


(2)%

(c)

(15)%

Performance Products


(11)%


(2)%


----

(d)

(13)%

Advanced Materials


(6)%


(1)%


(1)%

(e)

(8)%

Textile Effects


(7)%


4%


(8)%


(11)%

Pigments & Additives


(18)%


1%


(2)%

(f)

(19)%

Total Company


(14)%


3%


(2)%

(c)(d)(e)(f)

(13)%


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

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

(c) Excludes volume impact from planned maintenance at our PO/MTBE facility in 1H15.

(d) Excludes volume impact from closure of our European surfactants plant in 2Q14.

(e) Excludes volume impact from de-selection of lower margin business in 2015.

(f) Excludes volume impact from nitrogen tank incident at our Uerdingen, Germany facility in 3Q15.

 

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








 Income Tax 


 Net Income 


 Diluted Income 



 EBITDA 


 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


2015


2014


2015


2014


2015


2014


2015


2014


















GAAP(1)


$ 255


$    293


$   (49)


$    40


$   55


$      188


$  0.22


$  0.76

Adjustments:

















Acquisition and integration expenses, purchase accounting adjustments


10


10


(2)


(2)


8


8


0.03


0.03

Impact of certain foreign tax credit elections


 N/A 


 N/A 


-


(94)


-


(94)


-


(0.38)

Loss from discontinued operations, net of tax(3)


1


-


 N/A 


 N/A 


-


-


-


-

Loss on early extinguishment of debt


8


-


(3)


-


5


-


0.02


-

Certain legal settlements and related expenses


1


1


-


-


1


1


-


-

Plant incident remediation costs


3


-


(1)


-


2


-


0.01


-

Amortization of pension and postretirement actuarial losses


19


12


(4)


(2)


15


10


0.06


0.04

Restructuring, impairment, plant closing and transition costs


14


40


15


(6)


29


34


0.12


0.14


















Adjusted(1)


$ 311


$    356


$   (44)


$   (64)


$ 115


$      147


$  0.47


$  0.60


















Adjusted income tax expense










44


64





Net income attributable to noncontrolling interests, net of tax










8


6






















Adjusted pre-tax income(1)










$ 167


$      217






















Adjusted effective tax rate










26%


29%













































 Income Tax 


 Net Income


 Diluted Income



 EBITDA 


Expense


Attrib. to HUN Corp. 


Per Share 



Three months ended


Three months ended


Three months ended


Three months ended



June 30,


June 30,


June 30,


June 30,

In millions, except per share amounts, unaudited


2015


2015


2015


2015


















GAAP(1)


$ 216




$   (34)




$   29




$  0.12



Adjustments:

















Acquisition and integration expenses, purchase accounting adjustments


12




(3)




9




0.04



Loss from discontinued operations, net of tax(3)


1




 N/A 




2




0.01



Loss on disposition of businesses/assets


1




-




1




-



Loss on early extinguishment of debt


20




(7)




13




0.05



Certain legal settlements and related expenses


1




(1)




-




-



Amortization of pension and postretirement actuarial losses


19




(5)




14




0.06



Restructuring, impairment, plant closing and transition costs


115




(28)




87




0.35




















Adjusted(1)


$ 385




$   (78)




$ 155




$  0.63




















Adjusted income tax expense










78







Net income attributable to noncontrolling interests, net of tax










10
























Adjusted pre-tax income(1)










$ 243
























Adjusted effective tax rate










32%















































 Income Tax 


 Net Income 


 Diluted Income 



 EBITDA 


 Expense (Benefit) 


 Attrib. to HUN Corp. 


 Per Share 



Nine months ended


Nine months ended


Nine months ended


Nine months ended



September 30,


September 30,


September 30,


September 30,

In millions, except per share amounts, unaudited


2015


2014


2015


2014


2015


2014


2015


2014


















GAAP(1)


$ 630


$    881


$   (85)


$   (39)


$   89


$      361


$  0.36


$  1.47

Adjustments:

















Acquisition and integration expenses, purchase accounting adjustments


31


27


(7)


(6)


24


21


0.10


0.09

Impact of certain foreign tax credit elections


 N/A 


 N/A 


-


(94)


-


(94)


-


(0.38)

Loss from discontinued operations, net of tax(3)


3


9


 N/A 


 N/A 


4


7


0.02


0.03

Loss (gain) on disposition of businesses/assets


1


(2)


-


1


1


(1)


-


-

Loss on early extinguishment of debt


31


-


(11)


-


20


-


0.08


-

Certain legal settlements and related expenses


3


3


(1)


-


2


3


0.01


0.01

Plant incident remediation costs


3


-


(1)


-


2


-


0.01


-

Amortization of pension and postretirement actuarial losses


56


37


(14)


(10)


42


27


0.17


0.11

Restructuring, impairment, plant closing and transition costs


223


93


(39)


(20)


184


73


0.74


0.30


















Adjusted(1)


$ 981


$ 1,048


$ (158)


$ (168)


$ 368


$      397


$  1.49


$  1.62


















Adjusted income tax expense










158


168





Net income attributable to noncontrolling interests, net of tax










28


19






















Adjusted pre-tax income(1)










$ 554


$      584






















Adjusted effective tax rate










29%


29%






















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



September 30,

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


2015


2014






GAAP(1)


$ 255


$    333

Adjustments:





Allocation of Rockwood general corporate overhead


-


5

Acquisition and integration expenses, purchase accounting adjustments


10


4

Loss from discontinued operations, net of tax(3)


1


-

Loss on early extinguishment of debt


8


-

Certain legal settlements and related expenses


1


1

Plant incident remediation costs


3


-

Amortization of pension and postretirement actuarial losses


19


13

Restructuring, impairment, plant closing and transition costs


14


40






Pro forma adjusted(2)


$ 311


$    396













 Pro Forma EBITDA 



Three months ended



June 30,

In millions, except per share amounts, unaudited pro forma


2015






GAAP(1)


$ 216



Adjustments:





Acquisition and integration expenses, purchase accounting adjustments


12



Loss from discontinued operations, net of tax(3)


1



Loss on disposition of businesses/assets


1



Loss on early extinguishment of debt


20



Certain legal settlements and related expenses


1



Amortization of pension and postretirement actuarial losses


19



Restructuring, impairment, plant closing and transition costs


115








Pro forma adjusted(2)


$ 385















 Pro Forma EBITDA 



Nine months ended



September 30,

In millions, except per share amounts, unaudited pro forma


2015


2014






GAAP(1)


$ 630


$ 1,023

Adjustments:





Allocation of general corporate overhead


-


20

Acquisition and integration expenses, purchase accounting adjustments


31


9

Loss from discontinued operations, net of tax(3)


3


9

Loss (gain) on disposition of businesses/assets


1


(2)

Loss on early extinguishment of debt


31


-

Certain legal settlements and related expenses


3


3

Plant incident remediation costs


3


-

Amortization of pension and postretirement actuarial losses


56


40

Restructuring, impairment, plant closing and transition costs


223


93






Pro forma adjusted(2)


$ 981


$ 1,195






See end of press release for footnote explanations

 

Table 8 – Reconciliation of Net Income to EBITDA




Three months ended


 Nine months ended 



September 30,


June 30,


 September 30, 

In millions, unaudited


2015


2014


2015


2015


2014












Net income attributable to Huntsman Corporation


$  55


$188


$      29


$  89


$   361

Interest expense


49


49


53


158


148

Income tax expense (benefit) from continuing operations


49


(40)


34


85


39

Income tax (benefit) expense from discontinued operations(3)

(1)


-


1


1


(2)

Depreciation and amortization


103


96


99


297


335












EBITDA(1)


255


293


216


630


881












Pro forma adjustments to:











Net income attributable to Huntsman Corporation


-


15


-


-


49

Interest expense


-


11


-


-


33

Income tax expense (benefit) from continuing operations


-


4


-


-


30

Depreciation and amortization


-


10


-


-


30












Pro forma EBITDA(2)


$255


$333


$    216


$630


$1,023












See end of press release for footnote explanations

 

Table 9 – Selected Balance Sheet Items




September 30,


June 30,


December 31,

In millions


2015


2015


2014



(unaudited)


(unaudited)










Cash


$              437


$     608


$             870

Accounts and notes receivable, net


1,632


1,754


1,707

Inventories


1,850


1,938


2,025

Other current assets


332


295


437

Property, plant and equipment, net


4,380


4,328


4,423

Other assets


1,605


1,655


1,540








Total assets


$          10,236


$10,578


$         11,002








Accounts payable


$            1,068


$  1,209


$          1,275

Other current liabilities


839


786


790

Current portion of debt


158


127


267

Long-term debt


4,709


4,920


4,933

Other liabilities


1,671


1,694


1,786

Total equity


1,791


1,842


1,951








Total liabilities and equity


$          10,236


$10,578


$         11,002

 

Table 10 – Outstanding Debt




September 30,


June 30,


December 31,

In millions


2015


2015


2014



(unaudited)


(unaudited)










Debt:







Senior credit facilities


$            2,507


$  2,509


$          2,528

Accounts receivable programs


217


217


229

Senior notes


1,883


1,884


1,596

Senior subordinated notes


-


198


531

Variable interest entities


158


165


207

Other debt


102


74


109








Total debt - excluding affiliates


4,867


5,047


5,200








Total cash


437


608


870








Net debt- excluding affiliates


$            4,430


$  4,439


$          4,330








 

Table 11 – Summarized Statement of Cash Flows




Three months ended


Nine months ended



September 30,


September 30,

In millions, unaudited


2015


2015


2014








Total cash at beginning of period(a)


$                 608


$ 870


$ 529








Net cash provided by operating activities


206


387


343

Net cash used in investing activities


(150)


(383)


(337)

Net cash (used in) provided by financing activities


(216)


(418)


62

Effect of exchange rate changes on cash


(6)


(13)


(6)

Change in restricted cash


(5)


(6)


1








Total cash at end of period(a)


$                 437


$ 437


$ 592








Supplemental cash flow information:







Cash paid for interest


$                  (43)


$(158)


$(145)

Cash paid for income taxes


(51)


(81)


(156)

Cash paid for capital expenditures


(158)


(454)


(351)

Depreciation and amortization


103


297


335








Changes in primary working capital:







Accounts and notes receivable


$                   89


$  (53)


$(161)

Inventories


39


46


(112)

Accounts payable


(123)


(111)


131








Total cash provided by (used in) primary working capital


$                    5


$(118)


$(142)















(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 8 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) plant incident remediation costs; (i) amortization of pension and postretirement actuarial losses (gains); and (j) restructuring, impairment, plant closing and transition costs (credits).  The reconciliation of adjusted EBITDA to EBITDA is set forth in Table 6 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) plant incident remediation costs; (k) amortization of pension and postretirement actuarial losses (gains); and (l) 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 6 above.



(2)

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

Social Media:

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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-reports-third-quarter-2015-adjusted-ebitda-of-311-million-and-announces-major-reduction-in-planned-capital-expenditures-300166572.html

SOURCE Huntsman Corporation