Adjusted earnings of $62.2 million were up 26.2% versus prior year quar-ter of $49.3 million. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $114.0 million were up 25.7% versus third quarter 2018 adjusted EBITDA of $90.7 million. Adjusted EBITDA margin of 31.7% was up 260 basis points from the prior year’s third quarter adjusted EBITDA margin of 29.1%.
Operating cash flow increased 25% to $118.7 million versus the prior year quarter; free cash flow in the quarter increased 40% to $97 million versus the prior year quarter
“In the face of challenging global economic conditions, we delivered a strong third quarter performance in line with our expectations,” said Michael Wilson, Ingevity’s president and CEO. “We posted earnings that were 26% higher on revenues that were up 16%. What’s more, we generated outstanding free cash flow of $97 million, up 40% versus the prior year’s quarter that reduced our leverage and brought our net debt to adjusted EBITDA down to 2.9 times.”
Ingevity revised its fiscal year 2019 guidance to sales from between $1.28 billion and $1.30 billion and adjusted EBITDA from between $390 million and $400 million.
“Despite challenging global macroeconomic conditions, we will, nevertheless, deliver strong year-over-year results for 2019,” said Wilson.