Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $92.2 million were up 10.4% versus first quarter 2019 adjusted EBITDA of $83.5 million. Adjusted EBITDA margin of 32% was up 180 basis points from the prior year’s first quarter adjusted EBITDA margin of 30.2%.
“Ingevity delivered a strong first quarter, despite initial impacts from the coronavirus, or COVID-19,” said Rick Kelson, Ingevity’s chairman of the board, and interim president and CEO. “We posted adjusted EBITDA that were 10% higher on net sales that were up 4%, and increased our adjusted EBITDA margin by 180 basis points. What’s more, we generated outstanding free cash flow of $41 million. This enabled us to reduce our leverage which now stands at 2.7 times net debt to adjusted EBITDA.”
Kelson said that the effects of the coronavirus on first quarter financial results were not as severe as the company had expected in mid-February.
“The reduction in Chinese auto demand muted our Performance Materials results to the extent we expected; however, most other COVID-19 related impacts in Performance Chemicals appear to have been delayed,” he said. “We expect the effects of the coronavirus to more significantly begin in the second quarter.”