10.28.21
Ingevity Corporation reported its third quarter 2021 financial results.
Third quarter net sales of $376.8 million rose 13.6% versus the prior year third quarter. Net loss of $4.2 million included a pre-tax expense of $85 million to record a previously disclosed adverse litigation verdict. Third quarter diluted loss per share was $0.11 compared to diluted earnings per share (EPS) of $1.69 in the prior year period.
Adjusted earnings of $64.4 million decreased 13.2% versus the prior year quarter. Diluted adjusted EPS were $1.62, which exclude, net of tax, $0.09 related to restructuring and other charges, net, and $1.64 of litigation-related expense recognized during the quarter. This compares to diluted adjusted EPS of $1.79 in the prior year quarter. Compared to third quarter of last year, adjusted EBITDA of $119.5 million decreased 6.3% and adjusted EBITDA margin of 31.7% decreased 680 basis points. Operating cash flow of $100.1 million drove free cash flow that was up 1.5% to $74.6 million.
“Our third quarter results were driven by markedly higher Performance Chemicals volumes in Engineered Polymers and Industrial Specialties and were supported by price increases across the segment,” said John Fortson, president and CEO. “The prolonged impact of the global microchip shortage continues to depress automotive production, negatively impacting our activated carbon product sales. As a result, Performance Materials sales and adjusted EBITDA were down compared to 2020’s third quarter when demand and production rebounded sharply from pandemic lows.”
“We also faced challenges from rising raw materials costs and supply chain disruptions,” added Fortson.
Third quarter net sales of $376.8 million rose 13.6% versus the prior year third quarter. Net loss of $4.2 million included a pre-tax expense of $85 million to record a previously disclosed adverse litigation verdict. Third quarter diluted loss per share was $0.11 compared to diluted earnings per share (EPS) of $1.69 in the prior year period.
Adjusted earnings of $64.4 million decreased 13.2% versus the prior year quarter. Diluted adjusted EPS were $1.62, which exclude, net of tax, $0.09 related to restructuring and other charges, net, and $1.64 of litigation-related expense recognized during the quarter. This compares to diluted adjusted EPS of $1.79 in the prior year quarter. Compared to third quarter of last year, adjusted EBITDA of $119.5 million decreased 6.3% and adjusted EBITDA margin of 31.7% decreased 680 basis points. Operating cash flow of $100.1 million drove free cash flow that was up 1.5% to $74.6 million.
“Our third quarter results were driven by markedly higher Performance Chemicals volumes in Engineered Polymers and Industrial Specialties and were supported by price increases across the segment,” said John Fortson, president and CEO. “The prolonged impact of the global microchip shortage continues to depress automotive production, negatively impacting our activated carbon product sales. As a result, Performance Materials sales and adjusted EBITDA were down compared to 2020’s third quarter when demand and production rebounded sharply from pandemic lows.”
“We also faced challenges from rising raw materials costs and supply chain disruptions,” added Fortson.