UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
Commission file number
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) |
(Address of principal executive offices) |
(Zip Code) |
Registrant’s telephone number, including area code: (
Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:
Title of each class |
Trading symbol(s) |
Name of each exchange on which registered |
The |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
☒ |
Accelerated filer |
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Non-accelerated filer |
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Smaller reporting company |
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Emerging growth company |
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No
The Company had
INDEX
Part I. |
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Item 1. |
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3 |
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4 |
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5 |
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7 |
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8 |
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10 |
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Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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Item 3. |
30 |
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Item 4. |
30 |
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Part II. |
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Item 2. |
31 |
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Item 5. |
31 |
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Item 6. |
31 |
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2
Part I. Financial Information
Item 1. Financial Statements
CABOT CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
UNAUDITED
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Three Months Ended June 30 |
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Nine Months Ended June 30 |
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2024 |
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2023 |
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2024 |
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2023 |
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(In millions, except per share amounts) |
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Net sales and other operating revenues |
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$ |
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$ |
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$ |
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$ |
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Cost of sales |
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Gross profit |
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Selling and administrative expenses |
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Research and technical expenses |
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Loss on sale of business |
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— |
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— |
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— |
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Income (loss) from operations |
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Interest and dividend income |
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Interest expense |
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Other income (expense) |
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Income (loss) from operations before income taxes |
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(Provision) benefit for income taxes |
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Equity in earnings of affiliated companies, net of tax |
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Net income (loss) |
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Net income (loss) attributable to noncontrolling interests, net |
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Net income (loss) attributable to Cabot Corporation |
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$ |
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$ |
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$ |
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$ |
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Weighted-average common shares outstanding: |
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Basic |
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Diluted |
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Earnings (loss) per common share: |
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Basic |
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$ |
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$ |
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$ |
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$ |
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Diluted |
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$ |
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$ |
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$ |
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$ |
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The accompanying notes are an integral part of these consolidated financial statements.
3
CABOT CORPORATION
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
UNAUDITED
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Three Months Ended June 30 |
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Nine Months Ended June 30 |
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2024 |
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2023 |
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2024 |
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2023 |
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(In millions) |
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Net income (loss) |
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$ |
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$ |
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$ |
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$ |
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Other comprehensive income (loss), net of tax |
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Foreign currency translation adjustment, net of tax |
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Derivatives: net investment hedges |
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(Gains) losses reclassified to interest expense, net of tax |
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(Gains) losses excluded from effectiveness testing and amortized to interest expense, net of tax |
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— |
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Pension and other post-retirement benefit liability adjustments, net of tax |
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— |
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— |
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( |
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Other comprehensive income (loss), net of tax (provision) benefit of $ ( |
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Comprehensive income (loss) |
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Net income (loss) attributable to noncontrolling interests, net |
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Foreign currency translation adjustment attributable to |
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Comprehensive income (loss) attributable to noncontrolling interests |
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Comprehensive income (loss) attributable to Cabot Corporation |
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$ |
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$ |
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$ |
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$ |
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The accompanying notes are an integral part of these consolidated financial statements.
4
CABOT CORPORATION
CONSOLIDATED BALANCE SHEETS
ASSETS
UNAUDITED
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June 30, 2024 |
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September 30, 2023 |
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(In millions) |
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Current assets: |
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Cash and cash equivalents |
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$ |
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$ |
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Accounts and notes receivable, net of reserve for doubtful |
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Inventories: |
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Raw materials |
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Finished goods |
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Other |
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Total inventories |
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Prepaid expenses and other current assets |
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Total current assets |
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Property, plant and equipment |
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Accumulated depreciation |
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( |
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Net property, plant and equipment |
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Goodwill |
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Equity affiliates |
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Intangible assets, net |
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Deferred income taxes |
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Other assets |
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Total assets |
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$ |
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$ |
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The accompanying notes are an integral part of these consolidated financial statements.
5
CABOT CORPORATION
CONSOLIDATED BALANCE SHEETS
LIABILITIES AND STOCKHOLDERS’ EQUITY
UNAUDITED
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June 30, 2024 |
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September 30, 2023 |
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(In millions, except share |
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and per share amounts) |
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Current liabilities: |
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Short-term borrowings |
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$ |
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$ |
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Accounts payable and accrued liabilities |
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Income taxes payable |
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Current portion of long-term debt |
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Total current liabilities |
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Long-term debt |
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Deferred income taxes |
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Other liabilities |
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(Note E) |
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Stockholders' equity: |
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Preferred stock: |
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Authorized: |
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Common stock: |
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Authorized: |
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Less cost of |
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( |
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( |
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Additional paid-in capital |
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— |
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— |
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Retained earnings |
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Accumulated other comprehensive income (loss) |
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( |
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( |
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Total Cabot Corporation stockholders' equity |
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Noncontrolling interests |
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Total stockholders' equity |
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Total liabilities and stockholders' equity |
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$ |
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$ |
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The accompanying notes are an integral part of these consolidated financial statements.
6
CABOT CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
UNAUDITED
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Nine Months Ended June 30 |
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2024 |
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2023 |
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(In millions) |
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Cash Flows from Operating Activities: |
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Net income (loss) |
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$ |
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$ |
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Adjustments to reconcile net income (loss) to cash provided by operating activities: |
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Depreciation and amortization |
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Loss on sale of business |
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— |
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Gain on sale of land |
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— |
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( |
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Deferred tax provision (benefit) |
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( |
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Equity in earnings of affiliated companies |
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( |
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Share-based compensation |
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Other non-cash (income) expense |
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Cash dividends received from equity affiliates |
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Changes in assets and liabilities: |
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Accounts and notes receivable |
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( |
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Inventories |
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Prepaid expenses and other assets |
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( |
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Accounts payable and accrued liabilities |
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( |
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Income taxes payable |
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( |
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( |
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Other liabilities |
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Cash provided by (used in) operating activities |
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Cash Flows from Investing Activities: |
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Additions to property, plant and equipment |
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( |
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Proceeds from sale of land |
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— |
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Proceeds from sale of business |
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— |
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Proceeds from insurance settlements |
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— |
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Other |
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Cash provided by (used in) investing activities |
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( |
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Cash Flows from Financing Activities: |
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Proceeds from short-term borrowings |
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— |
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Repayments of short-term borrowings |
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( |
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Proceeds from issuance (repayments) of commercial paper, net |
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Proceeds from long-term debt, net of issuance costs |
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Repayments of long-term debt |
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( |
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Purchases of common stock |
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Proceeds from sales of common stock |
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Cash dividends paid to noncontrolling interests |
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Cash dividends paid to common stockholders |
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( |
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Cash provided by (used in) financing activities |
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( |
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Effects of exchange rate changes on cash |
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( |
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Increase (decrease) in cash and cash equivalents |
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( |
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Cash and cash equivalents at beginning of period |
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Cash and cash equivalents at end of period |
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$ |
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$ |
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The accompanying notes are an integral part of these consolidated financial statements.
7
CABOT CORPORATION
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
UNAUDITED
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Common Stock, Net of Treasury Stock |
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Additional |
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Retained |
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Accumulated Other Comprehensive |
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Total Cabot Corporation Stockholders’ |
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Noncontrolling |
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Total Stockholders’ |
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Shares |
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Cost |
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Capital |
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Earnings |
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Income (Loss) |
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Equity |
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Interests |
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Equity |
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(In millions, except share amounts) |
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Balance at September 30, 2023 |
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$ |
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$ |
— |
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$ |
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$ |
( |
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$ |
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$ |
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$ |
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Net income (loss) |
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Total other comprehensive income (loss) |
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Cash dividends paid: |
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Common stock, $ |
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( |
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( |
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Cash dividends declared to noncontrolling interests |
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— |
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( |
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( |
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Issuance of stock under equity compensation plans |
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— |
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Share-based compensation |
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Purchase and retirement of common stock |
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( |
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— |
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( |
) |
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( |
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( |
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Balance at December 31, 2023 |
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$ |
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$ |
— |
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$ |
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$ |
( |
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$ |
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$ |
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$ |
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Net income (loss) |
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Total other comprehensive income (loss) |
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( |
) |
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( |
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( |
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( |
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Cash dividends paid: |
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Common stock, $ |
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( |
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( |
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( |
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Cash dividends declared to noncontrolling interests |
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— |
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( |
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( |
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Issuance of stock under equity compensation plans |
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— |
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Share-based compensation |
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|
|
|
|
||||||||
Purchase and retirement of common stock |
|
|
( |
) |
|
|
— |
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
||
Balance at March 31, 2024 |
|
|
|
|
$ |
|
|
$ |
— |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|
$ |
|
||||||
Net income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Total other comprehensive income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
||||
Cash dividends paid: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Common stock, $ |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|||||
Cash dividends declared to noncontrolling interests |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|||||
Issuance of stock under equity compensation plans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Share-based compensation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Purchase and retirement of common stock |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
||
Balance at June 30, 2024 |
|
|
|
|
$ |
|
|
$ |
— |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|
$ |
|
||||||
The accompanying notes are an integral part of these consolidated financial statements.
8
CABOT CORPORATION
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
UNAUDITED
|
|
Common Stock, Net of Treasury Stock |
|
|
Additional |
|
|
Retained |
|
|
Accumulated Other Comprehensive |
|
|
Total Cabot Corporation Stockholders’ |
|
|
Noncontrolling |
|
|
Total Stockholders’ |
|
|||||||||||
|
|
Shares |
|
|
Cost |
|
|
Capital |
|
|
Earnings |
|
|
Income (Loss) |
|
|
Equity |
|
|
Interests |
|
|
Equity |
|
||||||||
|
|
(In millions, except share amounts) |
|
|||||||||||||||||||||||||||||
Balance at September 30, 2022 |
|
|
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|
$ |
|
|||||||
Net income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Total other comprehensive income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cash dividends paid: |
|
|||||||||||||||||||||||||||||||