Price | 88.45 | EPS | 3 | |
Shares | 25 | P/E | 27 | |
MCap | 2,186 | P/FCF | 21 | |
Net Debt | 21 | EBIT | 107 | |
TEV | 2,207 | TEV/EBIT | 21 | TTM 2019-09-30, in MM, except price, ratios |
10-K | 2020-12-31 | Filed 2021-02-17 |
10-Q | 2020-09-30 | Filed 2020-11-04 |
10-Q | 2020-06-30 | Filed 2020-08-05 |
10-Q | 2020-03-31 | Filed 2020-05-06 |
10-K | 2019-12-31 | Filed 2020-02-19 |
10-Q | 2019-09-30 | Filed 2019-11-06 |
10-Q | 2019-06-30 | Filed 2019-08-06 |
10-Q | 2019-03-31 | Filed 2019-05-08 |
10-K | 2018-12-31 | Filed 2019-02-20 |
10-Q | 2018-09-30 | Filed 2018-11-07 |
10-Q | 2018-06-30 | Filed 2018-08-08 |
10-Q | 2018-03-31 | Filed 2018-05-09 |
10-K | 2017-12-31 | Filed 2018-02-15 |
10-Q | 2017-09-30 | Filed 2017-11-08 |
10-Q | 2017-06-30 | Filed 2017-08-09 |
10-Q | 2017-03-31 | Filed 2017-05-10 |
10-K | 2016-12-31 | Filed 2017-02-15 |
10-Q | 2016-09-30 | Filed 2016-11-03 |
10-Q | 2016-06-30 | Filed 2016-08-03 |
10-Q | 2016-03-31 | Filed 2016-05-04 |
10-K | 2015-12-31 | Filed 2016-02-17 |
10-Q | 2015-09-30 | Filed 2015-11-04 |
10-Q | 2015-06-30 | Filed 2015-08-05 |
10-Q | 2015-03-31 | Filed 2015-05-06 |
10-K | 2014-12-31 | Filed 2015-02-17 |
10-Q | 2014-09-30 | Filed 2014-11-05 |
10-Q | 2014-06-30 | Filed 2014-08-06 |
10-Q | 2014-03-31 | Filed 2014-05-07 |
10-K | 2013-12-31 | Filed 2014-02-13 |
10-Q | 2013-09-30 | Filed 2013-11-06 |
10-Q | 2013-06-30 | Filed 2013-08-08 |
10-Q | 2013-03-31 | Filed 2013-05-07 |
10-K | 2012-12-31 | Filed 2013-02-13 |
10-Q | 2012-06-30 | Filed 2012-08-09 |
10-Q | 2012-03-31 | Filed 2012-05-08 |
10-K | 2011-12-31 | Filed 2012-02-17 |
10-Q | 2011-09-30 | Filed 2011-11-02 |
10-Q | 2011-06-30 | Filed 2011-08-09 |
10-Q | 2011-03-31 | Filed 2011-05-10 |
10-K | 2010-12-31 | Filed 2011-02-18 |
10-Q | 2010-09-30 | Filed 2010-11-02 |
10-Q | 2010-06-30 | Filed 2010-08-04 |
10-Q | 2010-03-31 | Filed 2010-05-07 |
10-K | 2009-12-31 | Filed 2010-02-19 |
8-K | 2020-11-03 | |
8-K | 2020-11-03 | |
8-K | 2020-11-01 | |
8-K | 2020-09-16 | |
8-K | 2020-08-04 | |
8-K | 2020-05-06 | |
8-K | 2020-05-05 | |
8-K | 2020-03-01 | |
8-K | 2020-02-18 | |
8-K | 2020-02-17 | |
8-K | 2019-11-05 | |
8-K | 2019-09-26 | |
8-K | 2019-08-06 | |
8-K | 2019-07-01 | |
8-K | 2019-06-01 | |
8-K | 2019-05-24 | |
8-K | 2019-05-08 | |
8-K | 2019-05-07 | |
8-K | 2019-04-05 | |
8-K | 2019-02-19 | |
8-K | 2018-11-06 | |
8-K | 2018-08-07 | |
8-K | 2018-05-09 | |
8-K | 2018-05-08 | |
8-K | 2018-04-24 | |
8-K | 2018-03-12 | |
8-K | 2018-02-13 |
Part I |
Item 1 Business |
Item 1A Risk Factors |
Item 1B Unresolved Staff Comments |
Item 2 Properties |
Item 3 Legal Proceedings |
Item 4 Mine Safety Disclosures |
Part II |
Item 5 Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |
Item 6 Selected Financial Data |
Item 7 Management's Discussion and Analysis of Financial Condition and Results of Operations |
Item 7A Quantitative and Qualitative Disclosures About Market Risk |
Item 8 Financial Statements and Supplementary Data |
Note 1. Nature of Operation |
Note 2. Accounting Policies |
Note 3. Segment Reporting and Geographical Area Data |
Note 4. Earnings per Share |
Note 5. Restructuring |
Note 6. Property, Plant and Equipment |
Note 7. Leases |
Note 8. |
Note 9. Other Intangible Assets |
Note 10. Pension and Post - Employment Benefits |
Note 11. Income Taxes |
Note 12. Long - Term Debt |
Note 13. Plant Closure Provisions |
Note 14. Fair Value Measurements |
Note 15. Derivative Instruments and Risk Management |
Note 16. Commitments and Contingencies |
Note 17. Stockholders' Equity |
Note 18. Stock - Based Compensation Plans |
Note 19. Reclassifications Out of Accumulated Other Comprehensive Loss |
Note 20. Recently Issued Accounting Pronouncements |
Note 21. Related Party Transactions |
Note 22. Subsequent Events |
Item 9 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure |
Item 9A Controls and Procedures |
Item 9B Other Information |
Part III |
Item 10 Directors, Executive Officers and Corporate Governance |
Item 11 Executive Compensation |
Item 12 Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters |
Item 13 Certain Relationships and Related Transactions, and Director Independence |
Item 14 Principal Accountant Fees and Services |
Part IV |
Item 15 Exhibits and Financial Statement Schedules |
Item 16 Form 10 - K Summary |
EX-21.1 | d123834dex211.htm |
EX-23.1 | d123834dex231.htm |
EX-23.2 | d123834dex232.htm |
EX-31.1 | d123834dex311.htm |
EX-31.2 | d123834dex312.htm |
EX-32.1 | d123834dex321.htm |
EX-32.2 | d123834dex322.htm |
Balance Sheet | Income Statement | Cash Flow |
---|---|---|
Assets, Equity
|
Rev, G Profit, Net Income
|
Ops, Inv, Fin
|
ANNUALREPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||
For the fiscal year ended | ||
or | ||
TRANSITIONREPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
State or other jurisdiction of incorporation or organization | (I.R.S. Employer Identification No.) | |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Title of each class | Name of each exchange on which registered | |
N/A | N/A |
☒ | Accelerated filer | ☐ | ||||
Non-accelerated filer | ☐ | Smaller reporting company | ||||
Emerging growth company |
2 | ||||||
Item 1 | 2 | |||||
Item 1A | 9 | |||||
Item 1B | 21 | |||||
Item 2 | 22 | |||||
Item 3 | 23 | |||||
Item 4 | 23 | |||||
24 | ||||||
Item 5 | 24 | |||||
Item 6 | 26 | |||||
Item 7 | 28 | |||||
Item 7A | 48 | |||||
Item 8 | 51 | |||||
Item 9 | 101 | |||||
Item 9A | 101 | |||||
Item 9B | 102 | |||||
102 | ||||||
Item 10 | 102 | |||||
Item 11 | 103 | |||||
Item 12 | 103 | |||||
Item 13 | 103 | |||||
Item 14 | 103 | |||||
104 | ||||||
Item 15 | 104 | |||||
Item 16 | 108 | |||||
109 |
Item 1 | Business |
• | Fuel Specialties |
• | Performance Chemicals |
• | Oilfield Services |
• | Octane Additives (ceased trading June 30, 2020) |
Item 1A | Risk Factors |
• | any derivative action or proceeding brought on behalf of the Corporation, |
• | any action asserting a claim of breach of a fiduciary duty owed by any director, officer, other employee or stockholder of the Corporation to the Corporation or the Corporation’s stockholders, |
• | any action asserting a claim arising pursuant to any provision of the Delaware General Corporation Law (“DGCL”), the Certificate of Incorporation, the By-laws, or as to which the DGCL confers jurisdiction upon the Court of Chancery of the State of Delaware, |
• | any action asserting a claim governed by the internal affairs doctrine, or |
• | any other internal corporate claim as defined in Section 115 of the DGCL. |
Item 1B | Unresolved Staff Comments |
Item 2 | Properties |
Location | Reporting Segment | Operations | ||
Englewood, Colorado (1) | Fuel Specialties and Performance Chemicals | Corporate Headquarters Business Teams Sales/Administration | ||
Newark, Delaware (1) | Fuel Specialties | Research & Development | ||
Herne, Germany | Fuel Specialties | Sales/Manufacturing/Administration Research & Development | ||
Vernon, France | Fuel Specialties | Sales/Manufacturing/Administration Research & Development | ||
Moscow, Russia (1) | Fuel Specialties | Sales/Administration | ||
Leuna, Germany | Fuel Specialties | Sales/Manufacturing/Administration Research & Development | ||
Ellesmere Port, United Kingdom | Fuel Specialties, Performance Chemicals and Octane Additives | European Headquarters Business Teams Sales/Manufacturing/Administration Research & Development Fuel Technology Center | ||
Beijing, China (1) | Fuel Specialties and Performance Chemicals | Sales/Administration | ||
Singapore (1) | Fuel Specialties and Performance Chemicals | Asia-Pacific Headquarters Business Teams Sales/Administration | ||
Milan, Italy (1) | Fuel Specialties and Performance Chemicals | Sales/Administration | ||
Rio de Janeiro, Brazil (1) | Fuel Specialties, Performance Chemicals and Oilfield Services | Sales/Administration | ||
High Point, North Carolina | Performance Chemicals | Manufacturing/Administration Research & Development | ||
Salisbury, North Carolina | Performance Chemicals | Manufacturing/Administration Research & Development | ||
Chatsworth, California (1) | Performance Chemicals | Sales/Manufacturing/Administration | ||
Saint Mihiel, France | Performance Chemicals | Manufacturing/Administration/Research & Development | ||
Castiglione, Italy | Performance Chemicals | Manufacturing/Administration/Research & Development | ||
Barcelona, Spain (1) | Performance Chemicals | Manufacturing/Administration/Research & Development |
Location | Reporting Segment | Operations | ||
Oklahoma City, Oklahoma | Oilfield Services | Sales/Manufacturing/Administration | ||
Midland, Texas | Oilfield Services | Sales/Manufacturing/Administration | ||
Pleasanton, Texas | Oilfield Services | Sales/Manufacturing/Administration | ||
Sugar Land, Texas (1) | Oilfield Services | Sales/Administration/Research & Development | ||
The Woodlands, Houston, Texas (1) | Oilfield Services | Sales/Administration/Research & Development | ||
Williston, North Dakota | Oilfield Services | Sales/Warehouse | ||
Casper, Wyoming (1) | Oilfield Services | Warehouse |
(1) | Leased property |
Item 3 | Legal Proceedings |
Item 4 | Mine Safety Disclosures |
Item 5 | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |
2015 | 2016 | 2017 | 2018 | 2019 | 2020 | |||||||||||||||||||
Innospec Inc. | $ | 100.00 | $ | 127.36 | $ | 132.70 | $ | 117.76 | $ | 199.17 | $ | 176.70 | ||||||||||||
S&P 500 Index | 100.00 | 111.96 | 136.40 | 130.42 | 171.49 | 203.04 | ||||||||||||||||||
NASDAQ Composite Index | 100.00 | 108.09 | 140.12 | 135.09 | 186.79 | 269.70 | ||||||||||||||||||
Russell 2000 Index | $ | 100.00 | $ | 121.31 | $ | 139.08 | $ | 123.76 | $ | 155.35 | $ | 186.36 |
Item 6 | Selected Financial Data |
(in millions, except financial ratios, share and per share data) | 2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||
Summary of performance: | ||||||||||||||||||||
Net sales | $ | 1,193.1 | $ | 1,513.3 | $ | 1,476.9 | $ | 1,306.8 | $ | 883.4 | ||||||||||
Operating income | 33.7 | 149.9 | 133.5 | 125.0 | 98.2 | |||||||||||||||
Income before income taxes | 39.7 | 150.4 | 131.6 | 128.1 | 103.1 | |||||||||||||||
Income taxes | (11.0 | ) | (38.2 | ) | (46.6 | ) | (66.3 | ) | (21.8 | ) | ||||||||||
Net income | 28.7 | 112.2 | 85.0 | 61.8 | 81.3 | |||||||||||||||
Net income attributable to Innospec Inc. | 28.7 | 112.2 | 85.0 | 61.8 | 81.3 | |||||||||||||||
Net cash provided by operating activities | $ | 145.9 | $ | 161.6 | $ | 104.9 | $ | 82.7 | $ | 105.5 | ||||||||||
Financial position at year end: | ||||||||||||||||||||
Total assets | $ | 1,397.4 | $ | 1,468.8 | $ | 1,473.4 | $ | 1,410.2 | $ | 1,181.4 | ||||||||||
Long-term debt including finance leases (including current portion) | 0.6 | 60.1 | 210.9 | 224.3 | 273.3 | |||||||||||||||
Cash, cash equivalents, and short-term investments | 105.3 | 75.7 | 123.1 | 90.2 | 101.9 | |||||||||||||||
Total equity | $ | 944.9 | $ | 918.9 | $ | 825.5 | $ | 794.3 | $ | 653.8 | ||||||||||
Financial ratios: | ||||||||||||||||||||
Net income attributable to Innospec Inc. as a percentage of net sales | 2.4 | 7.4 | 5.8 | 4.7 | 9.2 | |||||||||||||||
Effective tax rate as a percentage (1) | 27.7 | 25.4 | 35.4 | 51.8 | 21.1 | |||||||||||||||
Current ratio (2) | 2.3 | 2.1 | 2.2 | 2.1 | 2.4 | |||||||||||||||
Share data: | ||||||||||||||||||||
Earnings per share attributable to Innospec Inc. | ||||||||||||||||||||
– Basic | $ | 1.17 | $ | 4.58 | $ | 3.48 | $ | 2.56 | $ | 3.39 | ||||||||||
– Diluted | $ | 1.16 | $ | 4.54 | $ | 3.45 | $ | 2.52 | $ | 3.33 | ||||||||||
Dividend paid per share | $ | 1.04 | $ | 1.02 | $ | 0.89 | $ | 0.77 | $ | 0.67 | ||||||||||
Shares outstanding (basic, thousands) | ||||||||||||||||||||
– At year end | 24,596 | 24,507 | 24,434 | 24,350 | 24,071 | |||||||||||||||
– Average during year | 24,563 | 24,482 | 24,401 | 24,148 | 23,998 |
(1) | The effective tax rate is calculated as income taxes as a percentage of income before income taxes. Income taxes are impacted in 2017 by the provisional estimates recorded in respect of the Tax Cuts and Jobs Act of 2017 (“Tax Act”), and in 2018 by the finalization and recording of additional taxes due as a consequence of the Tax Act. Income taxes in 2019 and 2020 are calculated under the new legislation of the Tax Act. |
(2) | Current ratio is defined as current assets divided by current liabilities. |
(in millions, except per share data) | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||
2020 | ||||||||||||||||
Net sales | $ | 372.3 | $ | 244.9 | $ | 265.1 | $ | 310.8 | ||||||||
Gross profit | 113.9 | 59.1 | 78.7 | 91.0 | ||||||||||||
Operating income | 40.9 | (53.4 | ) | 16.8 | 29.4 | |||||||||||
Net income | 33.1 | (39.7 | ) | 12.7 | 22.6 | |||||||||||
Net cash provided by operating activities | $ | 2.4 | $ | 29.8 | $ | 55.5 | $ | 58.2 | ||||||||
Per common share: | ||||||||||||||||
Earnings – basic | $ | 1.35 | $ | (1.62 | ) | $ | 0.52 | $ | 0.92 | |||||||
– diluted | $ | 1.34 | $ | (1.62 | ) | $ | 0.51 | $ | 0.91 | |||||||
2019 | ||||||||||||||||
Net sales | $ | 388.3 | $ | 362.4 | $ | 371.9 | $ | 390.7 | ||||||||
Gross profit | 117.8 | 111.1 | 119.1 | 118.2 | ||||||||||||
Operating income | 36.2 | 31.7 | 38.2 | 43.8 | ||||||||||||
Net income | 28.7 | 22.3 | 30.1 | 31.1 | ||||||||||||
Net cash provided by operating activities | $ | 13.2 | $ | 50.0 | $ | 40.0 | $ | 58.4 | ||||||||
Per common share: | ||||||||||||||||
Earnings – basic | $ | 1.17 | $ | 0.91 | $ | 1.23 | $ | 1.27 | ||||||||
– diluted | $ | 1.17 | $ | 0.90 | $ | 1.22 | $ | 1.26 |
Item 7 | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
(in millions) | 2020 | 2019 | 2018 | |||||||||
Net sales: | ||||||||||||
Fuel Specialties | $ | 512.7 | $ | 583.7 | $ | 574.5 | ||||||
Performance Chemicals | 425.4 | 428.7 | 468.1 | |||||||||
Oilfield Services | 255.0 | 479.9 | 400.6 | |||||||||
Octane Additives | 0.0 | 21.0 | 33.7 | |||||||||
| | | | | | |||||||
$ | 1.193.1 | $ | 1,513.3 | $ | 1,476.9 | |||||||
| | | | | | |||||||
Gross profit: | ||||||||||||
Fuel Specialties | $ | 160.3 | $ | 204.5 | $ | 195.0 | ||||||
Performance Chemicals | 103.8 | 100.1 | 97.5 | |||||||||
Oilfield Services | 80.8 | 159.9 | 130.4 | |||||||||
Octane Additives | (2.2 | ) | 1.7 | 12.1 | ||||||||
| | | | | | |||||||
$ | 342.7 | $ | 466.2 | $ | 435.0 | |||||||
| | | | | | |||||||
Operating income: | ||||||||||||
Fuel Specialties | $ | 84.5 | $ | 116.6 | $ | 116.3 | ||||||
Performance Chemicals | 54.8 | 48.7 | 44.7 | |||||||||
Oilfield Services | (9.5 | ) | 39.7 | 22.1 | ||||||||
Octane Additives | (2.8 | ) | (0.7 | ) | 9.9 | |||||||
Corporate costs | (52.2 | ) | (54.4 | ) | (52.4 | ) | ||||||
Restructuring charge | (21.3 | ) | 0.0 | (7.1 | ) | |||||||
Impairment of intangible assets | (19.8 | ) | 0.0 | 0.0 | ||||||||
| | | | | | |||||||
Total operating income | $ | 33.7 | $ | 149.9 | $ | 133.5 | ||||||
| | | | | | |||||||
Other income, net | $ | 7.8 | $ | 5.3 | $ | 5.0 | ||||||
Interest expense, net | (1.8 | ) | (4.8 | ) | (6.9 | ) | ||||||
| | | | | | |||||||
Income before income taxes | 39.7 | 150.4 | 131.6 | |||||||||
Income taxes | (11.0 | ) | (38.2 | ) | (46.6 | ) | ||||||
| | | | | | |||||||
Net income | $ | 28.7 | $ | 112.2 | $ | 85.0 | ||||||
| | | | | |
(in millions, except ratios) | 2020 | 2019 | Change | |||||||||||||
Net sales: | ||||||||||||||||
Fuel Specialties | $ | 512.7 | $ | 583.7 | $ | (71.0 | ) | -12 | % | |||||||
Performance Chemicals | 425.4 | 428.7 | (3.3 | ) | -1 | % | ||||||||||
Oilfield Services | 255.0 | 479.9 | (224.9 | ) | -47 | % | ||||||||||
Octane Additives | 0.0 | 21.0 | (21.0 | ) | -100 | % | ||||||||||
| | | | | | |||||||||||
$ | 1,193.1 | $ | 1,513.3 | $ | (320.2 | ) | -21 | % | ||||||||
| | | | | | |||||||||||
Gross profit: | ||||||||||||||||
Fuel Specialties | $ | 160.3 | $ | 204.5 | (44.2 | ) | -22 | % | ||||||||
Performance Chemicals | 103.8 | 100.1 | 3.7 | +4 | % | |||||||||||
Oilfield Services | 80.8 | 159.9 | (79.1 | ) | -49 | % | ||||||||||
Octane Additives | (2.2 | ) | 1.7 | (3.9 | ) | -229 | % | |||||||||
| | | | | | |||||||||||
$ | 342.7 | $ | 466.2 | (123.5 | ) | -26 | % | |||||||||
| | | | | | |||||||||||
Gross margin (%): | ||||||||||||||||
Fuel Specialties | 31.3 | 35.0 | -3.7 | |||||||||||||
Performance Chemicals | 24.4 | 23.3 | 1.1 | |||||||||||||
Oilfield Services | 31.7 | 33.3 | -1.6 | |||||||||||||
Octane Additives | 0.0 | 8.1 | -8.1 | |||||||||||||
Aggregate | 28.7 | 30.8 | -2.1 | |||||||||||||
Operating expenses: | ||||||||||||||||
Fuel Specialties | $ | (75.8 | ) | $ | (87.9 | ) | $ | 12.1 | -14 | % | ||||||
Performance Chemicals | (49.0 | ) | (51.4 | ) | 2.4 | -5 | % | |||||||||
Oilfield Services | (90.3 | ) | (120.2 | ) | 29.9 | -25 | % | |||||||||
Octane Additives | (0.6 | ) | (2.4 | ) | 1.8 | -75 | % | |||||||||
Corporate costs | (52.2 | ) | (54.4 | ) | 2.2 | -4 | % | |||||||||
Restructuring charge | (21.3 | ) | 0.0 | (21.3 | ) | n/a | ||||||||||
Impairment of intangible assets | (19.8 | ) | 0.0 | (19.8 | ) | n/a | ||||||||||
| | | | | | |||||||||||
$ | (309.0 | ) | $ | (316.3 | ) | $ | 7.3 | -2 | % | |||||||
| | | | | |
Change (%) | Americas | EMEA | ASPAC | AvTel | Total | |||||||||||||||
Volume | -7 | -8 | -11 | +11 | -7 | |||||||||||||||
Price and product mix | -1 | -7 | -10 | -19 | -6 | |||||||||||||||
Exchange rates | 0 | +2 | 0 | 0 | +1 | |||||||||||||||
| | | | | | | | | | |||||||||||
-8 | -13 | -21 | -8 | -12 | ||||||||||||||||
| | | | | | | | | |
Change (%) | Americas | EMEA | ASPAC | Total | ||||||||||||
Volume | +13 | -1 | +14 | +4 | ||||||||||||
Price and product mix | -12 | -4 | +3 | -6 | ||||||||||||
Exchange rates | 0 | +2 | +1 | +1 | ||||||||||||
| | | | | | | | |||||||||
+1 | -3 | +18 | -1 | |||||||||||||
| | | | | | | |
2020 | 2019 | Change | ||||||||||
United Kingdom pension credit | $ | 6.2 | $ | 7.7 | $ | (1.5 | ) | |||||
German pension charge | (0.9 | ) | (0.5 | ) | (0.4 | ) | ||||||
Foreign exchange gains/(losses) on translation | 4.0 | (1.3 | ) | 5.3 | ||||||||
Foreign currency forward contracts losses | (1.5 | ) | (0.6 | ) | (0.9 | ) | ||||||
| | | | | | |||||||
$ | 7.8 | $ | 5.3 | $ | 2.5 | |||||||
| | | | | |
(in millions, except ratios) | 2020 | 2019 | ||||||
Income before income taxes | $ | 39.7 | $ | 150.4 | ||||
Adjustment for stock compensation | 5.8 | 6.6 | ||||||
Indemnification asset regarding tax audit | 0.2 | (1.6 | ) | |||||
Restructuring charge | 21.3 | 0.0 | ||||||
Impairment of acquired intangible assets | 19.8 | 0.0 | ||||||
Legacy cost of closed operations | 2.5 | 0.0 | ||||||
Acquisition costs | 4.2 | 0.0 | ||||||
| | | | |||||
Adjusted income before income taxes | $ | 93.5 | $ | 155.4 | ||||
| | | | |||||
Income taxes | $ | 11.0 | $ | 38.2 | ||||
Adjustment of income tax provisions | 0.7 | (2.5 | ) | |||||
Tax on stock compensation | 1.7 | 0.9 | ||||||
Tax on restructuring charge | 4.3 | 0.0 | ||||||
Tax on impairment of acquired intangible asset | 4.6 | 0.0 | ||||||
Tax on site closure provision | 0.0 | (0.7 | ) | |||||
Tax loss on distribution | 0.4 | 1.2 | ||||||
Change in UK statutory tax rate | (2.7 | ) | 0.0 | |||||
Tax on legacy cost of closed operations | 0.5 | 0.0 | ||||||
Tax on acquisition costs | 0.9 | 0.0 | ||||||
Other discrete items | 0.6 | (2.0 | ) | |||||
| | | | |||||
Adjusted income taxes | $ | 22.0 | $ | 35.1 | ||||
| | | | |||||
GAAP effective tax rate | 27.7 | % | 25.4 | % | ||||
| | | | |||||
Adjusted effective tax rate | 23.5 | % | 22.6 | % | ||||
| | | |
(in millions, except ratios) | 2019 | 2018 | Change | |||||||||||||
Net sales: | ||||||||||||||||
Fuel Specialties | $ | 583.7 | $ | 574.5 | $ | 9.2 | +2 | % | ||||||||
Performance Chemicals | 428.7 | 468.1 | (39.4 | ) | -8 | % | ||||||||||
Oilfield Services | 479.9 | 400.6 | 79.3 | +20 | % | |||||||||||
Octane Additives | 21.0 | 33.7 | (12.7 | ) | -38 | % | ||||||||||
| | | | | | |||||||||||
$ | 1,513.3 | $ | 1,476.9 | $ | 36.4 | +2 | % | |||||||||
| | | | | | |||||||||||
Gross profit: | ||||||||||||||||
Fuel Specialties | $ | 204.5 | $ | 195.0 | $ | 9.5 | +5 | % | ||||||||
Performance Chemicals | 100.1 | 97.5 | 2.6 | +3 | % | |||||||||||
Oilfield Services | 159.9 | 130.4 | 29.5 | +23 | % | |||||||||||
Octane Additives | 1.7 | 12.1 | (10.4 | ) | -86 | % | ||||||||||
| | | | | | |||||||||||
$ | 466.2 | $ | 435.0 | $ | 31.2 | +7 | % | |||||||||
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Gross margin (%): | ||||||||||||||||
Fuel Specialties | 35.0 | 33.9 | +1.1 | |||||||||||||
Performance Chemicals | 23.3 | 20.8 | +2.5 | |||||||||||||
Oilfield Services | 33.3 | 32.6 | +0.7 | |||||||||||||
Octane Additives | 8.1 | 35.9 | -27.8 | |||||||||||||
Aggregate | 30.8 | 29.5 | +1.3 | |||||||||||||
Operating expenses: | ||||||||||||||||
Fuel Specialties | $ | (87.9 | ) | $ | (78.7 | ) | $ | (9.2 | ) | +12 | % | |||||
Performance Chemicals | (51.4 | ) | (52.8 | ) | 1.4 | -3 | % | |||||||||
Oilfield Services | (120.2 | ) | (108.3 | ) | (11.9 | ) | +11 | % | ||||||||
Octane Additives | (2.4 | ) | (2.2 | ) | (0.2 | ) | +9 | % | ||||||||
Corporate costs | (54.4 | ) | (52.4 | ) | (2.0 | ) | +4 | % | ||||||||
Restructuring charge | 0.0 | (7.1 | ) | 7.1 | -100 | % | ||||||||||
| | | | | | |||||||||||
$ | (316.3 | ) | $ | (301.5 | ) | $ | (14.8 | ) | +5 | % | ||||||
| | | | | |
Change (%) | Americas | EMEA | ASPAC | AvTel | Total | |||||||||||||||
Volume | -8 | +4 | +3 | +52 | +3 | |||||||||||||||
Price and product mix | +6 | +4 | +8 | -37 | +3 | |||||||||||||||
Exchange rates | 0 | -8 | -1 | 0 | -4 | |||||||||||||||
| | | | | | | | | | |||||||||||
-2 | 0 | +10 | +15 | +2 | ||||||||||||||||
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