Company Quick10K Filing
NL Industries
Price4.08 EPS1
Shares49 P/E8
MCap199 P/FCF11
Net Debt-138 EBIT26
TEV61 TEV/EBIT2
TTM 2019-09-30, in MM, except price, ratios
10-Q 2020-06-30 Filed 2020-08-05
10-Q 2020-03-31 Filed 2020-05-06
10-K 2019-12-31 Filed 2020-03-11
10-Q 2019-09-30 Filed 2019-11-07
10-Q 2019-06-30 Filed 2019-08-07
10-Q 2019-03-31 Filed 2019-05-09
10-K 2018-12-31 Filed 2019-03-11
10-Q 2018-09-30 Filed 2018-11-07
10-Q 2018-06-30 Filed 2018-08-07
10-Q 2018-03-31 Filed 2018-05-08
10-K 2017-12-31 Filed 2018-03-12
10-Q 2017-09-30 Filed 2017-11-08
10-Q 2017-06-30 Filed 2017-08-08
10-Q 2017-03-31 Filed 2017-05-08
10-K 2016-12-31 Filed 2017-03-10
10-Q 2016-09-30 Filed 2016-11-07
10-Q 2016-06-30 Filed 2016-08-05
10-Q 2016-03-31 Filed 2016-05-06
10-K 2015-12-31 Filed 2016-03-10
10-Q 2015-09-30 Filed 2015-11-06
10-Q 2015-06-30 Filed 2015-08-07
10-Q 2015-03-31 Filed 2015-05-08
10-K 2014-12-31 Filed 2015-03-12
10-Q 2014-09-30 Filed 2014-11-07
10-Q 2014-06-30 Filed 2014-08-07
10-Q 2014-03-31 Filed 2014-05-08
10-K 2013-12-31 Filed 2014-03-12
10-Q 2013-09-30 Filed 2013-11-06
10-Q 2013-06-30 Filed 2013-08-07
10-Q 2013-03-31 Filed 2013-05-08
10-K 2012-12-31 Filed 2013-03-12
10-Q 2012-09-30 Filed 2012-11-06
10-Q 2012-06-30 Filed 2012-08-09
10-Q 2012-03-31 Filed 2012-05-09
10-K 2011-12-31 Filed 2012-03-06
10-Q 2011-09-30 Filed 2011-11-03
10-Q 2011-06-30 Filed 2011-08-03
10-Q 2011-03-31 Filed 2011-05-04
10-K 2010-12-31 Filed 2011-03-07
10-Q 2010-09-30 Filed 2010-11-01
10-Q 2010-06-30 Filed 2010-08-03
10-Q 2010-03-31 Filed 2010-05-04
10-K 2009-12-31 Filed 2010-03-10
8-K 2020-08-05 Earnings, Regulation FD, Exhibits
8-K 2020-05-21
8-K 2020-05-06
8-K 2020-04-22
8-K 2020-03-13
8-K 2020-03-11
8-K 2020-02-19
8-K 2019-11-07
8-K 2019-09-03
8-K 2019-08-07
8-K 2019-07-24
8-K 2019-07-16
8-K 2019-05-16
8-K 2019-05-16
8-K 2019-05-09
8-K 2019-03-18
8-K 2019-03-08
8-K 2018-11-07
8-K 2018-08-07
8-K 2018-05-17
8-K 2018-05-08
8-K 2018-03-15
8-K 2018-03-12

NL 10Q Quarterly Report

Note 1 - Organization and Basis of Presentation:
Note 3 - Inventories, Net:
Note 4 - Marketable Securities:
Note 5 - Investment in Kronos Worldwide, Inc.:
Note 6 - Other Assets, Net:
Note 7 - Accrued and Other Current Liabilities:
Note 8 - Long - Term Debt:
Note 9 - Other Noncurrent Liabilities:
Note 10 - Revenue Recognition:
Note 11 - Employee Benefit Plans:
Note 12 - Income Taxes:
Note 13 - Accumulated Other Comprehensive Loss:
Note 14 - Commitments and Contingencies:
Note 15 - Financial Instruments and Fair Value Measurements:
Note 16 - Recent Accounting Pronouncement:
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosure About Market Risk
Item 4. Controls and Procedures
Part II. Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 6. Exhibits
EX-31.1 nl-ex311_13.htm
EX-31.2 nl-ex312_14.htm
EX-32.1 nl-ex321_120.htm

NL Industries Earnings 2020-06-30

Balance SheetIncome StatementCash Flow
2.11.71.30.80.40.02012201420172020
Assets, Equity
1.00.80.60.30.1-0.12012201420172020
Rev, G Profit, Net Income
0.10.10.0-0.0-0.1-0.12012201420172020
Ops, Inv, Fin

10-Q 1 nl-10q_20200630.htm 10-Q nl-10q_20200630.htm

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

☒  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2020

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 1-640

 

NL INDUSTRIES, INC.

(Exact name of Registrant as specified in its charter)

 

 

New Jersey

 

13-5267260

(State or other jurisdiction of

incorporation or organization)

 

(IRS Employer Identification No.)

5430 LBJ Freeway, Suite 1700

Dallas, Texas 75240-2620

(Address of principal executive offices)

Registrant’s telephone number, including area code: (972) 233-1700

 

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

 

Trading Symbol(s)

 

Name of each exchange on which registered

Common stock

 

NL

 

NYSE

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 and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  

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).    Yes      No  

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.

Large accelerated filer          

Accelerated filer

Non-accelerated filer

Smaller reporting company  

Emerging growth company  

 

 

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 Act).    Yes      No  

Number of shares of the registrant’s common stock, $.125 par value per share, outstanding on July 31, 2020:  48,788,984.

 

 


NL INDUSTRIES, INC. AND SUBSIDIARIES

INDEX

 

 

 

Page
number

Part I.

FINANCIAL INFORMATION

 

 

Item 1.

Financial Statements

 

 

 

Condensed Consolidated Balance Sheets -
December 31, 2019;  J
une 30, 2020 (unaudited)

3

 

 

Condensed Consolidated Statements of Income (unaudited) -
Three a
nd six months ended June 30, 2019 and 2020

5

 

 

Condensed Consolidated Statements of Comprehensive Income (unaudited) - Three and
six months ended June 30, 2019 and 2020

6

 

 

Condensed Consolidated Statements of Equity (unaudited) -
Three and six months ended June 30, 2019 and 2020

7

 

 

Condensed Consolidated Statements of Cash Flows (unaudited) -
Six months ended June 30, 2019 and 2020

8

 

 

Notes to Condensed Consolidated Financial Statements (unaudited)

9

 

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

20

 

Item 3.

Quantitative and Qualitative Disclosure About Market Risk

38

 

Item 4.

Controls and Procedures

38

 

 

 

 

 

 

Part II.

OTHER INFORMATION

 

 

Item 1.

Legal Proceedings

39

 

Item 1A.

Risk Factors

39

 

Item 6.

Exhibits

39

Items 2, 3, 4 and 5 of Part II are omitted because there is no information to report.

 

 

 

2

 


 

NL INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

 

 

December 31,

 

 

June 30,

 

 

2019

 

 

2020

 

 

 

 

 

 

(unaudited)

 

ASSETS

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

Cash and cash equivalents

$

129,730

 

 

$

134,301

 

Restricted cash and cash equivalents

 

2,695

 

 

 

2,718

 

Accounts and other receivables, net

 

11,929

 

 

 

11,756

 

Inventories, net

 

18,348

 

 

 

21,818

 

Receivables from affiliates

 

581

 

 

 

7

 

Prepaid expenses and other

 

1,401

 

 

 

1,044

 

 

 

 

 

 

 

 

 

Total current assets

 

164,684

 

 

 

171,644

 

 

 

 

 

 

 

 

 

Other assets:

 

 

 

 

 

 

 

Restricted cash and cash equivalents

 

25,445

 

 

 

25,462

 

Note receivable from affiliate

 

28,100

 

 

 

30,500

 

Marketable securities

 

26,877

 

 

 

12,552

 

Investment in Kronos Worldwide, Inc.

 

248,355

 

 

 

243,840

 

Goodwill

 

27,156

 

 

 

27,156

 

Other assets, net

 

5,860

 

 

 

5,386

 

 

 

 

 

 

 

 

 

Total other assets

 

361,793

 

 

 

344,896

 

 

 

 

 

 

 

 

 

Property and equipment:

 

 

 

 

 

 

 

Land

 

4,940

 

 

 

4,940

 

Buildings

 

23,047

 

 

 

23,054

 

Equipment

 

67,718

 

 

 

68,739

 

Construction in progress

 

1,002

 

 

 

557

 

 

 

96,707

 

 

 

97,290

 

Less accumulated depreciation

 

65,692

 

 

 

67,364

 

 

 

 

 

 

 

 

 

Net property and equipment

 

31,015

 

 

 

29,926

 

 

 

 

 

 

 

 

 

Total assets

$

557,492

 

 

$

546,466

 

 

3

 


 

NL INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)

(In thousands)

 

 

December 31,

 

 

June 30,

 

 

2019

 

 

2020

 

 

 

 

 

 

(unaudited)

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

Accounts payable

$

3,438

 

 

$

2,868

 

Accrued litigation settlement

 

11,830

 

 

 

11,943

 

Accrued and other current liabilities

 

10,601

 

 

 

7,544

 

Accrued environmental remediation and related costs

 

3,065

 

 

 

3,132

 

Payables to affiliates

 

801

 

 

 

757

 

Income taxes

 

73

 

 

 

103

 

 

 

 

 

 

 

 

 

Total current liabilities

 

29,808

 

 

 

26,347

 

 

 

 

 

 

 

 

 

Noncurrent liabilities:

 

 

 

 

 

 

 

Long-term debt from affiliate

 

500

 

 

 

500

 

Accrued environmental remediation and related costs

 

91,443

 

 

 

90,701

 

Long-term litigation settlement

 

60,081

 

 

 

60,654

 

Deferred income taxes

 

33,957

 

 

 

28,092

 

Accrued pension costs

 

8,230

 

 

 

7,485

 

Other

 

6,260

 

 

 

6,158

 

 

 

 

 

 

 

 

 

Total noncurrent liabilities

 

200,471

 

 

 

193,590

 

 

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

 

 

NL stockholders' equity:

 

 

 

 

 

 

 

Common stock

 

6,094

 

 

 

6,098

 

Additional paid-in capital

 

299,102

 

 

 

299,093

 

Retained earnings

 

251,000

 

 

 

253,597

 

Accumulated other comprehensive loss

 

(251,690

)

 

 

(255,521

)

 

 

 

 

 

 

 

 

Total NL stockholders' equity

 

304,506

 

 

 

303,267

 

 

 

 

 

 

 

 

 

Noncontrolling interest in subsidiary

 

22,707

 

 

 

23,262

 

 

 

 

 

 

 

 

 

Total equity

 

327,213

 

 

 

326,529

 

 

 

 

 

 

 

 

 

Total liabilities and equity

$

557,492

 

 

$

546,466

 

Commitments and contingencies (Note 14)

 

See accompanying notes to Condensed Consolidated Financial Statements.

 

 

 

4

 


 

NL INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share data)

 

 

 

Three months ended

 

 

Six months ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2019

 

 

2020

 

 

2019

 

 

2020

 

 

 

(unaudited)

 

Net sales

 

$

33,730

 

 

$

23,800

 

 

$

64,907

 

 

$

56,111

 

Cost of sales

 

 

22,791

 

 

 

16,434

 

 

 

44,344

 

 

 

38,314

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross margin

 

 

10,939

 

 

 

7,366

 

 

 

20,563

 

 

 

17,797

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expense

 

 

5,317

 

 

 

4,997

 

 

 

10,650

 

 

 

10,408

 

Other operating income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Insurance recoveries

 

 

4,714

 

 

 

86

 

 

 

4,997

 

 

 

108

 

Litigation settlement expense, net

 

 

(19,571

)

 

 

-

 

 

 

(19,571

)

 

 

-

 

Corporate expense

 

 

(3,654

)

 

 

(2,441

)

 

 

(5,710

)

 

 

(4,949

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from operations

 

 

(12,889

)

 

 

14

 

 

 

(10,371

)

 

 

2,548

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity in earnings of Kronos Worldwide, Inc.

 

 

8,944

 

 

 

5,651

 

 

 

18,169

 

 

 

13,858

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and dividend income

 

 

2,123

 

 

 

501

 

 

 

3,642

 

 

 

1,632

 

Marketable equity securities

 

 

9,486

 

 

 

(2,252

)

 

 

14,948

 

 

 

(14,325

)

Other components of net periodic pension and OPEB cost

 

 

(428

)

 

 

(208

)

 

 

(856

)

 

 

(416

)

Interest expense

 

 

(9

)

 

 

(350

)

 

 

(18

)

 

 

(702

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

7,227

 

 

 

3,356

 

 

 

25,514

 

 

 

2,595

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense (benefit)

 

 

667

 

 

 

(1,516

)

 

 

3,228

 

 

 

(4,779

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

 

6,560

 

 

 

4,872

 

 

 

22,286

 

 

 

7,374

 

Noncontrolling interest in net income of subsidiary

 

 

682

 

 

 

283

 

 

 

1,204

 

 

 

875

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to NL stockholders

 

$

5,878

 

 

$

4,589

 

 

$

21,082

 

 

$

6,499

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts attributable to NL stockholders:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted net income per share

 

$

.12

 

 

$

.09

 

 

$

.43

 

 

$

.13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares used in the calculation

   of net income per share

 

 

48,740

 

 

 

48,771

 

 

 

48,734

 

 

 

48,763

 

 

See accompanying notes to Condensed Consolidated Financial Statements.

 

 

 

5

 


 

NL INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands)

 

 

 

Three months ended

 

 

Six months ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2019

 

 

2020

 

 

2019

 

 

2020

 

 

 

(unaudited)

 

Net income

 

$

6,560

 

 

$

4,872

 

 

$

22,286

 

 

$

7,374

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss), net of tax:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Currency translation

 

 

1,720

 

 

 

4,364

 

 

 

1,695

 

 

 

(5,754

)

Defined benefit pension plans

 

 

817

 

 

 

1,031

 

 

 

1,645

 

 

 

2,074

 

Other postretirement benefit plans

 

 

(65

)

 

 

(71

)

 

 

(135

)

 

 

(151

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total other comprehensive income (loss), net

 

 

2,472

 

 

 

5,324

 

 

 

3,205

 

 

 

(3,831

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income

 

 

9,032

 

 

 

10,196

 

 

 

25,491

 

 

 

3,543

 

Comprehensive income attributable to noncontrolling interest

 

 

682

 

 

 

283

 

 

 

1,204

 

 

 

875

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income attributable to NL stockholders

 

$

8,350

 

 

$

9,913

 

 

$

24,287

 

 

$

2,668

 

 

See accompanying notes to Condensed Consolidated Financial Statements.

 

6

 


 

NL INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

(In thousands)

 

 

 

Three months ended June 30, 2019 and 2020 (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

other

 

 

Noncontrolling

 

 

 

 

 

 

Common

 

 

paid-in

 

 

Retained

 

 

comprehensive

 

 

interest in

 

 

Total

 

 

stock

 

 

capital

 

 

earnings

 

 

income (loss)

 

 

subsidiary

 

 

equity

 

 

(unaudited)

 

Balance at March 31, 2019

$

6,090

 

 

$

301,139

 

 

$

240,360

 

 

$

(247,537

)

 

$

19,848

 

 

$

319,900

 

Net income

 

-

 

 

 

-

 

 

 

5,878

 

 

 

-

 

 

 

682

 

 

 

6,560

 

Other comprehensive income, net of tax

 

-

 

 

 

-

 

 

 

-

 

 

 

2,472

 

 

 

-

 

 

 

2,472

 

Issuance of NL common stock

 

4

 

 

 

96

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

100

 

Dividends paid to noncontrolling interest

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(118

)

 

 

(118

)

Equity transactions with controlling

   interest, net and other

 

-

 

 

 

(1,831

)

 

 

-

 

 

 

-

 

 

 

1,543

 

 

 

(288

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at June 30, 2019

$

6,094

 

 

$

299,404

 

 

$

246,238

 

 

$

(245,065

)

 

$

21,955

 

 

$

328,626

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at March 31, 2020

$

6,094

 

 

$

298,865

 

 

$

250,960

 

 

$

(260,845

)

 

$

23,131

 

 

$

318,205

 

Net income

 

-

 

 

 

-

 

 

 

4,589

 

 

 

-

 

 

 

283

 

 

 

4,872

 

Other comprehensive income, net of tax

 

-

 

 

 

-

 

 

 

-

 

 

 

5,324

 

 

 

-

 

 

 

5,324

 

Issuance of NL common stock

 

4

 

 

 

96

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

100

 

Dividends paid - $.04 per share

 

-

 

 

 

-

 

 

 

(1,952

)

 

 

-

 

 

 

-

 

 

 

(1,952

)

Dividends paid to noncontrolling interest

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(170

)

 

 

(170

)

Other, net

 

-

 

 

 

132

 

 

 

-

 

 

 

-

 

 

 

18

 

 

 

150

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at June 30, 2020

$

6,098

 

 

$

299,093

 

 

$

253,597

 

 

$

(255,521

)

 

$

23,262

 

 

$

326,529

 

 

 

Six months ended June 30, 2019 and 2020 (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

other

 

 

Noncontrolling

 

 

 

 

 

 

Common

 

 

paid-in

 

 

Retained

 

 

comprehensive

 

 

interest in

 

 

Total

 

 

stock

 

 

capital

 

 

earnings

 

 

income (loss)

 

 

subsidiary

 

 

equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2018

$

6,090

 

 

$

301,139

 

 

$

225,156

 

 

$

(248,270

)

 

$

19,443

 

 

$

303,558

 

Net income

 

-

 

 

 

-

 

 

 

21,082

 

 

 

-

 

 

 

1,204

 

 

 

22,286

 

Other comprehensive income, net of tax

 

-

 

 

 

-

 

 

 

-

 

 

 

3,205

 

 

 

-

 

 

 

3,205

 

Issuance of NL common stock

 

4

 

 

 

96

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

100

 

Dividends paid to noncontrolling interest

 

-

 

 

 

-

 

 

 

-