• Q2’24 web gross sales of $463.6 million, web source of revenue of $34.9 million and profits consistent with diluted percentage of $1.94
• Q2’24 non-GAAP web source of revenue of $38.2 million and non-GAAP profits consistent with diluted percentage of $2.13
• Delivered adjusted EBITDA of $84.3 million in Q2’24, a 5% build up in comparison to $80.2 million in Q2’23
• Rude margins progressed 200 foundation issues in comparison to the prior 12 months, the eighth consecutive quarterly year-over-year build up
• Generated $73.5 million of working money wave YTD; Greater money dividend through 6.6%

CONSHOHOCKEN, Pa., Aug. 5, 2024 /PRNewswire/ — Quaker Houghton (“the Company”) (NYSE: KWR), the worldwide chief in business procedure fluids, introduced its 2d quarter 2024 effects these days. 

2nd Quarter 2024 Consolidated Effects

Internet gross sales in the second one quarter of 2024 have been $463.6 million, a subside of roughly 6% in comparison to $495.4 million in the second one quarter of 2023.  This consequence was once basically because of a snip in promoting value and product combine of roughly 4%, a subside in gross sales volumes of roughly 1% and an negative affect from foreign exchange translation of one%.  The snip in promoting value and product combine was once basically as a result of our index-based buyer word of honour.  The subside in gross sales volumes was once basically as a result of a continuation of soppy finish marketplace situations, basically within the EMEA and Americas branchs, in part offset through an development in volumes within the Asia/Pacific area and unused trade wins throughout all branchs.

The Corporate reported web source of revenue in the second one quarter of 2024 of $34.9 million, or $1.94 consistent with diluted percentage, in comparison to web source of revenue of $29.3 million, or $1.63 consistent with diluted percentage, in the second one quarter of 2023.  Aside from non-recurring and non-core pieces in each and every duration, the Corporate’s non-GAAP web source of revenue and profits consistent with diluted percentage have been $38.2 million and $2.13 respectively in the second one quarter of 2024 in comparison to $34.8 million and $1.93 respectively within the prior 12 months.  The Corporate generated adjusted EBITDA of $84.3 million in the second one quarter of 2024, an build up of five% in comparison to $80.2 million in the second one quarter of 2023, basically pushed through an development in rude margins in all branchs in comparison to the prior 12 months. 

Andy Tometich, Leading Govt Officer and President, commented, “Quaker Houghton accomplished forged leads to the second one quarter, demonstrating the resilience of our trade and turning in year-over-year and sequential profits enlargement.  We proceed to outperform our finish markets, pushed through the workforce’s focal point and execution, incomes winning unused trade through improving our buyer’s operations.  Department margins have additionally progressed year-over-year for the eighth consecutive quarter, serving to to mitigate the ongoing comfortable finish marketplace situations, basically within the Americas and EMEA areas.

“Looking ahead, we expect to deliver another year of earnings growth in 2024, despite the challenging end market environment which will likely persist through the end of the year.  We remain committed to advancing our enterprise strategy, enhancing our capabilities, and strengthening our leading portfolio of products and technical capabilities to drive efficiencies and further reinforce the relationship with our customers.  Our balance sheet and cash flow generation are strong, which support our balanced capital allocation strategy and we are well positioned to accelerate our long-term growth initiatives and drive value creation.”

2nd Quarter 2024 Department Effects

The Corporate’s 2d quarter 2024 working efficiency for each and every of its 3 reportable branchs: (i) Americas; (ii) EMEA; and (iii) Asia/Pacific, is additional described beneath. 

Internet gross sales within the Americas area declined in the second one quarter of 2024 in comparison to the similar duration in 2023 basically because of a subside in each gross sales volumes and promoting value and product combine.  Internet gross sales within the EMEA area declined in the second one quarter of 2024 in comparison to the similar duration in 2023 basically because of a subside in promoting value and an negative affect of foreign exchange translation.  Internet gross sales within the Asia/Pacific area larger in the second one quarter of 2024 in comparison to the similar duration in 2023 basically because of an build up in gross sales volumes, in part offset through a subside in promoting value and product combine and an negative affect of foreign exchange translation.

The subside in promoting value and product combine in the second one quarter of 2024 in comparison to the similar duration in 2023 in all branchs basically displays the affect of our index-based buyer word of honour.  The subside in gross sales volumes within the Americas area displays softer finish marketplace job, basically for metalworking packages, in comparison to the prior 12 months, in part offset through unused trade wins.  Gross sales volumes, inclusive of acquisitions, larger within the Asia/Pacific and EMEA area in comparison to the prior 12 months because of persisted unused trade wins and a slight development in finish marketplace situations, basically in metals packages.

In comparison to the primary quarter of 2024, web gross sales diminished 1% because of subside in promoting value and product combine of one%.  Gross sales volumes within the EMEA area larger in comparison to the prior quarter, while gross sales volumes remained constant within the Americas and Asia/Pacific branchs.  Promoting value and product combine larger within the Asia/Pacific area, however declined within the Americas and EMEA branchs reflecting the affect of our index-based buyer word of honour.  The affect of foreign exchange translation was once favorable to the EMEA area and negative within the Americas and Asia/Pacific area, in comparison to the prior quarter.

Working profits larger within the EMEA and Asia/Pacific branchs in the second one quarter of 2024 in comparison to the prior 12 months however declined within the Americas area.  Working margins larger in all branchs in the second one quarter of 2024 in comparison to the prior 12 months.  Working profits and working margins larger within the Asia/Pacific area in the second one quarter of 2024 in comparison to the primary quarter of 2024 and declined modestly within the Americas and EMEA area.

Money Tide and Liquidity Highlights

Internet money supplied through working actions was once $73.5 million for the six months ended June 30, 2024, in comparison to web money supplied through working actions of $116.1 million for a similar duration in 2023.  The Corporate’s working money wave displays a more potent working efficiency within the six months ended June 30, 2024, in part offset through ongoing running capital necessities. 

As of June 30, 2024, the Corporate’s overall rude debt was once $737.4 million and its money and money equivalents was once $188.6 million, which led to web debt of roughly $548.8 million.  The Corporate’s web debt divided through its trailing one year adjusted EBITDA was once roughly 1.7x.  In the second one quarter of 2024, the Corporate repurchased 49,000 stocks for roughly $7.8 million. 

Non-GAAP Measures and Reconciliations

The ideas incorporated on this press let go contains non-GAAP (unaudited) monetary data that incorporates EBITDA, adjusted EBITDA, adjusted EBITDA margin, non-GAAP working source of revenue, non-GAAP working margin, taxes on source of revenue sooner than fairness in web source of revenue of related corporations – adjusted, non-GAAP web source of revenue and non-GAAP profits consistent with diluted percentage.  The Corporate believes those non-GAAP monetary measures lend significant supplemental data as they reinforce a reader’s working out of the the Corporate’s monetary efficiency, are indicative of hour working efficiency and facilitate a comparability amongst fiscal sessions, because the non-GAAP monetary measures exclude pieces that aren’t indicative of hour working efficiency or no longer regarded as core to the Corporate’s operations.  Non-GAAP effects are introduced for supplemental informational functions handiest and will have to no longer be regarded as an alternative to the monetary data introduced based on GAAP. As well as, our definitions of EBITDA, adjusted EBITDA, adjusted EBITDA margin, non-GAAP working source of revenue, non-GAAP working margin, taxes on source of revenue sooner than fairness in web source of revenue of related corporations – adjusted, non-GAAP web source of revenue and non-GAAP profits consistent with diluted percentage as mentioned and reconciled beneath to essentially the most similar respective GAAP measures, is probably not similar to in a similar fashion named measures reported through alternative corporations. 

The Corporate gifts EBITDA which is calculated as web source of revenue as a result of the Corporate sooner than depreciation and amortization, passion expense, web, and taxes on source of revenue sooner than fairness in web source of revenue of related corporations.  The Corporate additionally gifts adjusted EBITDA which is calculated as EBITDA plus or minus positive pieces that aren’t regarded as indicative of hour working efficiency or no longer regarded as core to the Corporate’s operations. As well as, the Corporate gifts non-GAAP working source of revenue which is calculated as working source of revenue plus or minus positive pieces that aren’t regarded as indicative of hour working efficiency or no longer regarded as core to the Corporate’s operations.  Adjusted EBITDA margin and non-GAAP working margin are calculated as the proportion of adjusted EBITDA and non-GAAP working source of revenue to consolidated web gross sales, respectively.  The Corporate believes those non-GAAP measures lend clear and helpful data and are broadly impaired through traders, analysts, and friends in our business in addition to through control in assessing the working efficiency of the Corporate on a constant foundation. 

Moreover, the Corporate gifts non-GAAP web source of revenue and non-GAAP profits consistent with diluted percentage as alternative efficiency measures.  Non-GAAP web source of revenue is calculated as adjusted EBITDA, outlined above, much less depreciation and amortization, passion expense, web, and taxes on source of revenue sooner than fairness in web source of revenue of related corporations, in each and every case adjusted, as appropriate, for any depreciation, amortization, passion or tax affects due to the non-core pieces recognized within the reconciliation of web source of revenue as a result of the Corporate to adjusted EBITDA.  Non-GAAP profits consistent with diluted percentage is calculated as non-GAAP web source of revenue consistent with diluted percentage as accounted for less than the “two-class share method.”  The Corporate believes that non-GAAP web source of revenue and non-GAAP profits consistent with diluted percentage lend clear and helpful data and are broadly impaired through traders, analysts, and friends in our business in addition to through control in assessing the working efficiency of the Corporate on a constant foundation. 

Because it pertains to hour projections for the Corporate in addition to alternative forward-looking data contained on this press let go, the Corporate has no longer supplied steering for similar GAAP measures or a quantitative reconciliation of forward-looking non-GAAP monetary measures to essentially the most immediately similar U.S. GAAP measure as a result of it’s not able to decide with cheap walk in the park the endmost consequence of positive important pieces important to calculate such measures with out unreasonable struggle.  This stuff come with, however aren’t restricted to, positive non-recurring or non-core pieces the Corporate would possibly report that would materially affect web source of revenue.  This stuff are unsure, rely on numerous elements, and may have a subject matter affect at the U.S. GAAP reported effects for the steering duration. 

The Corporate’s connection with trailing one year adjusted EBITDA inside this press let go refers back to the twelve occasion duration ended June 30, 2024 adjusted EBITDA of $328.9 million, which is composed of (i) the six months ended June 30, 2024 adjusted EBITDA of $167.6 million, as introduced within the non-GAAP reconciliations beneath, and (ii) the one year ended December 31, 2023 adjusted EBITDA of $320.4 million, as introduced within the non-GAAP reconciliations incorporated within the Corporate’s fourth quarter and whole 12 months 2023 effects press let go dated February 29, 2024, much less (iii) the six months ended June 30, 2023 adjusted EBITDA of $159.0 million, as introduced within the non-GAAP reconciliations beneath. 

Sure of the prior duration non-GAAP monetary measures introduced in refer to tables were adjusted to adapt with modern duration presentation.  Refer to tables reconcile the Corporate’s non-GAAP monetary measures (unaudited) to their maximum immediately similar GAAP (unaudited) monetary measures (bucks in 1000’s except another way famous, apart from consistent with percentage quantities):

Department Measures and Reconciliations

Department working profits for each and every of the Corporate’s reportable branchs are made out of the area’s web gross sales much less immediately similar Price of products bought (“COGS”) and Promoting, normal and administrative bills (“SG&A”).  Working bills indirectly as a result of the web gross sales of each and every respective area, similar to positive company and administrative prices and Restructuring and similar fees, web, aren’t incorporated in area working profits. Alternative pieces no longer particularly recognized with the Corporate’s reportable branchs come with Passion expense, web and Alternative source of revenue (expense), web. 

Refer to desk gifts details about the efficiency of the Corporate’s reportable branchs (bucks in 1000’s):

Ahead-Taking a look Statements

This press let go incorporates “forward-looking statements” that fall below the shield harbor provisions of the Personal Securities Litigation Reform Employment of 1995 and the Securities Employment of 1933, as amended.  Those statements can also be recognized through the truth that they don’t relate strictly to historic or modern info.  We’ve founded those forward-looking statements on guesses, projections and expectancies about hour occasions that we imagine are cheap in accordance with lately to be had data, together with statements in regards to the possible results of the conflicts in Ukraine and the Heart East; inflation and world provide chain constraints at the Corporate’s trade, result of operations, and fiscal status; our expectation that we can preserve adequate liquidity and stay in compliance with the phrases of the Corporate’s credit score facility; expectancies about hour call for and uncooked subject matter prices; and statements in regards to the affect of larger uncooked subject matter prices and pricing tasks.  Those forward-looking statements come with statements with recognize to our ideals, plans, targets, objectives, expectancies, anticipations, intentions, monetary status, result of operations, hour efficiency, and trade, which would possibly range materially from our original effects, together with however no longer restricted to the possible advantages of acquisitions and divestitures, the affects on our trade because of world provide chain constraints, and our modern and hour effects and plans and statements that come with the phrases “may,” “could,” “should,” “would,” “believe,” “expect,” “anticipate,” “estimate,” “intend,” “outlook, “goal”, “imaginable”, “possible”, “plan” or similar expressions.  A major risk is that demand for the Company’s products and services is largely derived from the demand for its customers’ products, which subjects the Company to uncertainties related to downturns in a customer’s business and unanticipated customer production slowdowns and shutdowns.  Other major risks and uncertainties include, but are not limited to inflationary pressures, including the potential for continued significant increases in raw material costs; supply chain disruptions; customer financial instability; high interest rates and the possibility of economic recession; economic and political disruptions particularly in light of numerous elections globally and the possibility of regime changes, including the impacts of the military conflicts between Russia and Ukraine and between Israel and Hamas; legislative and regulatory developments including changes to existing laws and regulations, or the way they are interpreted, applied or enforced; tariffs, trade restrictions, and the economic and other sanctions imposed by other nations on Russia and Belarus and/or other government organizations; suspensions of activities in Russia by many multinational companies and the potential expansion of military activity; foreign currency fluctuations; significant changes in applicable tax rates and regulations; future terrorist attacks and other acts of violence; the impacts of consolidation in our industry, including loss or consolidation of a major customer; and the potential occurrence of cyber-security breaches, cyber-security attacks and other technology outages and security incidents. Furthermore, the Company is subject to the same business cycles as those experienced by our customers in the steel, automobile, aircraft, industrial equipment, aluminum and durable goods industries.  Our forward-looking statements are subject to risks, uncertainties and assumptions about the Company and its operations that are subject to change based on various important factors, some of which are beyond our control.  These risks, uncertainties, and possible inaccurate assumptions relevant to our business could cause our actual results to differ materially from expected and historical results.  All forward-looking statements included in this press release, including expectations about business conditions during 2024 and future periods, are based upon information available to the Company as of the date of this press release, which may change.  Therefore, we caution you not to place undue reliance on our forward-looking statements. For more information regarding these risks and uncertainties as well as certain additional risks that we face, refer to the Risk Factors section, which appears in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2023, and in next studies filed from month to month with the Securities and Change Fee.  We don’t intend to, and we deny any responsibility or legal responsibility to, replace or revise any forward-looking statements to mirror unused data or hour occasions or for any alternative reason why. This dialogue is supplied as accredited through the Personal Securities Litigation Reform Employment of 1995. 

Convention Name

As up to now introduced, the Corporate’s investor convention name to speak about its 2d quarter of 2024 efficiency is scheduled for Tuesday, August 6, 2024 at 8:30 a.m. ET.  A reside webcast of the convention name, at the side of supplemental data, can also be accessed during the Corporate’s Investor Family members web site at traders.quakerhoughton.com.  You’ll be able to additionally get admission to the convention name through dialing 877-269-7756. 

About Quaker Houghton

Quaker Houghton is the worldwide chief in business procedure fluids.  With a presence around the globe, together with operations in over 25 nations, our shoppers come with 1000’s of the arena’s maximum complex and specialised metal, aluminum, automobile, aerospace, offshore, container, mining, and metalworking corporations.  Our high-performing, leading edge and sustainable answers are subsidized through best-in-class era, deep procedure wisdom and custom designed products and services.  With roughly 4,400 staff, together with chemists, engineers and business professionals, we spouse with our shoppers to make stronger their operations so they are able to run much more successfully, much more successfully, no matter comes then.  Quaker Houghton is headquartered in Conshohocken, Pennsylvania, positioned close Philadelphia in the USA.  Seek advice from quakerhoughton.com to be told extra. 

SOURCE Quaker Chemical Company