Have you been paying attention to shares of Innospec (IOSP) ? Shares have been on the move with the stock up 7% over the past month. The stock hit a new 52-week high of $133.71 in the previous session. Innospec has gained 6.5% since the start of the year compared to the -0.3% move for the Zacks Basic Materials sector and the 1.3% return for the Zacks Chemical - Diversified industry.What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, as it hasn't missed our ea ...

May 2024 Forward Looking Statements This presentation contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts included or incorporated herein may constitute forward-looking statements. Such forwardlooking statements include statements (covered by words like "expects," "estimates," "anticipates," "may," "could," "believes," "feels," "plans," "intends" or similar words or expressions, for ...

Part I [Item 1. Condensed Consolidated Financial Statements](index=5&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements) This section presents Innospec Inc.'s unaudited interim condensed consolidated financial statements for Q1 2024, detailing financial performance and position [Condensed Consolidated Statements of Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) This statement details Innospec's Q1 2024 income, showing a slight sales decrease but improved gross profit, operating income, and net income Consolidated Income Statement Highlights (Q1 2024 vs Q1 2023) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Net Sales | $500.2 million | $509.6 million | | Gross Profit | $155.7 million | $147.8 million | | Operating Income | $50.5 million | $41.0 million | | Net Income | $41.4 million | $33.2 million | | Diluted EPS | $1.65 | $1.33 | [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This statement details Innospec's balance sheet as of March 31, 2024, showing increased assets and equity, with higher cash and lower liabilities Balance Sheet Summary (as of March 31, 2024) | Metric | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $270.1 million | $203.7 million | | Total Current Assets | $912.9 million | $885.7 million | | Total Assets | $1,732.8 million | $1,707.4 million | | Total Current Liabilities | $364.9 million | $371.5 million | | Total Liabilities | $546.6 million | $557.8 million | | Total Equity | $1,186.2 million | $1,149.6 million | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This statement details Innospec's Q1 2024 cash flows, showing a significant increase in operating cash flow and overall cash and cash equivalents Cash Flow Summary (Q1 2024 vs Q1 2023) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $80.6 million | $21.8 million | | Net cash used in investing activities | $(14.3) million | $(22.0) million | | Net cash provided by financing activities | $0.5 million | $0.4 million | | Net change in cash and cash equivalents | $66.4 million | $0.4 million | [Notes To The Unaudited Interim Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20To%20The%20Unaudited%20Interim%20Condensed%20Consolidated%20Financial%20Statements) These notes provide detailed disclosures on accounting policies, segment performance, goodwill, tax audits, contingent liabilities, and debt Segment Operating Income (Q1 2024 vs Q1 2023) | Segment | Operating Income (Q1 2024) | Operating Income (Q1 2023) | | :--- | :--- | :--- | | Performance Chemicals | $21.1 million | $10.4 million | | Fuel Specialties | $33.4 million | $32.4 million | | Oilfield Services | $16.9 million | $15.9 million | - Goodwill increased by **$1.5 million** due to a revision in the fair value of net assets acquired from QGP Química Geral S.A. in December 2023[30](index=30&type=chunk) - The company has a potential unrecognized tax benefit of **$10.5 million** related to the 2017 Tax Act, which may decrease in 2024 due to the lapse of the statute of limitations[42](index=42&type=chunk) - As of March 31, 2024, the company had not drawn down on its **$250.0 million** revolving credit facility[45](index=45&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations%20for%20the%20Three%20Months%20Ended%20March%2031,%202024) Management discusses Q1 2024 financial results, highlighting a slight sales decrease but improved gross profit, strong operating cash flow, and healthy liquidity [Results of Operations](index=24&type=section&id=Results%20of%20Operations) This section details Q1 2024 operational results, showing a 2% net sales decrease but improved aggregate gross margin, driven by Performance Chemicals Segment Performance Summary (Q1 2024 vs Q1 2023) | Segment | Net Sales Change | Gross Profit Change | Gross Margin (%) 2024 | Gross Margin (%) 2023 | | :--- | :--- | :--- | :--- | :--- | | Performance Chemicals | +6% | +56% | 23.4% | 15.9% | | Fuel Specialties | -7% | +6% | 34.3% | 30.2% | | Oilfield Services | -3% | -13% | 35.3% | 39.5% | | **Aggregate** | **-2%** | **+5%** | **31.1%** | **29.0%** | - Performance Chemicals sales growth was driven by a **13% increase in volume** from higher consumer demand for personal and home care products, with margins normalizing due to lower raw material costs and manufacturing efficiencies[79](index=79&type=chunk)[80](index=80&type=chunk) - Fuel Specialties' gross margin improvement of **4.1 percentage points** was primarily due to the absence of a **$7.4 million** inventory misappropriation charge that impacted the prior year[84](index=84&type=chunk) - Oilfield Services' operating expenses decreased by **$9.9 million (20%)** year-over-year, driven by lower selling and customer service costs[78](index=78&type=chunk)[86](index=86&type=chunk) [Liquidity and Financial Condition](index=29&type=section&id=Liquidity%20and%20Financial%20Condition) The company's liquidity strengthened in Q1 2024, driven by strong operating cash flow and reduced working capital, resulting in increased cash and no outstanding debt - Net cash provided by operating activities increased to **$80.6 million** in Q1 2024 from **$21.8 million** in Q1 2023, mainly due to reductions in working capital and higher profitability[97](index=97&type=chunk)[98](index=98&type=chunk) - Adjusted working capital (a non-GAAP measure) decreased by **$21.6 million** during the quarter, primarily due to a **$41.6 million** decrease in trade receivables[91](index=91&type=chunk)[93](index=93&type=chunk) - As of March 31, 2024, the company had cash and cash equivalents of **$270.1 million** and no outstanding debt under its **$250.0 million** revolving credit facility[99](index=99&type=chunk)[101](index=101&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=32&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company manages market risks from interest rates, foreign currency, and commodity prices using derivatives, with no significant changes in exposure since 2023 - The company uses derivative instruments to manage market risks related to interest rates, foreign currency exchange, and commodity costs[103](index=103&type=chunk)[104](index=104&type=chunk) - There have been no significant changes to the company's market risk exposure since the 2023 Form 10-K[105](index=105&type=chunk) [Item 4. Controls and Procedures](index=33&type=section&id=Item%204.%20Controls%20and%20Procedures) The company's disclosure controls and procedures were effective as of March 31, 2024, with the QGP acquisition excluded from the current assessment - The company's disclosure controls and procedures were deemed effective as of March 31, 2024[107](index=107&type=chunk) - The recently acquired QGP business has been excluded from the assessment of internal controls, with integration expected to be completed in 2024[106](index=106&type=chunk) Part II [Item 1. Legal Proceedings](index=34&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings, including an ongoing claim related to inventory misappropriation in Brazil, with no significant new developments - The company has an ongoing civil and criminal legal claim related to inventory misappropriation in Brazil, with no significant new developments[111](index=111&type=chunk) [Item 1A. Risk Factors](index=34&type=section&id=Item%201A.%20Risk%20Factors) No material changes in the company's risk factors have occurred since the disclosure in its 2023 Annual Report on Form 10-K - No material changes in risk factors have occurred since the 2023 Form 10-K filing[113](index=113&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=34&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered equity sales, repurchasing shares for employee stock options, with **$43.6 million** remaining for public repurchases - No purchases were made under the public share repurchase program in Q1 2024, with **$43.6 million** remaining authorized for future repurchases[115](index=115&type=chunk)[117](index=117&type=chunk) - The company repurchased **3,108 shares** at an average price of **$123.33 per share** in connection with employee stock option exercises[115](index=115&type=chunk)[117](index=117&type=chunk) [Items 3, 4, 5, and 6](index=35&type=section&id=Item%203-6) This section confirms no defaults on senior securities, no mine safety disclosures, and lists exhibits filed with the report, including certifications - Item 3: No defaults upon senior securities[118](index=118&type=chunk) - Item 4: Mine Safety Disclosures are not applicable[119](index=119&type=chunk) - Item 6: Exhibits filed include Sarbanes-Oxley certifications and compensatory plan agreements[122](index=122&type=chunk)

[Innospec Q1 2024 Financial Results](index=1&type=section&id=Innospec%20Q1%202024%20Financial%20Results) [Overall Financial Performance](index=1&type=section&id=Overall%20Financial%20Performance) In Q1 2024, Innospec's revenue slightly decreased to $500.2 million, while operating income surged 23% to $50.5 million, with GAAP EPS rising to $1.65 and adjusted non-GAAP EPS to $1.75 Q1 2024 Key Financial Metrics (vs. Q1 2023) | Metric | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | Total Revenues | $500.2M | $509.6M | -2% | | Net Income | $41.4M | $33.2M | +25% | | GAAP Diluted EPS | $1.65 | $1.33 | +24% | | Adjusted EBITDA | $64.0M | $52.7M | +21% | | Adjusted non-GAAP EPS | $1.75 | $1.38 | +27% | - The company declared a semi-annual dividend of 76 cents per common share, a **10% increase**[3](index=3&type=chunk) Q1 2024 GAAP to Non-GAAP EPS Reconciliation | (per diluted share) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Reported GAAP EPS | $1.65 | $1.33 | | Special Items Adjustments | $0.10 | $0.05 | | Adjusted non-GAAP EPS | $1.75 | $1.38 | [Business Segment Performance](index=2&type=section&id=Business%20Segment%20Performance) Overall performance was driven by Performance Chemicals' doubled operating income, solid profitability in Fuel Specialties, and operating income growth in Oilfield Services despite revenue declines Segment Performance Summary (Q1 2024 vs Q1 2023) | Segment | Net Sales (Q1 2024, in millions) | Net Sales (Q1 2023, in millions) | Operating Income (Q1 2024, in millions) | Operating Income (Q1 2023, in millions) | | :--- | :--- | :--- | :--- | :--- | | Performance Chemicals | $160.8M | $151.4M | $21.1M | $10.4M | | Fuel Specialties | $176.9M | $190.3M | $33.4M | $32.4M | | Oilfield Services | $162.5M | $167.9M | $16.9M | $15.9M | [Performance Chemicals](index=2&type=section&id=Performance%20Chemicals) Performance Chemicals revenue grew 6% to $160.8 million, with operating income more than doubling to $21.1 million, driven by volume and acquisitions - Revenue growth was driven by **13% volume growth** and **6% from acquisitions**, offset by a **14% adverse price/mix**[11](index=11&type=chunk) - Operating income approximately **doubled** over the prior year period, and gross margins increased by **7.5 percentage points**[11](index=11&type=chunk) - The recent acquisition of QGP Quimica Geral S.A. is performing in line with expectations and was immediately accretive[9](index=9&type=chunk) [Fuel Specialties](index=2&type=section&id=Fuel%20Specialties) Fuel Specialties revenues decreased 7% to $176.9 million, but operating income grew 3% to $33.4 million, with gross margins improving to 34.3% - Revenues were down **7%** due to a **6% adverse price/mix** and a **2% reduction in volumes**[12](index=12&type=chunk) - Gross margins of **34.3%** were within the targeted **32 to 35 percent range** and operating margins improved over the prior year[10](index=10&type=chunk)[12](index=12&type=chunk) [Oilfield Services](index=2&type=section&id=Oilfield%20Services) Oilfield Services revenues declined 3% to $162.5 million, but operating income increased 6% to $16.9 million, despite gross margin contraction - Operating income grew **6%** and margins expanded compared to the prior year, as softer results in production chemicals were offset by improvements in other segments[11](index=11&type=chunk)[13](index=13&type=chunk) - In the short-term, the company expects production chemicals activity to remain below previous quarters[11](index=11&type=chunk) [Financial Position and Cash Flow](index=1&type=section&id=Financial%20Position%20and%20Cash%20Flow) The company generated $80.6 million in operating cash flow, significantly up from the prior year, ending the quarter with a strong, debt-free balance sheet and $270.1 million in net cash - The company generated **$80.6 million** in cash from operating activities during the quarter[2](index=2&type=chunk)[6](index=6&type=chunk)[15](index=15&type=chunk) - The balance sheet remains strong and **debt-free**, with the net cash position improving to **$270.1 million** at the end of the quarter[2](index=2&type=chunk)[15](index=15&type=chunk)[17](index=17&type=chunk) Cash Flow Comparison (Q1 2024 vs Q1 2023) | (in millions) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $80.6 | $21.8 | | Net cash used in investing activities | ($14.3) | ($22.0) | | Net change in cash and cash equivalents | $66.4 | $0.4 | | Cash and cash equivalents at end of period | $270.1 | $147.5 | [CEO Commentary and Outlook](index=2&type=section&id=CEO%20Commentary%20and%20Outlook) The CEO highlighted a strong start with 23% operating income growth and margin expansion, expressing optimism for Performance Chemicals and Fuel Specialties, and noting the debt-free balance sheet provides strategic flexibility - The CEO described the quarter as a "very strong start to the year," with a **23% increase** in operating income and margin expansion driven by good performance in all businesses[8](index=8&type=chunk) - The company is cautiously optimistic about maintaining the performance improvement in Performance Chemicals throughout 2024[9](index=9&type=chunk) - The strong cash position and balance sheet provide significant flexibility for potential M&A, continued dividend growth, buybacks, and organic investment[17](index=17&type=chunk) [Financial Statements (Schedules)](index=4&type=section&id=Financial%20Statements%20(Schedules)) [Schedule 1: Condensed Consolidated Statements of Income](index=4&type=section&id=Schedule%201%3A%20Condensed%20Consolidated%20Statements%20of%20Income) This schedule details the income statement for Q1 2024, showing net sales of $500.2 million and net income of $41.4 million, an increase from the prior year Condensed Consolidated Statements of Income | (in millions) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Net sales | $500.2 | $509.6 | | Gross profit | $155.7 | $147.8 | | Operating income | $50.5 | $41.0 | | Income before income taxes | $55.3 | $45.0 | | Net income | $41.4 | $33.2 | | Diluted EPS | $1.65 | $1.33 | [Schedule 2: Segmental Analysis and Non-GAAP Reconciliation](index=5&type=section&id=Schedule%202%3A%20Segmental%20Analysis%20and%20Non-GAAP%20Reconciliation) Schedule 2A details segmental net sales and operating income, while Schedule 2B reconciles GAAP Net Income of $41.4 million to Adjusted EBITDA of $64.0 million for Q1 2024 Schedule 2A: Segmental Analysis of Results | (in millions) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | **Net sales:** | | | | Performance Chemicals | $160.8 | $151.4 | | Fuel Specialties | $176.9 | $190.3 | | Oilfield Services | $162.5 | $167.9 | | **Operating income:** | | | | Performance Chemicals | $21.1 | $10.4 | | Fuel Specialties | $33.4 | $32.4 | | Oilfield Services | $16.9 | $15.9 | Schedule 2B: Non-GAAP Measures (Net Income to Adjusted EBITDA) | (in millions) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Net income | $41.4 | $33.2 | | Interest income, net | ($2.1) | ($0.3) | | Income taxes | $13.9 | $11.8 | | Depreciation and amortization | $10.3 | $9.2 | | Other adjustments | $0.5 | ($1.2) | | **Adjusted EBITDA** | **$64.0** | **$52.7** | [Schedule 3: Condensed Consolidated Balance Sheets](index=6&type=section&id=Schedule%203%3A%20Condensed%20Consolidated%20Balance%20Sheets) This schedule presents the balance sheet as of March 31, 2024, showing total assets of $1,732.8 million and cash and cash equivalents increasing to $270.1 million Key Balance Sheet Items | (in millions) | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $270.1 | $203.7 | | Total current assets | $912.9 | $885.7 | | Total assets | $1,732.8 | $1,707.4 | | Total current liabilities | $364.9 | $371.5 | | Total liabilities and equity | $1,732.8 | $1,707.4 | [Schedule 4: Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Schedule%204%3A%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This schedule details Q1 2024 cash flows, highlighting $80.6 million in net cash from operating activities and a $66.4 million net increase in cash for the period Condensed Consolidated Statements of Cash Flows | (in millions) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $80.6 | $21.8 | | Net cash used in investing activities | ($14.3) | ($22.0) | | Net cash provided by financing activities | $0.5 | $0.4 | | Net change in cash and cash equivalents | $66.4 | $0.4 | | Cash and cash equivalents at end of period | $270.1 | $147.5 |

Innospec (IOSP) came out with quarterly earnings of $1.75 per share, beating the Zacks Consensus Estimate of $1.64 per share. This compares to earnings of $1.38 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 6.71%. A quarter ago, it was expected that this specialty chemicals company would post earnings of $1.59 per share when it actually produced earnings of $1.84, delivering a surprise of 15.72%.Over the last four quarters, ...

Wall Street expects a year-over-year increase in earnings on lower revenues when Innospec (IOSP) reports results for the quarter ended March 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on May 9. On the oth ...

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Innospec (IOSP) , which belongs to the Zacks Chemical - Diversified industry.When looking at the last two reports, this specialty chemicals company has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 12.69%, on average, in the last two quarters.For the last reported quarter, Innospec came out with earnings of $1. ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 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 1-13879 INNOSPEC INC. (Exact name of registrant as specified in its charter) DELAWARE 98-0181725 State or other jurisdiction of incorporation or org ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ☐ 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 1-13879 INNOSPEC INC. (Exact name of registrant as specified in its charter) DELAWARE 98-0181725 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 or | | Trading | Name of each exchange | | -- ...

Q2 2023 Earnings 1 August 2023 innospec|» Forward Looking Statements This presentation contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts included or incorporated herein may constitute forward-looking statements. Such forwardlooking statements include statements (covered by words like "expects," "estimates," "anticipates," "may," "could," "believes," "feels," "plans," "intends" or ...