NewMarket Corporation (NYSE:NEU) Q3 2019 Earnings Conference Call October 24, 2019 3:00 PM ET Company Participants Brian Paliotti - Chief Financial Officer Conference Call Participants Dmitry Silversteyn - Buckingham Research Operator Ladies and gentlemen, good day, and thank you all for joining this NewMarket Corporation Conference Call and Webcast to review Third Quarter 2019 Financial Results. [Operator Instructions] And now for opening remarks and introductions, I'm pleased to turn the floor over to you ...

Financial Performance - Consolidated net sales for Q3 2019 totaled $555.8 million, a decrease of $7.3 million, or 1.3%, from Q3 2018[83] - Petroleum additives net sales for the first nine months of 2019 were $1.6 billion, down 5.7% from $1.7 billion in the same period of 2018[86] - Operating profit for petroleum additives increased by $19.0 million in Q3 2019 compared to Q3 2018, and by $54.1 million for the first nine months of 2019 compared to the same period in 2018[95] - The operating profit margin for petroleum additives was 17.2% in Q3 2019, up from 13.5% in Q3 2018, and 17.4% for the first nine months of 2019, compared to 13.3% in the same period of 2018[96] - The decrease in petroleum additives net sales for the first nine months of 2019 was attributed to lower product shipments across all regions, with the most significant decline in the EMEAI region[86] Expenses and Taxation - Research and development (R&D) expenses as a percentage of net sales were 6.6% for Q3 2019, compared to 6.3% for Q3 2018[100] - Selling, general, and administrative expenses (SG&A) decreased by $0.6 million, or 1.9%, in Q3 2019 compared to Q3 2018, and by $10.2 million, or 9.9%, for the first nine months of 2019 compared to the same period in 2018[99] - Interest and financing expenses were $7.0 million for Q3 2019, down from $7.8 million in Q3 2018, primarily due to lower average debt outstanding[101] - Income tax expense for Q3 2019 was $19.7 million, with an effective tax rate of 22.5%, compared to $9.8 million and 14.4% in Q3 2018[103] - Income tax expense for the first nine months of 2019 was $60.8 million, up from $47.3 million in the same period of 2018, with an effective tax rate increase from 21.6% to 22.9%[104] Cash Flow and Capital Structure - Cash and cash equivalents increased to $80.0 million as of September 30, 2019, a rise of $6.9 million since December 31, 2018[106] - Cash flows from operating activities for the first nine months of 2019 were $233.2 million, which included $36.0 million used for higher working capital requirements[110] - Total working capital was $546.5 million at September 30, 2019, compared to $542.1 million at December 31, 2018, with a current ratio of 2.95 to 1[113] - Cash used in investing activities totaled $37.1 million during the first nine months of 2019, with total capital spending expected to be in the range of $60 million to $70 million for the year[114] - Long-term debt decreased from $771.0 million at December 31, 2018, to $640.0 million at September 30, 2019, resulting in a long-term debt percentage of total capitalization dropping from 61.1% to 50.4%[116][119] Strategic Outlook - The company expects the petroleum additives market to grow at an annual rate of 1% to 2%, with plans to exceed this growth rate over the long term[124] - Significant investments have been made in organizational talent, technology development, and global infrastructure to enhance operating results and customer solutions[125] - The company remains focused on the petroleum additives industry for future acquisitions, viewing it as a segment with solid return opportunities while minimizing risk[126] - The company aims to provide a 10% compounded return per year for shareholders over any five-year period, emphasizing a long-term view and customer-focused strategy[123]

NewMarket Corporation (NYSE:NEU) Q2 2019 Earnings Conference Call August 1, 2019 3:00 PM ET Company Participants Brian Paliotti - Vice President & Chief Financial Officer Teddy Gottwald - Chairman & Chief Executive Officer Conference Call Participants Dmitry Silversteyn - Buckingham Research Haruki Toyama - Madison Investment Operator Good day, ladies and gentlemen, and welcome to the NewMarket Corporation Conference Call and Webcast to Review Second Quarter 2019 Financial Results. All lines have been place ...

Table of Contents 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, 2019 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 1-32190 NEWMARKET CORPORATION (Exact name of registrant as specified in its charter) Virginia 20-0812170 (State or other juris ...

NewMarket Corp (NYSE:NEU) Q1 2019 Earnings Conference Call April 25, 2019 3:00 PM ET Company Participants Brian Paliotti - VP & CFO Thomas Gottwald - Chairman, President & CEO Conference Call Participants Dmitry Silversteyn - The Buckingham Research Group Operator Good day, ladies and gentlemen, and thank you for joining us for the NewMarket Corporation Schedules Conference Call and Webcast to review first quarter 2019 financial results. [Operator Instructions]. Also as a reminder, today's meeting is being ...

Financial Performance - Consolidated net sales for Q1 2019 were $536.6 million, a decrease of $52.6 million or 8.9% from Q1 2018[71] - Petroleum additives net sales decreased 9.2% to $532.7 million in Q1 2019 compared to $586.9 million in Q1 2018, with the largest decline in the EMEAI region[75] - Operating profit for petroleum additives increased by $3.8 million to $87.9 million in Q1 2019, with an operating profit margin of 16.5% compared to 14.3% in Q1 2018[81][83] - The volume of product shipments for petroleum additives decreased by 12.5% in Q1 2019 compared to Q1 2018, with lubricant additives shipments declining across all regions[77] Research and Development - Research and development (R&D) investment decreased by $1.1 million in Q1 2019, representing 6.2% of net sales compared to 5.8% in Q1 2018[86] Cash Flow and Working Capital - Cash and cash equivalents increased by $5.2 million to $78.2 million as of March 31, 2019[92] - Cash flows from operating activities for Q1 2019 were $19.1 million, with $63.4 million used to fund higher working capital requirements[96] - Total working capital increased to $596.2 million at March 31, 2019, with a current ratio of 3.29 to 1[98] - Cash used in financing activities during Q1 2019 amounted to $4.1 million, with dividends paid of $19.6 million partially offset by borrowings of $16.1 million[100] Capital Expenditures and Debt - Capital expenditures for Q1 2019 totaled $10.4 million, with total capital spending expected to be in the range of $75 million to $85 million for the year[99] - Long-term debt increased to $782.0 million at March 31, 2019, up from $771.0 million at December 31, 2018[100] - The total long-term debt as a percentage of total capitalization decreased from 61.1% at December 31, 2018 to 59.2% at March 31, 2019, primarily due to an increase in shareholders' equity[107] Future Outlook - The company expects petroleum additives industry shipment demand to grow in the 1% to 2% range over the long term, with plans to exceed this growth rate[113] - Significant investments have been made in organizational talent, technology development, and global infrastructure to enhance operating results and customer solutions[114] - The company generates excess cash beyond current offerings and regularly reviews internal opportunities for utilizing this cash, focusing on the petroleum additives industry for future acquisitions[115] Shareholder Returns and Compliance - The company aims to provide a 10% compounded return per year for shareholders over any five-year period, although this may not be achieved each year[112] - The company remains in compliance with all covenants under its debt agreements as of March 31, 2019[106] Market Risk - There have been no material changes in market risk as of March 31, 2019, compared to the 2018 Annual Report[117]

Financial Performance - Consolidated net sales for 2018 amounted to $2.3 billion, an increase of $91 million, or 4.2% from 2017 [151]. - Net sales for 2018 were $2,289,675 thousand, an increase of 4.1% from $2,198,404 thousand in 2017 [266]. - Gross profit decreased to $585,363 thousand in 2018, down 8.0% from $636,387 thousand in 2017 [266]. - Operating profit for 2018 was $292,674 thousand, a decline of 9.3% compared to $322,734 thousand in 2017 [266]. - Net income increased to $234,734 thousand in 2018, up 23.2% from $190,509 thousand in 2017 [266]. - Comprehensive income decreased to $199,412,000 in 2018 from $227,025,000 in 2017, reflecting a decline of 12.2% [268]. - Basic and diluted earnings per share rose to $20.34 in 2018, compared to $16.08 in 2017, reflecting a 26.0% increase [266]. Expenses and Costs - Petroleum additives operating profit for 2018 was $311 million, a decrease of $34 million, or 9.8% from 2017 [160]. - The operating profit margin was 13.6% in 2018, down from 15.8% in 2017 and 18.4% in 2016, primarily due to increased raw material costs [161]. - Selling, general, and administrative expenses (SG&A) were $9 million, or 6.1% lower in 2018 than in 2017, with SG&A as a percentage of net sales at 5.7% [167]. - The cost of goods sold as a percentage of net sales increased to 74.5% in 2018 from 71.6% in 2017 and 67.1% in 2016 [163]. - Interest and financing expenses rose to $27 million in 2018 from $22 million in 2017, primarily due to higher average debt [170]. - Cash paid for interest and financing expenses in 2018 was $28.92 million, up from $20.38 million in 2017, indicating a rise of 42.2% [322]. Cash Flow and Capital Management - Cash generated from operating activities was $198 million in 2018, down from $243 million in 2017 and $353 million in 2016 [176]. - The company repurchased 603,449 shares of common stock at a total cost of $232 million during 2018 [148]. - The company repurchased $232 million of common stock and paid $80 million in dividends in 2018 [177]. - Cash and cash equivalents decreased from $84 million at the end of 2017 to $73 million at the end of 2018 [181]. - Cash provided from operating activities was $197,911,000 in 2018, down from $242,795,000 in 2017, a decrease of 18.5% [275]. - The company paid dividends of $80,448,000 in 2018, slightly lower than $82,885,000 in 2017 [275]. Debt and Financial Ratios - Long-term debt increased from $603 million at the end of 2017 to $771 million at the end of 2018, representing 61.1% of total capitalization [196][197]. - The Leverage Ratio was 2.00 and the Interest Coverage Ratio was 11.89 as of December 31, 2018, indicating strong financial health [194]. - Total long-term debt as of December 31, 2018, was $771 million, with $600 million at fixed rates, indicating no interest rate risk for fixed debt [248]. - Variable rate debt under the revolving credit facility was $168 million, with a hypothetical 10% increase in interest rates resulting in an additional interest expense of approximately $0.3 million [249]. - Long-term debt increased significantly to $770,999,000 in 2018 from $602,900,000 in 2017, an increase of 28% [271]. Investments and Growth Strategy - Significant investments have been made in organizational talent, technology development, and global infrastructure, including a new manufacturing facility in Singapore and an acquired facility in Mexico [231]. - The company expects to utilize excess cash for technological, geographic, capability, and product line opportunities, focusing on the petroleum additives industry for future acquisitions [232]. - The petroleum additives segment is expected to grow at a rate of 1% to 2% over the long term, with plans to exceed this industry growth rate [230]. Pension and Employee Benefits - The average remaining service period of active participants for U.S. pension plans is 12.8 years, while the average remaining life expectancy of inactive participants is 22.9 years [209]. - The expected long-term rate of return for U.S. pension plans is maintained at 8.5% as of December 31, 2018 [211]. - An actuarial loss of approximately $56 million occurred in 2018 due to actual investment returns being less than expected for U.S. pension plans [212]. - The expected long-term rate of return for the U.K. pension plan is 5.7% as of December 31, 2018, based on actual asset allocation [222]. - The aggregate cash contributions to U.S. pension plans are expected to be approximately $2 million to $4 million in 2019, while contributions to postretirement benefit plans are expected to be around $1 million [218]. Market Risks - The company is exposed to market risks including fluctuations in interest rates, foreign currency rates, and raw material prices, which could impact operations and cash flows [245]. - The company recorded a net loss of $8 million from foreign currency transaction adjustments in 2018, contrasting with a net gain of $5 million in both 2017 and 2016 [279].

NewMarket Corporation (NYSE:NEU) Q4 2018 Results Earnings Conference Call February 7, 2019 3:00 PM ET Company Participants Brian Paliotti - CFO Teddy Gottwald - Chairman and CEO Conference Call Participants Dmitry Silversteyn - Buckingham Research Operator Good day, ladies and gentlemen. And to the NewMarket Corporation's Conference Call and Webcast to review Fourth Quarter 2018 and Year End Financial Results. All lines have been placed on listen-only mode. [Operator Instructions] At this time, its my pleas ...